KWS publishes results for the first half 2025/2026 and updates forecast for the fiscal year

KWS publishes results for the first half 2025/2026 and updates forecast for the fiscal year

• Comparable net sales[1] increased by 0.8% year-on-year due to significant organic growth in second quarter in a still challenging agricultural market
• Cereals segment benefited from strong rapeseed business, higher sales also in the Vegetables segment
• EBITDA improved to € -49.0 (-65.9) million, mainly due to positive special effect from the sale of the North American corn business
• Forecast updated: net sales on a comparable basis¹ for fiscal year 2025/2026 expected to be in line with the prior year; earnings guidance (EBITDA margin of 19% to 21%) remains confirmed through a focus on profitability

„The agricultural markets remain challenging, yet our business continues to demonstrate resilience. In the first half of fiscal year 2025/2026, we achieved significant progress particularly in our oilseed rape business and in the vegetable seeds segment. As a result of strong growth in the second quarter, net sales at Group level increased slightly on a comparable basis¹,” commented Dr. Jörn Andreas, Chief Financial Officer of KWS. “Due to changes in global acreage patterns, we are adjusting our net sales forecast, while confirming our earnings guidance. We remain clearly focused on profitability and on maintaining high levels of investment in our long‑term innovation capabilities.”

In the first six months of fiscal year 2025/2026, the KWS Group reported net sales of €411.3 (417.2) million. On a comparable basis (excluding currency and portfolio effects), net sales increased by 0.8% in the reporting period.

The KWS Group’s key operating earnings figures reflect the small share the first quarter contributes to net sales for the year as a whole. In the period under review, a positive operating special effect of approximately €30 million was recognized from the disposal of license rights as part of the sale of the North American corn business. In addition, the income from equity investments included a positive disposal effect from the sale of the shares in the North American joint ventures (AgReliant).

Earnings before interest, taxes, depreciation and amortization (EBITDA) improved to € –49.0 (–65.9) million. Earnings before interest and taxes (EBIT) were € –96.8 (–120.7) million. The gross profit was below the prior year level, while research and development expenses as well as general administrative expenses were lower than in the same period of the previous year.

Net financial income/expenses improved significantly to €5.7 (–32.2) million, mainly due to higher income from equity investments. Earnings before taxes improved to € –91,1 (–152,9) million. Income taxes were € –27.3 (–38.2) million. That gave earnings after taxes from continuing operations of € –63.8 (–114.7) million or € –1.93 (–3.48) per share.

In the half-year under review, the net cash from operating activities from continuing operations fell to € –164.1 (–128.0) million, mainly due to an increase in net working capital. The net cash from investing activities from continuing operations was €18.9 (–48.2) million. In this connection, the KWS Group made investments in property, plant and equipment and intangible assets (excluding leases) totaling €33.2 (51.8) million in the first six months of 2025/2026. In addition, the net cash from investing activities in the period under review included the payment of part of the sales price for the North American corn business. The free cash flow from continuing operations improved to € –145.2 (–176.2) million.

The equity ratio increased to 57.1 (54.2%), while total assets at December 31, 2025, were €2,610.8 (2,589.9) million. Net debt fell to €264.6 (343.5) million.

Business performance of the segments

Due to seasonal reasons, revenue in the Sugarbeet Segment is low in the first half of the year, since the main net sales for the segment are not recorded until the spring sowing season in the third quarter (January to March). The slight decline in net sales in the first half of the year to €135.0 (137.2) million is mainly due to lower net sales in the regions Europe and North America, largely offset by higher net sales in the Middle East and Asia regions. The segment’s income (EBITDA) declined to € –18.1 (2.4) million, in particular due to seasonal product and regional mix effects and the fact that unusable seed was screened out earlier than in the previous year.

The Corn Segment records the major part of its annual net sales in the spring sowing season in Europe in the third quarter (January to March). Net sales in the period under review were €23.6 (26.2) million. As is typical, the segment’s income (EBITDA) in the first half of the year was negative and totaled € –40.9 (–79.2) million. The improvement in the segment’s income is attributable to a positive special effect of approximately €30 million from the disposal of license rights in connection with the sale of the North American corn business.

The Cereals Segment grew its net sales in the first half of the year to €222.0 (221.3) million. The oilseed rape business posted sharp increases in net sales, while net sales from rye seed declined. The significant increase in the oilseed rape business (+21%) was mainly due to our high-performance variety portfolio. Our hybrid rye business (–13%) was impacted by comparatively low market prices for rye. The segment’s income (EBITDA) was €88.0 (91.0) million, slightly below the level of the previous year.

Net sales at the Vegetables Segment rose to €26.9 (26.1) million. This is mainly due to higher net sales from spinach seed, while net sales from bean seed declined. As in the same period of the previous year, the segment’s income (EBITDA) was negative at € –14.1 (–8.6) million due to planned expenditure on expanding vegetable breeding.

Net sales in the Corporate Segment, which are mainly recorded by KWS’ farms in Germany, France and Poland, were €3.8 (6.2) million. The segment’s income (EBITDA) was € –64.0 (–71.5) million. Since all cross-segment costs for the KWS Group’s central functions and basic research expenditure are charged to the Corporate Segment, its income is usually negative.

Net sales forecast adjusted; EBITDA margin guidance for fiscal year 2025/2026 confirmed

KWS continues to operate in a subdued market environment with low prices for agricultural raw materials, which is causing uncertainty among customers in their decisions on what to grow. In this connection, KWS expects a greater reduction in global cultivation area for sugarbeet than previously assumed. KWS still expects a decline in net sales in the Russian market as a result of import restrictions and localization efforts for seed.

Against this backdrop, KWS expects net sales on a comparable basis (excluding exchange rate and portfolio effects) for fiscal 2025/2026 to be at the previous year’s level (instead of the previously anticipated growth of around 3%). In addition, KWS is placing a greater focus on its own profitability and initiated cost-cutting measures in the first half of fiscal 2025/2026, which are already having an initial impact. On the basis of these developments, as well as its diversified product portfolio and strong market position, KWS confirms its forecast for an EBITDA margin in the range of 19% to 21% for fiscal year 2025/2026.

About KWS

KWS is one of the world’s leading plant breeding companies. Around 5,000 employees* in over 70 countries recorded net sales of around €1.68 billion in fiscal 2024/2025. A company with a tradition of family ownership, KWS has operated independently for 170 years. It focuses on plant breeding and the production and sale of seed for sugarbeet, corn, cereals, vegetables, oilseed rape and sunflowers. KWS uses leading-edge plant breeding methods to continuously improve yield for farmers and plants’ resistance to diseases, pests and abiotic stress. To that end, the company invested approximately €350 million in fiscal year 2024/2025 in research and development.

* excluding seasonal workers

More information: www.kws.com/corp/en. Follow us on LinkedIn.

Contact

Falk Reimann
Senior Investor Relations Manager
Phone +49 151 14485251
falk.reimann@kws.com

Gina Wied
Head of Corporate Communications
Phone +49 151 20345978
gina.wied@kws.com

^[1] excluding exchange rate and portfolio effects