KWS SAAT SE & Co. KGaA has reported strong financial and operational results for the first nine months of fiscal year 2025/2026, demonstrating resilience in a difficult global agricultural market. Supported by robust performance in its core sugarbeet business, timely product shipments, and disciplined cost management, the company maintained profitability and confirmed its full-year outlook despite currency pressures and ongoing market uncertainty.
Commenting on the results, Dr. Jörn Andreas, Chief Financial Officer of KWS, emphasized that the company successfully expanded its business during the strategically important spring quarter, even amid a demanding market environment. According to Andreas, the company’s performance was driven primarily by strength in sugarbeet and accelerated deliveries, combined with a strong product portfolio and strict financial discipline that helped offset broader market headwinds.
Revenue Growth Driven by Earlier Shipments and Sugarbeet Strength
During the first nine months of fiscal year 2025/2026, KWS generated total revenue of €1.35 billion, slightly ahead of the €1.34 billion reported in the same period last year.
On a comparable basis—excluding currency and portfolio effects—revenue increased by 2.6%, largely due to earlier seasonal deliveries across several markets. However, unfavorable exchange rate movements negatively impacted reported revenue by approximately 1.8%, limiting topline growth.
Despite this currency pressure, the company managed to preserve overall sales momentum across most major business units, highlighting the resilience of its diversified seed portfolio.
EBITDA and EBIT Improve Significantly
KWS reported strong profitability improvements during the reporting period.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to €386.8 million, compared with €360.8 million a year earlier.
- EBIT (earnings before interest and taxes) increased to €311.1 million, up from €282.1 million.
Profitability was supported by a positive one-time operating gain of €29 million linked to the sale of licensing rights following the divestiture of KWS’s North American corn business.
Additionally, the company recorded €7.7 million in income from the sale of shares in the North American joint venture AgReliant Genetics.
These gains helped offset several negative impacts, including:
- a legal provision in the Cereals segment valued in the mid-single-digit million-euro range,
- and approximately €15 million in adverse currency effects.
Gross profit remained broadly stable year-over-year, as losses from currency fluctuations were largely balanced by favorable product mix changes and shipment timing benefits.
Meanwhile, spending on research and development, administration, and sales declined slightly as the company implemented targeted cost-saving measures.
Agricultural Conditions Remain Challenging as KWS Reports Strong First Nine Months of 2025/2026
Net Profit and Earnings Per Share Rise
KWS’s financial result improved sharply to €3.3 million, compared with a loss of €11.7 million during the same period last year.
As a result:
- Earnings before taxes rose to €314.3 million from €270.4 million.
- Income tax expense increased to €94.3 million.
- Net income from continuing operations climbed to €220.0 million, compared with €202.8 million last year.
This translated into earnings per share of €6.67, up from €6.15 in the prior-year period.
Cash Flow Temporarily Weakens
Despite stronger profitability, operating cash flow from continuing operations fell sharply to –€53.8 million, compared with €54.7 million last year.
The decline was primarily caused by a rise in trade receivables, reflecting seasonal working capital movements.
Cash flow from investing activities improved significantly to –€0.9 million, compared with –€58.6 million in the previous year.
During the first nine months, KWS invested €56 million in property, equipment, and intangible assets, down from €73.6 million a year earlier.
Free cash flow declined to –€52.7 million, compared with –€3.9 million in the prior year.
Balance Sheet Remains Strong
KWS maintained a healthy financial position:
- Equity ratio: 57.5%
- Total assets: €3.09 billion
- Net debt: €178.7 million
These figures demonstrate the company’s continued financial stability and flexibility to support long-term innovation investments.
Segment Performance Review
Sugarbeet Segment Leads Growth
The CONVISO SMART and CR+ product lines continued to drive strong performance in the Sugarbeet division.
Revenue rose slightly to €703.8 million from €693.2 million, despite a significant decline in planted sugarbeet acreage globally, particularly across the European Union.
On a comparable basis, sales increased 4.2%, supported by earlier deliveries and a larger share of premium innovative varieties.
Innovative products represented 62% of segment sales, compared with 57% last year.
Segment EBITDA reached €324.6 million, slightly below last year’s €331.2 million, mainly because the prior year included an €8 million tax-related one-time benefit.
Corn Segment Supported by One-Time Gains
The Corn business generated €349.4 million in revenue, roughly flat versus €352.4 million last year.
Comparable growth was 1.3%, driven by stronger sunflower seed sales and shipment timing improvements.
The division’s EBITDA surged to €106.5 million, up from €62.9 million, largely due to:
- the €29 million licensing gain,
- and reduced R&D costs following the AgReliant divestment.
Cereals Business Faces Profit Pressure
Revenue in the Cereals segment remained stable at €243.4 million.
Growth in rapeseed sales offset weaker rye seed performance.
However, EBITDA declined sharply to €65.4 million, compared with €78.0 million last year.
The drop reflected:
- increased investment in hybrid wheat and barley breeding,
- and a legal provision impacting earnings.
Vegetables Segment Continues Expansion
The Vegetables business reported revenue of €46.5 million, up from €45.5 million.
Growth was driven mainly by stronger bean seed sales, while spinach demand remained stable.
Segment EBITDA remained negative at –€19.3 million, reflecting planned investments to expand vegetable breeding operations.
Corporate Segment Loss Narrows
Revenue in the Corporate segment totaled €5.5 million, down from €9.9 million.
EBITDA improved to –€90.3 million, versus –€99.2 million last year.
This division includes corporate overhead costs and central research investments, which typically result in negative earnings.
Full-Year 2025/2026 Outlook Confirmed
KWS reaffirmed its guidance for the full fiscal year.
The company expects:
- stable revenue on a comparable basis, excluding currency and portfolio effects;
- an EBITDA margin between 19% and 21%, aligned with medium-term strategic targets.
Importantly, this EBITDA forecast excludes the €29 million one-time licensing gain, indicating management expects strong underlying profitability.
KWS acknowledged several ongoing challenges, including:
- weaker agricultural spending globally,
- reduced global sugarbeet acreage,
- and declining business in Russia due to import restrictions and localization policies.
Nevertheless, management remains confident that its focus on innovation, premium genetics, and cost discipline will support sustainable long-term growth.
Strategic Position Remains Strong
With resilient core operations, a growing portfolio of premium seed technologies, and continued investment in next-generation breeding programs, KWS appears well positioned to navigate current agricultural volatility while protecting long-term shareholder value.
The company’s latest results reinforce its reputation as one of Europe’s most stable and innovation-driven agricultural technology leaders.
Source Link:https://www.kws.com/
