EQS-News: KWS publishes results for the first quarter 2025/2026 and confirms forecast

• Growth in winter crop seed thanks to strong oilseed rape business
• Decline in sugarbeet due to extensive early sales in the previous year – segment forecast unchanged
• Total net sales of €228.2 (248.6) million
• EBITDA rises to €4.8 (–10.0) million due to a positive special effect from the sale of the North American corn business
• Forecasts for fiscal year 2025/2026 confirmed

“Our winter crop business performed positively in the first quarter of 2025/2026, mainly due to strong growth in oilseed rape,” said Dr. Jörn Andreas, Chief Financial Officer of KWS. “Nevertheless, the market environment remains subdued. Low prices for agricultural commodities continue to cause uncertainty among our customers in their decisions on what to grow. With our diversified product portfolio and strong market position, we are well placed to meet these challenges.”

The KWS Group’s net sales in the first three months of fiscal 2025/2026 were €228.2 (248.6) million. The decline is mainly attributable to the Sugarbeet Segment, which generates the lion’s share of its annual net sales in the third quarter (January to March), there were significant early sales in Eastern Europe in the same period of the previous year. The comparable net sales development (excluding exchange rate and portfolio effects) was –8.0%.

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, these included a positive special effect of approximately €30 million from the disposal of license rights as part of the sale of the North American corn business. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved to €4.8
(–10.0) million. Earnings before interest and taxes (EBIT) were € –20.9 (–37.4) million. Overall, function costs remained at the previous year’s level.

Net financial income/expenses improved sharply to €6.9 (–17.3) million. The main reason for this was an increase in result from equity investments of €7.7 (–16.9) million. In the period under review, result from equity investments included a positive derecognition effect of €7.7 million from the sale of the shares in the North American joint ventures (AgReliant), which resulted from the reclassification of the reserve for other comprehensive income. In contrast to the same period of the previous year, the result from equity investments no longer included ongoing at equity valuation. Earnings before taxes improved to € –14.0 (–54.7) million. Income taxes were € –4.2 (–13.7) million. That gave earnings after taxes from continuing operations of € –9.8 (–41.0) million or € –0.30 (–1.24) per share.

The free cash flow from continuing operations improved to € –50.6 (–66.0) million. This is mainly due to the improved cash flow of the continuing operations from investing activities of €33.7 (–22.8) million, which contains the payment of part of the sale price for the North American corn business. The net cash from operating activities from continuing operations was € –84.3 million and thus below the figure for the same period of the previous year (€ –43.2 million).

The equity ratio improved to 57.7% (55.3%), while total assets at September 30, 2025, were €2,738.7 (2,690.9) million. Net debt fell to €119.0 (195.3) million.

Business performance of the segments

The Sugarbeet Segment does not generate the major part of its annual net sales until the spring sowing season in Europe and North America in the third quarter (January to March). The reduction in net sales to €34.3 (56.9) million is mainly attributable to strong early sales in Eastern Europe in the same period of the previous year. The segment’s income (EBITDA) in the first quarter of the financial year is typically negative and declined to € –30.5 (–8.3) million due to lower sales volume.

The Corn Segment does not generate the major part of its annual net sales until the spring sowing season in Europe in the third quarter (January to March). Net sales in the period under review were €7.5 (11.3) million. The segment’s income in the first quarter is typically negative and was € –1.0 (–37.1) million. The improvement in the segment’s income is attributable to a positive one-off 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 quarter under review to €172.1 (165.2) million. Oilseed rape and wheat seed business posted increases in net sales, while net sales from rye seed declined. The significant increase in the oilseed rape business (+19%) was mainly due to a high-performance variety portfolio – supported by favorable weather conditions during autumn sowing. The hybrid rye business (–10%) was impacted by comparatively low market prices for rye. The segment’s income was €77.9 million and thus above the previous year’s figure (€74.5 million).

Net sales at the Vegetables Segment rose to €13.2 (12.5) million. This is mainly due to higher sales for spinach seed, while sales for bean seed declined. As in the same period of the previous year, the segment’s income was negative at € –6.9 (–4.6) million due to planned expenditure on expanding vegetable breeding.

Net sales in the Corporate Segment, which are mainly generated by KWS’ farms in Germany, France and Poland, were €1.2 (2.8) million. Its income was € –34.7 (–34.5) million. Since all cross-segment costs for the KWS Group’s central functions and research expenditure are charged to the Corporate Segment, its income is usually negative.

Forecasts for the 2025/2026 financial year confirmed

KWS continues to expect sales growth of approximately 3% on a comparable basis (excluding currency and portfolio effects) for fiscal year 2025/2026 compared to the previous year. The sales forecast thus remains within the medium-term growth target despite the continued subdued agricultural environment and an expected decline in business in Russia as a result of import restrictions and efforts to localize seeds.

In line with its medium-term targets, KWS expects the EBITDA margin to be in a range between 19% and 21%. This does not include the positive special effect of approximately €30 million from the disposal of license rights as part of the sale of the North American corn business in the period under review.

About KWS

KWS is one of the world’s leading plant breeding companies. Around 5,000 employees* (excluding seasonal workers) in over 70 countries generated net sales of around €1.68 billion in fiscal 2024/2025. A company with a tradition of family ownership, KWS has operated independently for almost 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.de. Follow us on LinkedIn and Bluesky.

Contact

Peter Vogt  
Head of Investor Relations
Phone: +49-30 816914-490
peter.vogt@kws.com

Gina Wied
Head of Corporate Communications
Phone +49 5561 311-1427 
Mobile +49 151 20345978
gina.wied@kws.com