KWS SAAT SE & Co. KGaA reported fiscal 2025/26 results on September 23 that showed margin resilience despite sales headwinds across its global operations.
Group net sales fell 3% to €1,627 million from €1,677 million, with organic revenue declining 1.0% after currency effects and portfolio changes each weighed on performance by 1%. The result fell short of an original 3% organic growth target but met a revised flat outlook.
Gross margin contracted to 61.2% from 63.1%, dragged by product mix shifts and approximately €14 million in negative foreign exchange impacts. Adjusted EBITDA came in at €343.1 million against €350.5 million previously, yielding a margin of 19.3%. On a reported basis, including a €29 million one-time gain from North American corn license sales, the EBITDA margin stood at 21.1%. When adjusted for FX, the underlying margin reached 20.0%, within the company's 19–21% target range.
Net income rose 13.1% to €158.4 million from €140.0 million, driven by a €10 million positive contribution from the deconsolidation of AgReliant, compared to a €20.7 million charge in the prior year. Earnings per share climbed to €4.80 from €4.24.
The company's balance sheet strengthened markedly, with net debt collapsing to €8.7 million from €61.6 million, representing a ratio of just 0.03 times EBITDA.
Free cash flow totaled €122.5 million, closely matching last year's €123.2 million. Operating cash flow declined to €173 million from €228 million, while investing cash flow improved to -€50 million from -€105 million. Capital expenditures reached €109 million, and net working capital increased by €144 million. M&A activity generated €43 million in proceeds.
In the sugarbeet segment, sales dipped 2.0% to €854.2 million despite roughly a 10% decline in global acreage. Innovation products CONVISO SMART and CR+ accounted for 63% of segment sales, up from 61%. EBITDA margin fell to 41.9% from 45.5%, absorbing €12 million in adverse FX effects.
Corn segment revenue declined 5.3% to €433.6 million, with organic sales down 1.6%, portfolio changes accounting for 3.1%, and currency a minor 0.4% drag. European market share in silage corn rose to 16.8% from 15.9%, while grain corn reached 9.7% versus 8.4%. Sunflower sales surged 35%. Segment EBITDA jumped 74.9% to €92.2 million on the back of the one-time license gain. Excluding it, the underlying margin improved to 14.6% from 11.5%.
Cereals sales were essentially flat at €263.9 million, edging up 0.2%. Rapeseed sales grew 24%, pushing European market share to 17% from 15% and holding the company's number two position. Rye, wheat, and barley sales all declined. EBITDA fell 19.3% to €34.6 million, with margin compressing to 13.1% from 16.3%, after a €5 million provision was recorded for an antitrust investigation in France.
Vegetables segment revenue fell 6.4% to €67.5 million, weighed by weak spinach and bean demand. EBITDA posted a loss of €25.8 million as the company continued heavy investments in breeding and infrastructure.
KWS proposed a dividend of €1.30 per share, up from €1.25, representing a payout ratio of roughly 29% of adjusted net income against a 25–30% target. The dividend has compounded at approximately 11% annually since fiscal 2019/20, when it was €0.70.
For fiscal 2026/27, KWS guided for approximately 3% organic sales growth, in line with its mid-term target range of 3–5%, and an EBITDA margin of 19–20%.
Shares fell 7.6% to $72.6 following the report. The stock traded roughly 10% below its 52-week high of $80.6 and about 18% above its low of $61.3.
CFO Dr. Jörn Andreas said the results underscored the company's "exceptional financial flexibility," adding, "Few companies in our industry operate with a balance sheet as strong as ours today." The annual general meeting is scheduled for December 1, 2026.
