How Bayer, WashTec, and Volkswagen will earn more money in the future with digitalization and AI

Bayer – How AI accelerates the pipeline

At Bayer, artificial intelligence is increasingly becoming a key technology for drastically reducing development times and bringing innovations to market more quickly. In the pharmaceutical business in particular, the Company relies on powerful platforms such as ALYCE. It sifts through enormous amounts of clinical data to identify promising drug candidates and make clinical trials more efficient. This is a real game-changer for the entire development process. In agriculture, AI is halving the time needed to breed new seed varieties with the help of digital twins and tools such as CropKey. This data-driven approach aims to make the leading research pipeline, with a potential value of over EUR 30 billion, even more valuable and generate long-term growth.

Operationally, Bayer is currently receiving tailwinds from its pharmaceuticals division. Recently, the experimental anticoagulant asundexian achieved its primary goals in a large Phase 3 study on stroke prevention, a significant milestone. In addition, two other drugs, Lynkuet for menopausal symptoms and Sevabertinib for a specific type of lung cancer, received important approvals in the US and the EU. These successes underscore the Company's innovative strength and diversify its portfolio, while established blockbusters such as Nubeqa and Kerendia continue to grow strongly.

The financial outlook remains dominated by the need to deal with legacy issues. Although recent signals from the US point to a possible legal easing of the glyphosate issue, clarity is not expected until 2026. Against this backdrop, debt reduction is a clear priority. The dividend has therefore been reduced to a symbolic minimum of EUR 0.11 per share and is expected to remain at this level until the balance sheet has been significantly strengthened. For investors, the turnaround story is currently the focus, not the dividend. The share is currently trading at EUR 35.905.

WashTec – More than just steel and water

WashTec is undergoing a remarkable transformation. The Company is deliberately evolving from a pure manufacturer of car wash systems to a provider of digital services. Instead of just selling machines, it is now focusing on software solutions that help operators increase their revenue and optimize their processes. Platforms such as EasyCarWash PRO enable flexible pricing models and better customer loyalty. This step opens the door to recurring revenue and makes the business less cyclical. Initiatives such as "WashNow" are even testing direct integration into vehicle systems. This digital networking creates completely new sales channels and strengthens customer relationships in the long term.

This strategy is already translating into improved financial performance. In the first nine months of 2025, revenue increased by more than 7%, while operating profit grew more strongly. The EBIT margin expanded to 11.8%, driven primarily by strong performance in European business. The resulting cash generation provides strategic flexibility and supports shareholder returns. A significant increase in the order backlog also points to sustained demand. Against this backdrop, the margin targets of 12-14% appear realistic.

Capital return policy is important for investors. WashTec pays a regular dividend, most recently EUR 2.40 per share. In addition, a share buyback program is in place. For example, in the week before December 8, shares were repurchased on the stock exchange every day, totaling over 7,000 shares during this period. This combined strategy underscores the financial confidence of the management. The program, with a volume of up to EUR 5 million, will run through May 2026. The Executive Board is thus clearly signaling that it considers its own shares to be undervalued. The share is currently trading at EUR 46.40.

Volkswagen – AI on German roads

Volkswagen is increasingly relying on artificial intelligence to reduce costs and optimize processes. The group sees potential savings in the high single-digit billion range by 2035. Another example of this development is currently rolling through Wolfsburg. The autonomous research vehicle Gen.Urban is testing real-world city traffic there without a steering wheel or pedals. These trials are intended to provide important data on how passengers might accept and use self-driving vehicles in the future. The aim is to build trust in the technology and to align future vehicle concepts at an early stage.

Despite positive sales figures for electric vehicles, pricing remains a challenge. Volkswagen is responding to this with an increase in in-house production of battery systems. The new assembly plant in Spain is a central component of this strategy. From 2027, more cost-effective LFP battery cells are to be manufactured there. This is the technological prerequisite for bringing electric vehicles to market for around EUR 25,000 from next year. The goal is clear: to drive electrification forward in the volume segment as well and remain competitive against cheaper competitors.

The Group's financial situation is tense, as reflected in the recently decided dividend cut to EUR 6.36 per preferred share. Nevertheless, the current yield of just under 6% continues to signal an attractive income component for shareholders. The outlook is characterized by strict cost discipline and focused investments of EUR 160 billion by 2030. Success will depend largely on whether the planned e-offensive in the low-price segment takes off and the comprehensive efficiency programs, including AI, take effect. For investors, it remains a bet on the successful transformation. The share price is currently trading at EUR 108.05.

The productive phase of digitalization has been reached and is increasingly becoming a key profit driver. Bayer is accelerating research through AI, thereby increasing the value of its pipeline. WashTec is transforming itself from a machine manufacturer to a provider of recurring, high-margin revenues through digital services. Volkswagen is relying on AI for billions in efficiency gains and is tapping into new future markets with autonomous driving. For all three companies, digital transformation is no longer a promise for the future, but a lever for competitive advantages and more robust finances today.