Apotex Health (APTX) Q2 2027 earnings summary

Executive summary

• Q2 revenue excluding VLLP rose 4.9% to $852.9M; Adjusted EBITDA excluding VLLP increased 19.1% to $279.8M, with a 32.8% margin.

• Strong H1 launches and productivity progress supported higher FY2027 guidance: 9%–10% revenue growth and ~31% Adjusted EBITDA margin, excluding VLLP.

• Canada was the main growth driver; H1 reported results declined as prior-year VLLP sales rolled off.

Financial highlights

• Q2 gross profit was $445.3M; net income rose to $100.8M from $82.9M.

• Q2 gross margin excluding VLLP increased 300 bps to 52.2%; Adjusted EBITDA margin excluding VLLP expanded 390 bps to 32.8%.

• H1 reported revenue fell 14.3% to $1,700.9M, while revenue excluding VLLP grew 3.2%; reported net income was $62.4M versus $445.6M.

• H1 Operating Free Cash Flow was $257.1M versus $630.7M; Q2 Operating Free Cash Flow was $115.1M.

Outlook and guidance

• FY2027 revenue growth guidance increased to 9%–10% from 7%–8%, and Adjusted EBITDA margin guidance rose to ~31% from ~30%; comparisons exclude VLLP.

• Guidance assumes double-digit H2 revenue growth, launch execution including the U.S. axitinib launch, and productivity savings; more than CAD 100M of FY2027 productivity savings is expected.

• Q4 assumptions include spending shifted from Q2 and increased competition on certain launches; Q4 revenue is expected to be slightly stronger than Q3.