DSM Firmenich (DSFIR) Q4 2025 earnings summary

Executive summary

• Completed divestment of Animal Nutrition & Health (ANH) to CVC, enabling focus on core consumer businesses in nutrition, health, and beauty.

• Achieved 3% organic sales growth in 2025, with strong segment performance and execution of strategic plans.

• Initiated €1 billion share buyback in 2025 and announced an additional €500 million program for 2026; dividend maintained at €2.50 per share.

• Advanced sustainability agenda, achieving EcoVadis Platinum and CDP double A ratings, and 100% renewable electricity targets ahead of plan.

• Significant cost and revenue synergies realized post-merger, with further synergies expected through 2027.

Financial highlights

• Net sales from continuing operations were €9.03 billion in 2025, with 3% organic sales growth year-over-year.

• Adjusted EBITDA for continuing operations at €1.7–1.8 billion, up 5% year-over-year, with a margin of 19.6%.

• Adjusted gross operating free cash flow was €950 million, with a 10.5% sales-to-cash conversion ratio.

• Core adjusted EPS from continuing operations was €3.31, down from €3.54 in 2024.

• Total group net profit showed a loss of €1,039 million, mainly due to a €1.9 billion non-cash impairment from the ANH divestment.

Outlook and guidance

• Full-year 2026 outlook to be provided at the March 12, 2026 Investor Event, with focus on organic sales growth, EBITDA quality, and cash conversion.

• Midterm ambitions: 5–7% organic sales growth, 22–23% adjusted EBITDA margin, and >10% cash-to-sales conversion.

• Cash conversion target to be revised upward from the current 10%+.

• Remaining €115 million in revenue synergies expected to be realized through 2027.