EQL Pharma (EQL) Q1 25/26 earnings summary

Executive summary

• Q1 sales grew 30% year-over-year to SEK 107.2 million, with EBIT up 34% to SEK 20.5 million and EBITDA margin at 24%, marking a strong start to the five-year plan.

• Strategic expansion into Germany and the Netherlands initiated, with key personnel hired to replicate the Nordic niche generics model and expand the addressable market by 5x.

• New partnerships and product approvals, including Memprex in France and BeNeLux and methenamine hippurate (Altaromin) in France, support geographic and portfolio expansion.

• Cash and cash equivalents increased to SEK 56.1 million, and leverage was 3.7x EBITDA, below the 4.0x maximum target.

• No new products launched in the quarter; pipeline expanded to 45 products, with 8 in launch phase.

Financial highlights

• Revenue reached SEK 107.2 million, up from SEK 82.8 million year-over-year.

• Gross margin was 43%, down from 45% last year, impacted by Red Sea geopolitical disruptions.

• EBIT grew to SEK 20.5 million from SEK 15.2 million, and EBITDA margin improved to 24% from 19% last year.

• Capital expenditure rose to SEK 23.6 million, reflecting investment in pipeline expansion.

• Cash flow from operations was SEK -3.2 million, improved from SEK -19.8 million last year.

Outlook and guidance

• Full-year sales growth outlook maintained at around 30%, in line with the five-year plan.

• EBITDA margin target is to stabilize at 25% in the first half of the five-year plan, then exceed 25%.

• Leverage expected to remain closer to 4.0x EBITDA in the near term due to the Medilink acquisition, with a long-term target of 2.5x.

• Expansion into Germany and the Netherlands expected to drive future growth.