EQL Pharma (EQL) Q2 25/26 earnings summary

Executive summary

• Sales grew by 1% year-over-year in Q2 to SEK 86.4 million, impacted by delivery disruptions and postponed product launches, resulting in a weak quarter.

• Operating profit (EBIT) dropped 75% to SEK 3.6 million, with an operating margin of 4% compared to 17% last year.

• EBITDA margin fell to 10% from 20% due to fixed costs and lower sales volume.

• Management is focused on resolving supply chain issues and strengthening long-term growth through business and portfolio development.

• No new product launches occurred in the quarter due to supply delays, with two launches postponed to Q4.

Financial highlights

• Gross margin dropped to 38% in Q2, mainly due to stockouts of high-margin products and transition service costs for new MediLink products.

• Profit for the period was negative SEK 3.4 million, compared to a profit of SEK 9.6 million last year.

• CapEx was lower in Q2 due to project timing but is expected to rise in Q3 as projects meet milestones.

• SEK 31 million was added to cash through a warrant program, resulting in a strong cash position of SEK 78 million.

• Investments in new products totaled SEK 9.7 million for the quarter.

Outlook and guidance

• Growth outlook for 2025-2026 is adjusted to around 15% sales growth, with estimated full-year EBITDA margin around 20%.

• Long-term targets remain: average annual sales growth of 30% and EBITDA margin above 25% over the five-year plan.

• Management expects gradual restocking of high-margin products starting December, with sequential deliveries and launches planned through Q1.

• B2B delivery pipeline for Q3 and Q4 is positive, with delayed deliveries from Q2 expected to contribute.

• Management does not expect current setbacks to impact long-term goals.