EQL Pharma (EQL) Q4 24/25 earnings summary

Executive summary

• Achieved 45% year-over-year sales growth in Q4, with revenue reaching SEK 113.3 million, and operating profit up 174% with an EBITDA margin of 25%.

• Completed the Medilink product portfolio acquisition, adding 4 products, and launched 6 new products, expanding into new European and GCC markets.

• Met and surpassed targets of the previous five-year plan, with full-year growth at 40% and a new plan targeting 30% annual sales growth and EBITDA margin above 25%.

• Signed first major non-European distribution deal for Mellozzan in the GCC region, expanding international presence.

• Record 11 new products added to the pipeline, including a majority of development products.

Financial highlights

• Q4 net sales: SEK 113.3m (up 45% year-over-year); full year: SEK 373.5m (up 41%).

• Q4 gross profit: SEK 46.5m (up 48%); gross margin 41%. Full year gross profit: SEK 156.0m (up 36%); margin 42%.

• Q4 EBIT: SEK 23.0m (up 174%); EBIT margin 20%. Full year EBIT: SEK 67.4m (up 107%); margin 18%.

• Q4 EBITDA: SEK 28.0m (up 159%); margin 25%. Full year EBITDA: SEK 78.3m (up 86%); margin 21%.

• Q4 EPS before dilution: SEK 0.45 (vs. 0.16); full year: SEK 1.48 (vs. 0.78).

Outlook and guidance

• Forecasts 30% sales growth for 2025/26, with EBITDA margin to stabilize at or above 25%.

• New five-year plan (2024/25–2028/29) targets 30% CAGR, prioritizing revenue growth over margin expansion.

• Target to stabilize EBITDA margin at or above 25% in the first half of the new plan, with ambitions to exceed 25% in the latter half.

• Expected product launches for 2025-2026 remain at six, subject to regulatory and project developments.

• Peak leverage capped at 4.0x EBITDA, with a target to reduce to 2.5x.