Euroapi (EAPI) H2 2025 earnings summary

Executive summary

• Net sales for 2025 were €848.2 million, a 7% decline year-over-year, reflecting portfolio rationalization and challenging market conditions.

• Core EBITDA improved to €66.2 million (7.8% margin), up from €50.4 million (5.5% margin) in 2024, driven by cost savings, operational efficiencies, and strong cost discipline.

• Net income was negative at €211.2 million, impacted by significant impairments and restructuring costs.

• Divestment of the Haverhill site and reduction of 380 headcount contributed to footprint rationalization and transformation progress.

• Sustainability targets advanced with SBTi validation and progress on carbon emission reductions, though diversity targets were missed due to reorganization.

Financial highlights

• Net sales for 2025 were €848.2 million, down 7% year-over-year; Sanofi sales fell 26.4%–34.2%, while sales to other clients rose 9.7%–18.6%.

• Core EBITDA margin rose to 7.8% from 5.5% in 2024.

• Gross profit margin improved to 17.1% from 15.6% year-over-year.

• Free cash flow before financing was €51.5 million, up from €15 million in 2024; net cash position improved to €68.2 million from €24.6 million.

• CAPEX was €77 million (9% of net sales), with 54–55% dedicated to growth and performance projects.

Outlook and guidance

• 2026 net sales expected to decrease by around 10% due to portfolio rationalization and continued Sanofi sales decline.

• Core EBITDA margin for 2026 anticipated to remain broadly in line with 2025.

• CAPEX to sales ratio targeted at around 8% for 2026.

• No further major API discontinuations planned; focus on expanding in new geographies and complex molecules.

• Incremental Core EBITDA target for 2027 will not be achieved; plan acceleration and new initiatives underway.