Euroapi (EAPI) H2 2025 earnings summary

Executive summary

• Net sales for 2025 were €848.2 million, down 7% 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 and operational efficiencies.

• Net loss widened to €211.2 million from €130.6 million in 2024, mainly due to asset impairments and restructuring costs.

• Transformation plan (FOCUS-27) executed ahead of schedule, including portfolio rationalization, industrial footprint simplification, and organizational restructuring.

• Divestment of Haverhill site and reduction of 380 positions contributed to footprint rationalization.

Financial highlights

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

• 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.

• Net cash position improved to €68.2 million from €24.6 million at year-end 2024; free cash flow before financing was €51.5 million, up from €15 million in 2024.

• Basic EPS was €(2.23), down from €(1.38) in 2024.

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.