Faes Farma (FAE) Q4 2025 earnings summary

Executive summary

• Revenue grew 23% year-over-year to €627 million, surpassing guidance, with all business areas contributing and major acquisitions (Edol and SIFI) expanding the portfolio and international reach, notably in ophthalmology.

• Adjusted EBITDA rose 3.1% to €132.8 million, in line with guidance, excluding extraordinary costs and M&A contributions.

• Net profit was €79.6 million, down 28.5% year-over-year, reflecting extraordinary expenses, M&A, and normalization of tax rates.

• New strategic and sustainability plans launched, emphasizing gender equality, patient focus, climate goals, and a 42% emissions reduction target by 2030.

• Integration of acquisitions and relocation to the Derio plant underway, with restructuring costs largely reflected in 2025.

Financial highlights

• Reported revenues: €627 million (+23%); organic growth (excluding M&A): 11%.

• Reported EBITDA: €118 million (-8.4%) due to M&A and restructuring; organic EBITDA: €122 million (-5.3%).

• Adjusted EBITDA: €132.8 million (+3.1%), exceeding guidance.

• Net debt at year-end: €267 million; net debt/adjusted EBITDA at 2x.

• Operating cash flow totaled €81 million; free cash flow €65.6 million, with increased working capital due to plant transfer and integrations.

Outlook and guidance

• 2026 revenue expected to grow 17%-19% over 2025 (€627M), with EBITDA growth of 28%-31%.

• Net debt/EBITDA ratio to remain below 2x, and dividend payout policy maintained at 50%.

• Growth to be driven by international expansion (especially LATAM and Gulf), commercial synergies from SIFI and Edol integration, and operational efficiency from Derio plant.

• Full operational efficiency from Derio relocation expected in 2027.

• Margin improvement expected, with new product launches and portfolio expansion as key drivers.