Fagron (FAGR) H2 2025 earnings summary

Executive summary

• Full year 2025 revenue reached €952.2 million, up 9.2% reported and 9.1% organic at constant exchange rates, with growth across all regions and segments.

• REBITDA/profitability rose 10.9% to €192.9 million, with a margin of 20.3%, up 30 basis points year-over-year, driven by operational excellence and favorable sales mix.

• Free cash flow increased 29% to €125.9 million, supported by disciplined working capital and capex management.

• Net debt/EBITDA ratio improved to 1.2x, providing capacity for further growth.

• Twelve acquisitions were announced in 2025, supporting market consolidation and geographic expansion, with most completed and integration progressing as planned.

Financial highlights

• Gross margin increased by 30 basis points to 62.6%, supported by sales mix and procurement/manufacturing savings.

• Net profit rose to €91.5 million, with EPS up 13.6% to €1.25 year-over-year.

• Operating cash flow reached €155.3 million; free cash flow conversion at 65.3%.

• Net financial debt increased to €283.3 million, mainly due to acquisitions, but leverage improved to 1.2x net debt/EBITDA.

• Capex was €30.6 million (3.2% of revenue), with maintenance capex at 3.1%.

Outlook and guidance

• For 2026, mid- to high single-digit organic sales growth at constant exchange rates is expected, with a slight year-on-year profitability improvement and a stronger second half.

• Capex is projected at around 3.5% of revenue, excluding one-off projects.

• No change in midterm guidance; capital allocation remains focused on growth and M&A.

• Mid-term (2025–2030) outlook projects high single-digit to low double-digit organic CAGR at CER, with REBITDA margin around 21% by 2027.