Galderma Group (GALD) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $5.207 billion in 2025, up 17.7% year-over-year at constant currency, surpassing $5 billion for the first time, driven by broad-based volume growth across all geographies and product categories.

• Core EBITDA reached $1.211 billion (23.3% margin), up 18.9% year-over-year, with margin expansion and core EPS up 76.7% to $3.69, supported by strong operational leverage, reduced financing and tax expenses, and share repurchases.

• Major launches and innovation fueled growth, including Nemluvio in therapeutic dermatology and Relfydess in neuromodulators, both showing blockbuster potential.

• All top 10 markets grew, with eight delivering double-digit growth; U.S. net sales up 23.3%, International up 13.8%.

• ESG progress recognized with improved ratings, including AA from MSCI, and enhanced non-financial disclosure.

Financial highlights

• Net sales: $5.207 billion, up 17.7% year-on-year at constant currency; Q4 net sales up 25.2%.

• Core EBITDA: $1.211 billion (23.3% margin), up 18.9% year-on-year; margin expanded by 24 basis points.

• Core net income: $871 million, up 75.4% year-on-year; core EPS: $3.69, up 76.7%.

• Strong cash generation enabled early debt repayment ($240 million), $363 million in share repurchases, and a $41 million dividend.

• Net indebtedness reduced to $1.822 billion; net leverage reduced to 1.5x; refinancing of $1.26 billion IPO-related term loan completed.

Outlook and guidance

• 2026 net sales growth guidance: 17%-20% at constant currency; core EBITDA margin guidance: ~26%.

• Midterm (2023-2027) net sales CAGR: 15%-17% for the group, 10%-12% for injectable aesthetics, 8.5%-10.5% for dermatological skincare, and above 30% for therapeutic dermatology.

• Margin expansion of 450-550 basis points expected by 2027, driven by Nemluvio's contribution.

• Nemluvio peak sales guidance raised from $2 billion to above $4 billion; expected to break even in 2026, one year ahead of plan.

• Foreign exchange expected to positively impact net sales but negatively impact Core EBITDA margin.