Gerresheimer (GXI) Q1 2025 earnings summary

Executive summary

• Revenues rose to €520.1 million in Q1 2025, up 11.6% year-over-year, mainly due to the Bormioli Pharma acquisition, which significantly increases scale and positions the company as a leading pharma and biotech solutions provider.

• Adjusted EBITDA increased 13.1% to €91.5 million, with margin at approximately 22%, but organic adjusted EBITDA declined 9.3% due to phasing in syringes and softness in molded glass cosmetics.

• Net income fell to €-17.5 million from €13.4 million, impacted by exceptional items and higher depreciation related to the Bormioli Pharma acquisition.

• Organic growth for 2025 is projected at 3%-5%, driven by new product ramp-ups, high-value product shift, and normalization of operations at key facilities.

• Strong order intake in Q1 underpins growth expectations for the remainder of the year, with organic growth expected to resume in Q2.

Financial highlights

• Q1 2025 revenues: €520.1 million (up 11.6% year-over-year); adjusted EBITDA: €91.5 million (up 13.1%); organic revenue declined 6.5% and organic adjusted EBITDA declined 9.3%.

• Adjusted EPS dropped from €0.65 to €0.46, a 36.6% FX-neutral decline; adjusted net income fell 29.4% to €16.3 million.

• Free cash flow before M&A in Q1 was -€141.1 million, compared to -€79.3 million in Q1 2024, reflecting higher net working capital and investments.

• Net financial debt increased to €1,930 million, mainly due to the Bormioli Pharma acquisition and related bridge loan.

• Adjusted EBITDA leverage rose to 3.97x from 2.43x sequentially; equity ratio declined to 31.8%.

Outlook and guidance

• 2025 organic revenue growth expected at 3%-5% versus 2024 pro forma, with adjusted EBITDA margin around 22% and high single-digit adjusted EPS growth.

• Mid-term targets: 8%-10% compound annual revenue growth, margin expansion to 23%-25%, and adjusted EPS growth above 10%.

• Stronger organic growth anticipated in Q2 and a very strong second half, driven by plant restarts and new capacity ramp-ups.