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 strengthens the position as a leading pharma and biotech solutions provider.

• Adjusted EBITDA increased 13.1% to €91.5 million, with margin at ~22%, but organic revenue and EBITDA declined due to phasing in syringes and softness in molded glass cosmetics; organic growth is expected to resume in Q2.

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

• Integration of Bormioli Pharma is progressing, supporting midterm sustainable profitable growth of 8%-10%.

Financial highlights

• Q1 2025 revenues: €520.1 million (+11.6% YoY); adjusted EBITDA: €91.5 million (+13.1% YoY); organic revenue: -6.5% YoY; organic adjusted EBITDA: -9.3% YoY.

• Adjusted EPS dropped from €0.65 to €0.46, a 36.6% FX-neutral decline.

• Free cash flow before M&A in Q1 was -€141.1 million, with expectations for significant improvement over the year.

• Net financial debt increased to €1,930 million, leverage ratio at 3.97x, with a focus on deleveraging.

• Equity ratio declined to 31.8% from 40.4% at the previous quarter-end.

Outlook and guidance

• Organic revenue growth of 3%-5% expected in 2025 versus combined pro forma 2024, with adjusted EBITDA margin around 22%.

• Midterm targets: 8%-10% CAGR in revenues, margin expansion to 23%-25%, and adjusted EPS growth of 10%+.

• Strong order intake in Q1 supports growth momentum for Q2 and the remainder of the year.

• Free cash flow for FY 2025 expected between -€50 million and zero.