Gerresheimer (GXI) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 organic revenue grew 2.6% year-over-year, with adjusted EBITDA up 3.5% and adjusted EPS up 3.6%, driven by Plastics & Devices, while Primary Packaging Glass (PPG) was impacted by destocking and flooding at the Morganton plant.

• Growth guidance for 2024 and 2025 was revised downward due to slower-than-expected vial market recovery and operational disruptions, including the Morganton plant flooding.

• Plastics & Devices division led growth, while PPG experienced a 3% organic revenue decline and production halt from flooding.

• Biologics solutions (GLP-1, etc.) saw strong growth, with revenue share rising from 13% to 17% year-over-year.

• Q4 2024 is expected to be stronger as destocking fades and new lines ramp up.

Financial highlights

• Q3 2024 revenues increased to €499M from €488M; adjusted EBITDA rose to €104M from €100M; adjusted EPS increased to €1.16 from €1.07.

• For 9M 2024, revenues were €1,467M (+2.0% year-over-year), adjusted EBITDA €293M (+3.1%), and adjusted EPS €3.06.

• Free cash flow before M&A in Q3 2024 was -€4.8M; for 9M 2024, it was -€152.8M.

• Net financial debt stands at €1.1B, with adjusted EBITDA leverage at 2.6x.

• Net CapEx remained elevated, focused on growth investments.

Outlook and guidance

• 2024 organic revenue growth now expected at 3–4% (previously 5–10%), with adjusted EBITDA of €415–430M and adjusted EPS growth 2–8%.

• 2025 organic revenue growth forecast at 7–10% (previously 10–15%) with EBITDA margin around 22%.

• Mid-term guidance remains unchanged: ≥10% CAGR revenue growth and 23–25% EBITDA margin.

• Q4 2024 expected to be a growth quarter as destocking fades and new lines ramp up.