Gerresheimer (GXI) Q4 2024 earnings summary

Executive summary

• Q4 2024 marked a return to growth, with organic revenue up 5.4%, adjusted EBITDA up 6.4%, and adjusted EPS up 6.7%, driven by R&D and strong demand in biologics systems and vials.

• Full year 2024 organic revenue grew 2.9%, adjusted EBITDA 4.1%, and adjusted EPS 1.1%, impacted by industry-wide destocking, but biologics revenue share rose from 11% to 15%.

• Strategic transformation advanced with the Bormioli Pharma acquisition, expanding the portfolio and market reach.

• Two major milestones: FDA tentative approval for the SQ Innovation Lasix on-body device and completion of the Bormioli Pharma acquisition.

Financial highlights

• Q4 2024 organic revenue grew 5.4% to €569m; adjusted EBITDA rose 6.4% to €127m; adjusted EPS up 6.7% to €1.63.

• FY 2024 organic revenue increased 2.9% to €2,036m; adjusted EBITDA up 4.1% to €419m; adjusted EPS up 1.1% to €4.69.

• Free cash flow before M&A in Q4 was €48m, nearly flat year-over-year; FY 2024 free cash flow before M&A was -€104.7m due to high capex.

• Net financial debt at year-end was €1,035m, with adjusted EBITDA leverage at 2.4x; pro forma leverage including Bormioli at 3.0x.

Outlook and guidance

• 2025 organic group revenue growth expected at 3%-5% versus combined 2024 pro forma figures; full-year 2025 guidance (including Bormioli) targets 7–10% revenue growth and adjusted EBITDA margin of 22%.

• Adjusted EPS growth forecasted in the high single-digit percent range for 2025.

• Q1 2025 to show strong reported growth from Bormioli, but organic decline due to syringe business phasing; organic growth expected to resume from Q2.

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

• Capex in FY 2025 will focus 60–65% on biologics systems and 35–40% on moulded glass, with major investments in syringe systems and furnace overhauls.