Grifols (GRF) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, with revenues rising 3.3% at constant currency to €1.7 billion and net profit up 21.9% to €73 million, supporting confidence in achieving full-year guidance.

• Biopharma led growth, especially immunoglobulin (IG) products, with 15.3% year-over-year growth and strong U.S. and EU performance.

• Strategic focus on optimizing plasma sourcing, including the Egypt ramp-up and self-sufficiency projects, to structurally reduce costs and enhance supply resilience.

• Diagnostic segment progressing with new platform launches and autonomy post-QuidelOrtho joint business dissolution, with compensation to be received through 2028.

• Balance sheet strengthened through refinancing of all 2027 maturities, improved liquidity, and ongoing deleveraging.

Financial highlights

• Q1 2026 revenue reached €1.7 billion, up 3.3% at constant currency year-over-year; Biopharma revenue up 6.8% at constant currency.

• Adjusted EBITDA was €404 million at constant currency (€381 million reported), margin stable at 22.4% year-over-year.

• Gross margin: €620 million (36.5%), down from 38.9% in Q1 2025; sequential improvement of 180 bps from Q4 2025.

• Free cash flow pre-M&A improved by €30 million year-over-year, standing at -€8 million for the quarter due to seasonality.

• Net leverage reduced to 4.3x, down from 4.5x year-over-year.

• Group profit grew 21.9% year-over-year to €73 million.

Outlook and guidance

• On track to achieve 2026 guidance: adjusted EBITDA margin target of at least 25%, adjusted EBITDA growth of 5%-9%, and free cash flow target of €500–575 million.

• Expect Q3 and Q4 to be the strongest quarters, aided by Egypt plasma ramp-up and Biotest turnaround.

• Diagnostic business expected to grow low single digits through 2027, with new platform launches supporting future growth.

• Alpha-1 and specialty proteins expected to return to low- to mid-single digit growth for the full year.

• Albumin pricing in China stabilizing, with constructive outlook for the remainder of the year.