Grifols (GRF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues rose 3.3% year-over-year at constant currency to €1.7 billion, with net profit up 21.9% to €73 million, in line with full-year guidance and strategic priorities.

• Biopharma led growth, driven by a 15.3% increase in immunoglobulin (IG) sales, margin expansion initiatives, and strong U.S. and EU demand.

• Strategic focus on optimizing plasma sourcing, especially with Egypt ramp-up, and disciplined cost control.

• Diagnostic segment progressing with new platform launches and autonomy post-QuidelOrtho joint business dissolution.

• Balance sheet strengthened through refinancing, 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 €1.495 billion (up 6.8% cc).

• Adjusted EBITDA was €381 million (22.4% margin), up 0.8% at constant currency.

• Gross margin: 36.5% (down from 38.9% YoY), but improved 180 bps sequentially from Q4 2025.

• Free cash flow pre-M&A: -€8 million, a €30 million improvement year-over-year.

• Net leverage improved to 4.3x, down from 4.5x year-over-year; liquidity: €1.57 billion.

• 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%, 5%-9% adjusted EBITDA growth, and free cash flow target of €500–575 million.

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

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

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

• Continued focus on deleveraging, free cash flow generation, and sustainable shareholder returns.