Grifols (GRF) Q4 2025 earnings summary

Executive summary

• Achieved and exceeded 2025 financial guidance, with strong revenue, adjusted EBITDA, and free cash flow growth, despite a challenging macro and geopolitical environment.

• Biopharma segment led growth, notably through immunoglobulin (IG) franchise, offsetting negative impacts from the Inflation Reduction Act and foreign exchange fluctuations.

• Strategic partnerships and self-sufficiency initiatives in Egypt, Canada, and China enhanced resilience and positioned the business for future growth.

• Net profit more than doubled to EUR 402 million, a 156.1% increase year-over-year, supported by higher operating margins and lower financial costs.

• Continued focus on margin-led EBITDA growth, free cash flow expansion, and deleveraging into 2026.

Financial highlights

• Revenue reached EUR 7,524 million, up 7% year-over-year (9.1% like-for-like), driven by Biopharma and IG growth.

• Adjusted EBITDA was EUR 1,825 million (24.3% margin), up 5.6% year-over-year and 11.9% like-for-like.

• Free cash flow pre-M&A was EUR 468 million, up EUR 201 million year-over-year, beating guidance.

• Group profit more than doubled to EUR 402 million, up 156% year-over-year.

• Leverage ratio improved to 4.2x, down from 4.6x in 2024.

Outlook and guidance

• 2026 targets: free cash flow pre-M&A of EUR 500–575 million, adjusted EBITDA margin of at least 25%, and EBITDA growth of 5–9% at constant currency.

• Continued deleveraging with leverage ratio targeted at or below 3.5x by year-end 2027.

• Cumulative free cash flow pre-M&A for 2024–2027 projected at EUR 1.75–2 billion.

• Focus on scaling self-sufficiency platforms in Egypt and Canada.

• No explicit revenue growth guidance for 2026; focus is on margin-accretive growth.