Guerbet (GBT) H2 2025 earnings summary

Executive summary

• 2025 performance was impacted by French market reform, US customer mix pressure, and operational issues at the Raleigh site following an FDA warning letter.

• Revenue for 2025 was €786.4 million, down 3.5% at constant exchange rates and like-for-like, mainly due to lower activity in France and issues at the Raleigh site.

• Net loss of €112.7 million, including a non-recurring impairment of €86 million related to the Raleigh site.

• Free cash flow turned positive at €19.2 million, supported by improved DSO and working capital management.

• No dividend will be distributed for the 2025 fiscal year.

Financial highlights

• Full-year revenue reached €807.3m at CER and LFL, down from €836.9m in 2024; reported sales were €786.4m, reflecting a significant negative FX impact of €22.8m.

• Restated EBITDA margin was 12.0% of sales, at the top of the previously announced range; published EBITDA fell 31.1% to €82.3m.

• Operating loss of €88.2 million, compared to a profit of €49.6 million in 2024.

• Net debt/EBITDA ratio at 4.0x, below the 4.8x ceiling set by lenders.

• Free cash flow: €19.2m; Net debt: €325.7m.

Outlook and guidance

• 2026 is expected to see a material negative financial impact from the Raleigh situation, affecting sales, profitability, and cash generation, with potential covenant breach risk by mid-year.

• Probable risk of covenant breach on June 30, 2026, with potential for lenders to call debt early.

• Strategic priorities focus on improving Diagnostic Imaging margins, capturing Interventional Radiology growth, and enhancing competitiveness and cash generation.

• Transformation plan continues, with full effects expected in 2027; 2026 targets to be communicated with H1 results in July 2026.