H. Lundbeck (LUN) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue grew 16% CER to DKK 13,588m, led by Vyepti (+46% CER) and Rexulti (+17% CER), with double-digit growth in the U.S. and Europe and strategic brands accounting for 77% of total revenue.

• Underlying revenue growth was 13% CER after adjusting for a one-time inventory build.

• Adjusted EBITDA rose 19% CER to DKK 4,765m, reflecting strong brand performance and operational efficiency.

• Net profit increased 36% to DKK 2,806m, with adjusted EPS up 28% to DKK 3.70.

• Net debt/EBITDA improved to 1.0x from 1.8x a year ago, reflecting continued deleveraging.

Financial highlights

• Gross profit rose 15% CER to DKK 11,020m; gross margin at 81.1% (adjusted: 86.7%).

• Adjusted EBITDA: DKK 4,765m (+19% CER, +13% DKK YoY); margin at 35.1%.

• Free cash flow: DKK 2,316m, up 14% YoY, supporting ongoing debt reduction.

• Operating expenses increased 12% CER, mainly from higher R&D costs (+24% CER), while sales and distribution costs were well controlled.

• Net profit: DKK 2,806m (+36% YoY); adjusted EPS up 28% to DKK 3.70.

Outlook and guidance

• FY 2026 guidance maintained: revenue growth 7–9% CER, adjusted EBITDA growth 8–14% CER; reported growth in DKK will be lower due to FX effects.

• Adjusted gross margin expected around 87%; R&D costs DKK 5.6–5.9bn.

• Net debt expected between DKK 4.0–5.0bn by year-end.

• Inventory build in H1 expected to unwind in H2, with normalization anticipated.

• Strategic brands, especially Vyepti and Rexulti, expected to remain primary growth drivers, with continued R&D investment.