H. Lundbeck (LUN) Q2 2026 earnings summary

Executive summary

• H1 2026 delivered strong momentum with 16% CER revenue growth to DKK 13,588 million, led by Vyepti (up 46% CER) and Rexulti (up 17% CER), with strategic brands accounting for 77% of total revenue.

• Commercial transformation, disciplined capital allocation, and robust U.S. and European execution strengthened financial and operational positions.

• Pipeline momentum accelerated, with multiple assets advancing in mid- and late-stage development and regulatory designations.

• Underlying growth was 13% CER after adjusting for a one-time DKK 470 million partner inventory build in Q1.

• FY 2026 guidance maintained, with expectations to trend towards the upper end.

Financial highlights

• Revenue reached DKK 13.6 billion (+16% CER); adjusted EBITDA grew 19% CER to DKK 4,765 million; EBIT increased 14% to DKK 3,653 million.

• Net profit rose 36% to DKK 2,806 million; adjusted EPS up 28% to DKK 3.70.

• Adjusted gross margin was 86.7%, impacted by partnership commissions and product/geographic mix.

• Net debt reduced to DKK 7,382 million (net debt/EBITDA at 1.0x), reflecting strong cash generation and deleveraging.

• Free cash flow was DKK 2,316 million; dividend payout for 2025 set at DKK 1.15/share (~36% payout ratio).

Outlook and guidance

• Full-year 2026 guidance maintained: revenue growth 7–9% CER, adjusted EBITDA growth 8–14% CER, adjusted gross margin around 87%, and R&D costs DKK 5.6–5.9 billion.

• Tracking towards upper end of guidance, but cautious due to inventory normalization and shipment phasing in H2.

• Revenue and EBITDA growth at actual rates expected to be 4 and 8 percentage points lower, respectively, due to FX.

• Net financials expected at around DKK 200 million; net debt targeted at DKK 4.0–5.0 billion.

• Guidance assumes stable macroeconomic and currency conditions, and excludes major business development transactions.