H. Lundbeck (LUN) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue rose 13% CER to DKK 24,630m; adjusted EBITDA increased 24% CER to DKK 7,881m, led by Vyepti and Rexulti.

• Strategic brands generated DKK 19,011m, 77% of sales, and grew 19% CER; U.S. and Europe growth offset weaker International Operations.

• 2026 guidance calls for 5%–8% revenue growth and 4%–12% adjusted EBITDA growth at CER, with continued R&D investment.

Financial highlights

• FY revenue was DKK 24,630m, up 13% CER; Q4 revenue was DKK 6,093m, up 12% CER.

• FY adjusted EBITDA rose 24% CER to DKK 7,881m; adjusted EBITDA margin was 32.0%, versus 28.8% in FY 2024.

• EBIT rose 61% to DKK 5,275m; net profit increased 2% to DKK 3,192m, and adjusted net profit rose 5% to DKK 5,223m.

• Q4 adjusted EBITDA was DKK 1,609m, up 40%; Q4 net profit fell 91% to DKK 51m.

• Operating cash flow was DKK 5,481m; sales and distribution costs declined 2% to DKK 7.7bn, while R&D costs rose 10% to DKK 4.9bn.

Outlook and guidance

• FY 2026 revenue growth guidance is 5%–8% CER, with underlying growth of 6%–9%; partner inventory build is expected to add ~DKK 500m as a one-time effect.

• Adjusted EBITDA growth guidance is 4%–12% CER, with an implied margin of 31%–33%; planned R&D investment and clinical milestones contribute to the range.

• R&D spending is guided at DKK 5.5bn–DKK 5.9bn; effective tax rate at 20%–23%, and net debt at DKK 4.0bn–DKK 5.0bn.

• Reported DKK growth is expected to be ~4 percentage points below CER revenue growth and ~9 percentage points below CER adjusted EBITDA growth, based on current exchange rates.

• Mid-term targets remain mid-single-digit organic revenue CAGR for 2023–2027 and adjusted EBITDA margin above 30% in 2027.