Hikma Pharmaceuticals (HIK) H1 2026 earnings summary

Executive summary

• Revenue increased 4% year-over-year to $1.7 billion, with core operating profit up 9% to $405 million, reflecting disciplined execution, strong Branded segment performance, and reinvestment for long-term growth.

• Business stabilization achieved, especially in injectables, with agility and decision-making improved.

• 43 product launches and 10 new partnerships in H1, with increased R&D and sales/marketing investments to drive long-term growth.

• Maintained strong market positions: 7th largest US generic supplier, 3rd in US injectables by volume, and largest pharma company by sales in MENA.

• Full-year guidance reiterated, with optimism for continued growth and H2 revenue expected to be weighted toward Injectables.

Financial highlights

• Core revenue reached $1,728 million, up 4% year-over-year; core operating profit rose 9% to $405 million; core EBITDA increased 8% to $463 million; core basic EPS grew 5% to 128¢.

• Gross margin expanded by 110bps to 44.8%; core operating margin improved by 90bps to 23.4%.

• Operating cash flow rose to $214 million from $161 million year-over-year.

• Buyback program nearly complete, with $227 million of $250 million repurchased by August 2026.

• Net debt/core EBITDA: 1.9x at June 2026.

Outlook and guidance

• Full-year guidance maintained for 2%-4% top-line growth and core operating profit of $720-770 million.

• Injectables revenue to grow in low single digits, with core operating margin of 27%-28%.

• Branded revenue expected to grow 6%-8%, with core operating margin around 25%.

• Hikma Rx revenue to remain broadly flat, with core operating margin close to 20%.

• Capital expenditure guidance set at $190 million to $210 million.