Hikma Pharmaceuticals (HIK) H2 2025 earnings summary

Executive summary

• CEO returned to focus on long-term growth, stability, and decentralizing decision-making.

• Emphasis on empowering younger talent and accelerating investments, especially in R&D.

• Achieved 6% year-over-year core revenue growth to $3,349m and 3% increase in core operating profit to $741m for 2025.

• Maintained industry-leading margins and high returns, with a 25.5% core EBITDA margin and 16.0% ROIC.

• Strategic focus on three divisions: injectables, Rx, and branded, each driving diversified growth across geographies.

Financial highlights

• EBITDA margin stands at 25%, ahead of competitors targeting 22%.

• Core EBITDA rose 4% to $853m; core basic EPS up 2% to 228¢ year-over-year.

• Injectables margin reset to 27%-28% for the next three years due to increased R&D and CMO investments.

• R&D spending increased to 5%-6% of group sales, up $45 million year-over-year.

• $250 million share buyback planned for the year.

Outlook and guidance

• 2025 and 2026 expected to be challenging for injectables due to reduced CMO contribution and delayed product launches.

• 2026 group revenue expected to grow 2–4%; core operating profit guided at $720–770m.

• Growth acceleration anticipated from 2027 onward, driven by new launches and expanded CMO capacity.

• $5 billion revenue target for 2030 reaffirmed as achievable, with both organic and inorganic growth.

• Medium-term guidance to be updated after strategic review.