Laboratorios Farmaceuticos Rovi (ROVI) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 was EUR 756.1 million, down 1% year-over-year, with operating revenue at EUR 743.5 million, down 2–3%, mainly due to a 20% decline in CDMO sales, while specialty pharmaceuticals grew 11% to EUR 473.9 million.

• EBITDA rose 4% to EUR 216.2 million, with margin expanding to 29.1%, and EBIT increased 4% to EUR 185.8 million; net profit grew 3% to EUR 140.4 million.

• Okedi® sales surged 97% to EUR 56.7 million, and the heparin franchise grew 7%, driven by international demand and strong Q4 performance.

• Strategic initiatives included the acquisition of a Phoenix manufacturing site, new Roche and BMS collaborations, and a majority stake in Cells IA Technologies.

• Free cash flow increased 57% to EUR 120 million; net debt reduced to EUR 21.9 million from EUR 85.1 million.

Financial highlights

• Gross profit increased 3% to EUR 494.7 million, with gross margin up 3.9 points to 66.5%, aided by R&D grants and favorable product mix.

• R&D expenses rose 47% to EUR 37.8 million, reflecting clinical trial activity; SG&A fell 2% to EUR 240.7 million.

• Free cash flow reached EUR 120 million, up 57% year-over-year; cash from operations rose 35% to EUR 187.1 million.

• Net debt stood at EUR 21.9 million at year-end, with a gross cash position of EUR 99.9 million and total debt of EUR 121.8 million.

• Dividend proposal of EUR 0.9594 per share, representing 35% of consolidated net profit.

Outlook and guidance

• 2026 operating revenue expected to grow by high single-digit to low double-digit percentages versus 2025.

• Guidance reflects potential revenue from new manufacturing agreements, CDMO contracts, and ongoing pricing pressure in heparins.

• R&D spending in 2026 anticipated to be intensive, possibly above EUR 40–60 million, offset by a substantial CDTI grant.

• CapEx for 2026 expected around EUR 62 million or slightly higher, driven by expansion projects and Phoenix integration.

• CDMO business sales forecast to double by 2030, reaching approximately EUR 700 million.