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%; 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 rose 7% to EUR 266.8 million, driven by international demand and strong Q4 performance.

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

• Free cash flow surged 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; gross margin improved by 3.9 percentage points to 66.5%, driven by Okedi® sales, lower LMWH material costs, and R&D grants.

• EBITDA margin up 1.9 points to 29.1%; EBIT margin at 25%; net profit margin at 18.9%.

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

• Total debt at year-end was EUR 121.8 million, with net debt at EUR 21.9 million and gross cash EUR 99.9 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 rates versus 2025.

• Revenue growth drivers include Okedi® commercialization, LMWH franchise, new product launches, expanded CDMO agreements, and new manufacturing contracts.

• Heparin division faces competitive pricing pressure and expected sales decline in 2026 due to strong 2025 and partner inventory levels.

• R&D spending in 2026 projected to be at the high end of the EUR 40–60 million range, offset by a substantial CDTI grant.

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