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 Pharma grew 11% to EUR 473.9 million, driven by heparins, Okedi®, Neparvis, and hospital products.

• Okedi® sales surged 97% to EUR 56.7 million, and the heparin franchise rose 7% to EUR 266.8 million, with enoxaparin up 9% and bemiparin up 4%, supported by international demand.

• Gross margin improved by 3.9 percentage points to 66.5%, and EBITDA increased 4% to EUR 216.2 million, with margin expansion to 29.1%.

• Strategic investments included the acquisition of the Phoenix, AZ manufacturing site, a manufacturing agreement with Roche, and a majority stake in Cells IA Technologies.

• Free cash flow surged 57% to EUR 120 million, and net debt reduced to EUR 21.9 million from EUR 85.1 million.

Financial highlights

• Gross profit rose 3% to EUR 494.7 million; gross margin at 66.5%, up 3.9 points year-over-year, aided by R&D grants and favorable product mix.

• R&D expenses increased 47% to EUR 37.8 million, mainly due to clinical trial activity.

• SG&A expenses fell 2% to EUR 240.7 million, with non-recurrent strategic project costs included.

• Free cash flow reached EUR 120 million, up 57% year-over-year; cash flow 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.

• Dividend proposal of over EUR 49 million, or 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.

• Revenue growth drivers include Okedi® commercialization, LMWH franchise, new product launches, expanded CDMO agreements, and continued Specialty Pharma momentum, offset by competitive pricing in heparins.

• R&D spending in 2026 expected to be intensive, with total five-year program unchanged at EUR 300 million.

• CapEx for 2026 expected to be similar to or slightly above EUR 62 million, driven by ongoing expansion projects.

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