Laboratorios Farmaceuticos Rovi (ROVI) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 was €756.1 million, down 1% year-over-year, with operating revenue at €743.5 million, down 2–3%, mainly due to a 20% decline in CDMO sales, while specialty pharmaceuticals grew 11% to €473.9 million, driven by Okedi® (+97%) and heparin franchise (+7%).

• EBITDA rose 4% to €216.2 million, with margin expanding to 29.1%; EBIT increased 4% to €185.8 million; net profit grew 3% to €140.4 million, reflecting improved profitability.

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

• Free cash flow surged 57% to €120.0 million; net debt reduced to €21.9 million from €85.1 million.

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

Financial highlights

• Specialty Pharma sales grew 11% to €473.9 million, offsetting a 20% drop in CDMO revenue to €269.5 million.

• Okedi® sales nearly doubled to €56.7 million (+97%); heparin franchise up 7% to €266.8 million, with enoxaparin up 9% and bemiparin up 4%.

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

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

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

Outlook and guidance

• 2026 operating revenue expected to grow by high single-digit to low double-digit percentages versus 2025, driven by Okedi® commercialization, LMWH franchise, new product launches, and expanded CDMO agreements.

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

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

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

• Roche and BMS agreements anticipated to boost contract manufacturing sales by 20–25% by 2030.