Merck (MRK) Q3 2025 earnings summary

Executive summary

• Solid organic growth across all three sectors in Q3 2025, with group revenues up 5.2% and EBITDA pre up 8.8% year-over-year, despite significant currency headwinds.

• Life Science led with 6% organic sales growth, driven by process solutions; Healthcare and Electronics both delivered 5% organic growth, with SpringWorks acquisition consolidated for the first time, contributing to Healthcare growth.

• Major portfolio changes included the acquisition of SpringWorks Therapeutics and the divestment of the Surface Solutions business, supporting future growth.

• Strong order growth and a book-to-bill ratio above one, with process solutions achieving over 10% organic growth for the third consecutive quarter.

• Guidance for 2025 was confirmed and narrowed, reflecting increased visibility and strategic expansion.

Financial highlights

• Net sales increased by 1% to €5.318 billion, with organic growth of €273 million offset by FX headwinds of €-256 million.

• EBITDA pre rose 3.1% to €1.669 billion, margin up to 31.4% year-over-year.

• EPS pre increased 0.9% to €2.32 per share; reported EPS up 11.3% to €2.07.

• Operating cash flow up 4.1% to €1.518 billion; net financial debt rose 29.8% to €9.288 billion due to SpringWorks acquisition financing.

• EBIT up 11.3% year-over-year; financial result declined due to higher interest costs from bond issuance.

Outlook and guidance

• Full-year 2025 group sales guidance narrowed to €20.8–21.4 billion, midpoint unchanged at €21.1 billion.

• Organic net sales growth guidance set at ~3%; EBITDA pre guidance narrowed to €6–6.2 billion, midpoint at €6.1 billion.

• EPS pre guidance raised by €0.05 to €8.20–8.60.

• Life Science organic sales growth forecast at 4–5%; Healthcare at ~3% plus portfolio effect from SpringWorks; Electronics at -3% to -1%.

• Portfolio effects from SpringWorks acquisition and Surface Solutions divestment expected to be positive for sales but slightly negative for EBITDA pre.