Recordati (REC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue reached €680.0 million, up 11.9% year-over-year, with strong growth in both Specialty & Primary Care and Rare Diseases, including a €31.9 million contribution from Enjaymo®.

• EBITDA rose 10.7% to €270.2 million, maintaining a 39.7% margin, supported by revenue growth and despite higher investments.

• Adjusted net income increased 7.2% to €175.5 million, with reported net income at €125.0 million, up 1.2% year-over-year, reflecting higher operating income partially offset by increased financial expenses and a higher tax rate.

• Free cash flow improved to €158.8 million, up €11.7 million year-over-year, driven by higher EBITDA.

• FDA expanded approval for Isturisa® in Cushing's syndrome and China approval for Signifor® LAR support future growth and raised peak year sales target for Isturisa® to €550–650 million.

Financial highlights

• Net revenue: €680.0 million (+11.9% year-over-year); like-for-like growth at constant exchange rates was 7.2%.

• EBITDA: €270.2 million (+10.7%), margin 39.7%.

• Adjusted net income: €175.5 million (+7.2%), 25.8% of revenue.

• Net income: €125.0 million (+1.2%), 18.4% of revenue.

• Free cash flow: €158.8 million (+€11.7 million year-over-year).

Outlook and guidance

• FY 2025 guidance confirmed: net revenue €2,600–2,670 million, EBITDA €970–1,000 million, adjusted net income €640–670 million, with expectations for margin accretion versus 2024 despite FX headwinds.

• FY 2027 targets: net revenue €3,000–3,200 million, EBITDA €1,140–1,225 million, adjusted net income €770–820 million, with double-digit growth expected across all key metrics.

• Net debt targeted at 1.7–2.0x EBITDA, with flexibility up to 3x for acquisitions.