Recordati (REC) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 reached €713.4 million, up 4.9% year-over-year (8.7% at constant exchange rates), driven by strong Rare Diseases growth and stable Specialty & Primary Care performance despite FX headwinds.

• EBITDA rose 5.0% to €283.6 million (39.7% margin), with adjusted net income up 7.2% to €188.1 million and reported net income up 22.4% to €153.1 million, reflecting higher operating income and lower financial expenses.

• Free cash flow was €92.1 million, down year-over-year due to higher working capital absorption and tax payments, with leverage just below 2x EBITDA.

• R&D pipeline advanced with positive phase II results for pasireotide in PBH and plans for phase III in ITP; collaboration with Moderna on mRNA-3927 for propionic acidemia.

Financial highlights

• Rare Diseases revenue grew 14.8% (22.4% at CER) to €292.4 million, led by Endocrinology (+38.1%, Isturisa® +56.8%) and Hema-Oncology (+18.2%, Enjaymo® +37.6%).

• Specialty & Primary Care revenue was €404.4 million, down 1.0% (up 0.2% at CER), with promoted portfolio up 5% in-market sales.

• U.S. revenue surged 25.1% year-over-year, with strong Rare Diseases performance; Italy stable, Spain and Turkey up, Germany down due to exit from unprofitable tenders.

• Gross profit margin improved to 71.6% (+11.3% year-over-year).

• Adjusted operating income was €231.1 million (32.4% margin); net debt as of March 31, 2026, was €1,985.2 million.

Outlook and guidance

• Full-year 2026 guidance: net revenue €2,730–2,800 million (FX headwind ~-3.5%), EBITDA €995–1,030 million (margin ~36.5%), adjusted net income €655–685 million (margin ~24%).

• Rare Diseases expected to deliver high-teen organic growth at constant FX; SPC to see low single-digit growth, returning to mid-single digit in 2027.

• 2027 targets reaffirmed, expecting strong organic growth and ongoing BD/M&A contributions.

• FX headwinds expected to impact revenue by ~-3.5% and EBITDA by ~-4.0%.