Recordati (REC) Q2 2025 earnings summary

Executive summary

• Net revenue for H1 2025 reached €1,323.8 million, up 11.7% year-over-year, with strong growth in both Specialty & Primary Care and Rare Diseases, despite adverse FX impacts and higher investments in launches and integration activities.

• EBITDA rose 9.6% to €496.3 million (37.5% margin), supported by robust revenue growth and increased investments in product launches, Vistariza, Enjaymo integration, and geographic expansion.

• Adjusted net income increased 8.9% to €327.8 million, while reported net income declined 4.1% to €216.1 million due to higher non-cash charges and tax rate.

• Free cash flow was €256.8 million, stable versus the prior year, as higher EBITDA was offset by working capital absorption and increased tax payments.

• Full-year 2025 financial targets confirmed, expecting continued positive momentum despite increased FX headwinds and ongoing investment in key product launches and R&D pipeline progress.

Financial highlights

• Revenue: €1,323.8 million (+11.7% YoY); EBITDA: €496.3 million (+9.6% YoY); adjusted net income: €327.8 million (+8.9% YoY); reported net income: €216.1 million (-4.1% YoY).

• Gross profit margin: 66.7% (adjusted: 70.2%); adjusted operating income: €394.7 million (+7.3% YoY); operating income: €331.0 million (-2.2% YoY).

• Free cash flow: €256.8 million, with leverage just below 2.3x EBITDA pro forma; net financial position: net debt of €2,127.1 million.

• EPS (basic): €1.048, down 4.0% year-over-year.

• Shareholders’ equity stood at €1,870.5 million as of June 30, 2025.

Outlook and guidance

• FY 2025 revenue guidance is €2,600–2,670 million (+12.5% YoY), with EBITDA of €970–1,000 million (margin ~37.5%) and adjusted net income of €640–670 million (margin ~25%), tax rate ~24%.

• FX headwinds for FY 2025 now expected at -3%, higher than the -1% anticipated at the start of the year.

• Vascepa/Vazkepa® to contribute less than €10 million in 2025, with positive EBITDA from 2026 and €40 million revenue expected in 2027.

• Continued investment in Vistariza and Enjaymo expected to ramp up in H2 2025.