Recordati (REC) Q2 2026 earnings summary

Executive summary

• Net revenue for H1 2026 reached €1,410.8 million, up 6.6% year-over-year, driven by strong Rare Diseases growth and stable Specialty & Primary Care performance, with significant U.S. market contribution despite FX headwinds.

• EBITDA rose 8.8% to €540.2 million, with margin improving to 38.3% of revenue, reflecting favorable product mix, operational discipline, and increased U.S. investment.

• Adjusted net income increased 6.7% to €349.9 million; reported net income surged 24.8% to €269.7 million, supported by higher operating income and lower non-cash charges.

• Free cash flow reached €299.4 million, up €42.6 million year-over-year, strengthening the balance sheet and reducing net debt below 1.9x EBITDA.

• Expanded Rare Disease pipeline through licensing agreements with Ionis for zilganersen and collaboration with Moderna for mRNA-3927.

Financial highlights

• Gross profit margin improved to 71.5%, aided by operational performance and lower cost of sales.

• Operating income grew 26.6% to €419.2 million; adjusted operating income up 10.2% to €434.8 million.

• EBITDA margin reached 38.3%; adjusted net income margin was 24.8%.

• Free cash flow for H1 at €299.4 million, up €42.6 million year-over-year.

• Net debt as of June 30, 2026, was €1,917.1 million, with leverage below 1.9x EBITDA.

Outlook and guidance

• Full-year 2026 guidance confirmed: net revenue €2,730–2,800 million, 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 exchange rates; Specialty & Primary Care to see low single-digit growth.

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

• 2027 targets remain unchanged, with expectations for strong organic growth and additional M&A.