Recordati (REC) Q3 2025 earnings summary

Executive summary

• Net revenue for the first nine months of 2025 reached €1,956.2 million, up 12.2% year-over-year, with strong momentum in both Specialty & Primary Care and Rare Diseases, despite adverse currency effects mainly from the Turkish Lira and US dollar.

• EBITDA rose 11.8% to €743.9 million (38.0% margin), driven by robust sales and operating leverage, partially offset by higher investments in product launches and geographic expansion.

• Adjusted net income increased 10.7% to €493.1 million, while reported net income declined 3.6% to €326.3 million due to non-recurring charges, including a €14.1 million litigation provision and non-cash charges from acquisitions.

• Isturisa® peak sales estimate was doubled to over €1.2 billion following label expansion and market analysis, with significant investments planned to support expanded patient reach.

• Free cash flow was €396.8 million, with higher EBITDA offset by increased tax payments, U.S. inventory build, and higher interest expenses.

Financial highlights

• Revenue: €1,956.2 million (+12.2% YoY); EBITDA: €743.9 million (+11.8%); Adjusted net income: €493.1 million (+10.7%).

• Gross margin at 67.2% (adjusted: 70.4%), benefiting from favorable product mix.

• Adjusted operating income rose 9.6% to €591.1 million; operating income declined 1.5% to €496.7 million due to higher non-cash and non-recurring costs.

• Free cash flow was €396.8 million, down €37.5 million year-over-year, mainly due to higher U.S. inventory and increased interest and tax payments.

• Net debt stood at €2,032.2 million (2.1x EBITDA pro-forma), down from €2,154.3 million at year-end 2024.

Outlook and guidance

• FY 2025 results expected in line with original guidance (lower half of range) despite FX headwinds (~-3% for FY 2025, expected to persist into 2026).

• FY 2026: Rare Diseases expected to approach 50% of total revenues, with high double-digit growth at CER; Specialty & Primary Care to see low single-digit growth due to Cardicor license loss.

• FY 2027 targets reaffirmed: Net Revenue €3.0–3.2 billion, EBITDA €1.14–1.23 billion, Adjusted Net Income €770–820 million.

• Isturisa® investments of €40–50 million annually to support expanded patient reach and clinical evidence generation.