Recordati (REC) Q4 2025 earnings summary

Executive summary

• Net revenue reached €2.62 billion in 2025, up 11.8% year-over-year, with EBITDA rising 14.5% to €991.1 million and sector-leading 37.8% margin, driven by strong Rare Diseases and SPC performance.

• Rare Diseases segment drove robust double-digit growth, with significant contributions from ISTURISA and Enjaymo, and accelerated U.S. uptake post-label expansion.

• Strategic collaborations included a global partnership with Moderna for mRNA-3927 (USD 50 million upfront, up to USD 110 million in milestones), VAZKEPA licensing, and Inrebic commercialization in Japan.

• Free cash flow was €559 million, with leverage just below 2.1x, supporting financial flexibility.

• Key events included FDA approval for expanded ISTURISA indication, field force expansion, and liquidation of the rare disease subsidiary in China after reimbursement denial.

Financial highlights

• Rare Diseases revenue grew 29.7% year-over-year to €1,081.4 million, led by endocrinology (ISTURISA up ~29–30%) and hem-oncology (Qarziba, Sylvant, Enjaymo up double digits).

• Enjaymo sales reached €146 million, up 26.7% at constant FX.

• SPC delivered 2–3.8% growth at constant FX, with urology and cardiovascular stable and GI franchise up high single digits.

• US revenue grew nearly 32% (38% in local currency), driven by ISTURISA and Enjaymo.

• Gross profit margin stable at 68.3%, adjusted gross profit margin at 70.8%.

Outlook and guidance

• 2026 revenue guidance: €2.73–2.8 billion; rare diseases expected to grow high-teens organically at constant FX, SPC low single-digit.

• EBITDA guidance: €995–1,030 million, with ~36.5% margin, including ISTURISA investments and ~4% FX headwind.

• Adjusted net income expected at €655–685 million (24% margin).

• 2027 targets reaffirmed: net revenue €3,000–3,200 million, EBITDA €1,140–1,225 million, adjusted net income €770–820 million.

• SPC expected to return to mid-single digit growth in 2027.