Teva Pharmaceutical Industries (TEVA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $4.2 billion, up 7% in USD and 11% in local currency year-over-year, driven by strong growth in generics and innovative products, especially AUSTEDO (32% U.S. growth), AJOVY (12% global growth), and UZEDY.

• Adjusted EBITDA rose to $1.2 billion (up 4–14% year-over-year), and non-GAAP EPS increased 9% to $0.61.

• Net loss narrowed to $846 million, improved from $872 million in Q2 2023, mainly due to lower operating loss and legal settlements.

• Raised 2024 guidance for revenue, EBITDA, and EPS, reflecting robust first-half results and continued execution of the Pivot to Growth strategy.

• Advanced innovative and biosimilar pipeline, with key launches and clinical milestones on track.

Financial highlights

• Q2 2024 revenue: $4.2 billion, up 7% in USD and 11% in local currency year-over-year.

• Adjusted EBITDA: $1.2 billion, up 4–14% year-over-year; non-GAAP EPS: $0.61, up 9%.

• Free cash flow: $324 million, down from $632 million in Q2 2023, impacted by working capital and higher tax payments.

• Net debt reduced to $16.4 billion; gross debt at $18.6 billion as of June 30, 2024.

• GAAP net loss: $846 million; diluted loss per share $0.75.

Outlook and guidance

• 2024 revenue guidance raised to $16.0–$16.4 billion; adjusted EBITDA $4.6–$5.0 billion; non-GAAP EPS $2.30–$2.50.

• Free cash flow expected at $1.7–$2.0 billion for 2024; CAPEX ~$0.5 billion; tax rate 14–17%.

• Product-specific 2024 outlook: AUSTEDO ~$1.6 billion, AJOVY ~$500 million, UZEDY ~$80 million, COPAXONE ~$450 million.

• Non-GAAP gross margin expected at 53–54% for the full year, with margin improvement in H2.

• 2027 targets reiterated: mid-single digit revenue growth, 30% operating margin, net debt/EBITDA 2x, and 80% cash flow to earnings.