Alcon (ALC) investor relations material

Executive summary

• Fourth quarter 2025 net sales reached $2.7 billion, up 9% year-over-year (7% in constant currency), driven by new product launches and innovation.

• Full-year 2025 net sales were $10.3 billion, up 5% from 2024 (4% in constant currency), with strong momentum in the second half and growth across Surgical and Vision Care.

• Core diluted EPS for Q4 was $0.78 (up 8% year-over-year); full-year core diluted EPS was $3.07, flat year-over-year.

• Generated $2.3 billion in operating cash flow and $1.7 billion in free cash flow for the year.

• Strategic focus remains on innovation, operational efficiency, and disciplined capital allocation to support long-term growth.

Financial highlights

• Q4 2025 sales reached $2.7 billion, up 7–9% year-over-year; full-year free cash flow was $1.7 billion, up from $1.6 billion in 2024.

• Q4 operating income was $313 million, down 21% year-over-year; core operating income for Q4 was $514 million, up 3% year-over-year.

• Core operating margin for Q4 was 19.0% (down 1.1 points YoY); full-year core operating margin was 19.8% (down 90 bps YoY).

• Q4 2025 included $22 million in acquisition/integration costs; FY25 included $58 million in such costs and $44 million in product discontinuation charges.

• $848 million returned to shareholders in 2025 via $682 million in share repurchases and $166 million in dividends.

Outlook and guidance

• 2026 net sales growth expected at 5–7% (constant currency), assuming eye care markets grow 3–4%.

• Core operating margin projected to improve by 70–170 bps; core diluted EPS to grow 9–12%.

• Full-year tariff impact expected to be $125–175 million, pressuring cost of sales.

• $100 million in annualized run rate savings targeted from new efficiency measures, with $50 million realized in 2026.

• Dividend of 28 Swiss centimes per share proposed, in line with payout policy.