Faes Farma (FAE) Q1 2026 earnings summary

Executive summary

• Total revenue reached €200.1 million in Q1 2026, up 31% year-over-year, driven by strong international performance, acquisitions, and robust growth in key molecules and new therapeutic areas like ophthalmology.

• Net profit increased by 9% year-over-year to €30.8 million, reflecting solid and diversified growth supported by efficient cost management.

• Successful integration of SIFI and Edol progressed, with restructuring costs incurred and synergies expected to support business continuity and organizational optimization.

• Strong organic momentum in international direct-to-consumer and licensing, with ophthalmology emerging as a new growth engine now accounting for 14% of total revenue.

Financial highlights

• EBITDA grew 23% to €48.2 million, including restructuring costs; organic/adjusted EBITDA growth would exceed 30%.

• EBIT reached €36.4 million (+17% YoY); EBIT margin was 18.2%.

• Gross margin stood at 69% or €152.9 million (+30.8% YoY).

• Personnel expenses increased 48% due to one-time restructuring costs of €3.2 million.

• Financial costs remained contained, aided by active liquidity management despite higher debt from acquisitions.

Outlook and guidance

• Guidance for 2026 maintained: revenue growth expected between 17% and 19% from €627 million in 2025, with EBITDA growth of 28% to 31%.

• Life insurance segment guidance: growth of 28% to 31% from €118 million in 2025.

• Leverage/debt-to-EBITDA ratio targeted below 2x, with adequate liquidity and shareholder payout commitment at 50%.

• Growth to be driven by LATAM, Gulf regions, licensing, and full integration of SIFI and Edol.

• Confident in meeting annual targets despite macroeconomic and geopolitical uncertainties.