Grifols (GRF) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record results, with revenue, EBITDA, and free cash flow all ahead of plan, driven by Biopharma's IG franchise and strong operational execution.

• Strategic execution and operational excellence drove performance despite macroeconomic and policy uncertainties, including the Inflation Reduction Act (IRA) and global tariff risks.

• Continued focus on deleveraging, free cash flow improvement, and operational excellence, with leverage ratio improved to 4.5x and liquidity at €1.7bn.

• Well-positioned to navigate dynamic markets with a diversified, global infrastructure and resilient supply chain.

Financial highlights

• Q1 2025 revenue reached €1,786 million, up 7.4% year-over-year on a constant currency basis; like-for-like revenue grew 10%.

• Adjusted EBITDA was €400 million, up 14.2% year-over-year; like-for-like EBITDA grew nearly 22%.

• Adjusted EBITDA margin improved by 80 basis points to 22.4% year-over-year.

• Group profit increased by 179% year-over-year to €60m; profit before tax rose 145%.

• Free cash flow pre-M&A was -€44m, a €209m improvement from Q1 2024, with liquidity at €1.7bn.

Outlook and guidance

• FY2025 guidance reaffirmed, with management citing strong operational execution and healthy demand across all business units.

• Sustained revenue growth expected for 2025, led by immunoglobulin (IG) and supported by albumin, Alpha-1, and specialty proteins.

• Fibrinogen launch on track for Europe in Q4 2025 and U.S. in H1 2026, pending FDA approval.

• Cost-per-liter and yield improvement initiatives are expected to further enhance margins.

• Company expects to provide both reported and LFL figures in 2025 to enhance transparency regarding IRA and Fee-for-Service impacts.