Grifols (GRF) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 rose 7.0% at constant currency to €3,677 million, driven by Biopharma growth and margin expansion, with adjusted EBITDA up 12.7% to €876 million and net profit up nearly fourfold to €177 million.

• Achieved the second highest revenue quarter in company history, supported by robust global demand and execution of the Value Creation Plan.

• Free cash flow pre-M&A improved by €182 million year-over-year, with leverage ratio reduced to 4.2x, the lowest in five years.

• Dividend reinstated with €0.15 per share interim payment, reflecting confidence in financial position and Value Creation Plan.

• Well-positioned to manage global market dynamics, including potential tariff, currency, and regulatory headwinds.

Financial highlights

• H1 2025 net revenue reached €3,677 million, up 7.0% at constant currency, with adjusted EBITDA of €876 million (23.8% margin) and group profit of €177 million, up 387.6% year-over-year.

• Q2 2025 net revenue was €1,891 million, with adjusted EBITDA of €475 million and a margin of 25.1%.

• Gross margin improved to 39.1%, up 130bps year-over-year, supported by lower plasma cost per liter.

• Free cash flow pre-M&A for H1 2025 was -€14 million, a €182 million improvement over H1 2024.

• Inventory turnover improved to 272 days from 294 days at December 2024.

Outlook and guidance

• Reaffirmed 2025 guidance, with improved free cash flow pre-M&A outlook to €375–425 million.

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

• Depreciating USD expected to be a headwind for revenue and EBITDA, but broadly neutral for group profit and leverage.

• Margin for full year expected to be relatively flat versus last year due to IRA impact.

• Continued strong momentum in H2 expected, with margin expansion and operational efficiencies offsetting FX headwinds.