H. Lundbeck (LUN) Q4 2025 earnings summary

Executive summary

• Revenue grew 13% at constant exchange rates (CER) to DKK 24,630 million in 2025, led by strong U.S. and European performance, with strategic brands Vyepti and Rexulti accounting for 77% of total sales.

• Adjusted EBITDA rose 24% at CER to DKK 7,881 million, with margin improvement driven by Vyepti and Rexulti, and disciplined capital reallocation.

• Strategic focus on innovation and pipeline expansion, with accelerated progression of five to six mid/late-stage assets and significant capital reallocation to fund growth.

• Ended the year with strong operational momentum, reinforcing confidence in the 2026 outlook and providing guidance for continued profitable growth.

• EPS increased 2% to DKK 3.22, while adjusted EPS rose 5% to DKK 5.26, reflecting strong EBIT but offset by higher financial expenses and taxes.

Financial highlights

• FY 2025 revenue reached DKK 24,630m, up 13% CER year-over-year; adjusted EBITDA grew 24% CER to DKK 7,881m, with a margin of 32%.

• EBIT increased 61% to DKK 5,275m; net profit rose 2% to DKK 3,192m, while adjusted net profit grew 5% to DKK 5,223m.

• Gross margin improved to 82.7%; adjusted gross margin at 87.5%.

• Net debt/EBITDA improved to 1.2x from 2.4x, reflecting deleveraging post-Longboard acquisition.

• Free cash flow was DKK 4,870 million, a significant turnaround from negative DKK 11,960 million in 2024.

Outlook and guidance

• 2026 revenue growth expected at 5–8% CER, with underlying growth of 6–9% after accounting for one-off partner inventory effects.

• Adjusted EBITDA growth guided at 4–12% CER; effective tax rate expected to normalize to 20–23%.

• Continued investment in R&D, with costs projected at DKK 5.5–5.9bn for 2026.

• Guidance assumes stable macroeconomic and currency conditions, and excludes major business development or regulatory changes.

• Mid-term targets: mid-single digit revenue CAGR and adjusted EBITDA margin above 30% by 2027.