Hikma Pharmaceuticals (HIK) H2 2025 Pre Recorded earnings summary

Executive summary

• Achieved core revenue of $3,349m in 2025, up 6% year-over-year, with core operating profit rising 3% to $741m and core EBITDA up 4% to $853m.

• Focus on stability, agility, investment, and long-term growth, with a refined management structure and new leadership roles to drive accountability and execution.

• Maintained industry-leading margins and high returns, with a 5-year average Group ROIC of 16.5% and core EBITDA margin of 25.5% in 2025.

• Three business segments—Injectables, Hikma Rx, and Branded—drove growth through diversified portfolios and strong regional positions.

• Organizational changes include new deputy CEO roles, interim CFO appointment, and board leadership transitions to support strategic execution.

Financial highlights

• Group revenue grew 6% year-over-year to $3,349m; core operating profit increased 3% to $741m; EBITDA margin at 25.5%.

• Branded revenue up 10% with a 26.4% core operating margin; Hikma Rx revenue exceeded $1 billion with a 17.3% margin.

• Injectables revenue up 7%, but core operating profit down 6% and margin declined from 35% to 31% due to competition, product mix, and inventory write-downs.

• Core basic earnings per share increased 2% to 228¢ in 2025.

• Net debt to core EBITDA at 1.6x; total debt increased by $300M due to legal settlement, CapEx, and acquisitions.

Outlook and guidance

• 2026 group revenue expected to grow 2%-4%, with core operating profit of $720M-$770M.

• Injectables revenue to grow low single digits, margin guided at 27%-28%; branded revenue to grow 6%-8% with ~25% margin; Hikma Rx revenue flat, margin near 20%.

• R&D spend to increase significantly, especially in injectables, to 5%-6% of revenue.

• Capital expenditure planned at $190m–$210m; core effective tax rate c.23%.

• Return to growth in absolute profit expected from 2027.