Hikma Pharmaceuticals (HIK) H2 2025 earnings summary

Executive summary

• Leadership transition focused on long-term growth, empowerment, and agility, with heavy investment in R&D, talent, and supply chain improvements.

• Achieved 6% year-over-year core revenue growth to $3,349m and 3% increase in core operating profit to $741m for 2025.

• Maintained strong EBITDA margins and consistent growth, outperforming competitors with a 25.5% core EBITDA margin and 16.0% ROIC.

• Strategic focus on three divisions: Injectables, Rx (generics), and Branded, driving diversified growth across MENA, Europe, and North America.

Financial highlights

• EBITDA margin stands at 25%–25.5%, ahead of competitors targeting 22%.

• Core EBITDA rose 4% to $853m; core basic EPS up 2% to 228¢ year-over-year.

• Rx division achieved 20% margins and strong EBITDA, with expectations for further improvement.

• Branded segment growth accelerated to 7%-8% from previous 5%-6%.

• $250 million share buyback approved for 2024.

Outlook and guidance

• 2025 and 2026 expected to be challenging for injectables due to reduced CMO contribution and delayed product launches.

• 2026 group revenue expected to grow 2–4%; core operating profit guided at $720–770m.

• Growth acceleration anticipated from 2027 onward, driven by new product launches and expanded CMO capacity.

• $5 billion revenue target for 2030 reaffirmed as achievable, with acceleration post-2026.

• Injectable margins guided at 27%-28% for the next three years, down from previous 30%+ due to increased R&D and investment.