Mallinckrodt (MNK) Q2 2025 earnings summary

Executive summary

• Mallinckrodt and Endo completed their merger on July 31, 2025, forming a larger, more diversified pharmaceutical company focused on specialty brands and generics.

• The $1.9 billion Endo acquisition expanded product diversity and capabilities, with integration and synergy targets of at least $150 million in annual pre-tax run-rate operating synergies by year three.

• Christiana Stamoulis was appointed as the new President and CFO, bringing additional expertise to the leadership team.

• Divestiture of Therakos for $881.4 million and Endo's international segment, with proceeds used to reduce debt.

• Integration plans and a planned spin-off of Par Health in Q4 2025 are underway, subject to board approval.

Financial highlights

• Q2 2025 net sales for Mallinckrodt were $485.1 million, down 5.7% year-over-year; excluding Therakos, net sales grew 8.5%.

• Endo's Q2 2025 revenues were $447.8 million, flat year-over-year; adjusted EBITDA was $149.8 million, down from $175.8 million.

• Mallinckrodt reported Q2 2025 net income of $2.4 million, a turnaround from a $43.3 million net loss in Q2 2024.

• Gross profit for Mallinckrodt rose 18.9% to $231.8 million, with gross margin improving to 47.8% from 37.9%.

• Post-acquisition, total debt increased to approximately $3.7 billion.

Outlook and guidance

• Combined company expects 2025 net sales of $3.57 billion–$3.62 billion and adjusted EBITDA of $1.10 billion–$1.13 billion.

• Par Health 2025 net sales guidance is $1.72–$1.75 billion, with adjusted EBITDA of $450–$470 million.

• Acthar Gel 2025 net sales guidance raised to 20–30% growth; XIAFLEX revenue growth reaffirmed in the high single digits.

• Planned spin-off of Par Health expected in Q4 2025, subject to board approval.

• Expects continued integration and non-recurring costs related to the Endo deal and planned separation.