Merck (MRK) Q2 2025 earnings summary

Executive summary

• Achieved 2% organic group sales growth in Q2 2025, led by strong Process Solutions, Mavenclad, and Erbitux performance, despite significant FX headwinds and Electronics weakness.

• EBITDA pre grew 4.6% organically to €1.46 billion, but declined 3.1% year-over-year due to a 7.2% negative currency impact; margin was 27.8%.

• EPS pre declined 8.2% to €2.02, while reported EPS increased 7.1% to €1.50.

• Major portfolio moves included the acquisition of SpringWorks Therapeutics and divestment of Surface Solutions, completed in July 2025.

• Net financial debt increased to €7.97 billion, reflecting acquisition and dividend payments.

Financial highlights

• Q2 2025 net sales declined 1.8% year-over-year to €5.255 billion due to FX headwinds; EBITDA pre was €1.462 billion, down 3.1% year-over-year.

• Operating cash flow fell 34.2% to €567 million, mainly due to higher tax and bonus payments.

• Net income rose 7.4% to €652 million; reported EPS up 7.1% to €1.50.

• Equity ratio strengthened to 60% at end of Q2 2025.

• H1 2025: Net sales €10.535 billion (+0.6% YoY); EBITDA pre €2.998 billion (+1.2% YoY); EPS pre €4.14.

Outlook and guidance

• 2025 organic net sales growth guidance narrowed to 2–5%; reported net sales expected at €20.5–21.7 billion.

• EBITDA pre guidance maintained at €5.9–6.3 billion, with organic growth raised to 4–8%.

• EPS pre guidance set at €8.00–8.70.

• Life Science organic sales growth upgraded to 3–6%; Healthcare narrowed to 3–5%; Electronics revised down to -5% to -1%.

• Operating cash flow guidance revised to €3.6–4.0 billion for FY 2025.