Merck (MRK) Q4 2025 (Media) earnings summary

Executive summary

• Delivered on 2025 financial guidance with stable net sales of €21.1 billion and organic growth of 3.1%, despite significant FX and geopolitical headwinds and higher interest costs from acquisitions.

• Diversified business model and regional presence, leveraging trends in health and AI, provided resilience and supported future growth.

• Major growth platforms identified in semiconductors, rare diseases, and advanced therapies, with Process Solutions, CM&E, and Semiconductor Materials as key drivers.

• Leadership transition announced, with Kai Beckmann to succeed as CEO.

• Proposed stable dividend of €2.20 per share, marking the fifteenth consecutive year of increasing or stable dividends.

Financial highlights

• Net sales stable at €21.1 billion for 2025, down 0.3% year-over-year due to -3.7% FX impact; organic growth was 3.1%.

• Group EBITDA pre reached €6.1 billion, up 5.6% organically and 0.6% overall; margin improved to 28.9%.

• Q4 2025 organic sales grew 2.6%, with group EBITDA pre up 3.1% organically.

• Earnings per share pre was €8.34, down 3.4% year-over-year; profit after tax was €2.6 billion.

• Operating cash flow declined 14.3% to €3.9 billion; net financial debt increased 20.5% to €8.6 billion, mainly due to acquisitions.

Outlook and guidance

• 2026 group net sales expected between €20.0–21.1 billion, with organic sales development of -1% to +2% and FX impact of -4% to -2%.

• Group EBITDA pre guided between €5.5–6.0 billion, organic change -4% to +1%, FX impact -7% to -3%.

• EPS pre guidance for 2026 is €7.10–8.00, assuming no U.S. Mavenclad sales from March 2026.

• Life Science projected for organic sales growth of +3% to +6%; Healthcare organic sales -7% to -4%; Electronics organic sales +3% to +7%.

• Guidance excludes potential U.S. sales of Pergoveris and assumes no MAVENCLAD U.S. sales from March 2026.