Novonesis (NSIS) Q4 2025 earnings summary

Executive summary

• Achieved 7% organic sales growth for 2025, at the upper end of guidance, with volumes up ~7% and pricing and sales synergies each contributing about 1 percentage point, despite a 1% negative impact from exiting certain countries.

• Adjusted EBITDA margin reached 37.1%, a 100bps improvement year-over-year, in line with outlook, despite significant currency headwinds.

• Growth was broad-based and mainly volume-driven, supported by innovation and 33 new product launches, with ~25% of sales from products launched in the last 5 years.

• Integration of the Feed Enzyme Alliance acquisition is progressing well, contributing positively to results.

• Sustainability targets met, including 100% renewable electricity and 80% of sales aligned with at least one SDG.

Financial highlights

• Reported sales grew 5% in EUR, with organic growth at 7%; currency headwinds were 3%, M&A contributed 1%.

• Adjusted gross margin improved by 240 bps to 59.1% year-over-year, driven by lower input costs and productivity.

• Adjusted EBITDA margin was 37.1%, up 100 bps from 2024, with cost synergies realized ahead of schedule.

• Diluted adjusted EPS was EUR 1.49 (+16% YoY); EPS excluding PPA amortization was EUR 1.99 (+15% YoY).

• Operating cash flow reached EUR 1.22 billion (+EUR 189 million YoY); free cash flow before acquisitions rose 15% to EUR 770 million (19% of sales).

• CapEx was EUR 471 million (11.3% of sales), up 2 percentage points YoY, supporting production expansion.

• Adjusted ROIC (excl. goodwill) was 10.1%, up from 8.3% pro forma 2024.

Outlook and guidance

• 2026 organic sales growth expected at 5%-7% (6%-8% excluding country exits), mainly volume-driven, with pricing and synergies each contributing ~1%.

• Adjusted EBITDA margin guided at 37%-38%, with continued margin expansion despite ~50bps currency headwinds.

• CapEx expected at 12%-14% of sales in 2026, reflecting temporary elevation for capacity expansion and ERP investments.

• Net debt/EBITDA expected at 1.7x by year-end 2026.

• Dividend payout proposed at DKK 6.5 (EUR 0.87) per share, a 58.4% payout ratio.

• Effective tax rate expected at 22%-23% for 2026 and longer term.