Recordati (REC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue reached €680 million, up 11.9% year-over-year, with strong growth in both Specialty & Primary Care and Rare Diseases segments, and a 7.2% increase at constant exchange rates.

• EBITDA rose 10.7% to €270.2 million, maintaining a 39.7% margin, supported by revenue growth and higher investments.

• Adjusted net income was €175.5 million, up 7.2% year-over-year, with a 25.8% margin, reflecting higher operating income but offset by increased finance expenses and a higher tax rate.

• Free cash flow improved to €158.8 million, up €11.7 million year-over-year, driven by higher EBITDA and offset by working capital growth and interest paid.

• Full-year 2025 guidance and 2027 double-digit growth targets were reaffirmed, with positive momentum expected to continue.

Financial highlights

• Revenue: €680 million (+11.9% vs Q1 2024); adverse FX impact of €3.7 million (-0.6%), mainly from Turkish lira.

• EBITDA: €270.2 million (+10.7% vs Q1 2024), margin at 39.7%.

• Adjusted net income: €175.5 million (+7.2% vs Q1 2024), margin at 25.8%.

• Operating income: €195.8 million (+4.7% vs Q1 2024), margin at 28.8%.

• Free cash flow: €158.8 million (+€11.7 million vs Q1 2024).

Outlook and guidance

• FY 2025 guidance reaffirmed, targeting revenue of €2,600–2,670 million and EBITDA of €970–1,000 million (margin ~37%).

• FY 2027 targets: revenue €3,000–3,200 million, EBITDA €1,140–1,225 million (margin ≥38%), adjusted net income €770–820 million.

• Double-digit growth expected across all key metrics through 2027.