Recordati (REC) Q4 2025 earnings summary

Executive summary

• Net revenue reached €2.62 billion in 2025, up 11.8% year-over-year, with EBITDA of €991.1 million, up 14.5%, driven by strong rare disease and SPC performance.

• Rare Diseases segment delivered 29.7% year-over-year growth, led by Isturisa and Enjaymo, with significant contributions from new product launches and expanded indications.

• Adjusted net income increased 14.5% to €651.1 million; net income grew 6.5% to €443.6 million.

• Free cash flow was €559 million, with leverage just below 2.1x, supporting financial flexibility.

• Strategic collaborations included VAZKEPA and Inrebic licensing, and a global partnership with Moderna for mRNA-3927, with a $50 million upfront payment and up to $110 million in milestones.

Financial highlights

• EBITDA margin was 37.8%, with sector-leading performance despite FX headwinds; operating expenses increased due to ISTURISA investments and Enjaymo integration.

• Adjusted net income margin was 24.9%; net income margin was 16.9%.

• Free cash flow conversion was ~90% of adjusted net income.

• Gross profit margin remained stable at 68.3%, with adjusted gross profit margin at 70.8%.

• Net debt/EBITDA ratio was below 2.1x at year-end.

Outlook and guidance

• 2026 revenue guidance: €2.73–2.8 billion; rare diseases expected to deliver high-teens organic growth at constant FX, SPC low single-digit growth.

• EBITDA expected at €995–1,030 million, with ~36.5% margin; adjusted net income €655–685 million (~24% margin).

• FX headwinds projected at -3.5% on revenue and ~4% on EBITDA, mainly from US dollar.

• 2027 targets reaffirmed: net revenue €3,000–3,200 million, EBITDA €1,140–1,225 million, adjusted net income €770–820 million.

• Specialty & Primary Care segment expected to return to mid-single digit growth in 2027.