Viatris (VTRS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were $3.8B, flat year-over-year, with adjusted EBITDA of $1.2B and adjusted EPS of $0.67, reflecting stable performance despite Indore facility headwinds and a $2.9B goodwill impairment charge.

• Strategic review underway to identify cost savings and reinvestment opportunities, with details expected in Q1 2026.

• Over $920M returned to shareholders year-to-date, including $500M in share repurchases and ~$420M in dividends.

• Completed acquisition of Aculys Pharma, expanding CNS portfolio and rights to pitolisant and Spydia® in Japan and Asia-Pacific.

• Indore facility remediation ongoing, with operational redundancies established to mitigate supply risks.

Financial highlights

• Q3 2025 total revenues: $3.8B; adjusted EBITDA: $1.2B; adjusted EPS: $0.67; adjusted gross margin: 56%.

• Free cash flow for Q3 2025 was $658M ($728M excluding transaction costs); nine-month free cash flow was $1.5B.

• Indore facility issues negatively impacted Q3 revenues by ~$150M and adjusted EBITDA by ~$120M; $400M revenue impact year-to-date.

• Brands segment net sales grew 3% to $2.44B, while generics declined 5% to $1.31B.

• Greater China net sales rose 10% to $615M; Emerging Markets up 7% to $570M; Developed Markets down 2% to $2.26B; JANZ down 11% to $306M.

Outlook and guidance

• 2025 total revenue guidance raised and narrowed to $13.9B–$14.3B; adjusted EBITDA $4.0B–$4.2B; adjusted EPS $2.25–$2.35; free cash flow $1.85B–$2.15B.

• Q4 revenues expected to be lower due to seasonality; SG&A to rise with pipeline investments.

• Sufficient liquidity with $975.3M in cash and $3.5B available under revolving facility.

• Indore facility disruptions estimated to impact 2025 revenues by ~$515M and adjusted EBITDA by ~$370M.

• Underlying business fundamentals expected to remain strong into 2026, with more guidance in Q1 2026.