Viatris (VTRS) Q4 2025 earnings summary

Executive summary

• Achieved $14.3B in 2025 revenue, with 2% year-over-year growth on a divestiture-adjusted basis, and strong commercial and pipeline performance.

• Adjusted EBITDA reached $4.2B and adjusted EPS was $2.35, both at the top end of guidance; free cash flow (excluding transaction costs) was $2.2B.

• Completed an enterprise-wide strategic review, identifying $650M in gross cost savings over three years, with up to $250M earmarked for reinvestment and a global workforce reduction of up to 10%.

• Returned over $1B to shareholders via dividends and share repurchases, and completed 60 regional business development transactions, including the Aculys Pharma acquisition.

• Positioned for long-term sustainable growth in 2026, with multiple product launches, regulatory milestones, and pipeline advancements anticipated.

Financial highlights

• Q4 2025 revenue was $3.7B, up 5% year-over-year; full-year adjusted EBITDA was $4.16B, adjusted EPS was $2.65, and free cash flow (excluding transaction costs) was $2.2B.

• 2025 adjusted gross margin was 56%; adjusted SG&A was 23% of revenues; adjusted R&D was 6%.

• Indore supply disruptions negatively impacted 2025 revenues by ~$470M and adjusted EBITDA by ~$325M.

• U.S. GAAP net loss for 2025 was $(3.5)B, primarily due to a $2.9B goodwill impairment charge.

• Key products like Lipitor, Norvasc, and Creon showed solid sales growth.

Outlook and guidance

• 2026 revenue guidance: $14.45B–$14.95B (midpoint $14.7B); adjusted EBITDA: $4.15B–$4.45B; adjusted EPS: $2.33–$2.47.

• Free cash flow (excluding transaction/restructuring costs): $1.95B–$2.35B; new product revenues projected at $450M–$550M.

• Developed markets net sales expected to grow 2%, Europe 4%, emerging markets 6%, and Greater China 3% year-over-year.

• Gross margins expected to be modestly lower due to LOEs and ARV supply recovery, but to improve over time with cost savings and higher-margin products.

• Free cash flow to be lower in the first half of 2026 due to seasonality and restructuring costs.