Grifols (NasdaqGS:GRFS) Q4 2025 Earnings call February 26, 2026 12:30 PM ET Speaker1Hello, everyone, and thank you for joining us today for Grifols' fourth quarter and full year 2025 earnings call. My name is Dani Segarra, and I serve as the Head of Investor Relations and Sustainability. Today, I'm joined by Grifols' Chief Executive Officer, Nacho Abia, President of Biopharma, Roland Wandeler, and Chief Financial Officer, Rahul Srinivasan. As usual, is our usual practice, today's call will last about an hou ...

FY 2025 Results February 26, 2026 FY 2025 Results - 1 - Legal Disclaimer Important Information This presentation does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (as amended and restated from time to ...

Grifols doubles net profit in 2025, driven by revenues | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of the Spanish pharmaceuticals company Grifols is pictured on theirs facilities in Parets del Valles, north of Barcelona, Spain, January 9, 2024. REUTERS/Albert Gea [Purchase Licensing Rights, opens new tab]- Companies[Grifols SA]FollowBARCELONA, Feb 26 (Reuters) - Spanish drugmaker Grifols [(GRLS.MC), opens new tab] repo ...

Core Viewpoint - The article discusses the investment potential and performance of GRFS, highlighting the author's long position in the shares and personal opinions on the stock's future prospects [1]. Group 1 - The author has a beneficial long position in GRFS shares, indicating confidence in the company's future performance [1]. - The article emphasizes the importance of conducting due diligence and research before making investment decisions, particularly in the context of GRFS [2]. - It is noted that past performance is not indicative of future results, suggesting a cautious approach to investment in GRFS [3].

Core Viewpoint - Grifols (GRFS) has faced significant selling pressure, resulting in a 10.4% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 indicating oversold conditions [2] - GRFS has an RSI reading of 28.86, suggesting that the heavy selling may be nearing exhaustion, potentially leading to a price rebound [5] Group 2: Fundamental Indicators - Analysts have raised earnings estimates for GRFS by 0.5% over the last 30 days, indicating a positive trend that typically correlates with price appreciation [7] - GRFS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, further supporting the potential for a turnaround [8]

Core Insights - Grifols is a significant player in the medical sector, focusing on plasma-derived medicines and healthcare products, operating among 954 peers and ranked 5 in the Zacks Sector Rank [1] Financial Performance - On November 4, 2025, Grifols reported an earnings per share (EPS) of $0.24, meeting market expectations, with revenue of approximately $2.14 billion, slightly below the estimated $2.15 billion [2][6] - The company holds a Zacks Rank of 2 (Buy), indicating potential to outperform the broader market [2][6] Financial Metrics - Grifols has a price-to-earnings (P/E) ratio of 18.58, a price-to-sales ratio of 0.91, and an enterprise value to sales ratio of 2.02, suggesting attractive pricing relative to sales [3] - The enterprise value to operating cash flow ratio is 13.62, and the earnings yield is 5.38%, indicating strong cash flow generation and return on investment [4] - The debt-to-equity ratio stands at 1.71, reflecting financial leverage, while the current ratio is 2.64, demonstrating the ability to cover short-term liabilities [4] Competitive Positioning - Grifols' year-to-date performance is noteworthy compared to peers like Arcutis Biotherapeutics, Inc. (ARQT), suggesting strong potential for growth and stability in the competitive medical sector [5]

Financial Data and Key Metrics Changes - Year-to-date revenue reached €5.5 billion, reflecting a year-over-year increase of 7.7% and 10.5% like-for-like after adjustments [5][26] - Adjusted EBITDA for Q3 was €482 million, contributing to a year-to-date adjusted EBITDA of €1.358 billion, up 11.2% and 17.3% like-for-like [6][29] - Free cash flow pre-M&A and pre-dividends improved to €188 million year-to-date, marking a significant €257 million year-over-year improvement [7][35] - The leverage ratio at the end of Q3 was 4.2 times, showing nearly one-time improvement over the prior year [7][27] Business Line Data and Key Metrics Changes - The biopharma portfolio grew by 10.9% in Q3, with Immunoglobulins franchise leading at 18% growth for the quarter [11][12] - Albumin volumes contracted by 4.5% in Q3 due to pricing pressure in China, with a year-to-date contraction of 3.9% [12] - Alpha-1 and specialty proteins franchises saw revenue growth of 3.3% in Q3, bringing year-to-date growth to 4.3% [13] Market Data and Key Metrics Changes - The U.S. market for Immunoglobulins showed strong growth, with Xembify growing over 60% in the last 12 months [16] - The market for albumin in China faced challenges due to government-imposed cost controls, impacting pricing and demand [12][52] Company Strategy and Development Direction - The Value Creation Plan focuses on commercial growth, margin expansion, and pipeline execution, with a strong emphasis on operational leverage and optimized plasma sourcing [8][10] - The company aims to launch fibrinogen in Europe by the end of 2025, with a U.S. launch planned for the first half of 2026 [9][21] - Innovation remains a cornerstone, with ongoing advancements in product formulations and new therapeutic areas [20][24] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a complex external environment but expressed confidence in the company's ability to navigate challenges [4][5] - The company reaffirmed its full-year 2025 revenue and adjusted EBITDA guidance, despite external pressures [43][42] Other Important Information - The company is actively managing the impact of the Inflation Reduction Act and foreign exchange headwinds, with a focus on maintaining financial discipline [3][30] - The company is committed to strengthening its balance sheet and capital allocation priorities to create long-term value [8][43] Q&A Session Questions and Answers Question: Clarification on the delay of fibrinogen and AFD in the U.S. - Management indicated that the delay is due to the need for more solid clinical data to support the standard of care change in the U.S. market [46][47] Question: Dynamics of albumin in China - The pricing pressure in China is primarily driven by government-imposed cost controls affecting both prices and demand [51][52] Question: Clarification on EBITDA guidance for the year - Management explained that the guidance reflects a robust Q4 expectation, despite a tough comparison to Q4 2024 due to phasing [54][56]

Financial Performance - Grifols reported Q3 2025 revenues of EUR 1,865 million, a 9.1% year-over-year increase in constant currency (cc), contributing to a year-to-date total of EUR 5,542 million, up 7.7% cc[6][12] - Adjusted EBITDA for Q3 2025 was EUR 482 million, an 8.8% cc increase, resulting in a year-to-date total of EUR 1,358 million with a margin of 24.5%[7][12] - The group profit for Q3 2025 reached EUR 127 million, leading to a year-to-date profit of EUR 304 million, a significant increase of 245% compared to the same period in 2024[8][12] - Year-to-date (YTD) revenue for Q3 2025 reached €5,542 million, representing a 7.7% increase in constant currency (cc) and a 10.5% increase on a like-for-like (LFL) basis[41] - Adjusted EBITDA for YTD Q3 2025 was €1,358 million, reflecting an 11.2% increase in cc and a 17.3% increase on an LFL basis[65] - Adjusted EBITDA for Q3 2025 reached €1,358 million, reflecting an increase of 11.2% at constant currency (cc) and 8.3% year-over-year[73] - Reported Group Profit for Q3 2025 reached €126,964, a significant increase of 14696% compared to Q3 2024's €51,691[89] - Reported Group Profit for 2025 YTD was €303,750, representing a 245% increase from €87,951 in 2024 YTD[93] Cash Flow and Leverage - Free cash flow pre-M&A and pre-dividend for Q3 2025 was EUR 203 million, bringing the year-to-date total to EUR 188 million, an increase of EUR 257 million year-over-year[8][12] - Free Cash Flow (FCF) pre-M&A for Q3 2025 was €188 million, representing a significant increase of €257 million compared to the previous year[74] - The leverage ratio improved to 4.2x, down from 5.1x in the previous year, while liquidity increased to EUR 1,475 million[9][12] - The leverage ratio decreased to 4.2x, down 0.9x from the previous year, indicating a strengthening balance sheet[65] - The Leverage Ratio as per Credit Agreement for Q3 2025 was 4.2x, consistent with the previous quarter, indicating stable debt levels relative to earnings[103] - Total Net Financial Debt according to Credit Agreement was €(1,084,137) thousand, indicating a significant financial position[106] Segment Performance - The Biopharma segment drove revenue growth with a 10.9% cc increase in Q3, particularly from the immunoglobulin franchise, which saw a 14.4% cc increase year-to-date[14][12] - Biopharma segment revenue grew by 7.7% in cc, driven by strong demand for immunoglobulin (IG) products and specialty proteins[66] - The Diagnostic business generated EUR 479 million in revenue for the first nine months, a 1.4% cc increase, supported by Blood Typing Solutions and FDA approval for new manufacturing capabilities[17][12] - Biopharma Net Revenues for Q3 2025 were €1,619,532 thousand, reflecting a 5.8% year-over-year growth[108] Market Outlook and Strategy - Grifols anticipates full-year FX headwinds of approximately EUR 70 million for Adjusted EBITDA, with a broadly neutral impact on group profit, free cash flow, and leverage[18][12] - The company continues to focus on free cash flow generation and deleveraging as key priorities moving forward[13][12] - The company expects mid-to-high single-digit growth in the IG market, with a compound annual growth rate (CAGR) estimated between 6-8%[52] - The company is focused on expanding its product offerings and increasing market penetration, particularly in the U.S. for Xembify® and Gamunex®[55] - The Alpha-1 market remains significantly undertreated, with a potential revenue opportunity estimated between €700-750 million[59] - The pipeline includes key projects in various phases of development, with a focus on innovative treatments for autoimmune diseases and infectious diseases[61] Investment and Capital Expenditure - CAPEX for Q3 2025 was €(70,051), a 37% increase compared to €(51,299) in Q3 2024, reflecting ongoing investments in growth[89] - The company is targeting refinancing of 2027 maturities in H1 2026, supported by positive bank feedback[75] - The company is focused on disciplined capital allocation and deleveraging, strengthening its balance sheet[80] Cash and Liquidity - Net Cash Flow From Operating Activities for Q3 2025 was €325,401, up from €299,610 in Q3 2024, indicating a strong operational performance[89] - Free Cash Flow for Q3 2025 was €202,718, compared to €103,209 in Q3 2024, reflecting an increase in cash generation capabilities[89] - Total Cash Flow for Q3 2025 was €63,953, a turnaround from a negative cash flow of €(1,453,239) in Q3 2024[89] - Cash and Cash Equivalents at the End of Q3 2025 were €620,960, slightly down from €644,942 at the end of Q3 2024[89] - Cash and Cash Equivalents for Q3 2025 were reported at €(621) thousand, reflecting a decrease in liquidity[105]

Financial Performance - YTD Q3 2025 Revenue reached €5542 million, a 77% increase at constant currency[11] - YTD Q3 2025 Adjusted EBITDA grew to €1358 million, an 112% increase at constant currency[11] - YTD Q3 2025 Free Cash Flow (pre-M&A) was €188 million, an increase of €257 million[11] - The company's leverage ratio decreased to 42x compared to the previous year[11] - Q3 2025 Net Revenue was €18654 million, a 40% increase[75] - YTD Group Profit reached €304 million, a 2454% increase[40] Business Segment Performance - Biopharma revenue increased by 91% YTD at constant currency, and 109% in Q3[45, 17] - IG (Immunoglobulin) franchise is a key driver of Biopharma growth, with overall growth ahead of the market[17] - Alpha-1 and specialty proteins also contributed to the growth of Biopharma[45] - Diagnostic revenue increased by 14% YTD at constant currency[45] Future Outlook - The company improved its revenue guidance for FY25 to €7600+ million at guidance FX rate[63] - The company improved its FCF pre-M&A pre-dividends guidance for FY25 to €400-425 million[63]

Core Insights - Grifols (GRFS) is currently outperforming its peers in the Medical group, with a year-to-date gain of approximately 26.2% compared to the average gain of 4% for Medical stocks [4] - The Zacks Rank system indicates a positive outlook for Grifols, currently holding a Zacks Rank of 2 (Buy), with a 1% increase in the consensus earnings estimate over the past 90 days [3] Company Performance - Grifols is part of the Medical - Drugs industry, which consists of 145 companies and is ranked 90 in the Zacks Industry Rank, with an average gain of 7.3% year-to-date [5] - The stock's performance is significantly better than the industry average, indicating strong relative strength within its sector [5] Comparison with Peers - Arcutis Biotherapeutics, Inc. (ARQT) is another standout in the Medical sector, having returned 81.6% year-to-date, with a Zacks Rank of 1 (Strong Buy) and a 19.9% increase in the consensus EPS estimate over the past three months [4][5] - The Medical group is currently ranked 5 within the Zacks Sector Rank, which evaluates the strength of 16 different groups based on the average Zacks Rank of individual stocks [2]