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Organon Q1 2025 Earnings Report
Organon reported a decrease in revenue and net income for the first quarter of 2025, while affirming its full-year financial guidance and resetting its dividend payout.
Key Takeaways
Organon's first quarter 2025 results showed a decline in revenue and net income compared to the prior year, primarily due to competitive pressures and loss of exclusivity for certain products. Despite this, the company affirmed its full-year 2025 financial guidance, driven by strong performance in key growth drivers like Nexplanon and Vtama, and reset its dividend payout to prioritize deleveraging.
First quarter 2025 revenue was $1.513 billion, down 7% as-reported and 4% at constant currency year-over-year.
Diluted earnings per share were $0.33, and non-GAAP Adjusted diluted earnings per share were $1.02.
Net income for the first quarter was $87 million, with Adjusted EBITDA (non-GAAP) of $484 million, representing a 32.0% margin.
The company reset its annual regular dividend rate to $0.08 per share to accelerate progress towards deleveraging and achieve a net leverage ratio below 4.0x by year-end.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Organon affirmed its full-year 2025 financial guidance for revenue and Adjusted EBITDA margin, expecting to generate over $900 million of free cash flow before one-time costs.
Positive Outlook
- Full year 2025 revenue guidance of $6.125B-$6.325B remains unchanged.
- Adjusted EBITDA margin guidance of 31.0%-32.0% remains unchanged.
- Adjusted gross margin guidance of 60.0%-61.0% remains unchanged.
- SG&A guidance of mid 20% range remains unchanged.
- R&D guidance of upper single-digit remains unchanged.
Challenges Ahead
- FX translation headwind of ~$200M, though with potential upside at current rates.
- IPR&D expense of $6 million is included in current guidance.
- Interest expense is projected at ~$510M.
- Depreciation is projected at ~$135M.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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