Loading...
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.
Organon
Organon
Organon Revenue by Segment
Organon Revenue by Geographic Location
Revenue by Segment
Women's Health Revenue
CapyFin.comBiosimilars Revenue
CapyFin.comEstablished Brands Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Europe and Canada Revenue
CapyFin.comUnited States Revenue
CapyFin.comAsia Pacific and Japan Revenue
CapyFin.comChina Revenue
CapyFin.comLatin America, Middle East, Russia, and Africa Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Effective non-GAAP tax rate is projected at 22.5%-24.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income