Gerresheimer, a global partner to the pharma, biotech, and cosmetics industries, today released its 2025 annual and consolidated financial statements, which had been postponed due to internal investigations into revenue recognition and accounting practices. The company reported revenue of EUR 2.3 billion, essentially flat on an organic basis, and adjusted EBITDA of EUR 384 million, resulting in an adjusted EBITDA margin of 16.8%.
The investigations, conducted by an independent law firm and a second auditing firm, identified incorrect entries related to bill-and-hold agreements and other accounting matters in fiscal years 2024 and 2025. Adjustments totaling EUR 44.6 million in revenue and EUR 31.4 million in adjusted EBITDA were made for 2024. Gerresheimer has since revised its Code of Conduct, strengthened compliance and internal audit teams, and taken personnel actions. Going forward, the company will not recognize revenue from bill-and-hold agreements.
Despite the accounting issues, the Plastics & Devices division saw organic revenue growth of 5.2%, driven by strong demand for drug delivery devices and syringes. The Primary Packaging Glass division experienced a 5.5% organic revenue decline, impacted by subdued demand in cosmetics and oral liquids, as well as operational challenges at its Chicago Heights plant and ramp-up losses in Lohr, Germany.
Consolidated net income was negative EUR 318.7 million, weighed down by non-cash impairments of approximately EUR 521.5 million and restructuring costs of EUR 71.8 million. The impairments primarily relate to technology projects at Sensile Medical AG, goodwill, and the Chicago Heights moulded glass plant, which will be closed at the end of fiscal 2026 as part of the Gerresheimer Transformation Program (gto). No dividend will be paid for 2025.
Looking ahead, Gerresheimer expects 2026 revenue in the lower half of the EUR 2.3 to 2.4 billion range and an adjusted EBITDA margin of 17-18%. The company plans to close the sale of its U.S. subsidiary Centor before year-end and execute a comprehensive debt refinancing, which along with the transformation program, is expected to improve its financial situation. Free cash flow is forecast between negative EUR 50 million and negative EUR 100 million, partly due to lower factoring.
The 2025 Annual Report is available on Gerresheimer's website at www.gerresheimer.com/en/investors/investors-and-analysts/publications/reports.
