Fagron N.V.

H1 2026 revenue was EUR 552.5 million, up 16% reported, with 3.1% organic growth at CER and 7% organic growth when normalizing the GLP-1 effect. Adjusted EBITDA/profitability rose 12.7% to EUR 107 million, while the margin was 19.4%. Gross margin decreased by 218 basis points year over year; operating expenses increased 10% year over year, though as a percentage of revenue they declined by 230 basis points. Operating cash flow improved 10.8% to EUR 58.1 million, EPS increased 1.6% to EUR 0.63, and net debt rose to EUR 505.4 million with net debt-to-EBITDA at 2.1x. For full-year 2026, Fagron reiterated mid- to high single-digit organic revenue growth at CER, adjusted EBITDA margin of circa 20%, and maintenance CapEx of 3.5% of revenues excluding one-off projects.

Rafael Padilla emphasized that Fagron’s diversified and vertically integrated model remains resilient, with strong performance in EMEA and Latin America offsetting North America Pacific’s temporary issues. He highlighted disciplined M&A, ongoing integration synergies, and expansion projects that add capacity across regions, saying the company is positioning itself to capture future growth. His tone was confident and constructive, especially around peptides, GLP-1-related adjacencies, and the company’s ability to pass through raw material inflation.

Karin de Jong focused on the financial bridge: revenue up 16% to EUR 552.5 million, adjusted EBITDA up 12.7% to EUR 107 million, gross margin down 218 bps, operating costs up 10%, and EPS at EUR 0.63, up 1.6%. She also noted operating cash flow of EUR 58.1 million, maintenance CapEx at 2.6% of revenue excluding one-off projects, and net debt-to-EBITDA of 2.1x versus an internal threshold of 2.8x. On guidance, she said full-year revenue growth should remain in the mid- to high single-digit range, toward the lower end, with circa 20% adjusted EBITDA margin and 3.5% maintenance CapEx for 2026.

Analysts focused on the IV bag supply issue, peptide opportunity timing, North America Pacific demand, EMEA margin strength, and whether growth needs to accelerate in H2. Management said the IV bag issue caused missed sales in Q1 and Q2 and expects to be back in the course of Q3, while compounding services should recover more meaningfully in Q4. On peptides, management said FDA inclusion would be a tailwind, but commercialization depends on supplier qualification and validation, with a 6- to 18-month timeframe after inclusion. They also said North America underlying demand remains strong, capacity is being built out, and EMEA/LatAm margin expansion is supported by operational excellence, procurement savings, and early synergy realization.