Grifols, S.A.

Group net revenues were €1.874 billion in Q2 and €3.574 billion in H1 2026, up 2.6% at constant currency. Adjusted EBITDA was €472 million in Q2 and €854 million in H1, up 2.4% year over year at constant currency, with margins of 25.2% in Q2 and 23.9% in H1. Reported gross margin was 37.6% in Q2 and 37.1% in H1; excluding one-off costs, gross margin was 39.4% in Q2 and 38.6% in H1. H1 free cash flow before M&A was €91 million, up €103 million year over year, and group profit in H1 was $227 million, up 28.7% year over year. Net leverage stood at slightly below 4.2x, net secured leverage at 2.7x, and liquidity was over $2 billion. Management said it remains on track to deliver full-year 2026 guidance, including full-year free cash flow guidance of $500 million to $575 million before M&A and full-year adjusted EBITDA constant-currency growth and margin guidance. For biopharma, management expects mid- to high-single-digit growth in the core U.S. and European markets in H2, continued strong double-digit growth in Xembify, stabilization in China albumin, continued progress in Egypt ramp-up, and further contribution from Biotest.

Nacho Abia framed the quarter as evidence that the company is executing its plan, not taking shortcuts. He emphasized Grifols’ integrated and resilient business model, disciplined growth strategy, and the importance of long-term investments in plasma sourcing, diagnostics, and clinical programs. His tone was confident but measured, repeatedly pointing to second-half leverage already in place rather than promising surprises.

Rahul Srinivasan focused on the quality of earnings, margin mechanics, and balance sheet strength. He cited Q2 gross margin of 37.6% and adjusted gross margin of 39.4% after removing one-off costs tied mainly to closing 29 U.S. donation centers, plus H1 free cash flow before M&A of €91 million and net leverage below 4.2x with over $2 billion of liquidity. He also said the company proactively redeemed $500 million of 7.5% 2030 bonds, expects cash interest costs to stay in line with 2025, and sees the Egypt and U.S. center-closure benefits flowing more meaningfully later in 2026 and into 2027.

Analysts pressed on CIDP competition, U.S. IG demand versus peer inventory commentary, Egypt execution risk, albumin in China, Biotest progress, diagnostics opportunities after the QuidelOrtho JV ends, and the SPARTA alpha-1 trial. Management said CIDP still favors IG because physicians view it as a broad-mechanism disease and continue to start patients there, while noting IG growth is partly a deliberate mix decision to prioritize core, higher-margin markets. On Egypt, management rejected execution-risk concerns, said centers are full and the ramp is proceeding to plan, and explained that benefits will build through late 2026 and into 2027. On SPARTA, management said data remain blinded, the study design is strong, and outcomes data—not just trough levels—will be the key differentiator.