Recordati S.p.A.

First-half 2026 revenue was EUR 1.4 billion, up 6.6% reported and 9.1% at constant exchange rates. EBITDA increased 8.8% to EUR 540.2 million, with margin at 38.3%. Gross profit increased 14.3% and gross margin improved to 71.5%. Adjusted net income rose 6.7% to EUR 349.9 million, while reported net income increased 24.8% to EUR 269.7 million. Free cash flow was EUR 299.4 million, up EUR 42.6 million year over year, and net debt finished below 1.9x EBITDA. For 2026, management reaffirmed revenue guidance of EUR 2.73 billion to EUR 2.8 billion, EBITDA guidance of EUR 995 million to EUR 1.030 billion, and adjusted net income guidance of EUR 655 million to EUR 685 million, with margin targets of about 36.5% EBITDA and about 24% adjusted net income.

Rob Koremans struck a confident tone, saying Recordati delivered another period of strong financial results and maintained momentum toward full-year objectives. He emphasized Rare Disease as the key growth engine, pointed to the U.S. strength in Isturisa and the licensing agreement for Zilganersen as strategic portfolio expansion, and highlighted the company’s ability to keep investing while preserving financial flexibility. He also noted the proposed transaction with CVC and GBL but said he could not comment further beyond the public documents.

Mike McClellan focused on the numbers: Rare Disease revenue rose 17.1% to EUR 604 million, while Specialty and Primary Care was broadly stable at EUR 774 million, up 0.6% like-for-like at constant exchange rates. He said gross margin improved to 71.5% due to mix, operating discipline, and the absence of prior-year acquisition-related inventory charges, while SG&A and R&D remained broadly stable as a percentage of revenue. He also cited EUR 299.4 million of free cash flow, a net debt ratio below 1.9x EBITDA, and confirmed the 2026 targets, including the EBITDA and adjusted net income ranges.

Analysts focused on three areas: the dynamics behind cardiovascular sales strength, the stock-out benefit in Eligard, and Isturisa conversion trends. Management said Livazo/Pitavastatin strength was driven by Russia, Turkey, and the Spain repatriation, while some order phasing and market issues affected other cardiovascular products; for Eligard, Turkey was unusually strong because the main competitor was out of the market, but that benefit is not expected to last. On Isturisa, Scott Pescatore said conversion from enrollment to commercial prescription improved significantly in Q2, with almost more than 20% additional conversions versus Q1, helped by less insurance-related churn and more repeat prescribers.