Ypsomed Holding AG

Ypsomed reported FY2025/26 sales of CHF 731 million. Delivery Systems sales were CHF 601 million, up from CHF 501 million, and project revenues were CHF 86 million versus CHF 88 million in the prior year. EBIT was CHF 196 million versus CHF 113 million last year, implying a 33% EBIT margin; management also noted a Delivery Systems EBIT of CHF 196 million versus CHF 167 million in the prior year. Operating cash flow was more than CHF 300 million, free cash flow was roughly CHF 280 million, and net debt to EBITDA was 0.8. For FY2026/27, management guided Delivery Systems sales growth of 12% to 15% on own devices and EBIT of CHF 210 million to CHF 230 million, with margins staying above 33%. Looking further out, the midterm ambition is CHF 0.9 billion to CHF 1.1 billion of sales and CHF 280 million to CHF 340 million of EBIT by end of decade, with ROCE around 20% and free cash flow positive expected in 2027/28.

Simon Michel said the company had completed its transformation into a pure-play self-injection specialist and described FY2025/26 as a record year for new projects and innovation. He emphasized three pillars: platform leadership, innovation, and operational excellence, including lean programs, AI, and the YpsoFit efficiency initiative. He was upbeat about demand drivers such as hospital-to-home care, injectable biologics, biosimilars, and incretins, while stressing that Ypsomed’s broad customer base and flexible platform offering reduce concentration risk.

Samuel Kunzli focused on the financial delivery: CHF 731 million sales, CHF 196 million EBIT, and a 33% margin, with Delivery Systems sales up 20% to CHF 601 million. He said operating cash flow was more than CHF 300 million, investing cash was boosted by CHF 307 million from the Diabetes Care divestment, and the company used funds for CHF 150 million in buybacks and debt reduction. He also detailed growth CapEx of CHF 295 million in fixed assets and CHF 28 million in intangibles, said around 30% of the big CapEx program is customer co-financed, and noted the balance sheet remains strong with equity above 55% and net debt/EBITDA of 0.8.

Analysts pressed on the pen business, YpsoFit savings, margin drivers, the trajectory of midterm growth, Novo/Sanofi timing, tariffs, Russia, and GLP-1 oral competition. Management said pen growth is being driven by biosimilar launches in the U.S. and growth in China, Russia, and other emerging markets, with the main next-24-month driver being glargines. On YpsoFit, management said it should deliver a low double-digit million benefit over 3 to 5 years, with possible upside if execution is strong. They also said they are not seeing tariff or geopolitical disruption materially affecting the business, aside from a possible CHF 1 million to CHF 2 million tariff impact on plastic molding tools later in 2027, and they do not see oral GLP-1s as a threat to injectable demand.