GRFS · Grifols, S.A.

Grifols delivered Q1 2026 results in line with expectations, with revenue growth of 3.3% at constant currency to €1.7 billion primarily propelled by the Biopharma division's 6.8% cc increase, anchored in the immunoglobulin franchise's robust 15.3% cc expansion. Key drivers included sustained U.S. and EU demand for Gamunex® and the successful U.S. launch of Biotest’s next-generation IVIG, Yimmugo®, which bolstered franchise momentum. This offset headwinds such as albumin pricing pressures in China and tougher year-over-year comparisons in Alpha-1 and Specialty Proteins. Adjusted EBITDA rose modestly 0.8% cc to €381 million, maintaining a 22.4% margin through operational discipline, 7.7% cc OPEX cuts, and efficiency gains, despite €23 million FX impacts from a weaker USD and China pricing concessions. Net profit surged 21.9% to €73 million, reflecting underlying business resilience. Free cash flow pre-M&A improved significantly by €30 million YoY to -€8 million, aided by supply chain working capital optimization, reduced CAPEX, and lower financial expenses. Balance sheet strength advanced with leverage at 4.3x and €1.57 billion liquidity. A pivotal refinancing eliminated all 2027 maturities via a €3 billion-equivalent upsized Term Loan B and RCF expansion from $938 million to over $2 billion, with better pricing, extended terms to 2028, and strong institutional support, targeting 2026 cash interest at or below 2025 levels. Credit ratings upgraded by S&P to BB- (stable), Moody’s, and Fitch, recognizing investment-grade-like business traits and deleveraging progress. Management, led by CEO Nacho Abia and CFO Rahul Srinivasan, emphasized alignment with full-year 2026 guidance, IG momentum, capital structure fortification, and strategic self-sufficiency via Egypt and Canada projects for future margin expansion. The upcoming AGM anticipates approving the 2025 final dividend, signaling commitment to shareholder returns amid improved flexibility.