Organon beats Q2 revenue expectations, raises FY guidance

Organon & Co.

05/08/2025 12:45

Overview

Organon Q2 revenue of $1.594 bln beats analyst expectations; raises full-year guidance

Adjusted EPS of $1.00 exceeds estimates, indicating strong performance

Company repaid $345 mln of long-term debt

Outlook

Organon raises 2025 revenue guidance to $6.275 bln-$6.375 bln

Company affirms 2025 adjusted EBITDA margin guidance at 31%-32%

Organon targets net leverage below 4.0x by year-end

Company aims for net leverage of 3.5x or below by end of 2026

Result Drivers

WOMEN'S HEALTH - Revenue increased 3%, driven by fertility business growth and geographic expansion

BIOSIMILARS - Revenue rose 5% due to strong performance of Hadlima, offsetting declines in other products

ESTABLISHED BRANDS - Revenue declined 3% due to loss of exclusivity of Atozet in Europe and lower Singulair sales in China and Japan

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.59 bln
$1.55 bln (5 Analysts)
Q2 Adjusted EPS
Beat
$1
$0.95 (6 Analysts)
Q2 EPS
$0.56
Q2 Adjusted Net Income
Beat
$261 mln
$249.60 mln (5 Analysts)
Q2 Net Income
$145 mln
Q2 Adjusted EBITDA
Beat
$522 mln
$477.50 mln (3 Analysts)
Q2 Gross Margin
54.8%
Q2 Adjusted EBITDA Margin
32.7%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy."

Wall Street's median 12-month price target for Organon & Co is $11.00, about 12.1% above its August 4 closing price of $9.67

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nBw4jjdLta

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)