Galderma Group (GALD) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $5.207 billion in 2025, up 17.7% year-over-year at constant currency, surpassing $5 billion for the first time, driven by broad-based volume growth across all product categories and geographies.

• Core EBITDA reached $1.211 billion (23.3% margin), up 18.9% year-over-year, with margin expansion and strong core EPS growth of 76.7% to $3.69, supported by reduced financing and tax expenses and share repurchases.

• Major launches and innovation, including Nemluvio and Relfydess, fueled growth, with Nemluvio's peak sales guidance raised from $2 billion to above $4 billion.

• All top 10 markets grew, with eight delivering double-digit growth; e-commerce and digital-first strategies drove dermatological skincare momentum, especially in Asia and China.

• ESG progress recognized with improved ratings, including AA from MSCI, and enhanced non-financial disclosure.

Financial highlights

• Net sales: $5.207 billion, up 17.7% year-on-year at constant currency; Q4 net sales up 25.2%.

• Core EBITDA: $1.211 billion (23.3% margin), up 18.9% year-on-year; margin expanded by 24 basis points.

• Core net income: $871 million, up 75.4% year-on-year; core EPS: $3.69, up 76.7%.

• Strong cash generation enabled early debt repayment ($240 million), $363 million in share repurchases, and a dividend payment of $41 million.

• Net indebtedness reduced from $2.356 billion to $1.822 billion; net leverage reduced to 1.5x by year-end.

Outlook and guidance

• 2026 net sales growth guidance: 17%-20% at constant currency; core EBITDA margin guidance: ~26%.

• Midterm (2023-2027) net sales CAGR: 15%-17% for the group, 10%-12% for injectable aesthetics, 8.5%-10.5% for dermatological skincare, and above 30% for therapeutic dermatology.

• Margin expansion of 450-550 basis points expected by 2027, driven by Nemluvio's contribution.

• Nemluvio expected to break even in 2026, one year ahead of plan, with blockbuster sales run rate ($250 million/quarter) anticipated in Q3 2026.

• Foreign exchange expected to positively impact net sales but negatively impact Core EBITDA margin.