Laboratorios Farmaceuticos Rovi (ROVI) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 2026 was EUR 152.5 million, down 1.5–2% year-over-year, mainly due to weaker heparin division performance; total revenue was EUR 154.7 million, flat year-over-year.

• Gross profit rose 5% to EUR 95 million, with gross margin improving by 3.8 percentage points to 62.3%.

• CDMO business grew 5% in Q1 to EUR 37.4 million, but full-year growth expectations have been revised down due to delays and demand uncertainty in a major contract.

• Specialty pharma declined 3% year-over-year, but OKEDI sales surged 37% year-over-year and 10% sequentially, reaching EUR 17.2 million.

• Integration and acquisition of the Phoenix, Arizona facility completed in April 2026, strengthening U.S. manufacturing and CDMO capabilities.

Financial highlights

• EBITDA reached EUR 20.3 million (13.3% margin), down from EUR 30.3 million (19.6%) in Q1 2025; EBIT EUR 12.1 million (8% margin), and net profit EUR 9.4 million, down 48% year-over-year.

• SG&A expenses increased 18% to EUR 63.6 million, driven by higher personnel, operating costs, and non-recurring write-offs.

• R&D expenses rose 79% to EUR 11.2 million, mainly for phase III clinical trial preparations.

• CapEx in Q1 was EUR 7.7 million; free cash flow was EUR 5.6 million.

• Net debt as of March 31, 2026: EUR 14.9 million (total debt EUR 114.4 million, gross cash EUR 99.6 million), improved from EUR 21.9 million at year-end 2025.

Outlook and guidance

• Operating revenue for 2026 expected to grow by low to mid-single-digit percentage versus 2025, but guidance revised down due to delayed start and demand uncertainty in a key CDMO contract.

• LMWH sales projected to decline by a high single-digit percentage in 2026 due to lower partner orders and pricing pressure.

• SG&A (excluding Phoenix/US subsidiary) expected to rise mid to high single-digit percentage in 2026.

• R&D costs for 2026 projected near EUR 60 million, at the higher end of previous guidance.

• Long-term CDMO sales target of EUR 700 million by 2030 remains unchanged.