Perrigo Company (PRGO) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $1.04 billion, down 4.1% year-over-year, with organic net sales down 4.4% due to softness in OTC and businesses under strategic review, but share gains achieved in key OTC categories in both U.S. and Europe.

• Adjusted EPS was $0.80 for Q3 2025, down $0.01 year-over-year, while year-to-date adjusted EPS rose 20.9% to $1.97.

• Strategic reviews of Infant Formula and Oral Care businesses were announced, with Dermacosmetics divestiture on track for Q1 2026 and proceeds prioritized for deleveraging.

• Project Energize and Supply Chain Reinvention are delivering significant cost savings, with Project Energize achieving $163 million in annual savings.

• 2025 outlook revised downward due to weaker OTC consumption and slower-than-expected Infant Formula recovery.

Financial highlights

• Q3 2025 net sales were $1,043 million, down 4.1% year-over-year; organic net sales declined 4.4%.

• Q3 adjusted gross profit was $417 million (39.9% margin); adjusted operating income was $173 million (16.6% margin).

• Year-to-date net sales were $3.14 billion, down 2.8%; organic net sales down 1.7%; adjusted operating income up 9.8% to $455 million.

• Year-to-date adjusted EPS was $1.97, up 20.9%; operating cash flow was $63 million; cash and equivalents at $432 million.

• $119 million returned to shareholders via dividends year-to-date; capital expenditures totaled $67 million.

Outlook and guidance

• FY2025 net sales growth expected at -2.5% to -3.0%; organic net sales growth at -2.0% to -2.5%.

• Adjusted EPS guidance set at $2.70–$2.80, representing 5%–9% growth over 2024.

• Adjusted gross margin expected at ~39%; adjusted operating margin at ~15%; full-year tax rate expected at ~18.5%.

• Net leverage projected at ~3.8x adjusted EBITDA, above prior target.

• Q4 organic OTC growth expected to be flat to up 1%; Nutrition category sales expected down year-over-year.