- Merck KGaA revised its FY adjusted EBITDA forecast to a range of EU6 billion to EU6.2 billion, slightly narrower compared to the earlier range of EU5.9 billion to EU6.3 billion.
- Adjusted EBITDA is now expected to grow by 5% to 7%, a tighter range than the previous 4% to 8% forecast.
- Net sales are projected to be between EU20.8 billion and EU21.4 billion, reflecting an approximate growth of 3%.
- The adjusted EPS forecast is set between EU8.20 to EU8.60, with an estimate at EU8.36.
- In the third quarter, adjusted EBITDA was EU1.67 billion, marking a 3.2% year-over-year increase, exceeding the estimate of EU1.55 billion.
- Segment performance in Q3:
- Healthcare adjusted EBITDA was EU818 million, above the estimate of EU744.5 million.
- Life Science adjusted EBITDA reached EU662 million, surpassing the estimated EU653.1 million.
- Electronics adjusted EBITDA hit EU236 million, outperforming the expected EU197.1 million.
- The adjusted EBITDA margin improved to 31.4% from 30.7% year-over-year, exceeding the forecast of 29.1%.
- Net sales for the quarter were EU5.32 billion, a 1% year-over-year increase, higher than the estimate of EU5.22 billion.
- Performance by business unit in Q3:
- Healthcare net sales of EU2.20 billion rose by 3.3% year-over-year, ahead of the EU2.16 billion estimate.
- Bavencio and Rebif saw year-over-year declines in sales, with Bavencio at EU149 million (-17%) and Rebif at EU118 million (-23%).
- Mavenclad sales grew by 15% year-over-year to EU305 million, exceeding the projected EU296.4 million.
- Life Science net sales increased by 1.4% year-over-year to EU2.24 billion, marginally above the EU2.22 billion estimate.
- Electronics net sales declined by 5.2% to EU875 million, nevertheless surpassing the estimate of EU808.3 million.
- EBIT for the quarter was EU1.22 billion, an 11% year-over-year increase, quite higher than the EU987.7 million estimate.
- Adjusted EPS for the quarter was EU2.32, slightly higher than both the year-over-year figure of EU2.30 and the estimate of EU2.16.
- Net income amounted to EU898 million, an 11% year-over-year rise, exceeding the EU864.3 million estimate.
- The Delivery Systems & Services segment saw an organic sales decline due to project delays, but is expected to stabilize in 2026 and return to growth in the medium term.
A look at Merck KGaA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Merck KGaA, a global pharmaceutical and chemicals company, is poised for a stable long-term outlook based on its Smartkarma Smart Scores. With a solid rating of 3 in Value, Dividend, and Growth, the company shows promising potential for investors seeking consistent returns. Additionally, with scores of 4 in Resilience and Momentum, Merck KGaA demonstrates a strong ability to weather market fluctuations and maintain a positive growth trajectory.
Specializing in research on drugs for oncology, neurodegenerative, autoimmune, and inflammatory diseases, Merck KGaA also diversifies its offerings across various sectors including cardiovascular, fertility, endocrinology, and over-the-counter products. Moreover, its presence in industries like flat screens, pharmaceuticals, food, cosmetics, packaging, and coatings enhances its overall resilience and growth prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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