Gerresheimer AG reported a 12.6% adjusted EBITDA margin of EUR 66 million for the first quarter of 2026, down from EUR 81 million in the same period last year, reflecting an 18.5% year-over-year decline. Revenue rose 4.4% organically to EUR 524 million, supported by growth in Containment & Delivery Systems and Primary Injectable Solutions, though Moulded Glass revenue declined 8.4%.
The company’s free cash flow before mergers and acquisitions improved to a negative EUR 32 million, a EUR 109 million sequential improvement from the negative EUR 141 million recorded in Q1 2025. Capital expenditures were slashed to EUR 56 million from EUR 113 million a year earlier, with EUR 19 million allocated to base maintenance and EUR 37 million to growth initiatives across Containment & Delivery Systems, Primary Injectable Solutions, and Moulded Glass. Inventory levels were reduced to EUR 5 million, down from EUR 46 million in the prior-year quarter.
Adjusted earnings per share stood at negative EUR 0.1203, compared with a consensus forecast of EUR 0.41. The company’s share price rose 4.87% to EUR 26.47, within a 52-week range of EUR 14.83 to EUR 45.24.
Gerresheimer’s net financial debt increased slightly to EUR 1.955 billion, up from EUR 1.920 billion at year-end 2025, while total liquidity declined to EUR 342 million from EUR 371 million. The average interest cost on gross debt of EUR 2.2 billion, including leasing liabilities, was 4.4%. The company aims to reduce leverage from approximately 5.0 times net debt to EBITDA to below 3.0 times.
Segment performance showed mixed results. Containment & Delivery Systems revenue grew 8.8% organically to EUR 296 million, with adjusted EBITDA rising to EUR 61 million (20.6% margin) from EUR 52 million (18.5% margin) in Q1 2025. Primary Injectable Solutions revenue increased 14.2% organically to EUR 101 million, though adjusted EBITDA fell to EUR 6 million (5.7% margin) from EUR 7 million (7.0% margin). Moulded Glass revenue declined 8.4% organically to EUR 144 million, with adjusted EBITDA dropping to EUR 6 million (4.5% margin) from EUR 32 million (20.1% margin).
The company remains on track with its transformation program, targeting EUR 50 million to EUR 70 million in annualized EBITDA improvements, equivalent to roughly 250 to 400 basis points of margin expansion post-divestiture. Divestitures of Centor and Primary Packaging Plastics (PPP), both signed on July 29, 2026, are scheduled to close in November 2026 and the first half of 2027, respectively. The Chicago Heights facility closure is targeted for completion by the end of September 2026.
CFO Wolf Lehmann described the company’s operational stance as "cash preservation mode," adding that a debt refinancing targeting less than 3.0 times leverage is in progress, aligned with the timing of the divestitures. Board member Achim Schalk emphasized a strategic focus on high-value primary packaging and drug delivery solutions, citing technological expertise, regulatory requirements, and long-term customer partnerships as key differentiators.
