German specialty packaging manufacturer Gerresheimer reported first-quarter 2026 revenue of EUR 524 million, up 4.4% organically from EUR 519 million in the restated prior-year period, as growth in containment and delivery systems offset declines in molded glass.
Adjusted EBITDA fell 18.5% year-over-year to EUR 66 million, representing a 12.6% margin compared with 15.7% in Q1 2025. The decline of EUR 15 million reflected elevated restructuring costs tied to the company’s transformation program, which targets EUR 50 million to EUR 70 million in annualized EBITDA improvement by 2028. Free cash flow before M&A activities improved to negative EUR 32 million from negative EUR 141 million in the prior-year quarter, marking the strongest Q1 result since 2019.
Capex was reduced by nearly half to EUR 56 million, including EUR 19 million for base maintenance and EUR 37 million for growth initiatives, down from EUR 113 million in Q1 2025. Inventory levels were tightly controlled at EUR 5 million, compared with EUR 46 million a year earlier. Net financial debt edged up to EUR 1.955 billion from EUR 1.919 billion in Q1 2025, while liquidity declined to EUR 342 million from EUR 751 million.
The company’s leverage ratio remained elevated at around 5.0 times net debt to EBITDA, but management expects divestitures of Centor and Primary Packaging Plastics (PPP) to reduce leverage by approximately 70%, enabling refinancing at a sustainable ratio below 3.0 times. The Centor transaction is set to close in November 2026, with PPP expected to close in the first half of 2027. The Chicago Heights facility closure is targeted for the end of September 2026.
Segment performance showed uneven trends. Containment & Delivery Systems revenue rose 8.8% organically to EUR 296 million, with adjusted EBITDA increasing to EUR 61 million (20.6% margin) from EUR 52 million (18.5% margin). Primary Injectable Solutions revenue grew 14.2% organically to EUR 101 million, though adjusted EBITDA slipped to EUR 6 million (5.7% margin) from EUR 7 million (7.0% margin). Moulded Glass revenue fell 8.4% organically to EUR 144 million, with adjusted EBITDA plunging to EUR 6 million (4.5% margin) from EUR 32 million (20.1% margin).
Shares rose 4.87% to EUR 26.47 following the results, recovering from a 52-week low of EUR 14.83 and remaining well below the high of EUR 45.24. Adjusted earnings per share came in at negative USD 0.1203, missing consensus expectations of USD 0.41. Gross debt averaged EUR 2.2 billion, including leasing liabilities, with an average interest cost of 4.4%.
