German specialty pharmaceutical packaging producer Gerresheimer AG said its shares rose more than 3% in early trading on Thursday after the company reported improved first-quarter free cash flow and a stronger second-half outlook, despite a decline in adjusted earnings.
The Düsseldorf-based group posted first-quarter revenue of €524 million, up from an adjusted €519 million in the same period a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to €66 million from €81 million, while the adjusted EBITDA margin narrowed to 12.6% from 15.7%.
Free cash flow improved significantly to a negative €32 million, compared with a negative €141 million in the first quarter of 2025. Gerresheimer described this as its best first-quarter free cash flow performance in five years, attributing the improvement to stricter cash management, selective investment planning and tighter control over inventory and production volumes.
Chief Financial Officer Wolf Lehmann noted that the company’s focus on free cash flow had weighed on earnings, adding that the transformation program remained on track. "We achieved our best first-quarter free cash flow in five years," Lehmann said. "However, our strict cash management—including the optimization of inventory and production volumes—had an impact on earnings."
Revenue growth was driven by the Containment & Delivery Systems and Primary Injectable Solutions divisions. The company expects earnings to recover in the second half of the year, supported by expected cash inflows from the planned sale of its Centor and Primary Packaging Plastics units, which are expected to strengthen its financing and capital structure.
Gerresheimer did not adjust its reported figures for the business units currently in the sales process.
