Gerresheimer AG shares gained more than 3% in early trading after the German healthcare packaging specialist reported its strongest first-quarter free cash flow in five years, offsetting a decline in adjusted EBITDA.
The company’s first-quarter 2026 revenue rose to €524 million from €519 million a year earlier on an adjusted basis, according to preliminary figures. Revenue growth was driven by the Containment & Delivery Systems and Primary Injectable Solutions divisions, the company said.
Adjusted EBITDA fell to €66 million from €81 million in the same period last year, with the adjusted EBITDA margin narrowing to 12.6% from 15.7%. Gerresheimer attributed the decline to a deliberate focus on free cash flow optimization, including strict working capital management, lower inventory buildup, and production volume adjustments.
Free cash flow improved sharply to negative €32 million, compared with negative €141 million in the first quarter of 2025. Wolf Lehmann, chief financial officer, described the result as the company’s best first-quarter free cash flow performance in five years, while acknowledging the trade-off in earnings.
"In the first quarter of 2026, our focus was clearly on free cash flow," Lehmann said. "We achieved our best first-quarter free cash flow in five years. However, our strict cash management—including the optimization of inventory and production volumes—had an impact on earnings."
Gerresheimer maintained its full-year 2026 outlook, forecasting a stronger second half with improved earnings. The company also highlighted expected cash inflows from the planned sale of its Centor and Primary Packaging Plastics units, which are expected to bolster financing and capital structure.
"With the consistent implementation of our transformation program, we expect earnings to improve again, particularly in the second half of the year," Lehmann said. "Furthermore, the expected cash inflows from the sale of Centor and Primary Packaging Plastics will significantly improve our financing and capital structure."
