Euroapi: Net Result Plummets to -211 Million Despite a 230-Point Increase in Margin
European active ingredient manufacturer Euroapi has released its 2025 results, marked by a contraction in revenue to 848.2 million euros, offset by a significant improvement in Core EBITDA margin driven by strict cost control.
Revenue and Earnings Performance
Euroapi saw its revenue decrease by 7.0% to 848.2 million euros in 2025, down from 911.9 million the previous year. On a like-for-like basis, excluding currency effects and scope impacts related to the divestiture of the Haverhill site, this contraction was 5.9%. Core EBITDA increased by 31.2% to reach 66.2 million euros, up from 50.4 million euros in 2024. This improvement reflects a Core EBITDA margin of 7.8%, up by 230 basis points from 5.5% in 2024. The gross margin was established at 17.1%, 150 basis points above 2024. The API Solutions segment declined by 6.0% to 623.8 million euros, while the CDMO contracted by 9.6% to 224.4 million euros.
Financial Position and Cash Flow
The net cash position improved to 68.2 million euros at the end of December 2025, up from 24.6 million a year earlier, driven particularly by optimized working capital management. Capital expenditures (CAPEX) amounted to 77.0 million euros, representing 9.1% of revenue, with 55% allocated to growth projects. The free cash flow before financing reached 51.5 million euros, compared to 15.0 million in 2024. The net result remains negative at 211.2 million euros, penalized by 77.8 million euros in asset impairments, particularly due to the discontinuation of the vitamin B12 project in Elbeuf.
Strategic Outlook and Future Projections
Euroapi is accelerating its Focus-27 transformation plan with additional initiatives in response to a deteriorating market environment. The group forecasts a decline in revenue of about 10% on a like-for-like basis for 2026, due to the rationalization of the API portfolio and pressures on Sanofi demand. The Core EBITDA margin for 2026 is expected to be broadly in line with 2025, as improvements in industrial efficiency are offset by less favorable absorption of fixed costs. The initial target of an additional 75 to 80 million euros in Core EBITDA by 2027 will not be met within the planned timeframe. Restructuring costs are expected to remain between 110 and 120 million euros, while the CAPEX envelope of 350 to 400 million euros for 2024-2027 is maintained.
