Sandoz Group Ltd

Latest Results (29.04.2026):

Sandoz Group Ltd — Q4 2025 (reporting full-year FY 2025 and Q4 2025): Sandoz delivered strong FY 2025 results with net sales of USD 11.09 billion (FY +7% in USD; +5% at constant currencies), Q4 net sales of USD 3.03 billion (+12% in USD; +6% CC), core EBITDA of USD 2.405 billion (margin 21.7%, +160 bps year‑on‑year), core diluted EPS of USD 3.64 (+33% at CC) and management free cash flow of USD 1.547 billion. Biosimilars continue to drive growth (30% of sales), several major launches completed in 2025, and the company gives FY 2026 guidance calling for mid‑to‑high single‑digit net‑sales growth at CC and ~100 bps core EBITDA‑margin expansion.

Net sales (Q4 2025 / FY 2025)

FY 2025 net sales USD 11.086bn (+7% reported, +5% CC; volumes +8%, price erosion ~‑3%). Q4 2025 sales USD 3.029bn (+12% reported, +6% CC; Q4 volumes +9%). Biosimilars: USD 3.292bn (+15% reported, +13% CC; now 30% of total sales). Generics: USD 7.794bn (+4% reported, +2% CC).

Profitability

Core EBITDA USD 2.405bn (margin 21.7%, up 160 bps vs FY 2024). Core operating income USD 2.094bn (+15% reported, +13% CC). Core diluted EPS USD 3.64 (up 34% reported, +33% CC). IFRS EBITDA and net income impacted by separation, restructuring and other one‑offs; core measures show underlying margin improvement.

Cash generation & dividend

Management free cash flow USD 1.547bn (FY 2024: USD 1.112bn). Free cash flow USD 874m. Proposed dividend CHF 0.80 per share (subject to AGM), up from CHF 0.60 for 2024 (represents ~27% of core net income).

Biosimilars & launches

Biosimilars were a key growth driver: launches in 2025 included Pyzchiva (ustekinumab) US/EU, Wyost & Jubbonti (interchangeable denosumab) US/EU, Tyruko (natalizumab) US, and Afqlir (aflibercept) EU. Biosimilars sales grew double‑digits and expanded Sandoz’s oncology/immunology and ophthalmology presence.

Regional performance

Europe: USD 5.936bn (+11% reported, +6% CC) led by biosimilars. International: USD 2.713bn (+6% reported, +7% CC). North America: USD 2.437bn (stable at CC; +5% on CGR excluding certain impacts and acquisitions).

Capital structure & returns

Net debt USD 3.563bn (up vs 2024; partly FX-driven), net debt / core EBITDA ~1.5x. Core ROIC improved to 14.5% (FY 2024: 12.3%) reflecting stronger core operating income and tax mix benefits.

2026 guidance

Sandoz guides to mid‑to‑high single‑digit net sales growth at constant currencies for FY 2026 and expects ~100 bps expansion in core EBITDA margin. Guidance excludes material semaglutide generic contribution and unforeseen events such as new tariffs.

Risks and headwinds

Management warns of market dislocation in penicillin APIs after US tariffs and low‑cost Chinese supply, which depressed generics sales in H2 2025 and could pressure H1 2026. Overall pricing expected to decline low‑to‑mid single‑digit in 2026.

M&A, capacity and pipeline

Strategic acquisition of Just‑Evotec Biologics EU SAS (Toulouse) completed, adding continuous‑manufacturing tech and capacity. Pipeline remains extensive: ~27 biosimilar assets and ~400 generics targeting ~USD 420bn of originator sales opportunities.