Gerresheimer shares jump after Q3 revenue rises 8%, FY26 guidance held

Investing.com -- Shares in Gerresheimer rose 3% on Friday after the German pharmaceutical packaging maker reported higher third-quarter revenue and reiterated its full-year guidance, even as margins narrowed.

Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list »

Revenue rose 8% year-on-year to €605 million. Adjusted EBITDA fell 2.8% to €103 million, with the margin at 17.1% against 19% a year earlier.

Gerresheimer still expects fiscal 2026 revenue in the lower half of its €2.3-2.4 billion range, against a consensus of €2.32 billion.

Gerresheimer expects an adjusted EBITDA margin of 17%-18% in fiscal 2026, with the midpoint slightly above the 17.2% consensus. It forecast free cash flow of -€50 million to -€100 million, with the midpoint better than the consensus of -€102 million.

"FY26 guidance is unchanged but implies a stronger Q4," Jefferies analysts said.

Stifel, which rates the stock "hold" with a €20 price target, about 37% below Thursday's closing price of €31.90, described the quarter as "stabilisation, not yet broad-based recovery."

Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks »

"Glass weakness continues to absorb device gains, while disposal execution and refinancing remain central to the equity case," Stifel analyst Ed Hall said. He noted that nine-month free cash flow of -€141 million meant Gerresheimer needed to generate €41 million to €91 million in the fourth quarter to meet its guidance.

Stifel also said the closure of the Primary Packaging Plastics disposal was now expected in the first quarter of 2027, compared with the first half previously.

The Containment & Delivery unit led growth, with revenue rising 9% to €313 million. Adjusted EBITDA increased 20% to €77 million, lifting the margin by 220 basis points to 24.5%, helped by the ramp-up of the Peachtree medical-device site in the United States and strong plastics sales.

Revenue at Primary Injectable Solutions rose 8% to €123 million, driven by syringes, while tubular glass stabilised.

Adjusted EBITDA was €15 million, down €4 million year-on-year but up €5 million from the second quarter.

Moulded Glass revenue increased 2% to €169 million, but adjusted EBITDA fell €12 million to €17 million as inventory reduction and cash management reduced asset utilisation. Its margin narrowed to 10.2% from 17.4%. The Chicago Heights plant closed in September.