Grifols (NASDAQ:GRFS) executives emphasized improved cash generation and a deliberate pivot toward more profitable growth as the company reported fourth-quarter and full-year 2025 results and introduced its financial priorities for 2026. Management highlighted that the company met its revenue and adjusted EBITDA guidance for 2025 and exceeded its free cash flow target, while continuing to reduce leverage.
2025 results: revenue growth, EBITDA in line, and a free cash flow beat
CEO Nacho Abia said fiscal 2025 was “an important year” marked by execution against operational and innovation priorities, delivery against revenue and adjusted EBITDA guidance, and an outperformance on cash flow “amid a complex geopolitical, macro, and operating environment.”
Free cash flow (pre-M&A and pre-dividends) reached EUR 468 million, more than EUR 200 million higher than the prior year and above the company’s updated guidance range. CFO Rahul Srinivasan said the free cash flow result reflected improved EBITDA, working capital management, normalized CapEx compared with 2024 highs, lower cash interest, and reduced cash adjustments. The company said free cash flow conversion improved from about 15% in 2024 to about 25% in 2025.
Deleveraging remained central to the company’s message. Management said leverage improved to 4.2x at year-end 2025 from 4.6x at the end of 2024, and Srinivasan noted that dollar weakness had a broadly neutral impact on leverage due to dollar-denominated debt.
Biopharma performance led by immunoglobulin; albumin pressured in China
Biopharma President Roland Wandeler said the Biopharma segment grew 8.4% in 2025 on a reported basis and 10.9% like-for-like at constant currency. The company’s immunoglobulin (IG) franchise led results, rising 14.7% year-over-year at constant currency. Wandeler attributed the performance to GAMUNEX-C and XEMBIFY, with IVIG up 12% and SCIG up 60% for the full year.
Executives said Grifols used a strong IG inventory position over the past two years to accelerate growth, regain share in the U.S., and build momentum in key markets. In 2026, the company plans to “control growth” from a stronger position, maintaining share and growing with the market in the U.S. and select European countries while pulling back in other markets to improve margins.
Albumin revenue declined 5.1% year-over-year, with strength in the U.S. and markets outside China offset by policy-driven market and pricing pressures in China. Management repeatedly pointed to its partnership with Shanghai RAAS (and referenced Haier in the financial discussion) as a key tool for navigating China dynamics and competing “ahead of the market.” Wandeler said the 2026 focus includes disciplined pricing, expanded joint commercial footprint, and efforts to broaden hospital and retail pharmacy access, alongside medical education and evidence generation.
Pipeline and launches: fibrinogen franchise expands
Grifols highlighted progress in differentiated therapies that management described as margin-accretive. Abia said the company launched Prufibry in Europe in the fourth quarter as a fibrinogen concentrate for acute bleeding episodes with congenital and acquired fibrinogen deficiency, and Wandeler said first sales were recorded in Q4 2025 with early feedback highlighting ease and speed of reconstitution.
In the U.S., the company is preparing to launch FESILTY in Q2 2026 following FDA approval in December for congenital fibrinogen deficiency. Wandeler said Grifols plans to pursue an acquired fibrinogen deficiency (AFD) trial in the U.S. in 2026 to expand the label over time, adding that the company sees longer-term potential for ready-to-use fibrinogen concentrates as clinical practice evolves.
Strategic supply initiatives: Egypt and Canada highlighted as long-term catalysts
Management emphasized a “local-for-local” model as a differentiator in a shifting trade environment, saying it helped insulate the company from tariffs and created natural hedges that muted FX impacts on free cash flow and leverage.
Two self-sufficiency partnerships—Egypt and Canada—were repeatedly cited as central to the 2026 strategy and beyond. Wandeler called Egypt a “first-of-its-kind” public-private partnership and said Grifols secured EMA approval for the Egypt value chain late last year, which he described as enabling European commercialization of plasma-derived therapies sourced from Egyptian plasma. He said the project’s roadmap includes a plasma logistics center and testing lab coming online in 2026 and fractionation and purification plants expected to become operational between 2030 and 2031.
In Canada, Wandeler said Grifols’ partnership with Canadian Blood Services aims to raise IG self-sufficiency to at least 50%. He said the company established 17 donation centers in the past 12 months and that the share of IG self-sufficiency increased from 15% to around 30% in 2025. He also said the company began local purification of albumin in 2025 and is on track to add 1.5 million liters of fractionation capacity in Montreal by 2028.
2026 guidance: margin and cash flow prioritized; refinancing plans outlined
Srinivasan said Grifols is “consciously moderating” revenue growth in 2026 to prioritize margin-accretive growth and improve the “quality” of EBITDA expansion. The company provided 2026 guidance centered on profitability and cash generation:
- Free cash flow (pre-M&A): EUR 500 million to EUR 575 million
- Adjusted EBITDA growth: 5% to 9% on a constant currency basis versus 2025
- Adjusted EBITDA margin: 25% or higher
On the call, Srinivasan told analysts that modeling a 25% to 25.5% margin range for 2026 was “absolutely fine,” and he referenced an average euro-dollar FX assumption of about 1.12 for 2025 as a reference point.
Grifols also reiterated 2027 milestones of 3.5x credit agreement leverage and EUR 1.75 billion to EUR 2.0 billion in cumulative free cash flow (pre-M&A) by the end of 2027. Srinivasan said the company is preparing to refinance 2027 maturities in two steps, beginning with an expanded revolver and term loan B, targeting activity in H1 2026 subject to market conditions, with the remaining 2027 bond maturity expected to be refinanced in Q4 2026 or earlier.
In Q&A, management also said the timing of a potential Haema BPC buyback would be determined by the board, with prior indications pointing to a possible exercise in 2026 or 2027, financed through free cash flow while continuing deleveraging.
About Grifols (NASDAQ:GRFS)
Grifols, Inc (NASDAQ: GRFS) is a global healthcare company specializing in the development, manufacture and marketing of plasma-derived medicines, diagnostic systems and hospital supplies. With a core focus on immunotherapy and transfusion medicine, the company harnesses human plasma proteins to create therapies that treat a wide range of bleeding disorders, immunodeficiencies and neurological conditions. Grifols also supplies reagents and diagnostic instruments for transfusion centers and clinical laboratories, alongside intravenous solutions and medical devices for hospital use.
The company operates three main business units.
