Grifols posts third-quarter revenue of €2,040 million and cuts leverage
Key Facts
Grifols said on November 2 that revenue reached €2,040 million in the third quarter of 2026, up 8.4% at constant currency from the same period a year earlier. The company attributed the growth mainly to its Biopharma business, where revenue growth accelerated to 10.3% in the quarter, after 7.1% in the first nine months. Adjusted earnings before interest, taxes, depreciation and amortization were €538 million, up 9.8% at constant currency, with a 26.4% margin. Quarterly net profit also rose 27.9% to €162 million. The company said it remained on track to meet its full-year financial guidance after nine-month performance it described as in line with expectations.
Revenue exceeded the consensus estimate of €1.98 billion, according to Investing.com, and the company's shares rose 4% after the results were announced on November 2. For the January-to-September period, net profit was €390 million, up 28.4% year on year. The figures reflected improved profitability alongside revenue growth, while adjusted earnings grew slightly faster than revenue in the quarter. First-half revenue was €3,574 million, up 2.6% at constant currency, with an adjusted earnings margin of 23.9%, 10 basis points above the comparable period in 2025. The acceleration in Biopharma growth in the quarter compared with its cumulative growth rate shows how momentum in the business improved during the period.
Immunoglobulin was the leading driver within Biopharma, with revenue up 11.3% at constant currency in the third quarter and 12.3% in the nine months through September. Subcutaneous immunoglobulin revenue rose 40.3% in the quarter, bringing the year-to-date increase to 25.6%. Chief Executive Nacho Abia said growth in core activities was beginning to translate into improved profitability and cash generation. The company attributed margin improvement to volume growth, a greater contribution from subcutaneous immunoglobulin, improvements to its plasma network, operating efficiency and cost discipline. Abia said strategic initiatives were also aimed at strengthening global plasma sources and improving the cost structure.
By contrast, albumin revenue fell 13.2% at constant currency in the third quarter, and the decline was 13.9% in the first nine months. Grifols attributed the performance to conditions in the Chinese market, where regulatory factors and high inventory levels are weighing on sales. The company said growth in core activities helped offset this pressure, while immunoglobulin products continued to expand. The divergence between business lines highlights the group's reliance for growth on plasma products that recorded stronger demand, while albumin remained under pressure from the Chinese market. Overall third-quarter revenue growth was driven mainly by Biopharma, the company said.
Cash generation also improved: free cash flow before mergers and acquisitions was €208 million in the third quarter and rose to €298 million in the nine months, an increase of €110 million from the same period a year earlier. In the first half, this flow turned positive at €91 million, compared with negative €12 million in the first half of 2025. The net leverage ratio fell to 3.98x at the end of September, from 4.2x in the same period of 2025 and 5.1x in September 2024. Liquidity stood at €2,140 million. After completing the refinancing of its 2027 obligations, the company said it had no major maturities until the fourth quarter of 2028.
Grifols' 2026 guidance includes free cash flow before mergers and acquisitions and distributions of between €500 million and €575 million, an adjusted earnings margin of at least 25%, and adjusted earnings growth of between 5% and 9% at constant currency. On expansion, the company expects its business in Egypt to collect about one million liters of plasma during 2026 and targets reaching three million liters annually by 2029. It plans to increase the number of plasma collection centers in Egypt to 20 in the first quarter of 2027. The company is also conducting the SPARTA Phase 3 study, with initial results expected by the end of the fourth quarter of 2026. These milestones are part of the company's monitoring of its annual guidance and initiatives to expand plasma sources.