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JERSEY CITY, N.J. - Organon (NYSE:OGN) reported first quarter earnings that beat analyst expectations, but revenue fell short and the company’s guidance disappointed investors, sending shares down 9% in early trading.
The women’s health company reported adjusted earnings per share of $1.02 for the first quarter, surpassing the analyst consensus of $0.91. However, revenue came in at $1.51 billion, below estimates of $1.55 billion and down 7% YoY, or 4% at constant currency.
Organon reaffirmed its full-year 2025 revenue guidance of $6.125-6.325 billion, with the midpoint slightly below the consensus estimate of $6.292 billion. The company also expects to generate over $900 million in free cash flow before one-time costs in 2025.
CEO Kevin Ali said, "We have reset our capital allocation priorities to accelerate progress towards deleveraging, enabling a path to achieve a net leverage ratio of below 4.0x by year-end."
The company reported that key growth drivers Nexplanon and Vtama are on track to meet revenue targets for the year. Vtama is expected to achieve $150 million in revenue for full year 2025, while Nexplanon saw double-digit growth in the first quarter.
Organon also announced a new annual regular dividend rate of $0.08 per share as part of its efforts to prioritize deleveraging.
First quarter net income was $87 million, with Adjusted EBITDA of $484 million, representing an Adjusted EBITDA margin of 32.0%.
Despite the revenue miss and tepid guidance, Organon maintained its full year 2025 Adjusted EBITDA margin outlook.
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