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Investing.com -- Gerresheimer (ETR:GXIG) lowered its revenue outlook and said it is reviewing a potential spin-off of its moulded glass business, with a decision expected in the second half of the year, the company said Thursday alongside its second-quarter results.
“Our strategic review of whether, and if, a spin-off of the combined moulded glass business might make sense is ongoing,” CEO Dietmar Siemssen told analysts on a conference call.
The company’s shares, down 32% year-to-date, fell sharply at the open before recovering. The stock was trading flat at 10:39 GMT.
The German packaging and medical equipment maker is contending with prolonged weakness in demand for cosmetics and oral liquids, which led it to trim its 2025 revenue growth forecast for the second time.
The company now expects growth between 0% and 2%, down from its previous 1% to 2% range.
The company also revised its medium-term (MT) guidance, projecting revenue growth of 6% to 9%, down from 8% to 10%. Gerresheimer said the adjustment reflects a stronger focus on cash flow and revised investment plans.
“The MT cut is expected given recent low visibility,” Jefferies analysts commented.
“GXI still expects a stronger 2H25, due to ramp up and improved order intake, but the cosmetics and oral liquids markets remain soft,” they added.
Pressure has mounted for Gerresheimer since its June profit warning, when activist Asset Value Investor released an open letter urging Gerresheimer to improve its performance.
The letter proposed a sale of the moulded glass unit—an idea that has since gained support from two other top-30 shareholders.
For the second quarter of fiscal 2025, Gerresheimer reported revenue of €601 million, slightly ahead of consensus (€594 million), with 1.9% organic growth.
Adjusted EBITDA came in at €119 million, also beating expectations, with a margin of 19.8% versus the 19.5% consensus.
The company reiterated other parts of its guidance. For full-year 2025 (FY25), it expects an adjusted EBITDA margin of around 20% and a low double-digit decline in adjusted EPS, compared to the pro forma €4.85 reported for FY24.
For the MT outlook, Gerresheimer maintained its adjusted EBITDA margin target of 23–25% and expects adjusted EPS growth of at least 10%.