Merck KGaA forecasts up to 8% earnings growth in 2025

Published 06/03/2025, 08:10
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Investing.com -- Merck KGaA (ETR:MRCG) on Thursday said it anticipates solid results in 2025, projecting forex-adjusted earnings growth of up to 8%, driven by organic sales expansion across its business sectors. 

The company expects organic net sales growth between 3% and 6%, while EBITDA pre—its key profitability measure—is forecasted to rise organically between 3% and 8%.

The financial outlook is supported by a recovery in the semiconductor materials market, steady growth in Healthcare, and an improving trajectory in Life Science. 

Merck KGaA remains confident that all business sectors will contribute positively to its earnings trajectory. 

The Life Science segment is expected to see organic net sales growth ranging from 2% to 7%, with EBITDA pre growth projected between 2% and 9%. 

In Healthcare, net sales are forecasted to increase organically by 1% to 5%, while EBITDA pre is expected to rise between 3% and 9%. 

The Electronics business anticipates organic net sales growth of 2% to 6%, with EBITDA pre-projected to grow between 3% and 9%.

Looking at overall profitability, Merck KGaA estimates EBITto be between €3.6 billion and €3.9 billion, while total EBITDA is expected to reach between €6.1 billion and €6.6 billion. 

The company projects earnings per share at €6.39, slightly down from €6.49 in 2024, while adjusted EPS is expected to rise to €8.63, compared to €8.49 in the prior year.

Operating cash flow is forecasted to slightly increase from the €4.6 billion recorded in 2024. Foreign exchange effects remain a critical variable, with an estimated impact on net sales ranging from -1% to 2%, and on EBITDA pre between -2% and 1%. 

The assumed EUR/USD exchange rate range for 2025 is expected to be between €1.03 and €1.07.

Despite macroeconomic uncertainties and geopolitical challenges, Merck KGaA remains optimistic about its growth prospects. 

The company continues to focus on investments, research and development, and disciplined cost management to navigate foreign exchange fluctuations and enhance profitability. 

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