Group 1 - The article expresses a beneficial long position in the shares of GRFS, indicating a positive outlook on the company's stock performance [1] - The author emphasizes the importance of conducting due diligence and research before making any investment decisions, highlighting the need for investors to understand their risk tolerance [2] - The article clarifies that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Company Overview - Grifols, S.A. is a global healthcare company headquartered in Barcelona, specializing in plasma-derived therapies, diagnostics, and hospital supplies, with a strong presence in over 100 countries [2]. Business Units and Focus Areas - The company's main business units include Bioscience, Diagnostics, and Hospital, focusing on immunotherapy, transfusion medicine, and critical care, addressing treatments for bleeding disorders, immunodeficiencies, and neurological conditions [2]. Expansion Plans - In mid-2025, Grifols announced plans to build a new manufacturing site in Spain, aimed at doubling its plasma fractionation capacity in Europe, reflecting a strategic commitment to meet rising demand for plasma-based therapies [3]. Financial Performance - Grifols reported a 7% increase in revenue to EUR 3,677 million in H1 2025, supported by its Value Creation Plan [3]. Market Positioning - The new facility in Spain is expected to strengthen Grifols' supply chain resilience and enhance its competitive position in the growing plasma therapeutics market, aiming to improve market share while addressing critical clinical needs [4].

Group 1 - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks, allowing for potential profits [2] - Grifols (GRFS) is currently highlighted as a stock of interest, holding a Zacks Rank 2 (Buy) and an A grade in the Value category, indicating strong value characteristics [3] Group 2 - Grifols has a price-to-book (P/B) ratio of 0.84, which is attractive compared to the industry average of 1.52, suggesting it may be undervalued [4] - The price-to-cash flow (P/CF) ratio for Grifols is 11.30, which is favorable against the industry average of 12.84, indicating a strong cash outlook [5] - These valuation metrics contribute to Grifols's strong Value grade, suggesting it is likely undervalued and has a positive earnings outlook [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of July 2025 Commission File No. 001-35193 Grifols, S.A. (Translation of registrant's name into English) Avinguda de la Generalitat, 152-158 Parc de Negocis Can Sant Joan Sant Cugat del Valles 08174 Barcelona, Spain (Address of registrant's principal executive office) Indicate by check mark whether the regi ...

Financial Data and Key Metrics Changes - The company reported revenue of €3.7 billion for the first half of 2025, representing a year-over-year increase of 7% on a reported basis and 10.1% on a like-for-like basis at constant currency [9][38] - Adjusted EBITDA reached €876 million, a significant increase of 12.7% on a reported basis and 20.1% on a like-for-like basis at constant currency [10][39] - Free cash flow improved by nearly €200 million year-over-year, reaching €182 million higher than the previous year [10][40] - The leverage ratio improved to 4.2 times, the lowest in five years, reflecting strong cash flow generation and deleveraging efforts [11][39] Business Line Data and Key Metrics Changes - Biopharma reported growth of 8.2% on a reported basis and nearly 12% on a like-for-like basis, driven by strong demand for immunoglobulin products [14][42] - The albumin segment grew close to 10%, recovering from a temporary impact in Q1 due to a drug license renewal process in China [20] - Alpha-one and Specialty Proteins revenue grew 6.6% at constant currency, reaffirming market leadership [21] Market Data and Key Metrics Changes - The immunoglobulin franchise saw a growth of 12.5% on a reported basis, with a remarkable 17.8% growth on a like-for-like basis [18] - The diagnostics business reported a 2.8% growth at constant currency, with all major segments showing performance growth [32] Company Strategy and Development Direction - The company is focused on executing its value creation plan, which emphasizes commercial growth, margin expansion, and pipeline execution [8][12] - Innovation remains a core driver, with upcoming product launches such as fibrinogen in Europe and the U.S. [12][30] - The company is committed to improving profitability through targeted cost reduction initiatives and operational efficiencies [11][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex and dynamic environment, including foreign exchange volatility and external uncertainties, but expressed confidence in the company's ability to adapt [6][63] - The strong performance in the first half of the year supports the expectation of continued positive results in the second half [13][64] - The company reaffirmed its full-year guidance for 2025, despite macroeconomic challenges [58][64] Other Important Information - The successful delisting of BioTest is expected to unlock value from this strategic asset [13] - The company announced a €0.15 per share interim dividend, marking the first dividend payment in over four years [53][54] Q&A Session Summary Question: Free cash flow and dividend reinstatement - The management confirmed that lower interest costs are a factor in the raised free cash flow target, but not the sole driver for reinstating the dividend, which aligns with the capital allocation framework [67][69] Question: Albumin market outlook - Management indicated that pricing pressure in China is due to government efforts to reduce healthcare costs, but they are well-positioned with local partnerships to navigate these challenges [70][71] Question: IG trends and CIDP share loss - Management noted that the deceleration in IG growth is influenced by currency impacts and emphasized that IG remains the standard of care in CIDP, with continued growth expected [75][76] Question: EBITDA guidance and cash flow phasing - Management acknowledged that FX uncertainties impact EBITDA guidance but reaffirmed confidence in the overall performance, expecting stronger cash flows in H2 [88]

Financial Performance - H1 2025 revenue reached €3677 million, a 70% increase at constant currency (cc)[14] - H1 2025 adjusted EBITDA was €876 million, up 127% cc[14] - Free cash flow pre-M&A for H1 2025 was -€14 million, an improvement of €182 million compared to H1 2024[-196 million][14] - The leverage ratio decreased to 42x in H1 2025, compared to 46x at the end of FY24[14] Business Segment Performance - Biopharma revenue grew by 82% cc in H1 2025[17] - Diagnostic revenue increased by 28% cc in H1 2025[23] Margin Expansion - Adjusted EBITDA margin increased by 80 bps in H1 2025, despite the IRA impact[17] - Like-for-like adjusted EBITDA margin increased by 171 bps in H1 2025[17] Capital Allocation - An interim dividend of €015 per share was reinstated[14] - Liquidity stands at €14 billion[43] Future Outlook - The company reaffirmed its 2025 guidance and improved its free cash flow pre-M&A guidance to €375 - €425 million[47]

Core Insights - XL-protein GmbH has entered into a worldwide License, Development and Commercialization Agreement with Grifols for a novel long-acting biopharmaceutical product [1] - The collaboration will utilize XL-protein's PASylation® technology to enhance the circulation and effectiveness of Grifols' therapeutics [2] - Financial terms include an upfront payment, milestone payments, and tiered royalties on sales from marketed therapeutics, with Grifols holding exclusive marketing rights [3] Company Overview - Grifols is a global healthcare company founded in 1909, specializing in plasma-derived medicines and innovative healthcare solutions across more than 110 countries [6] - XL-protein is a privately owned biotech company based in Germany, focusing on developing biologics with extended half-life and enhanced in vivo activity through its PASylation® technology [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1][2]. Company Overview: Grifols (GRFS) - Grifols currently holds a Momentum Style Score of A, indicating strong momentum potential [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, Grifols shares increased by 2.47%, while the Zacks Medical - Drugs industry remained flat [6]. - In a longer timeframe, Grifols' shares have risen by 15.44% over the past month, significantly outperforming the industry's 3.53% [6]. - For the past quarter, Grifols shares increased by 8.89%, and over the last year, they gained 15.12%, compared to the S&P 500's 3.59% and 14.21% respectively [7]. Trading Volume - Grifols has an average 20-day trading volume of 819,084 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, one earnings estimate for Grifols has increased, while none have decreased, raising the consensus estimate from $0.96 to $0.99 [10]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, Grifols is recommended as a solid momentum pick for investors [11][12].

Core Insights - The article emphasizes the importance of value investing as a strategy to identify strong stocks that are undervalued by the market [2][3] - Grifols (GRFS) is highlighted as a stock with a Zacks Rank of 2 (Buy) and an "A" grade for Value, indicating it is a high-quality value stock [3][6] Valuation Metrics - Grifols has a Price-to-Book (P/B) ratio of 0.65, which is significantly lower than the industry average of 1.34, suggesting it may be undervalued [4] - The P/B ratio for Grifols has fluctuated between 0.48 and 0.75 over the past year, with a median of 0.59 [4] - Grifols also has a Price-to-Cash Flow (P/CF) ratio of 9.93, which is attractive compared to the industry average of 10.45 [5] - The P/CF ratio for Grifols has ranged from 7.56 to 13.04 over the past 52 weeks, with a median of 10.55 [5] Investment Outlook - The combination of Grifols' favorable valuation metrics and strong earnings outlook positions it as a compelling value stock at the moment [6]

Core Viewpoint - Investors in the Medical - Drugs sector should consider Grifols (GRFS) and Stevanato Group (STVN) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Grifols has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Stevanato Group, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revision trends, which is a key consideration for value investors [2] Group 2: Valuation Metrics - Grifols has a forward P/E ratio of 8.39, significantly lower than Stevanato Group's forward P/E of 39.52, suggesting that GRFS may be undervalued [5] - The PEG ratio for Grifols is 0.29, indicating a favorable valuation relative to its expected earnings growth, while Stevanato Group has a PEG ratio of 2.13 [5] - Grifols also has a P/B ratio of 0.65, compared to Stevanato Group's P/B of 4.51, further highlighting the relative undervaluation of GRFS [6] Group 3: Overall Value Assessment - Grifols earns a Value grade of A, while Stevanato Group receives a Value grade of C, indicating that GRFS is viewed more favorably by value investors [6] - The combination of Zacks Rank and Style Scores suggests that Grifols is the better investment option at this time [6]