TEVA(US:TEVA)2025-11-05 12:00Financial Performance - Teva reported Q3 2025 revenues of $4.5 billion, a 3% increase year-over-year (YoY) in U.S. dollars, or 1% in local currency[2]. - Net income attributable to Teva in Q3 2025 was $433 million, compared to a net loss of $437 million in Q3 2024[20]. - Adjusted EBITDA for Q3 2025 was $1,394 million, a 5% increase from $1,327 million in Q3 2024[21]. - Operating income for Q3 2025 was $882 million, compared to an operating loss of $51 million in Q3 2024[80]. - Non-GAAP net income attributable to Teva for Q3 2025 was $910 million, compared to $798 million in Q3 2024[80]. - The company reported a consolidated income before income taxes of $646 million for the three months ended September 30, 2025, compared to a loss of $324 million in 2024[105]. Revenue Breakdown - The U.S. segment revenues increased by 12%, while Europe and International Markets segments decreased by 10% in local currency[2]. - Revenues from the United States segment in Q3 2025 were $2,483 million, a 12% increase from $2,225 million in Q3 2024, driven by higher sales of innovative and generic products[31]. - Revenues from the Europe segment in Q3 2025 were $1,235 million, a 2% decrease from $1,265 million in Q3 2024, impacted by lower revenues from generic products[45]. - Revenues from the International Markets segment were $557 million in Q3 2025, a 9% decrease from $613 million in Q3 2024, with a 10% decrease in local currency terms primarily due to the divestment of the Japan business[57]. - Revenues for the nine months ended September 30, 2025, were $6,543 million, an 8% increase from $6,060 million in 2024[100]. Product Performance - AUSTEDO revenues reached $618 million in Q3 2025, a 38% increase YoY, with an updated 2025 revenue outlook of $2.05 billion - $2.15 billion[2][5]. - AJOVY global revenues were $168 million, a 19% increase YoY, reaffirming a 2025 revenue outlook of $630 million - $640 million[2][5]. - Teva's generics portfolio showed stable growth, with global generics increasing by 2% YoY in Q3 2025[2]. - AJOVY revenues in the United States segment increased by 27% to $73 million in Q3 2025, driven by volume growth and market share gains[34]. - AUSTEDO revenues in the United States segment rose 38% to $601 million in Q3 2025, reflecting increased volumes and successful negotiations with CMS[35]. Cost and Expenses - R&D expenses in Q3 2025 were $256 million, a 7% increase YoY, primarily due to immunology projects[10]. - Selling and Marketing (S&M) expenses increased to $278 million in the three months ended September 30, 2025, compared to $259 million in 2024, a 7% rise[98]. - Legal settlements and loss contingencies adjustments for Q3 2025 included an estimated settlement provision for opioid cases of $42 million[91]. - Restructuring costs for the nine months ended September 30, 2025, amounted to $196 million, primarily related to optimization activities[91]. Cash Flow and Debt - Cash flow from operating activities in Q3 2025 was $369 million, down from $693 million in Q3 2024, primarily due to timing of sales and higher legal settlement payments[25]. - Free cash flow in Q3 2025 was $515 million, compared to $922 million in Q3 2024, reflecting lower operating cash flow and decreased proceeds from divestitures[26]. - Total debt as of September 30, 2025, was $16,790 million, down from $17,783 million at the end of 2024, mainly due to repayment of senior notes[27]. - Cash and cash equivalents decreased to $2,203 million as of September 30, 2025, down from $3,300 million at the end of 2024[83]. Future Outlook - The company projects 2025 revenues to be between $16.8 billion and $17.4 billion, with adjusted EBITDA expected to range from $4.5 billion to $5.0 billion[71]. - Teva is on track to achieve ~$700 million in net savings by 2027 through its Transformation programs[12]. - The company plans to focus on expanding its innovative and biosimilar medicines pipeline as part of its Pivot to Growth strategy[79].