Organon & (US:OGN)2025-11-10 12:34Financial Performance - Third quarter 2025 revenue was $1.602 billion, up 1% as-reported and down 1% excluding foreign currency impact[4] - Net income for the third quarter of 2025 was $160 million, or $0.61 per diluted share, a decrease of 55% compared to $359 million, or $1.38 per diluted share in Q3 2024[15] - Adjusted EBITDA for Q3 2025 was $518 million, representing an Adjusted EBITDA margin of 32.3%, an improvement from 29.0% in Q3 2024[14][17] - Revenues for Q3 2025 were $1,602 million, a slight increase from $1,582 million in Q3 2024[36] - Gross profit for Q3 2025 was $857 million, down from $923 million in Q3 2024, representing a decrease of approximately 7.1%[36] - Net income for the nine months ended September 30, 2025, was $392 million, compared to $755 million for the same period in 2024, reflecting a decline of about 48.0%[36] - Basic earnings per share for Q3 2025 were $0.61, down from $1.39 in Q3 2024, indicating a decrease of approximately 56.1%[36] - The company reported an income tax expense of $83 million for Q3 2025, compared to a benefit of $152 million in Q3 2024[36] - GAAP reported net income for Q3 2025 was $160 million, down from $359 million in Q3 2024, representing a decrease of 55.6%[48] - GAAP diluted earnings per share for Q3 2025 was $0.61, a decrease of 55.8% from $1.38 in Q3 2024[49] Revenue Breakdown - Revenue from Women's Health declined 3% as-reported and 4% ex-FX, primarily due to a 9% decrease in Nexplanon sales[7] - Biosimilars revenue increased 19% on both an as-reported basis and ex-FX, driven by strong performance of Hadlima and favorable timing of an international tender for Ontruzant[10] - U.S. revenues for Q3 2025 were $406 million, compared to $398 million in Q3 2024, reflecting a 2.0% growth[41] - International revenues for Q3 2025 totaled $1,196 million, up from $1,184 million in Q3 2024, marking a 1.0% increase[41] - Total revenues for Q3 2025 reached $1,602 million, a 1.3% increase from $1,582 million in Q3 2024[41] Expenses and Costs - Research and development expenses for Q3 2025 were $84 million, a decrease from $111 million in Q3 2024, representing a decline of about 24.3%[36] - Selling, general and administrative expenses for Q3 2025 were $415 million, slightly down from $422 million in Q3 2024[36] - The cost of sales for Q3 2025 was $745 million, up from $659 million in Q3 2024, reflecting an increase of approximately 13.0%[36] - The company incurred $128 million in interest expense for Q3 2025, slightly up from $126 million in Q3 2024[51] Adjusted Metrics - Adjusted gross margin for Q3 2025 was 60.3%, down from 61.7% in Q3 2024, impacted by unfavorable foreign exchange and pricing pressure[14] - Adjusted non-GAAP gross profit for Q3 2025 was $966 million, with an adjusted non-GAAP gross margin of 60.3%[45] - Non-GAAP adjusted net income for Q3 2025 was $263 million, compared to $226 million in Q3 2024, an increase of 16.4%[48] - Non-GAAP adjusted diluted earnings per share for Q3 2025 was $1.01, up from $0.87 in Q3 2024, reflecting a growth of 16.1%[49] - Total impact of non-GAAP adjustments for Q3 2025 was $0.40 per share, compared to a negative impact of $0.51 per share in Q3 2024[49] - The total impact of non-GAAP adjustments on gross margin was 6.8% for Q3 2025, compared to 3.4% in Q3 2024[45] Future Outlook - Full year 2025 revenue guidance was lowered to a range of $6.200 billion to $6.250 billion, down from previous guidance of $6.275 billion to $6.375 billion[22] - The company plans to continue focusing on expanding its product portfolio and market presence in the upcoming quarters[40] - The company is committed to reducing its debt burden and creating additional balance sheet capacity for future growth opportunities in women's health[3] Cash and Debt - Cash and cash equivalents as of September 30, 2025, were $672 million, while total debt stood at $8.83 billion[19] - Interest expense for the nine months ended September 30, 2025, was $383 million, compared to $388 million for the same period in 2024[36]