Organon & (US:OGN)2026-02-12 12:45Revenue Performance - Full year 2025 revenue was $6.2 billion, down 3% on both an as-reported basis and at constant currency compared to 2024[3]. - Fourth quarter 2025 revenue was $1.507 billion, down 5% as-reported and down 8% excluding foreign currency impact compared to Q4 2024[5]. - Women's Health revenue declined 15% as-reported and 16% ex-FX in Q4 2025, primarily due to a 20% decrease in Nexplanon sales[6]. - Biosimilars revenue increased 11% as-reported and ex-FX in Q4 2025, driven by strong performance of Hadlima and contributions from new assets[7]. - Total revenues for the year ended December 31, 2025, were $6,216 million, a decrease from $6,403 million in 2024, representing a decline of 2.9%[51]. - The U.S. market generated $1,604 million in revenues for the year ended December 31, 2025, compared to $1,572 million in 2024, reflecting a growth of 2%[51]. - International revenues for the year ended December 31, 2025, were $4,612 million, down from $4,831 million in 2024, indicating a decline of 4.5%[51]. - Nexplanon/Implanon NXT sales for the year ended December 31, 2025, were $921 million, a decrease from $963 million in 2024, representing a decline of 4.4%[48]. Profitability and Loss - Full year 2025 net income was $187 million, or $0.72 per diluted share, down 78% from $864 million, or $3.33 per diluted share in 2024[25]. - Net loss for Q4 2025 was $205 million, or $0.79 per diluted share, compared to net income of $109 million, or $0.42 per diluted share in Q4 2024[13]. - The company reported a net loss of $205 million for Q4 2025, compared to a net income of $109 million in Q4 2024[46]. - The non-GAAP adjusted net income for the year ended December 31, 2025 was $954 million, down from $1,065 million in 2024[58]. - The GAAP diluted loss per share for Q4 2025 was $(0.79), while the non-GAAP adjusted diluted earnings per share was $0.63, compared to $0.90 in Q4 2024[59]. Adjusted EBITDA and Margins - Full year 2025 Adjusted EBITDA was $1.91 billion, representing a 30.7% Adjusted EBITDA margin[3]. - Adjusted EBITDA for the year ended December 31, 2025 was $1,907 million, slightly down from $1,958 million in 2024, with an adjusted EBITDA margin of 30.7%[60]. - Adjusted EBITDA for 2026 is projected to be around $1.9 billion, similar to the previous year[30]. - The adjusted non-GAAP gross margin for the year ended December 31, 2025, was 60.1%, down from 61.6% in 2024, indicating a need for improved operational efficiency[55]. - Adjusted gross margin is expected to be approximately 75-100 basis points lower than 60.1% in 2025[32]. Future Guidance - The company expects to deliver approximately $6.2 billion of revenue and approximately $1.9 billion of Adjusted EBITDA for the full year 2026, in line with 2025 performance[3]. - For full year 2026, the company expects revenue of approximately $6.2 billion, consistent with 2025 performance[30]. - The company anticipates nominal revenue growth to be approximately flat, compared to a decline of 3% in 2025[32]. - The impact of foreign exchange translation is expected to be approximately $75 million in 2026, compared to $35 million in 2025[32]. - The effective non-GAAP tax rate for 2026 is projected to be between 27.5% and 29.5%, up from 24.4% in 2025[32]. - The company plans to maintain SG&A expenses in the mid-20% range, down from 26.1% in 2025[32]. - Research and development expenses are expected to be in the mid-single digit range, compared to 5.5% in 2025[32]. Cash and Debt Position - As of December 31, 2025, cash and cash equivalents were $574 million, and total debt was $8.64 billion[28]. - The company reported $121 million in interest expense for the year ended December 31, 2025, compared to $520 million in 2024[60]. - Restructuring and related charges amounted to $105 million for the year ended December 31, 2025[60]. - The company incurred a goodwill impairment of $301 million for the three months ended December 31, 2025[60]. - The company reported a pre-tax gain of $69 million related to the repurchase and cancellation of approximately $419 million of its 5.125% notes due in 2031[64]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.02 per share, payable on March 12, 2026[27]. - The weighted average shares outstanding for 2025 was approximately 261 million, with a projected increase to around 265 million for 2026[32]. - The company reported adjusted non-GAAP selling, general, and administrative expenses of $1,623 million for the year ended December 31, 2025, compared to $1,571 million in 2024, an increase of 3.3%[55].