UTHR Tops Q4 Earnings Estimates, Shares Surge 13% on Strong Guidance

Core Insights - United Therapeutics (UTHR) reported Q4 2025 earnings per share (EPS) of $7.70, exceeding the Zacks Consensus Estimate of $6.78, with a year-over-year increase of 24% driven by higher product sales [1][7] - The company anticipates "double-digit revenue growth" in 2026 and aims for a $4 billion annualized revenue run rate in the second half of 2027 [2][3] Financial Performance - Q4 revenues were $790.2 million, missing the Zacks Consensus Estimate of $805 million, but reflecting a 7.3% year-over-year growth, primarily from Tyvaso and Orenitram [2] - For the full year 2025, total revenues reached $3.18 billion, an 11% increase from 2024, with net earnings of $27.86 per share compared to $24.64 in 2024 [11] Product Sales Breakdown - Combined sales of Tyvaso products were $464.3 million, up 12% year over year, although they fell short of the Zacks Consensus Estimate of $488 million [4] - Tyvaso DPI generated $338.6 million in revenue, a 24% increase year over year, aided by enhanced commercialization efforts [5] - Sales of nebulized Tyvaso were $125.7 million, down 12% due to lower volumes [8] - Orenitram sales rose 12% to $121.2 million, while Remodulin sales declined 5% to $128 million, and Unituxin sales decreased 8% to $62.3 million [8] Expenses - Research and development expenses were $139.5 million, up 4.3% year over year, reflecting increased clinical development costs [9] - Selling, general, and administrative expenses rose 13.1% to $190.6 million, driven by higher consulting and personnel costs [9] Pipeline Developments - Key phase III programs include Tyvaso for chronic fibrosing interstitial lung disease and oral ralinepag for PAH [12] - The TETON-2 study showed clinical benefits in idiopathic pulmonary fibrosis patients, with management believing it could expand Tyvaso's therapeutic reach [13] - The company is also conducting the TETON-1 study and plans to meet with the FDA to expedite regulatory review if results are favorable [14] - Top-line data from the ADVANCE OUTCOMES study for ralinepag is expected in the first half of 2026 [15]