Grifols Reports Strong First Half 2025 Results with Robust Revenue Growth, Rising Profitability, and Strategic Progress Across Business Units
Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and a world leader in plasma-derived medicines, has announced a strong set of financial results for the first half of fiscal year 2025. The company’s performance was bolstered by continued operational execution and strategic advancement of its Value Creation Plan, which has remained central to its corporate agenda since its launch. Grifols’ financial and operational momentum during this period underscores both its resilient business model and long-term commitment to sustainable growth and value creation for shareholders, patients, and partners.
Revenue Growth Driven by Biopharma Business
Grifols reported total revenues of EUR 3,677 million for the first six months of 2025, marking a 7.0% increase at constant currency (cc) compared to the same period in 2024. This growth was largely driven by the Biopharma business unit, which experienced a robust 8.2% cc revenue increase year-over-year. The company’s ability to maintain commercial discipline, expand key product franchises, and execute operationally has been instrumental in achieving this result.
The Biopharma division’s strong performance continues to be fueled by the momentum in its flagship immunoglobulin (IG) franchise. Revenues from IG products rose by 12.5% cc during the reporting period, outperforming market growth. This was driven by strong volume gains across both intravenous (IVIG) and subcutaneous (SCIG) formulations. Notably, SCIG revenue surged by an impressive 66% cc, reflecting heightened demand for flexible home-based treatment options and Grifols’ expanding share in the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP) and primary immunodeficiencies.
Albumin revenue, though challenged in the first quarter due to regulatory and logistical delays in China, rebounded in the second quarter following the successful renewal of its product license in the Chinese market. This resulted in sequential improvement, with Q2 albumin sales up 1.3% cc. However, the overall first-half performance remained slightly negative at -3.7% cc. Grifols anticipates continued normalization in albumin sales in the second half of the year.
Additionally, Alpha-1 antitrypsin and Specialty Proteins continued to make a positive contribution, registering 4.8% cc growth. With a commanding 70% global market share in Alpha-1 therapies, Grifols continues to build on its leadership position. The ongoing SPARTA clinical study and the development of a new subcutaneous Alpha-1 formulation are progressing according to plan, as part of a broader strategy to expand treatment options and indications for patients suffering from Alpha-1 antitrypsin deficiency.
Solid Profitability Gains Amid Cost Discipline and Operational Leverage
The company also delivered strong profitability improvements in the first half of 2025. Adjusted EBITDA rose by 12.7% cc to EUR 876 million, representing a 23.8% EBITDA margin. This improvement was supported by a favorable product mix, continuous cost-optimization initiatives, and increased operational leverage. The implementation of Grifols’ Value Creation Plan—focused on streamlining processes, enhancing productivity, and reducing costs—continues to yield tangible financial results.
Net profit for the period soared to EUR 177 million, reflecting a year-over-year increase of 387.6%. This dramatic improvement in net income was driven by stronger operating performance, disciplined expense management, and lower financial costs due to the company’s deleveraging efforts. Compared to the net profit of EUR 36 million in the first half of 2024, the current result represents a significant turnaround and underscores the success of the company’s strategic and operational focus.
Improved Free Cash Flow and Deleveraging Progress
Grifols also made substantial strides in enhancing its cash generation capabilities. Free cash flow before mergers and acquisitions (pre-M&A) turned positive in the second quarter of 2025, reaching EUR 30 million, which helped offset a negative EUR 44 million in the first quarter. As a result, the first-half free cash flow pre-M&A stood at negative EUR 14 million—an improvement of EUR 182 million compared to the prior-year period.
This turnaround in cash flow was primarily driven by the combination of higher EBITDA, better working capital management, and reduced interest expenses. The company continues to focus on optimizing its capital structure, preserving liquidity, and prioritizing internal investments that yield long-term returns.
As part of its ongoing efforts to strengthen its financial position, Grifols successfully reduced its net debt leverage ratio to 4.2x as of the end of June 2025. This marks a notable improvement from 4.5x at the end of the previous quarter and a full point reduction from 5.5x at the same point in 2024. Liquidity remains robust, with EUR 1.4 billion in cash and committed credit facilities. The company is firmly on track to meet its deleveraging targets as outlined during its Capital Markets Day in February 2025.
Strategic Investment and Capital Allocation
In alignment with its capital allocation framework, Grifols completed the delisting of its German subsidiary Biotest from the Frankfurt Stock Exchange. The company increased its ownership stake in Biotest to 80.32% through this transaction, which had a total cost of EUR 108 million and was fully financed through existing financial resources. This strategic move simplifies corporate governance, enhances operational integration, and positions Biotest for greater alignment with Grifols’ long-term innovation and growth objectives.
In addition to this strategic investment, the company announced a dividend of EUR 0.15 per share, reflecting its confidence in the underlying financial health of the business and its commitment to delivering shareholder returns. The dividend is supported by the continued momentum in earnings and cash flow generation.
CEO and CFO Commentary: A Unified Vision for Value Creation
Commenting on the company’s performance, CEO Nacho Abia said, “The company’s strong performance in the first six months of 2025 reflects the solid execution of our Value Creation Plan. The momentum of the business is clear: in a context of strong underlying demand, we continue to capitalize on the strength of our Biopharma business unit while advancing on key priorities.”
Abia emphasized the importance of maintaining a patient-centric vision. “While the value creation will ultimately benefit our shareholders, we continue to be fully committed to developing solutions that address patients’ needs—a priority that has defined Grifols for more than 116 years.”
Echoing this sentiment, CFO Rahul Srinivasan stated, “The company’s strong first-half performance underscores both the attractive fundamentals and resilience of our business. We remain resolutely focused on leveraging the strengths of our business model and disciplined execution, capitalizing on our underlying momentum and operational focus to deliver on our deleveraging and free cash-flow generation priorities, whilst reinforcing the strong confidence in the company’s long-term value.”
Diagnostic Business Remains Resilient and Diversified
Grifols’ Diagnostic division also demonstrated continued resilience. Revenues in the segment reached EUR 332 million, representing 2.8% cc growth over the first half of 2024. The business benefited from ongoing strength in Molecular Donor Screening (MDS) in the EMEA and Asia-Pacific regions, as well as steady performance in Blood Typing Solutions (BTS) across key international markets.
In a major operational development, the U.S. Food and Drug Administration (FDA) granted approval for Grifols’ San Diego facility to begin manufacturing Gel Cards and reagent red blood cells. This milestone strengthens the company’s U.S. diagnostic supply chain and supports its long-term growth in transfusion medicine.
Mitigating Tariff Risks Through Vertical Integration and Global Footprint
As geopolitical uncertainties and trade tensions persist globally, Grifols remains well-positioned to mitigate potential risks associated with tariffs or regulatory shifts. The company’s vertically integrated business model, built over three decades of international expansion, allows it to operate plasma collection, manufacturing, and distribution locally in strategic markets including the United States, Europe, Canada, and Egypt.
This infrastructure significantly reduces reliance on cross-border trade and enhances the company’s flexibility in managing supply chain disruptions. It also supports Grifols’ commitment to localizing production and ensuring timely delivery of critical therapies to patients around the world.
2025 Guidance Reaffirmed with Upgraded Free Cash Flow Outlook
Grifols entered the second half of 2025 with considerable momentum across its business segments. As such, the company reaffirmed its full-year financial guidance shared earlier in the year during its Capital Markets Day. Moreover, the outlook for free cash flow pre-M&A was upgraded to a range of EUR 375–425 million, reflecting confidence in further improvements in operational efficiency, working capital management, and cost control.
Although the depreciation of the U.S. dollar may pose a headwind to reported revenues and EBITDA in the second half of the year, the impact on group-level profitability, leverage, and cash flow is expected to remain broadly neutral. Grifols plans to mitigate foreign exchange effects through ongoing operational discipline and by harnessing the strength of its core businesses.
Innovation Pipeline and Future Outlook
Looking ahead, Grifols continues to invest in its innovation pipeline, with a focus on enhancing its existing protein portfolio and developing next-generation therapies. The company remains on track to launch its fibrinogen product in Europe by Q4 2025, followed by a U.S. launch in H1 2026 pending FDA approval.
This new product will be an important addition to Grifols’ hemostasis portfolio, addressing critical unmet needs in trauma, surgery, and congenital fibrinogen deficiencies. Other R&D programs continue to progress across rare diseases, immunology, and neurological indications, reinforcing Grifols’ position as a leading innovator in plasma medicine.
