Merck KGaA Q2 2025 Earnings: Revenue Down 1.8%, Net Income Up 7.4%

Merck KGaA reported Q2 2025 earnings, with revenue down 1.8% to €5.26b, net income up 7.4% to €652m, and EPS up 7.4% to €1.50. The increase in margin was driven by lower expenses. However, revenue and EPS missed analyst estimates. Merck's share price is broadly unchanged from a week ago, with a 3.9% p.a. revenue growth forecast over the next three years.

Merck KGaA reported its second-quarter (Q2) 2025 earnings on Thursday, July 7, 2025. The German science and technology company's revenue declined by 1.8% to €5.26 billion, while net income rose by 7.4% to €652 million. Earnings per share (EPS) increased by 7.4% to €1.50. Despite the positive earnings growth, the company's revenue and EPS missed analyst estimates.

The increase in net income and EPS was driven by lower expenses, resulting in a higher margin. However, the company's revenue and EPS fell short of expectations, with revenue declining by 1.8% to €5.26 billion and EPS increasing to €1.50, compared to €1.40 in the same period last year. The company's earnings per share pre (EPS pre) amounted to €2.02, compared to €2.20 in the year-earlier quarter [2].

Merck KGaA's share price remained broadly unchanged from a week ago, with a 3.9% p.a. revenue growth forecast over the next three years. The company expects organic EBITDA pre growth of 4% to 8% for fiscal 2025, compared to previously expected 2% to 7%. Organic sales growth is forecast to be between 2% to 5%, down from the previously expected 2% to 6% range [3].

Life Science and Healthcare divisions drove growth, with Healthcare EBITDA pre rising by 8.8% to €783 million on a 20% organic gain. Sales were led by Mavenclad, which climbed 20.7% organically to €307 million, and Erbitux, up 10.9%. Oncology sales rose 3.9% organically, while Neurology and Immunology grew 2.6%. The Cardiovascular, Metabolism and Endocrinology franchise posted 4.7% organic growth [2].

Electronics reported a 47.6% drop in EBITDA pre to €134 million and a 7.4% sales decline to €886 million. Semiconductor Materials posted its highest revenue since 2022, supported by demand tied to AI. Merck completed the $3.4 billion acquisition of SpringWorks Therapeutics on July 1, expanding its rare tumor pipeline [2].

The company's operating cash flow dropped by 34.2% to €567 million. Profit after tax rose by 8.3% to €655 million, while earnings per share improved by 7.1% to €1.50 [1].

References:
[1] https://www.marketscreener.com/news/transcript-merck-kgaa-q2-2025-earnings-call-aug-07-2025-ce7c5edfdf81f323
[2] https://www.investing.com/news/earnings/merck-kgaa-lifts-2025-profit-outlook-after-strong-drug-ai-material-sales-in-q2-4175019
[3] https://www.nasdaq.com/articles/merck-kgaa-q2-net-profit-rises-ebitda-down-lifts-fy25-ebitda-pre-view-cuts-sales-growth