Grifols sees core earnings rising by a quarter as it prioritises profitability

BARCELONA, Feb 26 (Reuters) - Healthcare company Grifols on Thursday said it expects core earnings to grow by more than a quarter in 2026 and will continue to cut debt.

Grifols, which makes drugs using blood plasma, has lost about 24% of its market value since January 2024, when Gotham City Research, a short-seller fund, released multiple reports accusing Grifols of overstating earnings and understating debt, which Grifols denies. It has taken legal action against the fund.

The company said it sees its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) growing more than 25% this year to between 1.950 and 1.980 billion euros, and free cash flow of at least 500 million euros ($588.80 million).

"Our direction for 2026 is clear. We will consciously focus our growth to prioritise profitability, cash flow generation and to continue reducing debt rate," said Chief Executive Nacho Abia in a call with analysts, adding that Egypt and Canada would be key markets for the company.

It reported a profit of 402 million euros ($473.96 million) for 2025, more than double what it recorded the previous year, but below analyst expectations in an LSEG poll for net income of 427 million euros.

Revenue grew by 7% year on year to 7.5 billion euros, while adjusted EBITDA rose to 1.825 billion euros, it said, both of which matched analyst expectations.

Grifols said it exceeded its guidance for free cash flow, totalling 468 million euros excluding any merger and acquisition activities.

Net debt fell to 8.8 billion euros in the last quarter of 2025, with a ratio of 5.2 times EBITDA last year compared with 5.6 times in 2024.

($1 = 0.8492 euros)

(Reporting by Joan Faus; editing by Charlie Devereux and Jane Merriman)