Orion Group Half-Year Financial Report January–June 2025
ORION CORPORATION
HALF-YEAR FINANCIAL REPORT 1–6/2025
18 JULY 2025 at 12:00 EEST
Orion Group Half-Year Financial Report January–June 2025
April–June 2025 Highlights
- Net sales totalled EUR 416.5 (April–June 2024: 328.2) million
- Operating profit was EUR 104.6 (65.8) million
- Basic earnings per share were EUR 0.59 (0.37)
- Cash flow from operating activities per share was EUR 0.57 (0.20)
- Outlook for 2025 was upgraded in July: Net sales are estimated to be EUR 1,630 million to EUR 1,730 million. Operating profit is estimated to be EUR 400 million to EUR 500 million.
January–June 2025 Highlights
- Net sales totalled EUR 771.0 (January–June 2024: 636.7) million
- Operating profit was EUR 182.5 (121.8) million
- Basic earnings per share were EUR 1.02 (0.68)
- Cash flow from operating activities per share was EUR 1.12 (0.98)
Key figures
| | 4–6/25 | 4–6/24 | Change % | 1–6/25 | 1–6/24 | Change % | 1–12/24 |
| Net sales, EUR million | 416.5 | 328.2 | +26.9% | 771.0 | 636.7 | +21.1% | 1,542.4 |
| EBITDA, EUR million | 118.6 | 78.8 | +50.6% | 210.2 | 147.3 | +42.7% | 509.4 |
| % of net sales | 28.5% | 24.0% | | 27.3% | 23.1% | | 33.0% |
| Operating profit, EUR million | 104.6 | 65.8 | +58.9% | 182.5 | 121.8 | +49.8% | 416.6 |
| % of net sales | 25.1% | 20.1% | | 23.7% | 19.1% | | 27.0% |
| Profit before taxes, EUR million | 103.4 | 65.1 | +59.0% | 180.3 | 120.0 | +50.2% | 413.1 |
| % of net sales | 24.8% | 19.8% | | 23.4% | 18.8% | | 26.8% |
| Profit for the period, EUR million | 82.5 | 52.0 | +58.9% | 143.8 | 95.7 | +50.2% | 329.9 |
| % of net sales | 19.8% | 15.8% | | 18.7% | 15.0% | | 21.4% |
| Research and development expenses, EUR million | 49.1 | 43.6 | +12.5% | 90.0 | 80.4 | +12.0% | 179.6 |
| % of net sales | 11.8% | 13.3% | | 11.7% | 12.6% | | 11.6% |
| Capital expenditure excluding acquired in business combination, EUR million | 34.0 | 21.4 | +59.0% | 54.5 | 34.5 | +58.2% | 86.1 |
| % of net sales | 8.2% | 6.5% | | 7.1% | 5.4% | | 5.6% |
| Acquired in business combination, net of cash, EUR million | 4.0 | | > 100 % | 4.0 | | > 100 % | |
| Interest-bearing net liabilities, EUR million | | 134.3 | 111.2 | +20.8% | 121.7 | ||
| Basic earnings per share, EUR | 0.59 | 0.37 | +58.7% | 1.02 | 0.68 | +50.0% | 2.35 |
| Cash flow from operating activities per share, EUR | 0.57 | 0.20 | > 100 % | 1.12 | 0.98 | 14.1% | 2.09 |
| Equity ratio, % | | | 56.1% | 52.7% | | 61.9% | |
| Gearing, % | | | 14.6% | 14.6% | | 12.1% | |
| Return on capital employed (before taxes), % | | | 29.0% | 23.4% | | 34.9% | |
| Return on equity (after taxes), % | | | 29.9% | 23.2% | | 34.8% | |
| Average number of personnel during the period | | | | 3,970 | 3,726 | +6.5% | 3,712 |
President and CEO Liisa Hurme:
Positive developments on many fronts
"In April–June 2025, our net sales increased by 26.9 percent to EUR 416.5 (328.2) million and operating profit increased by 58.9 percent to EUR 104.6 (65.8) million.
In Q2, strong growth continued in all major divisions, and in many areas the growth exceeded our expectations. Operating profit increased faster than net sales mainly due to the growth of Nubeqa® royalties. This good development is anticipated to continue during the remainder of the year which is why we upgraded our outlook for 2025 in early July.
Once again, the performance of Nubeqa® was outstanding with both royalty income and product sales showing very strong growth. The Branded Products and Animal Health divisions also reported double-digit growth. Growth in Branded Products and Animal Health was generated from a variety of different products. This reflects the strength of our diverse product portfolio in these divisions. The same applies to the Generics and Consumer Health business division whose growth was above the average generic market growth. What warms me most is that our work has an impact on the lives of growing number of patients as the net sales increase comes from several different products - a fact of which we all at Orion can be proud of.
In Q2, we continued to implement our growth strategy with positive developments on many fronts. This includes, just to mention a few, opening our new research & development centre in Cambridge, UK, filling certain key roles with new recruitments in Innovative Medicines and Research & Development, as well as some new and expanded collaboration and licence agreements in different business areas. Moreover, our collaborator MSD expanded the opevesostat development program to women's cancers.
In connection with our Capital Markets Day in May, we added to our key clinical development projects three clinical trials which are conducted by our collaborators with molecules invented by Orion. Furthermore, we received positive news in June when the U.S. Food and Drug Administration (FDA) approved, and the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency recommended darolutamide in combination with androgen deprivation therapy for use in patients with metastatic hormone-sensitive prostate cancer (mHSPC).
We are committed and dedicated to our growth strategy, and after a strong H1, it is easy to move forward into H2 with confidence.”
Outlook for 2025 (provided on 9 July 2025)
Net sales are estimated to be EUR 1,630 million to EUR 1,730 million.
Operating profit is estimated to be EUR 400 million to EUR 500 million.
Basis for outlook
Collaboration agreements with other pharmaceutical companies are an integral part of Orion’s business model. Agreements often include payments recorded in net sales and operating profit that vary greatly from year to year. Forecasting the timing and amount of these payments is difficult. In some cases, they are conditional on terms such as R&D outcomes which are not known until studies have been completed, the progress of R&D projects or the attainment of specified sales levels. Regarding possible new contracts under negotiation, neither the outcome nor the schedule of contract negotiations is generally known before the final signing of the agreement.
In 2024, Orion booked two material milestones totalling EUR 130 million. The outlook for 2025 does not include any material milestone payments. Orion is entitled to receive from its partner Bayer one more milestone payment related to the sale of Nubeqa®, amounting to EUR 180 million. According to Orion's current estimate, the milestone payment could be recorded in 2026 or even already in 2025. There is a lot of uncertainty about the timing of the milestone payment, which is why it has not been included in the 2025 outlook estimate.
Milestone payments received by Orion in 2020–2024
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| EUR million | 42 | 3 | 234 | 32 | 134 |
The outlook does not include income, expenses or other impacts related to any future material product or company acquisition or divestment.
Net sales
The outlook assumes that the Nubeqa® royalties and product sales booked by Orion will clearly increase in 2025. Orion’s assumption is based on forecasts received from its partner Bayer. However, it is difficult to predict the exact level of product sales and royalties of a strongly growing product for the whole year.
The Branded Products business division is estimated to grow in 2025. Growth is anticipated to be driven by the Easyhaler® product portfolio but also other products are expected to support the growth. Entacapone products, for example, benefit from the fact that Orion has taken over the sales of the products in Japan. The Animal Health business division is anticipated to grow slightly, with growth coming from various products. The net sales of the Generics and Consumer Health business division are estimated to be slightly higher than in 2024.
Operating profit
The underlying operating profit growth, i.e. excluding material milestones, is expected to be driven by Nubeqa® royalties. However, it is difficult to predict the exact level of royalties of a strongly growing product for the whole year. Any variance from the predicted level can have a notable impact on Orion’s operating profit. Also, the mechanism by which each quarter’s product deliveries are always fully deducted from the next quarter’s royalty payments causes fluctuation in operating profit. Even though this impact on operating profit is only temporary, the timing of product deliveries may have notable impact on Orion’s operating profit in one calendar year. Orion’s income is increasingly coming from the United States and thus changes in the US dollar exchange rate cause fluctuations in Orion’s operating profit.
Research and development costs, and in particular their timing, can also cause fluctuations in operating profit. Although the future costs of research and development projects are known quite well in advance, there are uncertainties about their timing. The start of projects may be delayed, and projects may progress faster or slower than expected. Projects may also have to be terminated, in which case the anticipated costs will not be fully realised. Orion estimates that R&D costs in 2025 will increase from 2024.
Sales and marketing expenses are expected to be at a similar level as in 2024. In 2024, sales and marketing expenses included EUR 23.5 million write down from ganaxolone. In 2025, the growth of underlying sales and marketing expenses is mainly due to growing investments to the Easyhaler® sales in Europe, ramping up the sales and sales force in Japan, and Nubeqa® royalty payable as per an agreement with Endo Pharmaceuticals.
Capital expenditure
The Group’s total capital expenditure in 2025 is expected to be at a similar level as in 2024. The estimate of capital expenditure does not include any investments related to any future material product or company acquisition.
Webcast and Conference Call
A webcast and a conference call for analysts, investors and media representatives will be held on Friday, 18 July 2025 at 13.30 EEST.
A link to the live webcast is available on Orion's website at . A recording of the event will be available on the website later the same day.
Conference call can be joined by registering through the following link:
Phone numbers and the conference ID to access the conference will be provided after the registration. In case you would like to ask a question during the conference, please dial *5 on your telephone keypad to enter the question queue.
Questions can also be presented in writing through the question form of the webcast.
Upcoming events
| Interim Report January–September 2025 | Tuesday 28 October 2025 |
| Financial Statement Release for 2025 | Thursday 12 February 2026 |
| Annual General Meeting planned to be held | Tuesday 24 March 2026 |
| Interim Report January–March 2026 | Thursday 23 April 2026 |
| Half-Year Financial Report January–June 2026 | Friday 17 July 2026 |
| Interim Report January–September 2026 | Wednesday 28 October 2026 |
The Financial Statements and the Report by the Board of Directors for 2025 will be published on the Company's website at the latest in week 10/2026.
Espoo, 18 July 2025
Board of Directors of Orion Corporation
For additional information about the report:
Tuukka Hirvonen, Head of Investor Relations, tel. 1 or 1
Publisher:
Orion Corporation
Orion is a globally operating Nordic pharmaceutical company – a builder of well-being for over a hundred years. We develop, manufacture and market human and veterinary pharmaceuticals and active pharmaceutical ingredients. Orion has an extensive portfolio of proprietary and generic medicines and consumer health products. The core therapy areas of our pharmaceutical R&D are oncology and pain. Proprietary products developed by Orion are used to treat cancer, neurological diseases and respiratory diseases, among others. In 2024 Orion's net sales amounted to EUR 1,542 million and the company employed about 3,700 professionals worldwide, dedicated to building well-being. Orion's A and B shares are listed on Nasdaq Helsinki.
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