Merck KGaA (ETR:MRK) executives told reporters the company delivered on its financial guidance in 2025 despite geopolitical uncertainty and significant foreign exchange headwinds, while outlining a 2026 outlook shaped by portfolio changes, currency volatility and anticipated U.S. generic competition for MAVENCLAD.
2025 performance and strategic priorities
CEO Belén Garijo opened the annual press conference in Darmstadt by emphasizing that Merck’s “diversified business and regions was a source of strength” in 2025 and said the company remains positioned in major growth areas such as health and artificial intelligence. She also addressed geopolitical developments, including recent tensions in the Middle East, saying Merck was in close contact with teams in the region and “at this moment we see no material impact” on employees, logistics or distribution.
Across the business sectors, Garijo pointed to investments and transactions intended to reinforce what management described as key growth drivers:
- Life Science: Merck opened a new €100 million facility in Blarney, Ireland, producing filtration technologies used in advanced therapies and expected to create more than 200 jobs by 2028. She also cited announced acquisitions of HUB Organoids and the JSR chromatography business, describing organoids as enabling earlier predictive insights into human biology and supporting faster clinical development decisions.
- Healthcare: Garijo said Merck completed its acquisition of SpringWorks in the U.S. in July 2025, establishing rare diseases as “a new strategic growth pillar.” She also referenced an October agreement with the White House to increase access to approved IVF therapies and noted that pimicotinib received approval in China in December for symptomatic tenosynovial giant cell tumor, calling it the first global approval for the product and a step in strengthening leadership in rare tumors.
- Electronics: Merck completed the sale of Surface Solutions in August, positioning Electronics as a pure-play semiconductor solutions business. Garijo said demand linked to AI supported the sector and noted the inauguration of a €500 million semiconductor solutions “mega site” in Taiwan in December.
Financial results: sales stable, currency headwinds prominent
Garijo said net sales were “around stable” at €21.1 billion in 2025, with negative foreign exchange effects weighing on net sales and EBITDA. She attributed the currency pressure largely to developments in several Asian currencies and the U.S. dollar. Group EBITDA was €6.1 billion, which she said was up 5.6% organically.
For the fourth quarter, Garijo reported group organic sales growth of 2.6% and group EBITDA up 3.1% organically, supported by all three sectors. She said Life Science benefited from strong order intake momentum in Process Solutions; Healthcare was supported by growth in CM&E alongside contributions from MAVENCLAD and fertility, with both MAVENCLAD and Pergoveris achieving double-digit growth; and Electronics saw an organic sales decline due to headwinds in DS&S, even as semiconductor materials delivered its strongest quarter of the year on AI and advanced-node demand.
Based on the results, Merck said it will propose a stable dividend of €2.2 at its annual general meeting on April 24.
CFO Helene von Roeder added that overall organic sales growth was dampened by foreign exchange effects of around 4%, describing currency as a significant negative factor across all sectors. She said EBITDA pre was €6.1 billion, corresponding to a margin of 28.9% of net sales.
Sector details: Life Science returns to growth; Healthcare up; Electronics mixed
Von Roeder said Life Science “has returned to growth,” delivering organic sales growth of 4% driven by double-digit organic growth in Process Solutions as the market normalized and moved beyond a destocking phase. She said EBITDA pre rose 3.9% organically, while FX effects left EBITDA pre around stable at €2.6 billion, with an EBITDA pre margin of 28.8%. She attributed some margin pressure to higher R&D expenses and ramp-up costs for site expansions, reflecting increased investment in innovation.
In Healthcare, von Roeder said net sales climbed 3.7% organically, with foreign exchange effects of negative 4.1%. Growth was primarily driven by the CM&E franchise, which she said grew 7%, along with MAVENCLAD and fertility treatment Pergoveris. She added that Merck’s “complete fertility portfolio” has been available since early February 2026 on TrumpRx.gov and a Fertility Instant Savings website, and that the company is working toward U.S. approval of Pergoveris. Healthcare EBITDA pre was €3 billion, up more than 11% organically, partially offset by FX effects.
Electronics posted a slight organic decline of 0.6%, which von Roeder said was mainly driven by DS&S due to prolonged delays to large customer projects. She said Merck expects DS&S to stabilize in 2026 and return to growth in the medium term. Semiconductor materials delivered “strong high single-digit” organic sales growth for the year, supported by increased demand for high-value materials enabling AI chip systems and advanced nodes. Electronics EBITDA pre was 9% lower, which she attributed mainly to one-time adjustments reported in the second quarter of 2025.
2026 guidance: portfolio effects, MAVENCLAD U.S. assumption, continued FX pressure
Von Roeder framed 2026 guidance around three assumptions: portfolio changes from the SpringWorks acquisition and Surface Solutions divestment (with portfolio effects in the first half and organic contribution in the second half); product scope that assumes no MAVENCLAD U.S. sales from March 26 amid generic competition and excludes potential positive effects from a U.S. launch of Pergoveris; and expectations for a volatile foreign exchange environment with continued negative effects, with a disproportionate currency headwind expected in the first quarter relative to the full-year FX assumption.
Merck guided for group net sales of €20.0 billion to €21.1 billion, based on organic sales development of negative 1% to positive 2%. The company guided for group EBITDA pre of €5.5 billion to €6.0 billion.
On sector expectations, von Roeder said Life Science is expected to deliver mid-single digit organic sales growth, supported by continued strength in Process Solutions and gradual improvements in biotech funding and academic research stabilization, along with an evolving market environment in China. For Healthcare, she called 2026 a challenging year due to life-cycle issues, “particularly MAVENCLAD,” but said growth is expected in the remainder of the portfolio including CM&E, Fertility and Rare Diseases, with rare diseases becoming organic in the second half. In Electronics, she said the company anticipates continued strong growth in semiconductor materials while DS&S stabilizes.
Q&A: conservatism debate, MAVENCLAD exposure, tariffs, and strategic review
In response to a question about whether guidance was deliberately conservative due to MAVENCLAD and Pergoveris exclusions, von Roeder said the company guides to what it can “predict properly,” noting uncertainty around the timing and impact of generics for MAVENCLAD and ongoing discussions related to Pergoveris. Garijo said Merck had signed agreements with the U.S. administration that it views as a “win-win-win,” but added that financially the IVF access agreement does not have a “huge impact.” She also said a second agreement would exempt Merck from pharmaceutical tariffs for three years and that the company hopes to gain U.S. approval for Pergoveris sometime in 2026.
Asked about MAVENCLAD exposure, von Roeder said roughly 50% of MAVENCLAD sales were in the U.S. and roughly 50% in Europe, and reiterated that generic entrants could begin selling at any time, driving the company’s assumption of no U.S. sales from March 26. Garijo said SpringWorks provides a new growth pillar and that it is expected to contribute to organic growth in the second half of 2026, describing 2026 as a transition year related to MAVENCLAD’s loss of exclusivity in the U.S.
On U.S. tariffs, management said Merck did not pay tariffs in the pharmaceutical area in 2025 because certain pharma tariffs were exempt, but did pay tariffs on some Life Science products that were not exempt and saw small electronics imports subject to tariffs. The company said it was not thinking about refunds and that the tariff situation remained unclear following legal and policy developments, while stating its agreement with the U.S. administration “holds.”
Merck also confirmed that a strategic review of its CDMO business is ongoing, saying it will communicate once a decision is made.
About Merck KGaA (ETR:MRK)
Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies.
