Hikma’s 2025 results: revenue up, dividend raised, and a $250 million buyback
Hikma Pharmaceuticals has delivered a solid set of full-year results, nudged the dividend higher, and unveiled a chunky share buyback. The headline: Group revenue grew and profits were resilient despite a squeeze in Injectables margins. Management has also shaken up the leadership structure to speed up decision-making.
Quick jargon buster: “Core” results strip out one-off items to show the underlying business; “constant currency” removes FX swings; “CMO” refers to contract manufacturing for third parties.
Key numbers investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | $3,349 million | $3,127 million | +7% (constant currency +6%) |
| Core operating profit | $741 million | $719 million | +3% |
| Reported operating profit | $542 million | $612 million | -11% (legal settlement impact) |
| Profit attributable to shareholders (reported) | $402 million | $359 million | +12% |
| Core EBITDA | $853 million | $824 million | +4% |
| Operating cash flow | $436 million | $564 million | -23% (excl. $186m legal settlements: +10%) |
| Total dividend per share | 84 cents | 80 cents | +5% |
$250 million share buyback and a 5% dividend lift
Management has authorised a buyback of up to $250 million to be executed during 2026. This points to confidence in future cash generation and aims to keep the balance sheet “efficient” while preserving scope for investment. The total dividend is up 5% to 84 cents per share, with a proposed final dividend of 48 cents payable on 30 April 2026 (subject to AGM approval).
Segment performance: strength in Branded, margin pressure in Injectables
Injectables: revenue up, margins down
Injectables core revenue rose 7% to $1,423 million (reported +9%). Growth was broad-based: North America +5% helped by the Xellia acquisition, Europe +23% with strong showings in Germany and France, and MENA +9% supported by biosimilars and partnerships.
The sting is in profitability. Core operating profit fell 6%, with margin down to 31.0% (2024: 35.3%). Reasons: tougher competition on certain high-value US products (notably testosterone and calcitonin), a higher mix of third-party and partnered products (including Xellia-sourced lines and biosimilars), strong but lower-margin MENA growth, FX headwinds from a stronger Euro, and higher inventory provisions. Management is investing more in R&D and commercial capability, and has 118 injectable products in the pipeline, including 15 ready-to-use formulations. The Bedford plant remains on track for commercial production in 2028.
Branded: momentum across MENA
Branded revenue climbed 10% to $849 million with a core operating margin of 26.4% (up 1.8pp). Oncology and chronic disease treatments did the heavy lifting, with standouts including palbociclib and dapagliflozin. Hikma signed 14 MENA deals in 2025 (43 since 2023) and expanded its Celltrion partnership to cover an additional six biosimilars. Management highlights a leadership position by sales in MENA and continued portfolio upgrade towards higher-value medicines.
Hikma Rx (US retail generics): steady top line, improving margin
Hikma Rx core revenue was flat at $1,037 million, as expected, but core operating margin improved to 17.3% (2024: 16.4%). Performance was supported by more complex products like generic Advair Diskus and fluticasone nasal spray, plus demand for albuterol and lisdexamfetamine. R&D refocused with nine new filings. The Columbus site is being readied for a significant upcoming CMO contract – revenue to start in 2026, with the first full year of commercial production in 2027.
Cash, leverage and returns
Operating cash flow was $436 million, reduced by $186 million related to one-off legal settlements (mostly placed into restricted cash at year end and paid in January 2026). Excluding these items, operating cash flow rose 10%. Net debt was $1,387 million, equating to leverage of 1.6x net debt to core EBITDA. The Group was upgraded to BBB by S&P and Fitch, refinanced its $500 million Eurobond at a 5.125% coupon, and added new IFC and syndicated facilities. Return on average invested capital came in at 16.0%.
2026 guidance: measured growth and continued investment
Guidance is in constant currency. Hikma expects:
- Group revenue growth of 2% to 4%.
- Group core operating profit of $720 million to $770 million.
- Injectables revenue growth in the low single digits; core margin of 27% to 28%.
- Branded revenue growth of 6% to 8%; core margin around 25%.
- Hikma Rx revenue broadly flat; core margin close to 20%.
Other guideposts: corporate unallocated costs around $105 million; ‘Others’ to break even; core net finance expense $99 million to $103 million; core effective tax rate around 23%; capex $190 million to $210 million.
Leadership shake-up: tighter accountability, faster execution
Said Darwazah, who stepped back in as CEO in December 2025, will now focus solely on the CEO role and step down as Executive Chairman. Victoria Hull becomes Chair, and Douglas Hurt becomes Senior Independent Director. Two Deputy CEO roles have been created: Mazen Darwazah (MENA) and Khalid Nabilsi (North America and Europe), with Nabilsi stepping down as CFO. A search for a new CFO is underway; Areb Kurdi becomes Acting CFO. In the US, Hafrun Fridriksdottir becomes President, US, adding responsibility for Injectables sales while continuing to lead Hikma Rx and serve as Global Head of R&D. All changes are effective immediately.
Strategy in focus: reset on medium-term guidance
Management has withdrawn the Group medium-term guidance and the previous Injectables medium-term margin targets. The emphasis now is on sustainable profit growth and stepping up investment in Injectables across sales and marketing, manufacturing, R&D, supply chain and CMO. The move is pragmatic given mix shifts and competitive dynamics, but investors will want to see the returns from this stepped-up spend.
My take: what’s positive, what to watch
What I like
- Capital returns: a $250 million buyback alongside a 5% dividend increase signals confidence.
- Branded engine purring: 10% growth and a 26.4% core margin underline pricing power and portfolio quality in MENA.
- Rx resilience: flat revenue but improving margin to 17.3%, with a meaningful CMO contract due to start contributing in 2026.
- Balance sheet and ratings: leverage at 1.6x, investment-grade upgrades, and a successful Eurobond refinance provide funding flexibility.
- Pipeline and launches: 84 launches, 99 approvals, first US biosimilar (ustekinumab), and Tyzavan ready-to-use vancomycin in US hospitals broaden the growth levers.
What needs proving
- Injectables margin reset: guidance of 27% to 28% for 2026 is a step down from 31.0% in 2025 and 35.3% in 2024. Mix headwinds and extra investment are real, so execution on higher-value launches will be key.
- Withdrawal of medium-term guidance: sensible given the reset, but the market will look for clear milestones as investment ramps.
- Cash flow and leverage: operating cash flow was hit by legal settlements in 2025. With buybacks and capex continuing, delivery against the 2026 cash and profit targets matters.
- Leadership transition: the new structure promises agility, but a smooth CFO appointment and US Injectables turnaround under the reorganised team are important watchpoints.
Why this matters for shareholders
Hikma has two strong profit pools – Branded and Rx – that are offsetting near-term Injectables pressure. The company is doubling down on Injectables to protect and extend its hospital franchise, while returning cash via dividends and buybacks. If management delivers the 2026 plan and proves the Injectables investment case, there is a credible path back to higher growth and margins.
Final thought
Overall, a balanced update: steady growth, disciplined capital returns, and a candid reset where needed. The share buyback should support the shares in the near term; medium-term outperformance hinges on turning today’s Injectables investment into tomorrow’s margin rebuild.
