Uniphar’s 2025 beat: 21% adjusted EPS growth and stronger-than-expected leverage
Uniphar has kicked off 2026 with an upbeat unaudited trading update for the year to 31 December 2025. The headline is ca. 21% growth in adjusted EPS (earnings per share, adjusted to strip out one-off items), beating the Group’s expectations. That step-up was powered by ca. 9% organic gross profit growth, lower finance costs, and help from a €35m share buy-back programme.
Liquidity looks healthy too. Net Bank Debt/EBITDA landed at 1.5x at year end, better than anticipated thanks to favourable working capital movements. For a diversified healthcare services group operating across Pharma, Medtech, and Supply Chain & Retail, this combination of growth plus balance sheet discipline is exactly what investors like to see.
Key numbers at a glance
| Adjusted EPS growth (2025) | ca. 21% |
| Organic gross profit growth (2025) | ca. 9% |
| Net Bank Debt/EBITDA (year end) | 1.5x |
| Share buy-back programme | €35m |
| Six-year EPS CAGR | 16% |
| EBITDA target by 2028 | €200m |
What powered the beat in 2025
Three levers did the heavy lifting. First, organic gross profit growth of ca. 9% – the fastest organic pace since IPO, according to management – shows the core engine is humming. Organic growth means expansion from the existing business, excluding the effect of acquisitions. Secondly, lower finance costs helped earnings, suggesting a reduced interest burden versus prior expectations. Thirdly, the €35m share buy-back increased EPS through accretion, by spreading profits over a smaller share count.
The CEO highlights a six-year EPS CAGR of 16%, which underlines consistency rather than a one-off spike. It is worth noting the update is unaudited and some metrics are flagged as “ca.”, so we will get the exact numbers with the final results. Even so, beating internal expectations on EPS, while keeping leverage at 1.5x, is a clean signal of operational discipline.
Balance sheet and cash: 1.5x Net Bank Debt/EBITDA
Net Bank Debt/EBITDA of 1.5x sits in the comfort zone for a services business with recurring demand. This ratio compares borrowing to earnings before interest, tax, depreciation and amortisation – a common measure of leverage. Management points to favourable working capital movements as the reason leverage beat guidance.
That is good news, with a small caveat. Working capital can swing between periods, so investors should watch whether this benefit normalises in 2026. Still, the headline is positive: liquidity is strong, and the balance sheet looks set to support both organic investment and selective M&A.
2026 outlook: organic growth across all divisions
Uniphar is guiding to organic gross profit growth in 2026 across each division, consistent with its medium-term targets:
- Uniphar Pharma: double digit
- Uniphar Medtech: high single digit
- Uniphar Supply Chain & Retail: low single digit
That mix tells a story. Pharma is the clear growth driver, while Medtech contributes solidly, and Supply Chain & Retail provides a steadier base. For a diversified model, this spread can smooth the cycle and reduce reliance on any single market, though it also means overall growth will lean on Pharma to deliver the double-digit piece.
Strategy, M&A and the 2028 €200m EBITDA target
M&A remains a core part of Uniphar’s playbook, but the language is disciplined: capital allocation first, pipeline active second. That matters if you care about returns on invested capital rather than headline deal count. The CEO reiterates confidence in hitting the €200m EBITDA target by 2028, with at least 80% of growth expected to be organic. If achieved, this reduces dependence on acquisitions to meet the plan and supports a quality growth narrative.
In plain English: the company intends to grow mostly by building, not just buying. When deals do happen, the emphasis is on enhancing the platform in Pharma and Medtech services rather than chasing short-term boosts.
Why this update matters for the investment case
Positives I’m taking away
- Beat on earnings: ca. 21% adjusted EPS growth ahead of expectations is hard to argue with.
- Organic engine improving: ca. 9% organic gross profit growth, the fastest since IPO, backs the strategy.
- Healthier leverage: 1.5x Net Bank Debt/EBITDA gives optionality for investment and selective M&A.
- Clear divisional guide: all three divisions expected to grow organically in 2026, led by Pharma.
- Longer-term anchor: €200m EBITDA by 2028 and a six-year 16% EPS CAGR underline consistency.
What to keep an eye on
- Working capital tailwind: helpful in 2025, but may normalise in 2026.
- Supply Chain & Retail growth: low single-digit guidance is sensible, but it sets a lower bar than Pharma and Medtech.
- M&A execution: pipeline is active, but discipline on price and integration will be key to sustaining returns.
- Unaudited nature: exact 2025 numbers will land with the final results.
Jargon buster
- Adjusted EPS: earnings per share excluding one-off or non-cash items to show underlying performance.
- Organic gross profit growth: growth from the existing business, excluding acquisitions and currency effects.
- Net Bank Debt/EBITDA: a leverage ratio showing debt relative to earnings cash flow.
- CAGR: compound annual growth rate over a period, smoothing year-to-year volatility.
Dates to know: full-year results and investor call
Final results for the year ended 31 December 2025 are due at 07:00 am GMT on 24 February 2026. A conference call for analysts and investors follows at 9:00 am GMT the same day. You can register and access materials via the company’s website at www.uniphar.ie. The final results press release and presentation will be available there from 07:00 am GMT on 24 February 2026.
My take
This is a well-balanced update: earnings beat, organic momentum, and a stronger-than-expected leverage number. The 2026 guide is sensible, showing broad-based growth with Pharma as the spearhead. The reiterated €200m EBITDA target by 2028, with at least 80% organic, supports a quality-growth profile rather than a deal-led sprint.
What I’ll be hunting for next month: divisional detail on margins and cash conversion, clarity on the magnitude of the working capital benefit, and any colour on the M&A pipeline. For now, Uniphar looks to be executing to plan and building a stronger base for the next leg of growth.
