- and ends with
- Stable Net Sales & EBITDA Growth EUR 21.1B net sales, 5.6% organic EBITDA pre growth to EUR 6.1B in 2025.
- Life Science Resilience 4% organic growth driven by 10%+ Process Solutions expansion amid global challenges.
- Healthcare Organic Growth 3.7% sales rise from CM&E, Mavenclad, and Pergoveris, despite US generic risks.
- 2026 EBITDA Outlook Guidance of EUR 5.5–6B, reflecting FX volatility and lifecycle challenges in Healthcare.
- Strategic Investments EUR 7B in global sites and EUR 4B in strategic M&A, bolstering Process Solutions and semiconductors.
Segmental Performance
Life Science saw an organic sales growth of 4%, driven by double-digit growth in Process Solutions. Healthcare delivered a solid organic performance, with net sales climbing 3.7% organically, driven by the CM&E franchise, Mavenclad, and Pergoveris. Electronics saw a slight organic decline of 0.6%, but the semiconductor materials business remained a growth driver. The company's diversified portfolio and region-for-region approach helped mitigate the impact of geopolitical tensions and strong currency headwinds.
Outlook and Guidance
For 2026, Merck expects group net sales of EUR 20-21.1 billion and group EBITDA pre of EUR 5.5-6 billion. The company assumes a more volatile foreign exchange environment and negative FX effects. Life Science is expected to see mid-single-digit organic sales growth, while Healthcare faces a challenging year amid life cycle challenges for key brands. Electronics is anticipated to see continued strong growth in semiconductor materials. Analysts estimate next year's revenue growth at 4.0%, indicating a steady pace.
Valuation and Metrics
Merck's current valuation metrics indicate a reasonable price for the stock. The P/E Ratio stands at 16.69, while the EV/EBITDA ratio is 9.85. The company's Return on Equity (ROE) is 10.11%, and Return on Invested Capital (ROIC) is 7.14%. These metrics suggest that the stock is fairly valued, with the market pricing in a moderate growth trajectory. As Merck continues to invest in growth drivers and navigate the challenges ahead, its diversified portfolio and region-for-region approach are likely to support its financial performance.
Strategic Review and Investments
Merck has invested over EUR 7 billion in new and expanded sites and deployed EUR 4 billion in strategic acquisitions and divestments. The company is committed to Darmstadt, having invested €1 billion in the last decade, and will continue to operate from its headquarters. The strategic review in the CDMO business is ongoing, with Merck looking at options and expected to communicate a decision when made. Outgoing CEO Belen Garijo expressed confidence in Merck's future under new CEO Kai Beckmann's leadership, citing a solid foundation for the next growth cycle.