Overview
Virbac SA (EPA:VIRP) released its full-year 2025 financial results on Wednesday, reporting consolidated revenues of €1,464.7m. On a constant exchange rate and scope basis, revenue grew 7.9%, which the company said sits within its previously communicated guidance range of 5.5% to 7.5%.
Profitability and margins
Adjusted EBITA for the year was €234.4m, yielding a margin of 16.3% on a constant exchange rate and scope basis. That margin is effectively in line with the company’s target of around 16%, despite operational headwinds during the period. Net income increased by 3.2% to €150.5m versus the prior year.
Virbac reported a contraction in gross margin of 0.7 percentage points. The company attributed that decline primarily to a temporary shutdown in antigen production and to higher inventory write-offs. These negative factors were partially offset by pricing gains and a favorable product mix. Operating expenses improved modestly as a percentage of revenues, declining by 0.2 percentage points owing to cost control measures.
Investment and balance sheet
Research and development spending rose in absolute terms to record levels but remained stable at roughly 7.9% of revenue, with topline growth absorbing the increased investment. Net debt stood at €172.8m at year-end, compared with €168.5m at the end of 2024. The board will propose a net dividend of €1.45 per share at the annual general meeting.
Guidance for 2026
For 2026, Virbac reaffirmed guidance for revenue growth of 5.5% to 7.5% at constant exchange rates and scope. That guidance includes a projected 1% revenue contribution from the recent Thyronorm acquisition. The company expects an adjusted EBITA margin of around 17% at constant exchange rates and scope for 2026.
The 2026 outlook incorporates the impact of the Thyronorm acquisition, which Virbac expects to add 1% to revenues and 0.5 percentage points to adjusted EBITA. The guidance also fully accounts for the estimated annual effect of U.S. tariffs, which the company has quantified at approximately $4m.
Key points
- Revenue reached €1,464.7m, up 7.9% at constant exchange rates and scope, within guided range.
- Adjusted EBITA was €234.4m with a 16.3% margin at constant exchange rates and scope, aligned with guidance.
- 2026 guidance maintained: 5.5%-7.5% revenue growth at constant exchange rates and scope and an adjusted EBITA margin of around 17%, including Thyronorm and U.S. tariff effects.
Risks and uncertainties
- Operational disruptions - the temporary antigen production shutdown and elevated inventory write-offs pushed down gross margin, illustrating vulnerability to manufacturing interruptions (impacts animal health manufacturing and healthcare supply chains).
- Integration and acquisition assumptions - the 2026 guidance assumes Thyronorm contributes 1% to revenues and 0.5 percentage points to adjusted EBITA; realization of those contributions depends on successful integration (impacts M&A outcomes and company profitability).
- Tariff exposure - the guidance fully factors in estimated U.S. tariffs of about $4m annually, highlighting exposure to trade policy and tariff changes (impacts international trade and cross-border operations).
Conclusion
Virbac closed 2025 with topline growth and an adjusted EBITA margin that matched company guidance despite specific operational setbacks that weighed on gross margin. Management has reiterated its 2026 targets, explicitly including the expected contributions from Thyronorm and the quantified effect of U.S. tariffs.
Note: This article includes the company’s reported figures on revenue, adjusted EBITA, margins, net income, R&D intensity, net debt, dividend proposal, and guidance assumptions as stated by Virbac.