The forecast of the Group for fiscal 2025 published in the Annual Report for fiscal 2024 comprised the forecast for the Group as well as the forecast for the three business sectors: Life Science, Healthcare and Electronics.
Net sales
We forecast slight to moderate organic net sales growth of between +3% and +6% for the Group in fiscal 2025. The strongest growth driver compared with the previous year was the Life Science business sector, particularly the Process Solutions business unit. This unit offers products and services for the entire pharmaceutical production value chain and saw a return to organic sales growth compared with the previous year. In the Healthcare business sector, we achieved strong growth over the course of fiscal 2025, driven mainly by products from the Cardiovascular, Metabolism & Endocrinology franchise. In addition, our products Mavenclad® from the neurology and immunology therapeutic area, Tepmetko® from the oncology therapeutic area and Pergoveris® from the fertility therapeutic area contributed significantly to organic sales growth in the Healthcare business sector. In the Electronics business sector, we were unable to achieve organic growth in fiscal 2025 despite a strong semiconductor market. This was due to declining project business in the Semiconductor Solutions business unit, where the dependence on major discontinued customer orders noticeably impaired annual performance. Overall, we recorded organic net sales growth of +3.1% in fiscal 2025, achieving our most recent forecast of around +3% organic growth, as specified in the third quarter. At the start of the year, we forecast overall foreign exchange effects of between -1% and +2%. These were based in particular on the expected development of the U.S. dollar and some Asian currencies. We had to specify this forecast in the first quarter to between -3% and 0%, in the second quarter to between -5% and -2% and in the third quarter to between -5% and -3%. At the end of fiscal 2025, the foreign exchange effect was -3.7%, thus falling within the most recently specified range. The slightly positive portfolio effect was negligible at +0.4%. All in all, net sales amounted to € 21,102 million (previous year: € 21,156 million), representing a year-on-year decrease of -0.3%. Sales were thus slightly above the midpoint of the forecast range of between € 20,800 million and € 21,400 million and thus in line with the forecast specified in the third quarter. However, they were below the originally forecast range of € 21,500 million to € 22,900 million, which was due to negative foreign exchange effects in particular.
Life Science
Our Life Science business sector generated organic sales growth of +4.0% in fiscal 2025. Growth in fiscal 2025 was mainly driven by our Process Solutions business unit, which achieved double-digit growth. At the beginning of the year, we forecast organic sales growth of between +2% and +7% for the Life Science business sector for fiscal 2025. This forecast was adjusted in the first quarter to between +2% and +6% and in the second quarter to between +3% and +6%, then confirmed in the third quarter with a range of between +4% and +5%. The Process Solutions and Science & Lab Solutions business units recorded organic sales growth. In contrast, the Life Science Services business unit recorded an organic decline in sales. All in all, net sales in the Life Science business sector grew by +0.7% to € 8,980 million (2024: € 8,916 million), including a negative foreign exchange effect of -3.4% and a positive portfolio effect of +0.1%. Net sales were thus slightly below the midpoint of the forecast range of between € 8,900 million and € 9,100 million and thus within the forecast specified in the third quarter. However, they were outside the originally forecast range of € 9,100 million to € 9,800 million, due to negative foreign exchange effects in particular.
Healthcare
We originally forecast organic sales growth of between +1% and +5% for our Healthcare business sector compared with the previous year. We then adjusted this organic sales growth forecast to between +2% and +6% with the publication of the quarterly statement for the first quarter. We then specified this forecast to between +3% and +5% with the publication of the half-yearly financial report for the second quarter and narrowed it further to around +3% with the third-quarter figures. The business sector achieved this forecast with organic growth of +3.7% in fiscal 2025. This development was driven in particular by products from the Cardiovascular, Metabolism, and Endocrinology franchise. The Neurology & Immunology, Fertility and Oncology therapeutic areas also contributed, especially through our product Mavenclad®. Taking into account a negative foreign exchange effect of -4.1% and a positive acquisition effect of +2.2% from the acquisition of SpringWorks Therapeutics, Inc., USA, net sales in the Healthcare business sector increased by +1.8% in fiscal 2025 to € 8,607 million (2024: € 8,455 million). This was slightly above the midpoint of the forecast range of between € 8,500 million and € 8,700 million; accordingly, it was in line with the more specific forecast issued together with the figures for the third quarter and within the originally forecast range of € 8,300 million to € 8,900 million.
Electronics
For our Electronics business sector, we expected our semiconductor materials operations to be a significant driver of organic growth, assuming that the recovery in the semiconductor market that began in the previous year would continue in fiscal 2025. The project business of the Semiconductor Solutions business unit, however, was expected to decline slightly, as it is heavily dependent on major individual orders and typically subject to stronger fluctuations. Stable development was anticipated for our Optronics business unit. Although we achieved strong growth in our semiconductor materials business in fiscal 2025, our Electronics business sector had to adjust its growth forecast downward in the first and second quarters due to delays in customer projects within the Semiconductor Solutions business unit. The originally forecast organic net sales growth rate of +2% to +6% was revised after the second quarter to a negative organic growth range of -5% to -1%. We increased our organic sales development forecast a little to between -3% and -1% when we published the figures for the third quarter. With organic sales development of -0.6%, net sales were slightly outside this forecast. Taking into account a negative foreign exchange effect of -3.3% and a negative divestment effect of ‑3.2% relating to the divestment of the Surface Solutions business unit, net sales in the Electronics business sector fell by -7.1% compared with the previous year to € 3,515 million (2024: € 3,785 million). This was above the midpoint of the forecast range of between € 3,400 million and € 3,600 million and in line with the more specific forecast issued in the third quarter. Due to the negative foreign exchange effect and the negative divestment effect in particular, the net sales of the Electronics business sector were outside the originally forecast range of € 3,800 million to € 4,200 million.
EBITDA pre
Our original forecast for the EBITDA pre for fiscal 2025 ranged from +3% to +8% organic growth compared with the previous year. This expectation was based primarily on organic sales growth across all business sectors. In the Life Science and Electronics business sectors, we also anticipated positive effects from strict cost discipline. In the Healthcare business sector, we focused on strictly prioritized investments, in particular in research and development as well as marketing and sales, such as in preparation for the market launch of pimicotinib. Originally, we expected foreign exchange effects to impact EBITDA pre by -2% to +1% compared with the previous year. Based on the figures for the first quarter, we adjusted our EBITDA pre forecast to organic growth of between +2% and +7%, under the assumption of increased negative foreign exchange effects that would impact EBITDA pre by between -5% and -2% compared with the previous year. Due to rising sales in the Life Science and Healthcare business sectors and, in particular, the expected positive development of EBITDA pre in the Healthcare business sector, we refined the EBITDA pre forecast to +4% to +8% with the publication of the interim report on the second quarter. This forecast was further specified based on the figures for the third quarter and adjusted to a range of +5% to +7%. Due to negative foreign exchange effects, we adjusted our forecast for the impact of foreign exchange effects to between -6% and -3% in the second quarter and narrowed this to -6% to -4% together with the figures for the third quarter. EBITDA pre amounted to € 6,109 million in fiscal 2025 (2024: € 6,072 million), representing a total increase of +0.6% compared with the previous year. EBITDA pre was thus within the range of between € 6,000 million and € 6,200 million adjusted most recently with the report on the third quarter and also within the originally published forecast range. At +5.6%, organic EBITDA pre growth also fell within our forecast range of between +5% and +7%, adjusted most recently with the report on the third quarter. Foreign exchange effects came in at the lower end of our forecast range at -5.0%.
Life Science
In line with the expected organic net sales development, we originally forecast organic growth in EBITDA pre of between +2% and +9% and EBITDA pre of € 2,600 million to € 2,900 million in the Life Science business sector. We narrowed our forecast for organic EBITDA pre to between +1% and +7% in the first quarter. In the second quarter, the lower limit was raised to +3%, limiting the forecast to between +3% and +7%. In the third quarter, the forecast was further narrowed to between +4% and +6%. We expected earnings to be positively affected by the positive sales development and cost-saving effects. Changes in U.S. tariff policy, however, had a negative impact during the year. Combined with the most recent forecast in the third quarter of a negative foreign exchange effect of between -5% and -3%, the forecast range for EBITDA pre was between € 2,550 million and € 2,650 million. EBITDA pre in fiscal 2025 fell within this range at € 2,585 million (2024: € 2,589 million), but was slightly outside the originally forecast range, which was due to foreign exchange effects overall. This corresponds to a decline of -0.2% compared with the previous year, of which +3.9% was organic, -4.3% was due to foreign exchange effects and +0.3% was from portfolio effects. Organic EBITDA pre growth was thus slightly outside the most recently published forecast range.
Healthcare
We originally forecast organic EBITDA pre growth of between +3% and +9% for our Healthcare business sector. This forecast was originally based on tightly prioritized growth investments, such as preparations for the market launch of pimicotinib. In addition, the sale of a right to priority review by the U.S. Food and Drug Administration had a positive impact on the Healthcare business sector’s results in a mid-double-digit million euro amount. With the publication of the figures for the first quarter, we increased the forecast range to organic EBITDA pre growth of between +4% and +10%. We then raised it further to between +9% and +13% in the interim report on the second quarter in response to stronger operating performance and stricter prioritization of growth investments in research and development. We narrowed this range to between +9% and +11% upon publication of the figures for the third quarter. Combined with the most recent forecast in the third quarter of a foreign exchange effect of between -9% and -7%, this resulted in a forecast range for EBITDA pre in the Healthcare business sector of between € 3,000 million and € 3,100 million. At € 3,080 million in fiscal 2025 (2024: € 2,995 million), EBITDA pre fell within the upper half of this range; hence, it was in line with the more specific forecast issued in the report on the third quarter and within the originally forecast range of € 3,000 million to € 3,300 million. This corresponded to an increase of +2.8% compared with the previous year (+11.5% organic, -8.5% foreign exchange effects, -0.1% portfolio effects).
Electronics
For the Electronics business sector, we originally forecast organic growth in EBITDA pre of between +3% and +9% in fiscal 2025. In addition to the expected growth in net sales, we anticipated a favorable mix effect in net sales, as well as positive effects from active cost management. With the presentation of the figures for the first quarter, we adjusted our forecast range for the organic development of EBITDA pre to between -3% and +8%. We corrected this forecast to between -15% and -7% with the publication of the interim report for the second quarter. This adjustment resulted from delays in customer projects in the project business of the Semiconductor Solutions business unit as well as additional negative one-time effects. We narrowed this forecast to -11% to -7% with the figures for the third quarter. Combined with the forecast for a foreign exchange effect between -6% and -4%, this resulted in a forecast range for EBITDA pre in the Electronics business sector of between € 800 million and € 850 million. At € 833 million in fiscal 2025 (2024: € 970 million), EBITDA pre was in line with the expectations specified in the report for the third quarter. This corresponded to a decline of -14.1% compared with the previous year (-9.0% organic, -4.4% foreign exchange effects, -0.7% portfolio effects). The originally forecast range of € 1,000 million to € 1,100 million was missed, however.
Corporate and Other
The expenses for Corporate and Other in EBITDA pre amounted to € -388 million in fiscal 2025. At the beginning of the year, the forecast range was between € -550 million and € -600 million. In the report on the second quarter, the forecast range was specified to be between € -350 million and € -400 million, meaning that this year’s values for Corporate and Other were within this forecast range, which was confirmed in the third quarter. The original forecast for fiscal 2025 provided for a decline in earnings due to lower foreign currency hedging gains. Compared with the previous-year figure of € -482 million, expenses decreased by -19.4%.
Operating cash flow
We originally anticipated slight growth in the the Group’s operating cash flow in fiscal 2025. We narrowed this forecast to between € 3,700 million and € 4,300 million with the publication of the figures for the first quarter. As we expected the development of the operating cash flow to be largely in line with the positive operating performance, we corrected the forecast range to between € 3,600 million and € 4,000 million in the interim report on the second quarter and confirmed this in the report for the third quarter. The operating cash flow amounted to € 3,932 million in fiscal 2025 (2024: € 4,586 million), thus falling within this range. The decline of -14.3% compared with the previous year was primarily due to the negative development of working capital and the change in other assets and liabilities.