Overview

* Organon Q2 revenue of $1.594 bln beats analyst expectations; raises full-year guidance

* Adjusted EPS of $1.00 exceeds estimates, indicating strong performance

* Company repaid $345 mln of long-term debt

Outlook

* Organon raises 2025 revenue guidance to $6.275 bln-$6.375 bln

* Company affirms 2025 adjusted EBITDA margin guidance at 31%-32%

* Organon targets net leverage below 4.0x by year-end

* Company aims for net leverage of 3.5x or below by end of 2026

Result Drivers

* WOMEN'S HEALTH - Revenue increased 3%, driven by fertility business growth and geographic expansion

* BIOSIMILARS - Revenue rose 5% due to strong performance of Hadlima, offsetting declines in other products

* ESTABLISHED BRANDS - Revenue declined 3% due to loss of exclusivity of Atozet in Europe and lower Singulair sales in China and Japan

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.59 $1.55

Revenue bln bln (5

Analysts

)

Q2 Beat $1 $0.95 (6

Adjusted Analysts

EPS )

Q2 EPS $0.56

Q2 Beat $261 mln $249.60

Adjusted mln (5

Net Analysts

Income )

Q2 Net $145 mln

Income

Q2 Beat $522 mln $477.50

Adjusted mln (3

EBITDA Analysts

)

Q2 Gross 54.8%

Margin

Q2 32.7%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy."

* Wall Street's median 12-month price target for Organon & Co ( OGN ) is $11.00, about 12.1% above its August 4 closing price of $9.67

* The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)