French medical imaging firm Guerbet's 9M revenue slips on China sales drop

Overview

• France medical imaging firm's 9-month 2026 revenue fell 1.3% at CER and like-for-like

• Revenue decline driven by lower China sales amid healthcare market restructuring

• Company confirmed full-year financial targets, including restated EBITDA margin of around 8%

Outlook

• Guerbet confirms 2026 revenue to be stable or show slight decrease at CER and like-for-like

• Company expects 2026 restated EBITDA margin rate of around 8%, including €35 mln remediation costs

• Guerbet anticipates strongly negative 2026 free cash flow of between -€50 mln and -€70 mln

Result Drivers

• CHINA SALES CONTRACTION - Co said revenue decline was mainly due to lower sales in China, where healthcare market restructuring and reduced spending led to a sharp drop in demand

• INTERVENTIONAL RADIOLOGY GROWTH - Revenue from Interventional Radiology rose 6.6% at CER, driven by strong sales of Lipiodol in the vascular embolization market

• MRI SUBCONTRACTING SLOWDOWN - MRI revenue decline in Q3 was due to a planned slowdown in subcontracting activities at Gadopiclenol, as part of a staged reduction in Fill & Finish and API production

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Guerbet SA is €8.00, about 37.7% above its October 21 closing price of €5.81

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 22 - France's Sartorius Stedim Biotech 9-month revenue up 6.5%

• Oct 22 - France's Ipsen Q3 sales rise 28% driven by core portfolio

• Oct 21 - Thermo Fisher Q3 revenue, adj profit beat estimates after new product launches

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(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.)