NYSE$OGN

Organon & Co. · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Organon's Q4 2024 revenue remained stable at $1.592 billion, with growth in Established Brands offsetting declines in Biosimilars. Net income fell significantly due to a one-time tax benefit in Q4 2023.

Headline financials

Total Revenue

$1.59B

Previous: $1.6B-0.4%
EPS (adj)

$0.90

Previous: $0.88+2.3%
Gross Margin

56.3%

Previous: 57.3%-1.7%
Non-GAAP Adjusted Gross Margin

60.6%

Previous: 60.3%+0.5%
Adjusted EBITDA Margin

28.1%

Previous: 28.1%+0.0%
Net Income

$109M

Previous: $546M-80.0%
Operating Income

$129M

Previous: $546M-76.4%
Gross Profit

$896M

Previous: $917M-2.3%

Revenue & EPS history

Organon · Revenue · Quarterly

$1.59B

Q4 2024-0.4%vs Q4 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Organon · $1.52B total across 4 segments · Q3 2023

  • Established Brands
    $959M
  • Women's Health
    $376M
  • Biosimilars
    $144M
  • Other
    $40M

Forward guidance

Organon expects 2025 revenue between $6.125B and $6.325B, facing FX headwinds and Atozet’s loss of exclusivity. The company targets cost discipline to maintain an adjusted EBITDA margin of at least 31.0%.

Tailwinds

  • 2025 revenue expected to remain above $6.1B despite headwinds
  • Adjusted EBITDA margin projected to improve to 31.0%-32.0%
  • Continued expansion of Nexplanon and Hadlima sales
  • Disciplined cost management to protect profitability
  • Ongoing growth potential in women's health and biosimilars

Headwinds

  • Approx. $200M FX impact expected in 2025 revenue
  • Loss of exclusivity for Atozet in key markets
  • Competitive pricing pressure in biosimilars segment
  • Higher inflation affecting material and distribution costs
  • Slightly lower adjusted gross margin guidance (60.0%-61.0%)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.9%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-4.8%

Avg return

30 days after

40%

10 / 25 earnings

Positive

+14.4%

Q4 2023

Best reaction

-26.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+0.1%+0.1%
Q4 2025-8.2%-5.3%-17.4%
Q3 2025+14.0%+11.1%+5.9%
Q1 2025-26.9%-29.4%-28.7%
Q4 2024+11.0%+5.3%+4.1%
Q3 2024+0.8%-8.2%-11.5%
Q2 2024-5.6%-0.2%+5.8%
Q1 2024+4.1%+8.3%+13.3%
Q4 2023+14.4%+13.0%+11.7%
Q3 2023-9.2%-15.3%-21.5%
Q2 2023+6.2%+6.2%-10.7%
Q1 2023-7.1%-12.4%-18.5%
Q4 2022-11.1%-7.6%-25.9%
Q3 2022-6.1%-9.1%+3.0%
Q2 2022-3.3%-3.6%-12.5%
Q1 2022+4.8%+4.7%+12.0%
Q4 2019+0.8%-0.3%-4.9%
Q4 2021-0.7%-1.0%-3.5%
Q3 2020-3.9%-5.1%-17.2%
Q3 2021-8.0%-8.4%-21.5%
Q2 2020+3.4%-2.9%-1.4%
Q2 2021+14.3%+18.2%+13.2%
Q4 2020-1.5%+0.7%+1.6%
Q1 2020-1.5%+0.7%+1.6%
Q1 2021-1.5%+0.7%+1.6%

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