Celltrion forecasts record Q4 results on strong profit growth

[Song Young Doo, Edaily Reporter] Celltrion said on Tuesday it expects to post consolidated fourth-quarter 2025 revenue of KRW 1.2839 trillion and operating profit of KRW 472.2 billion, marking the highest quarterly performance in its history.

Revenue is projected to increase 20.7% year on year, while operating profit is forecast to surge 140.4%, with the operating margin estimated at around 36.8%.

If the fourth-quarter outlook is confirmed, full-year revenue is expected to rise 15.7% from a year earlier to KRW 4.1163 trillion, while operating profit is projected to jump 136.9% to KRW 1.1655 trillion. This would be the first time the company surpasses KRW 4 trillion in annual revenue and KRW 1 trillion in operating profit.

The strong performance is attributed to steady growth in legacy products, alongside rapid sales expansion of newly launched, high-margin products that have successfully gained traction in global markets. Despite compiling the figures before the end of the quarter and applying conservative assumptions to account for market volatility, results are expected to exceed market expectations, underscoring the effectiveness of the company’s growth strategy.

In the fourth quarter, new products such as Remsima SC(U.S. brand name Zymfentra), Yuflyma, Vegzelma and Steqeyma are all expected to post double-digit growth rates. These products are projected to account for more than 60% of total revenue, reflecting their sharply rising contribution.

Some new products were launched later than initially planned due to factors such as patent settlements to ensure stable supply, limiting their contribution to full-year 2025 earnings. From next year, however, Celltrion expects to expand market share and enter a full-fledged phase of profitability enhancement, delivering faster growth than this year.

Profitability is also expected to improve further as the impact of the December 2023 merger with Celltrion Healthcare has been fully absorbed. The completion of high-cost inventory depletion and amortization of development expenses, which had weighed on earnings, combined with improved production yields, is expected to drive a sharp increase in operating profit going forward.

Cost improvements are already visible. The cost of goods sold ratio for the fourth quarter is provisionally estimated at 36.1%, down about 3 percentage points from around 39% in the third quarter. Fourth-quarter EBITDA is projected to reach KRW 538.9 billion, the highest quarterly level on record. The company said it will continue pursuing growth strategies focused on lowering costs and expanding profitability.

From next year, Celltrion plans to pursue a more aggressive tender strategy centered on high-net-profit new products, prioritizing margin-driven growth over volume expansion. Under this “selection and concentration” strategy, the company has adjusted its sales targets to reduce the share of low-margin products and maximize profitability from high-margin offerings.

With a portfolio of 11 biosimilar products now secured across major global markets, Celltrion also plans to accelerate country-by-country launches of new products. The expanded lineup is expected to enable bundled tender strategies, further maximizing market expansion.

On the manufacturing side, capacity expansion to support long-term growth is progressing steadily. The company plans to complete the acquisition of Eli Lilly’s biologics manufacturing plant in Branchburg, New Jersey, by year-end, and to begin preparations next year for contract manufacturing(CMO) supply and production for the U.S. market.

Celltrion has also established a mid- to long-term strategy for its contract development and manufacturing organization(CDMO) business linked to securing U.S.-based production facilities. Capital investment and infrastructure development will be handled by Celltrion and its U.S. subsidiary, while global sales and project management for the CDMO business will be led by Celltrion BioSolutions, a CDMO-focused subsidiary established last year. The move is aimed at maintaining the existing CDMO roadmap while enhancing flexibility in response to external factors such as U.S. tariff policies and strengthening global customer responsiveness. The company also plans to secure additional domestic facilities for drug product(DP) and drug substance(DS) manufacturing.

A Celltrion official said the company has released preliminary earnings ahead of official announcements since the first quarter of this year to provide investors with timely and transparent information. “This quarter, for the first time, we announced forecast results before the end of the quarter to enhance predictability and timeliness for investors,” the official said. “We applied conservative assumptions to reflect market volatility until final results are confirmed. From 2026, we will focus on high-quality growth centered on high-margin product lines.”