Organon & Co. · NYSE:OGN
Organon & — Q2 2025 Earnings Presentation
21 slides from Organon &'s earnings presentation, Aug 5, 2025
Slide 1: Second Quarter 2025 Earnings
Organon Second Quarter 2025 Earnings
Slide 2: Disclaimer statement
Disclaimer statement Cautionary Note Regarding Forward-Looking Statements Except for historical information, this presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limit
Slide 3: Disclaimer statement, cont.
Disclaimer statement, cont. Cautionary Note Regarding Non-GAAP Financial Measures This presentation contains “non-GAAP financial measures,” which are financial measures that either exclude or include amounts that are correspondingly not excluded or included in the most directly comparable measures c
Slide 4: Second Quarter 2025 highlights
Second Quarter 2025 highlights • Revenue of $1.6 billion, down 1% ex-FX, consistent with phasing of LOE of Atozet • Diluted EPS of $0.56; Adj. Diluted EPS of $1.00 • Adj. EBITDA of $522 million, representing 32.7% Adjusted EBITDA margin • Raised FY 2025 revenue guidance by $100M at midpoint; Adjuste
Slide 5: Women's Health
Women’s Health • Franchise growth of 7% ex-FX YTD • Nexplanon solid YTD growth; Fertility, Jada double-digit YTD growth Act Ex-FX 2025 2024 Act Ex-FX Revenues $ mil Q2-25 Q2-24 VPY VPY YTD YTD VPY VPY Nexplanon ® (contraception) 240 242 (1)% (1)% 488 462 6% 6% Marvelon / Mercilon (contraception) 33
Slide 6: General Medicines: Biosimilars
General Medicines: Biosimilars (1) • For FY 2025, expect Hadlima, Tofidence to be partial offsets to mature assets, Renflexis and Ontruzant • Potential U.S. denosumab launch late 2025 Act Ex-FX 2025 2024 Act Ex-FX Revenues $ mil Q2-25 Q2-24 VPY VPY YTD YTD VPY VPY Renflexis ® 63 69 (9)% (8)% 120 138
Slide 7: General Medicines: Established Brands
General Medicines: Established Brands (2) • Vtama, Emgality offsetting factors to Atozet LOE in 2025 • YTD Vtama, sales of $54 million; on track to deliver $150M of revenue for full year Act Ex-FX 2025 2024 Act Ex-FX Revenues $ mil Q2-25 Q2-24 VPY VPY YTD YTD VPY VPY Cardiovascular 283 344 (18)% (18
Slide 8: Solid performance from Vtama, Emgality, Fertility and Hadlima, offset by price and LOE headwinds
Solid performance from Vtama, Emgality, Fertility and Hadlima, offset by price and LOE headwinds (1%) as reported (1%) at constant $ mil currency ~ < ~ ~ ~ ~ (1) (2) (3) (1) LOE = Loss of Exclusivity (2) VBP = Volume Based Procurement (3) “Other” includes manufacturing sales to third parties. 8
Slide 9: Strong YTD Adj. Gross Margin and op-ex discipline
Strong YTD Adj. Gross Margin and op-ex discipline All numbers presented on non-GAAP basis Actual Actual Q2-25 Q2-24 2025 YTD 2024 YTD except revenue and IPR&D (1) VPY VPY Revenue 1,594 1,607 (1)% 3,107 3,229 (4)% Cost of sales 611 611 —% 1,190 1,226 (3)% Adjusted Gross profit 983 996 (1)% 1,917 2,00
Slide 10: YTD Free cash flow tracking to full year objective
YTD Free cash flow tracking to full year objective Year-over-year improvement (USD millions) 1H 2025 1H 2024 driven by: Adjusted EBITDA $ 1,006 $ 1,051 • Lower interest rates, timing Less: Net cash interest expense (234) (247) of interest and cash tax Less: Cash taxes (67) (102) payments Less: Chang
Slide 11: Net leverage ratio ~4.3x at June 30, 2025
Net leverage ratio ~4.3x at June 30, 2025 ~ ~ ~ ~ ~ (2) (3) * The definition of net debt is in the company's credit agreement and excludes unamortized fees, but includes capitalized lease obligations. (1) Debt figures are net of discounts and unamortized fees of, $97 million and $90 million as of De
Slide 12: Growth in Nexplanon, Fertility, Emgality and Vtama offsets to LOE, pricing
Growth in Nexplanon, Fertility, Emgality and Vtama offsets to LOE, pricing (2.0%) to (0.4)%, reported $ mil (1.2%) to 0.3% at constant currency ~ ~ $6,275-$6,375 ~ ~ ~ ~ ~75 bps headwind (1) (2) (3) (1) LOE = Loss of Exclusivity (2) VBP = Value Based Procurement (3) “Other” includes manufacturing sa
Slide 13: Full Year 2025 Guidance
Full Year 2025 Guidance Provided on a non-GAAP basis, except Prior Guidance as of Current Guidance revenue May 1, 2025 Revenue $6.125B - $6.325B $6.275B - $6.375B Nominal revenue growth (4.3%) - (1.2%) (2.0%) - (0.4)% FX translation headwind ~$200M ~$50M Ex-FX revenue growth (1.2%) - 1.9% (1.2%) - 0
Slide 14: Q&A
Q&A “iis ORGANON”
Slide 15: Appendix
Appendix O “i ORGANON’
Slide 16: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions) Q2 2025 Q2 2024 2025 YTD 2024 YTD GAAP Gross Profit $ 874 $ 939 $ 1,715 $ 1,896 Adjusted for: Spin-related costs (1) — 3 — 6 Manufacturing network costs (2) 33 15 62 25 Stock-based compensation 4 5 8 9 Amortization 53 34 10
Slide 17: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions, except per share amounts) Q2 2025 Q2 2024 2025 YTD 2024 YTD GAAP Research and development expenses $ 95 $ 116 $ 191 $ 228 Adjusted for: Spin-related costs (1) — (1) — (3) Manufacturing network costs (2) (3) — (6) — Stock-ba
Slide 18: GAAP Net Income to Adjusted EBITDA
GAAP Net Income to Adjusted EBITDA Unaudited, $ in millions Q2 2025 Q2 2024 2025 YTD 2024 YTD GAAP Reported Net Income $ 145 $ 195 $ 232 $ 396 Depreciation (1) 33 31 65 61 Amortization 53 34 103 67 Interest expense 131 131 255 262 Income tax expense 84 40 98 75 EBITDA (Non-GAAP) $ 446 $ 431 $ 753 $
Slide 19: Franchise performance
Franchise performance Q2 Q2 Actual Ex-FX YTD YTD Actual Ex-FX $ millions 2025 2024 VPY VPY 2025 2024 VPY VPY Women’s Health 462 449 3% 2% 925 872 6% 7% General Medicines: Biosimilars(1) 173 164 5% 6% 314 334 (6)% (5)% General Medicines: Established Brands(1) 936 963 (3)% (4)% 1,822 1,964 (7)% (6)% O
Slide 20: Geographic revenue performance
Geographic revenue performance Actual Ex-FX 2025 2024 Actual Ex-FX $ mil Q2-25 Q2-24 VPY VPY YTD YTD VPY VPY United States 414 388 7% 7% 826 758 9% 9% Europe and Canada 419 457 (8)% (11)% 795 907 (12)% (11)% Asia Pacific and Japan 250 260 (4)% (5)% 502 546 (8)% (7)% Latin America, Middle East, Russi
Slide 21: Broad and diverse portfolio
Broad and diverse portfolio Women’s Health Biosimilars Established Brands TM Number of products 14 6 57 21 Emgality is a trademark of Eli Lilly and Company (used under license).