Viatris Cuts 2026 EBITDA Forecast by 7% After India Output Slump
Viatris now projects fiscal 2026 adjusted EBITDA of $3.35 billion, about 7% below the $3.6 billion consensus, after production shortfalls at its two Indian facilities reduced capacity by 15%. The guidance cut reflects a planned $100 million increase in compliance spending over the next two years to address manufacturing delays.
1. Fiscal 2026 Profit Forecast Cut
Viatris lowered its fiscal 2026 adjusted EBITDA outlook to $3.35 billion, missing the $3.6 billion consensus by 7% and marking a 5% reduction from prior guidance as management warns of margin pressure.
2. India Manufacturing Disruptions
Two key manufacturing sites in India experienced quality-control and regulatory delays that slashed generic production capacity by 15% during Q4, triggering downstream supply constraints for core products.
3. Compliance and Cost Actions
The company plans to boost compliance and plant-upgrade spending by $100 million over 2024–25, aiming to complete a two-year remediation program and restore full output capabilities.
4. Investor and Analyst Reaction
Shares dipped roughly 4% in premarket trading following the revised outlook, with several analysts cutting 2026 EPS forecasts by $0.05 and lowering price targets.