Viatris Posts 13.5% Free Cash Flow Yield on $2.2B FCF in FY2025
Viatris reported FY2025 revenue of $14.3 billion, down 3% year-over-year due to $1 billion in divestitures and a $470 million Indore facility drag, but achieved 2% operational growth ex-divestitures and Indore impact. It generated $2.2 billion free cash flow (13.5% yield) and projected 2026 FCF yield above 12%.
1. FY2025 Operating Results
Viatris recorded $14.3 billion in revenue for FY2025, down 3% year-over-year following $1 billion in divestitures and a $470 million drag from the Indore facility warning. Excluding those impacts, core operations grew 2%.
2. Robust Free Cash Flow and Capital Returns
The company generated $2.2 billion in free cash flow (13.5% yield) and has returned over $1 billion to shareholders through $500 million in share buybacks and $575 million in dividends. Cumulative free cash flow reached $9.7 billion since 2021, exceeding half of current enterprise value.
3. 2026 Guidance and Strategic Drivers
Management guides 2026 revenue of $14.45-14.95 billion (3% growth midpoint), adjusted EBITDA of $4.15-4.45 billion, and free cash flow of $1.95-2.35 billion for a yield above 12%. A $650 million cost savings program, six regulatory decisions, and two Phase 3 assets underpin this outlook.