
Graco Inc. Signs Definitive Agreement to Acquire Color Service s.r.l. ('Color Service'), a Global Manufacturer of Specialized Automatic Precision Dosing Systems for Powders and Liquids
'The addition of Color Service strengthens our powder handling portfolio and opens new growth opportunities with complementary technologies for new applications,' said Mark Sheahan, Graco's President and CEO. 'This acquisition supports our global expansion strategy and aligns with Graco's commitment to delivering innovative, high-quality solutions that solve complex customer challenges.'
Color Service serves a wide range of industries including textiles, rubber, cosmetics, plastics, and food. Known for its expertise in gravimetric dosing technology, the company delivers precise, weight-based measurements that improve consistency and efficiency in production. Headquartered in Italy, Color Service employs approximately 140 people worldwide.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
Cautionary Statement Regarding Forward-Looking Statements
The Company desires to take advantage of the 'safe harbor' provisions regarding forward-looking statements of the Private Securities Litigation Reform Act of 1995 and is filing this Cautionary Statement in order to do so. The Company's statement about the expected closing date of the acquisition is a forward-looking statement. The expected closing and closing date of the acquisition could differ due to any event, change or other circumstance that prevents the parties from satisfying the closing conditions in a timely fashion or at all.
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PSEG ANNOUNCES SECOND QUARTER 2025 RESULTS
$1.17 PER SHARE NET INCOME $0.77 PER SHARE NON-GAAP OPERATING EARNINGS Maintains 2025 Non-GAAP Operating Earnings Guidance of $3.94 - $4.06 Per Share NEWARK, N.J., Aug. 5, 2025 /PRNewswire/ -- Public Service Enterprise Group (NYSE: PEG) reported the following results for the second quarter and six months ended June 30, 2025: PSEG Consolidated (unaudited)Second Quarter Comparative Results Income Earnings Per Share ($ millions, except per share amounts) 2025 2024 2025 2024 Net Income $585 $434 $1.17 $0.87 Reconciling Items (201) (121) (0.40) (0.24) Non-GAAP Operating Earnings $384 $313 $0.77 $0.63 Average Shares Outstanding (Diluted) 500 500 See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings. PSEG Consolidated (unaudited)Six Months Ended June 30 Comparative Results Income Earnings Per Share ($ millions, except per share amounts) 2025 2024 2025 2024 Net Income $1,174 $966 $2.35 $1.93 Reconciling Items (72) 4 (0.15) 0.01 Non-GAAP Operating Earnings $1,102 $970 $2.20 $1.94 Average Shares Outstanding (Diluted) 500 500 See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings. "PSEG's financial and operating results for the second quarter and first half of 2025 provide us with a solid base to confidently deliver on our full-year 2025 non-GAAP Operating Earnings guidance of $3.94 to $4.06 per share, which is up 9% at the midpoint over 2024 results. Our financial outlook for 2025 includes a full year of new distribution rates from our 2024 distribution rate case settlement and an upcoming refueling outage at our 100%-owned Hope Creek nuclear unit this fall, when we will perform the work needed to extend its fuel cycle from 18 to 24 months. This work at Hope Creek is the first of several steps we are taking to optimize our plants, providing the grid with more reliable, 24x7 carbon-free power between now and the next scheduled refueling in the fall of 2027. We continue to be on-track to execute on our full-year, $3.8 billion regulated investment program as PSEG continues to pursue opportunities to grow our existing 5% to 7% compound annual growth outlook for non-GAAP Operating Earnings over the 2025 to 2029 period, including the potential to contract our nuclear output under multi-year agreements," said Ralph LaRossa, PSEG's chair, president and CEO. LaRossa continued, "We successfully operated through three consecutive days of 100°F temperatures prompting high electricity usage that set a summer peak load of 10,229 MW on June 24th, the highest system load we have experienced since 2013. The value of our infrastructure and storm restoration efforts benefited customers during a series of intense storms, providing yet another validation of our investments in the system to maintain reliability. Our utility crews in New Jersey and on Long Island have worked tirelessly to safely keep the lights on, restoring service to interrupted customers on a timely basis, redirecting employees from non-emergency work to focus on emergent service requests, and deploying mutual aid to reinforce our local crews to restore service to customers even faster. I could not be prouder of our team's work and these results." "PSE&G continues to prioritize meeting our customers' expectations on both the reliability and affordability fronts. Our customers are seeing the electric rate impact of last year's PJM's capacity auction, which is just now translating into summer utility bills. Partnering with the New Jersey Board of Public Utilities (BPU), PSE&G has implemented a Summer Relief Initiative providing all residential customers with deferred billing during two high usage summer months, shifting collection of that deferral to lower electric usage months, with no interest charged to customers. PSE&G has also extended shut-off protections for income qualified customers and suspended electric re-connect fees through September 30. We continue to connect our customers in need of payment assistance with all available resources, including our award-winning energy efficiency programs to help lower usage," LaRossa concluded. Other Items On July 22, PJM released their latest auction results, which priced capacity at $329 per megawatt-day (MW-day) for the 2026/2027 energy year. Looking ahead to June 1, 2026, we anticipate a near-flat impact on customer electric bills when this latest price is feathered into New Jersey's default supply rates, assuming other supply related costs remain the same. The resource adequacy challenges in New Jersey and across the entire 13-state PJM region are becoming more acute as demand grows and new generation is slow to respond. We look forward to partnering with New Jersey on long-term, comprehensive solutions that can meet our growing demand and improve resource adequacy while safeguarding affordability and reliability. Also in July 2025, federal tax legislation preserved the downside price protection of the nuclear production tax credit (PTC) as well as the PTC availability for expansions of nuclear capacity, which supports our planned power uprate at Salem. In addition, the legislation also permanently extends 100% bonus depreciation to qualified business property. PSEG Results by Segment (unaudited)Second Quarter and Six Months Ended June 30, Comparative Results ($ millions) 2Q 2025 2Q 2024 YTD 2025 YTD 2024 PSE&G Net Income/Non-GAAP Operating Earnings $332 $302 $878 $790 PSEG Power & Other Net Income 253 132 296 176 Total PSEG Net Income $585 $434 $1,174 $966PSEG Power & Other Non-GAAP Operating Earnings $52 $11 $224 $180 Total PSEG Non-GAAP Operating Earnings $384 $313 $1,102 $970 PSE&G's results for the second quarter reflect new electric and gas base rates in effect following the October 2024 settlement of PSE&G's distribution rate case compared with the year-ago quarter in 2024, partly offset by higher expenses and the timing of taxes. PSE&G continues to observe significant increases in large load inquiries for new service connections. These inquiries grew to over 9,400 megawatts as of June 30, 2025, up from 6,400 MW reported at the end of March, driven largely by existing and prospective data center customers. Our engineering assessment response is still averaging about four months, aligning with PSE&G's commitment to support New Jersey's economic development. To the extent these large load prospects convert into new utility customers in the future, fixed costs are spread over a larger user base, which helps to lower existing customer bills. Results for PSEG Power & Other reflect higher nuclear output for the second quarter of 2025. PSEG Nuclear generated approximately 7.5 terawatt hours (TWh) of energy during the second quarter, up 0.5 TWh over the same period in 2024, reflecting the 2024 spring refueling outage at Hope Creek. On July 22, PJM notified PSEG Nuclear that it had cleared approximately 3,500 MW of its eligible nuclear capacity in the 2026/2027 base residual auction, which priced capacity at $329/MW-day, up from approximately $270/MW-day, for a similar amount of capacity in the 2025/2026 capacity auction. For the second half of 2025, results at PSEG Power & Other will be impacted by this fall's scheduled Hope Creek outage and the completion of the three-year zero emission certificate award that ended on May 31, offset by higher capacity revenues related to the 2025/2026 auction results during the second half of 2025. PSEG will host a conference call to review its second quarter 2025 results, earnings guidance, and other matters with the financial community at 11:00 a.m. ET today. Please register to access this event by visiting: Media Relations: Investor Relations:(973) 430-7734 (973) 430-6565 PSEG-IR-GeneralInquiry@ PSEGPublic Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company operating New Jersey's largest transmission and distribution utility, serving approximately 2.4 million electric and 1.9 million natural gas customers. PSEG also owns an independent fleet of 3,758 MW of carbon-free, baseload nuclear power generating units in NJ and PA. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. PSEG is a member of the S&P 500 Index and has been named to the Dow Jones Sustainability North America Index for 17 consecutive years. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island ( Non-GAAP Financial MeasuresManagement uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG's financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and other material infrequent items. See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings. The presentation of non-GAAP Operating Earnings is intended to complement and should not be considered an alternative to the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this report may not be comparable to similarly titled measures used by other companies. Due to the forward-looking nature of non-GAAP Operating Earnings guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation. Namely, we are not able to reliably project without unreasonable effort MTM and NDT gains (losses), for future periods due to market volatility. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results. Forward-Looking StatementsCertain of the matters discussed in this report about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences, and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to: any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects; the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits; any equipment failures, accidents, critical operating technology or business system failures, natural disasters, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers; any inability to recover the carrying amount of our long-lived assets; disruptions or cost increases in our supply chain, including labor shortages; any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms; the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems; an increasing demand for power and load growth, potentially compounded by a shift away from natural gas toward increased electrification; failure to attract and retain a qualified workforce; increases in the costs of equipment, materials, fuel, services and labor; the impact of our covenants in our debt instruments and credit agreements on our business; adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements; any inability to enter into or extend certain significant contracts; development, adoption and use of Artificial Intelligence by us and our third-party vendors; fluctuations in, or third-party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units; the ability to obtain adequate nuclear fuel supply; changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns; third-party credit risk relating to our sale of nuclear generation output and purchase of nuclear fuel; any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules; the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments; PSE&G's proposed investment projects or programs may not be fully approved by regulators and its capital investment may be lower than planned; our ability to receive sufficient financial support for our New Jersey nuclear plants from the markets, production tax credit and/or zero emission certificates program; adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns; risks associated with our ownership and operation of nuclear facilities and third-party operation of co-owned nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as operational, financial, environmental and health and safety risks; changes in federal, state and local environmental laws and regulations and enforcement; delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and changes in tax laws and regulations. All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at or by navigating to the Email Alerts webpage here. The information on and is not incorporated herein and is not part of this press release or the Form 8-K to which it is an exhibit. Attachment 1Public Service Enterprise Group Incorporated Consolidating Statements of Operations (Unaudited, $ millions, except per share data) Three Months Ended June 30, 2025 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 2,805$ (146)$ 2,031$ 920OPERATING EXPENSES Energy Costs826(146)760212 Operation and Maintenance854-504350 Depreciation and Amortization308-27533 Total Operating Expenses1,988(146)1,539595OPERATING INCOME817-492325Net Gains (Losses) on Trust Investments95--95Net Other Income (Deductions)46(1)1631Net Non-Operating Pension and OPEB Credits (Costs)16-18(2)Interest Expense(248)1(161)(88)INCOME BEFORE INCOME TAXES 726-365361Income Tax Expense(141)-(33)(108)NET INCOME$ 585$ -$ 332$ 253 Reconciling Items Excluded from Net Income(b)(201)--(201)OPERATING EARNINGS (non-GAAP)$ 384$ -$ 332$ 52Earnings Per ShareNET INCOME$ 1.17 Reconciling Items Excluded from Net Income(b)(0.40)OPERATING EARNINGS (non-GAAP)$ 0.77Three Months Ended June 30, 2024 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 2,423$ (125)$ 1,863$ 685OPERATING EXPENSES Energy Costs732(125)683174 Operation and Maintenance824-466358 Depreciation and Amortization285-24738 Total Operating Expenses1,841(125)1,396570OPERATING INCOME 582-467115Income from Equity Method Investments1--1Net Gains (Losses) on Trust Investments7--7Net Other Income (Deductions)47(2)1633Net Non-Operating Pension and OPEB Credits (Costs)18-19(1)Interest Expense(218)2(141)(79)INCOME BEFORE INCOME TAXES 437-36176Income Tax (Expense) Benefit(3)-(59)56NET INCOME$ 434$ -$ 302$ 132 Reconciling Items Excluded from Net Income(b)(121)--(121)OPERATING EARNINGS (non-GAAP)$ 313$ -$ 302$ 11Earnings Per ShareNET INCOME$ 0.87 Reconciling Items Excluded from Net Income(b)(0.24)OPERATING EARNINGS (non-GAAP)$ 0.63 (a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the Parent. (b) See Attachments 8 and 9 for details of items excluded from Net Income to compute Operating Earnings (non-GAAP). Attachment 2Public Service Enterprise Group Incorporated Consolidating Statements of Operations (Unaudited, $ millions, except per share data) Six Months Ended June 30, 2025 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 6,027$ (680)$ 4,695$ 2,012OPERATING EXPENSES Energy Costs2,012(680)1,854838 Operation and Maintenance1,773-1,080693 Depreciation and Amortization628-55573 Total Operating Expenses4,413(680)3,4891,604OPERATING INCOME1,614-1,206408Net Gains (Losses) on Trust Investments103--103Net Other Income (Deductions)83(2)3253Net Non-Operating Pension and OPEB Credits (Costs)32-35(3)Interest Expense(489)2(318)(173)INCOME BEFORE INCOME TAXES 1,343-955388Income Tax Expense(169)-(77)(92)NET INCOME$ 1,174$ -$ 878$ 296 Reconciling Items Excluded from Net Income(b)(72)--(72)OPERATING EARNINGS (non-GAAP)$ 1,102$ -$ 878$ 224Earnings Per ShareNET INCOME$ 2.35 Reconciling Items Excluded from Net Income(b)(0.15)OPERATING EARNINGS (non-GAAP)$ 2.20Six Months Ended June 30, 2024 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 5,183$ (570)$ 4,196$ 1,557OPERATING EXPENSES Energy Costs1,729(570)1,611688 Operation and Maintenance1,607-931676 Depreciation and Amortization580-50476 Total Operating Expenses3,916(570)3,0461,440OPERATING INCOME1,267-1,150117Income from Equity Method Investments1--1Net Gains (Losses) on Trust Investments102--102Net Other Income (Deductions)82(3)3253Net Non-Operating Pension and OPEB Credits (Costs)37-38(1)Interest Expense(423)3(279)(147)INCOME BEFORE INCOME TAXES 1,066-941125Income Tax (Expense) Benefit(100)-(151)51NET INCOME$ 966$ -$ 790$ 176 Reconciling Items Excluded from Net Income(b)4--4OPERATING EARNINGS (non-GAAP)$ 970$ -$ 790$ 180Earnings Per ShareNET INCOME$ 1.93 Reconciling Items Excluded from Net Income(b)0.01OPERATING EARNINGS (non-GAAP)$ 1.94 (a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the Parent. (b) See Attachments 8 and 9 for details of items excluded from Net Income to compute Operating Earnings (non-GAAP). Attachment 3Public Service Enterprise Group Incorporated Capitalization Schedule (Unaudited, $ millions)June 30,December 31,20252024 DEBTCommercial Paper and Loans $ 650$ 1,593Long-Term Debt* 22,63921,114 Total Debt 23,28922,707 STOCKHOLDERS' EQUITY Common Stock 5,0295,057Treasury Stock (1,373)(1,403)Retained Earnings 13,13812,593Accumulated Other Comprehensive Loss (123)(133) Total Stockholders' Equity 16,67116,114 Total Capitalization $ 39,960$ 38,821 *Includes current portion of Long-Term Debt Attachment 4 Public Service Enterprise Group Incorporated Condensed Consolidated Statements of Cash Flows (Unaudited, $ millions) Six Months Ended June 30, 20252024 Cash Flows From Operating Activities Net Income $ 1,174$ 966 Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities 353177 Net Cash Provided By (Used In) Operating Activities 1,5271,143 Net Cash Provided By (Used In) Investing Activities (1,388)(1,612) Net Cash Provided By (Used In) Financing Activities (78)515 Net Change in Cash, Cash Equivalents and Restricted Cash 6146 Cash, Cash Equivalents and Restricted Cash at Beginning of Period 15499 Cash, Cash Equivalents and Restricted Cash at End of Period $ 215$ 145 Attachment 5Public Service Electric & Gas Company Retail Sales (Unaudited) June 30, 2025Electric SalesThree Months Change Months Change vs. Sales (millions kWh) Ended2024Ended2024 Residential 3,142(7 %)6,432(0 %) Commercial & Industrial 6,252(2 %)12,830(1 %) Other 61(14 %)162(5 %) Total 9,455(4 %)19,424(1 %)Gas Sold and Transported Three MonthsChange MonthsChange vs. Sales (millions therms) Ended2024Ended2024 Firm SalesResidential Sales 195(2 %)94210 % Commercial & Industrial 1611 %6568 % Total Firm Sales 356(1 %)1,5989 % Non-Firm Sales*Commercial & Industrial 34681 %47630 % Total Non-Firm Sales 346476 Total Sales 70228 %2,07414 % *Contract Service Gas rate included in non-firm salesWeather Data* Three MonthsChange MonthsChange THI Hours - Actual 5,043(14 %)5,121(13 %) THI Hours - Normal 4,1714,192 Degree Days - Actual 373(7 %)2,7499 % Degree Days - Normal 4702,955*Winter weather as defined by heating degree days (HDD) to serve as a measure for the need for heating. For each day, HDD is calculated as HDD = 65°F – the average hourly daily temperature. The measures use data provided by the National Oceanic and Atmospheric Administration based on readings from Newark Liberty International Airport. Comparisons to normal are based on twenty years of historic data. Attachment 6Nuclear Generation Measures (Unaudited)GWh BreakdownGWh BreakdownThree Months EndedSix Months Ended June 30,June 30, 2025202420252024 Nuclear - NJ 4,6704,17810,1349,515 Nuclear - PA 2,8412,8295,7325,692 7,5117,00715,86615,207 Attachment 7 Public Service Enterprise Group Incorporated Statistical Measures (Unaudited)Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Weighted Average Common Shares Outstanding (millions) Basic499498499498Diluted500500500500 Stock Price at End of Period $84.18$73.70 Dividends Paid per Share of Common Stock $0.63$0.60$1.26$1.20 Dividend Yield3.0 %3.3 % Book Value per Common Share $33.43$31.79 Market Price as a Percent of Book Value 252 %232 % Attachment 8Public Service Enterprise Group Incorporated Consolidated Operating Earnings (non-GAAP) Reconciliation Reconciling Items Three Months Ended Six Months Ended June 30, June 30, 2025202420252024($ millions, Unaudited) Net Income$ 585$ 434$ 1,174$ 966 (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (108)(13)(120)(108) (Gain) Loss on Mark-to-Market (MTM), pre-tax(a) (190)(159)(2)99 Lease Related Activity, pre-tax ---(4) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 97515017Operating Earnings (non-GAAP) $ 384$ 313$ 1,102$ 970 PSEG Fully Diluted Average Shares Outstanding (in millions) 500500500500($ Per Share Impact - Diluted, Unaudited) Net Income$ 1.17$ 0.87$ 2.35$ 1.93 (Gain) Loss on NDT Fund Related Activity, pre-tax (0.22)(0.03)(0.25)(0.22) (Gain) Loss on MTM, pre-tax(a) (0.38)(0.32)-0.20 Lease Related Activity, pre-tax ---(0.01) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 0.200.110.100.04Operating Earnings (non-GAAP) $ 0.77$ 0.63$ 2.20$ 1.94(a) Includes the financial impact from positions with forward delivery months. (b) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity. Attachment 9PSEG Power & Other Operating Earnings (non-GAAP) Reconciliation Three Months Ended Six Months Ended Reconciling Items June 30, June 30, 2025202420252024($ millions, Unaudited) Net Income $ 253$ 132$ 296$ 176 (Gain) Loss on NDT Fund Related Activity, pre-tax (108)(13)(120)(108) (Gain) Loss on MTM, pre-tax(a) (190)(159)(2)99 Lease Related Activity, pre-tax ---(4) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 97515017Operating Earnings (non-GAAP) $ 52$ 11$ 224$ 180 PSEG Fully Diluted Average Shares Outstanding (in millions) 500500500500 (a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity. View original content to download multimedia: SOURCE PSEG Sign in to access your portfolio
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Pfizer (NYSE:PFE) Reports Upbeat Q2
Global pharmaceutical company Pfizer (NYSE:PFE) announced better-than-expected revenue in Q2 CY2025, with sales up 10.3% year on year to $14.65 billion. The company expects the full year's revenue to be around $62.5 billion, close to analysts' estimates. Its non-GAAP profit of $0.78 per share was 35.9% above analysts' consensus estimates. Is now the time to buy Pfizer? Find out in our full research report. Pfizer (PFE) Q2 CY2025 Highlights: Revenue: $14.65 billion vs analyst estimates of $13.58 billion (10.3% year-on-year growth, 7.9% beat) Adjusted EPS: $0.78 vs analyst estimates of $0.57 (35.9% beat) The company reconfirmed its revenue guidance for the full year of $62.5 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $3 at the midpoint, a 3.4% increase Operating Margin: 20.8%, down from 22.4% in the same quarter last year Organic Revenue rose 10% year on year (3% in the same quarter last year) Market Capitalization: $133.8 billion Company Overview With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Pfizer's sales grew at a decent 8.2% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Pfizer's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 9.8% over the last two years. Pfizer also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Pfizer's organic revenue averaged 5.2% year-on-year declines. Because this number is better than its two-year revenue growth, we can see that some mixture of divestitures and foreign exchange rates dampened its headline results. This quarter, Pfizer reported year-on-year revenue growth of 10.3%, and its $14.65 billion of revenue exceeded Wall Street's estimates by 7.9%. Looking ahead, sell-side analysts expect revenue to decline by 3.3% over the next 12 months. Although this projection is better than its two-year trend, it's hard to get excited about a company that is struggling with demand. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Pfizer's operating margin has risen over the last 12 months and averaged 29.9% over the last five years. On top of that, its profitability was top-notch for a healthcare business, showing it's an well-run company with an efficient cost structure. Analyzing the trend in its profitability, Pfizer's operating margin of 25.9% for the trailing 12 months may be around the same as five years ago, but it has decreased by 7.3 percentage points over the last two years. This dynamic unfolded because it failed to adjust its fixed costs while demand fell. This quarter, Pfizer generated an operating margin profit margin of 20.8%, down 1.6 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Pfizer's EPS grew at an unimpressive 3.3% compounded annual growth rate over the last five years, lower than its 8.2% annualized revenue growth. However, its operating margin didn't change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings. Diving into the nuances of Pfizer's earnings can give us a better understanding of its performance. A five-year view shows Pfizer has diluted its shareholders, growing its share count by 1.5%. This has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Pfizer reported adjusted EPS at $0.78, up from $0.60 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Pfizer's full-year EPS of $3.39 to shrink by 15%. Key Takeaways from Pfizer's Q2 Results We were impressed by how significantly Pfizer blew past analysts' organic revenue expectations this quarter. We were also excited its EPS outperformed Wall Street's estimates by a wide margin. On the other hand, its full-year EPS guidance was in line. Zooming out, we think this was a solid print. The stock traded up 1.9% to $23.99 immediately after reporting. Indeed, Pfizer had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Business Wire
5 minutes ago
- Business Wire
Organon Reports Results for the Second Quarter Ended June 30, 2025
JERSEY CITY, N.J.--(BUSINESS WIRE)--Organon (NYSE: OGN) today announced its results for the second quarter ended June 30, 2025. 'During the quarter we paid down principal on our long-term debt and began implementing meaningful cost savings, which together set us on a path to achieve net leverage below 4.0x by the end of this year. We will aim to drive further improvement, with the goal of achieving net leverage of 3.5x or below by the end of 2026,' said Kevin Ali, Organon's Chief Executive Officer. 'We are right where we want to be with VTAMA, making significant progress on our access objectives, with the overall portfolio compensating well for the loss of exclusivity of Atozet in Europe.' Second Quarter 2025 Revenue For the second quarter of 2025, total revenue was $1.594 billion, down 1% on both an as-reported basis as well as excluding the impact of foreign currency (ex-FX). Women's Health revenue increased 3% as-reported and increased 2% ex-FX in the second quarter of 2025, compared with the second quarter of 2024. The company's fertility business grew 15% ex-FX in the second quarter driven by a favorable year-over-year comparison in Follistim AQ® (follitropin beta injection) related to the 2023 exit of a spin-related interim operating model agreement in the U.S., increased demand and favorable rate in the U.S., and geographic footprint expansion. Sales of Nexplanon® (etonogestrel implant) declined 1% ex-FX in the second quarter. Outside the U.S., Nexplanon grew 10% ex-FX in the period largely offsetting a 5% decline in the U.S. In the U.S., customers relying on federal and state subsidized programs are facing potentially constrained funding, which factored into their purchasing decisions for contraceptive products during the second quarter. Biosimilars revenue increased 5% as-reported and increased 6% ex-FX in the second quarter of 2025, compared with the second quarter of 2024, primarily due to strong performance of Hadlima ® (adalimumab-bwwd), which more than offset expected declines in Ontruzant® (trastuzumab-dttb) and Renflexis® (infliximab-abda) associated with the maturity of those products. Established Brands revenue declined 3% as-reported and declined 4% ex-FX in the second quarter of 2025. Revenue contribution of Emgality® (1) (galcanezumab-gnlm) and Vtama® (2) (tapinarof) partially offset the impact of the loss of exclusivity ('LOE') of Atozet™ (ezetimibe and atorvastatin) in key markets in Europe and lower sales of Singulair® (montelukast sodium), particularly in China and Japan. (1) Organon acquired certain European licensing and distribution rights to Emgality and Rayvow from Eli Lilly and Company ('Eli Lilly') beginning in early 2024. Emgality and Rayvow are registered trademarks of Eli Lilly in the European Union and other countries (used under license). (2) Vtama was acquired as part of Organon's acquisition of Dermavant Sciences Ltd. ('Dermavant'), which closed on October 28, 2024. Second Quarter 2025 Profitability Gross margin was 54.8% as-reported and 61.7% on a non-GAAP adjusted basis in the second quarter of 2025, compared with 58.4% as-reported and 62.0% on a non-GAAP adjusted basis in the second quarter of 2024. Lower reported gross margin in the second quarter was due to higher year-over-year amortization expense related to the acquisition of intangibles in the prior year, as well as amortization associated with the inventory fair value adjustment related to the Dermavant acquisition. Non-GAAP Adjusted gross margin was consistent with the prior year period. Net income for the second quarter of 2025 was $145 million, or $0.56 per diluted share, compared with $195 million, or $0.75 per diluted share, in the second quarter of 2024. Second quarter 2025 GAAP diluted earnings per share includes a $46 million gain, or $0.14 per share, for early extinguishment of debt. For the second quarter of 2025, non-GAAP Adjusted net income was $261 million, or $1.00 per diluted share, compared with $289 million, or $1.12 per diluted share, in 2024. Non-GAAP Adjusted EBITDA margin was 32.7% in the second quarter of 2025 compared with 31.9% in the second quarter of 2024. The year-over-year improvement in Adjusted EBITDA margin was primarily driven by a 3% reduction in operating expenses. Capital Allocation Today, Organon's Board of Directors declared a quarterly dividend of $0.02 for each issued and outstanding share of the company's common stock. The dividend is payable on September 11, 2025, to stockholders of record at the close of business on August 15, 2025. As of June 30, 2025, cash and cash equivalents were $599 million, and debt was $8.90 billion. During the second quarter of 2025, the company made principal repayments on long-term debt totaling $345 million; the company repurchased and cancelled $242 million of its 5.125% notes due in 2031 prior to maturity (the '2031 Notes') which resulted in a pre-tax gain on extinguishment of debt of $42 million; and the company paid and terminated a legacy funding agreement of Dermavant valued at $103 million, which resulted in a pre-tax gain on extinguishment of debt of $4 million. Full Year Guidance Organon does not provide GAAP financial measures on a forward-looking basis because the company cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to Organon's results computed in accordance with GAAP. Full year 2025 financial guidance is presented below on a non-GAAP basis, except revenue. Webcast Information Organon will host a conference call at 8:30 a.m. Eastern Time today to discuss its second quarter financial results. To listen to the event and view the presentation slides via webcast, join from the Organon Investor Relations website at A replay of the webcast will be available approximately two hours after the conclusion of the live event on the company's website. Institutional investors and analysts interested in participating in the call may join by dialing (888) 596-4144 (U.S. and Canada Toll-Free) or (646) 968-2525 and using the access code Conference ID: 1036555#. About Organon Organon (NYSE: OGN) is a global healthcare company with a mission to deliver impactful medicines and solutions for a healthier every day. With a portfolio of over 70 products across Women's Health and General Medicines, which includes biosimilars, Organon focuses on addressing health needs that uniquely, disproportionately or differently affect women, while expanding access to essential treatments in over 140 markets. Headquartered in Jersey City, New Jersey, Organon is committed to advancing access, affordability, and innovation in healthcare. Learn more at and follow us on LinkedIn, Instagram, X, YouTube, TikTok and Facebook. This press release 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 calculated and presented in accordance with U.S. generally accepted accounting principles ('GAAP'). Specifically, the company makes use of the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross margin, Adjusted gross profit, Adjusted net income, and Adjusted diluted EPS, which are not recognized terms under GAAP and are presented only as a supplement to the company's GAAP financial statements. This press release also provides certain measures that exclude the impact of foreign exchange. We calculate foreign exchange by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results. The company believes that these non-GAAP financial measures help to enhance an understanding of the company's financial performance. However, the presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the company's results as reported under GAAP. Because not all companies use identical calculations, the presentations of these non-GAAP measures may not be comparable to other similarly titled measures of other companies. Please refer to Table 4 and Table 5 of this press release for additional information, including relevant definitions and reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. In addition, the company's full-year 2025 guidance measures (other than revenue) are provided on a non-GAAP basis because the company is unable to reasonably predict certain items contained in the GAAP measures. Such items include, but are not limited to, acquisition-related expenses, restructuring and related expenses, stock-based compensation, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts and other items not reflective of the company's ongoing operations. The company's management uses the non-GAAP financial measures described above to evaluate the company's performance and to guide operational and financial decision making. Further, the company's management believes that these non-GAAP financial measures, which exclude certain items, help to enhance its ability to meaningfully communicate its underlying business performance, financial condition and results of operations. Cautionary Note Regarding Forward-Looking Statements Except for historical information, this press release 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 limited to, statements about management's expectations about Organon's full-year 2025 guidance estimates and predictions regarding other financial information and metrics, as well as expectations regarding Organon's franchise and product performance and strategy expectations for future periods. Forward-looking statements may be identified by words such as 'goals,' 'guidance,' potential,' 'should,' 'will,' 'continue,' 'expects,' 'believes,' 'future,' 'estimates,' 'opportunity,' or words of similar meaning. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate, or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Risks and uncertainties include, but are not limited to, expanded brand and class competition in the markets in which Organon operates; trade protection measures and import or export licensing requirements, including the direct and indirect impacts of tariffs (including any potential pharmaceutical sector tariffs), trade sanctions or similar restrictions by the United States or other governments; changes in U.S. and foreign federal, state and local governmental funding allocations including the timing and amounts allocated to Organon's customers and business partners; economic factors over which Organon has no control, including changes in inflation, interest rates, recessionary pressures, and foreign currency exchange rates; market volatility, downgrades to the U.S. government's sovereign credit rating or its perceived creditworthiness, changing political or geopolitical conditions, market contraction, boycotts, and sanctions, as well as Organon's ability to successfully manage uncertainties related to the foregoing; difficulties with performance of third parties Organon relies on for its business growth; the failure of any supplier to provide substances, materials, or services as agreed; the increased cost of supply, manufacturing, packaging, and operations; difficulties developing and sustaining relationships with commercial counterparties; competition from generic products as Organon's products lose patent protection; any failure by Organon to retain market exclusivity for Nexplanon® (etonogestrel implant) or to obtain an additional period of exclusivity in the United States for Nexplanon subsequent to the expiration of the rod patents in 2027; the continued impact of the September 2024 LOE for Atozet™ (ezetimibe and atorvastatin); the success of our efforts to adapt our business and sales strategies to address the changing market and regulatory landscape in order to achieve our business objectives and remain competitive, which may include implementing or continuing to assess product discount programs and wholesaler inventory levels under the relevant agreements for certain products such as Nexplanon; restructurings or other disruptions at the U.S. Food and Drug Administration ('FDA'), the U.S. Securities and Exchange Commission ('SEC') and other U.S. and comparable government agencies; difficulties and uncertainties inherent in the implementation of Organon's acquisition strategy or failure to recognize the benefits of such acquisitions; pricing pressures globally, including rules and practices of managed care groups, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and health care reform, pharmaceutical reimbursement and pricing in general; the impact of higher selling and promotional costs; changes in government laws and regulations in the United States and other jurisdictions, including laws and regulations governing the research, development, approval, clearance, manufacturing, supply, distribution, and/or marketing of our products and related intellectual property, environmental regulations, and the enforcement thereof affecting Organon's business; efficacy, safety or other quality concerns with respect to our marketed products, whether or not scientifically justified, leading to product recalls, withdrawals or declining sales; delays or failures to demonstrate adequate efficacy and safety of Organon's product candidates in pre-clinical and clinical trials, which may prevent or delay the development, approval, clearance, or commercialization of Organon's product candidates; future actions of third parties, including significant changes in customer relationships or changes in the behavior and spending patterns of purchasers of health care products and services, including delaying medical procedures, rationing prescription medications, reducing the frequency of physician visits and forgoing health care insurance coverage; legal factors, including product liability claims, antitrust litigation and governmental investigations, including tax disputes, environmental claims and patent disputes with branded and generic competitors, any of which could preclude commercialization of products or negatively affect the profitability of existing products; lost market opportunity resulting from delays and uncertainties in clinical trials and the approval or clearance process of the FDA and other regulatory authorities; the failure by Organon or its third party collaborators and/or their suppliers to fulfill our or their regulatory or quality obligations, which could lead to a delay in regulatory approval or commercial marketing of Organon's products; cyberattacks on, or other failures, accidents, or security breaches of, Organon's or third-party providers' information technology systems, which could disrupt Organon's operations and those of third parties upon which it relies; increased focus on privacy issues in countries around the world, including the United States, the European Union, and China, and a more difficult legislative and regulatory landscape for privacy and data protection that continues to evolve with the potential to directly affect Organon's business, including recently enacted laws in a majority of states in the United States requiring security breach notification; changes in tax laws including changes related to the taxation of foreign earnings; the impact of any future pandemic, epidemic, or similar public health threat on Organon's business, operations and financial performance; loss of key employees or inability to identify and recruit new employees; changes in accounting pronouncements promulgated by standard-setting or regulatory bodies, including the Financial Accounting Standards Board and the SEC, that are adverse to Organon; and volatility of commodity prices, fuel, shipping rates that impact the costs and/or ability to supply Organon's products. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's filings with the SEC, including the company's most recent Annual Report on Form 10-K and subsequent SEC filings, available at the SEC's Internet site ( TABLE 2 Organon & Co. Sales by top products (Unaudited, $ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in millions) U.S. Int'l Total U.S. Int'l Total U.S. Int'l Total U.S. Int'l Total Women's Health Nexplanon/Implanon NXT $ 163 $ 77 $ 240 $ 171 $ 70 $ 242 $ 339 $ 148 $ 488 $ 324 $ 137 $ 462 Follistim AQ 30 43 74 22 40 62 65 77 142 33 75 108 NuvaRing 7 21 28 10 19 29 13 37 50 26 41 67 Ganirelix Acetate Injection 3 25 27 5 22 27 7 47 54 11 45 56 Marvelon/Mercilon — 33 33 — 41 41 — 72 72 — 73 73 Jada 18 — 18 14 — 14 33 — 33 27 — 27 Other Women's Health (1) 14 27 42 13 23 34 30 57 86 27 52 79 General Medicines Biosimilars Renflexis 46 17 63 56 13 69 90 30 120 111 27 138 Hadlima 36 14 50 20 8 28 69 27 96 42 16 58 Ontruzant 5 26 31 10 38 48 8 41 49 18 69 87 Brenzys — 22 22 — 12 12 — 36 36 — 36 36 Aybintio — 4 4 — 7 7 — 10 10 — 15 15 Tofidence 3 — 3 — — — 3 — 3 — — — Cardiovascular Atozet — 86 86 — 140 140 — 162 162 — 271 271 Zetia 1 72 74 2 73 75 3 156 159 4 155 159 Cozaar/Hyzaar 2 54 56 2 58 60 4 107 111 5 122 127 Vytorin 1 26 27 2 26 28 2 48 50 3 52 56 Rosuzet — 6 6 — 9 9 — 10 10 — 25 25 Other Cardiovascular (1) 1 33 34 1 31 32 1 64 65 1 71 71 Respiratory Singulair 2 64 66 2 90 93 4 136 140 5 186 190 Nasonex — 66 66 — 60 60 — 137 137 — 137 137 Dulera 32 9 41 39 8 47 66 19 84 82 21 103 Clarinex 1 33 34 1 35 35 1 67 68 2 71 73 Other Respiratory (1) 11 3 14 8 4 13 21 6 27 15 6 22 Non-Opioid Pain, Bone and Dermatology Arcoxia — 63 63 — 68 68 — 124 124 — 143 143 Fosamax — 34 34 1 34 35 2 65 67 3 72 74 Diprospan — 41 41 — 37 37 — 71 71 — 66 66 Vtama 29 2 31 — — — 49 6 54 — — — Other Non-Opioid Pain, Bone and Dermatology (1) 4 76 80 5 73 78 7 143 151 9 141 151 Other Propecia 1 30 32 2 27 28 3 55 58 3 47 51 Emgality/Rayvow — 42 42 — 30 30 — 74 74 — 40 40 Proscar — 22 22 — 23 23 — 46 46 1 49 50 Other (1) 3 85 87 2 69 72 5 159 164 7 149 155 Other (2) 1 24 23 — 31 31 1 44 46 (1 ) 61 59 Revenues $ 414 $ 1,180 $ 1,594 $ 388 $ 1,219 $ 1,607 $ 826 $ 2,281 $ 3,107 $ 758 $ 2,471 $ 3,229 Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies. (1) Includes sales of products not listed separately. (2) Other includes manufacturing sales to third parties. Expand TABLE 3 Organon & Co. Sales by geographic area (Unaudited, $ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Europe and Canada $ 419 $ 457 $ 795 $ 907 United States 414 388 826 758 Asia Pacific and Japan 250 260 502 546 China 204 216 409 421 Latin America, Middle East, Russia, and Africa 285 251 524 525 Other (1) 22 35 51 72 (1) Other includes manufacturing sales to third parties. Expand TABLE 4 Organon & Co. Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics (Unaudited, $ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 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 34 103 67 Acquisition-related costs (3) 10 — 19 — Other 9 — 10 — Adjusted Non-GAAP Gross Profit $ 983 $ 996 $ 1,917 $ 2,003 (1) Spin-related costs include costs from the separation of Merck & Co., Inc., Rahway, NJ, US. For additional details refer to Table 5. (2) Manufacturing network related costs include costs from exiting manufacturing and supply agreements with Merck & Co., Inc., Rahway NJ, US. For additional details refer to Table 5. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP Gross Margin 54.8 % 58.4 % 55.2 % 58.7 % Total impact of Non-GAAP adjustments 6.9 % 3.6 % 6.5 % 3.3 % Adjusted Non-GAAP Gross Margin 61.7 % 62.0 % 61.7 % 62.0 % Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP Selling, general and administrative expenses $ 453 $ 437 $ 873 $ 868 Adjusted for: Spin-related costs (1) — (29 ) — (69 ) Stock-based compensation (14 ) (18 ) (30 ) (36 ) Restructuring related charges (4 ) — (10 ) — Other (26 ) — (29 ) — Adjusted Non-GAAP Selling, general and administrative expenses $ 409 $ 390 $ 804 $ 763 (1) Spin-related costs include costs from the separation of Merck & Co., Inc., Rahway, NJ, US. For additional details refer to Table 5. Expand TABLE 4 Organon & Co. Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics (Continued) (Unaudited, $ in millions except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP Research and development expenses $ 95 $ 116 $ 191 $ 228 Adjusted for: Spin-related costs (1) — (1 ) — (3 ) Manufacturing network costs (2) (3 ) — (6 ) — Stock-based compensation (4 ) (5 ) (8 ) (9 ) Other — — (1 ) — Adjusted Non-GAAP Research and development expenses $ 88 $ 110 $ 176 $ 216 (1) Spin-related costs include costs from the separation of Merck & Co., Inc., Rahway, NJ, US. For additional details refer to Table 5. (2) Manufacturing network related costs include costs from exiting manufacturing and supply agreements with Merck & Co., Inc., Rahway NJ, US. For additional details refer to Table 5. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP Reported Net Income $ 145 $ 195 $ 232 $ 396 Adjusted for: Cost of sales adjustments 109 57 202 107 Selling, general and administrative adjustments 44 47 69 105 Research and development adjustments 7 6 15 12 Restructuring 2 — 88 23 Change in fair value of contingent consideration 12 — 23 — Other (gain) expense, net (45 ) 6 (41 ) 10 Tax impact on adjustments above (1) (13 ) (22 ) (62 ) (49 ) Non-GAAP Adjusted Net Income $ 261 $ 289 $ 526 $ 604 (1) For the three months ended June 30, 2025 and 2024, the GAAP income tax rates were 37.0% and 17.3%, respectively, and the non-GAAP income tax rates were 27.2% and 17.8%, respectively. For the six months ended June 30, 2025 and 2024, the GAAP income tax rates were 29.8% and 16.0%, respectively, and the non-GAAP income tax rates were 23.4% and 17.1%, respectively. These adjustments represent the estimated tax impacts on the reconciling items by applying the statutory rate and applicable law of the originating territory of the non-GAAP adjustments. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP Diluted Earnings per Share $ 0.56 $ 0.75 $ 0.89 $ 1.53 Total impact of Non-GAAP adjustments 0.44 0.37 1.13 0.81 Non-GAAP Adjusted Diluted Earnings per Share $ 1.00 $ 1.12 $ 2.02 $ 2.34 Expand TABLE 5 Organon & Co. Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA (Unaudited, $ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 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 $ 861 Restructuring and related charges 6 — 98 23 Spin-related costs (2) — 39 — 88 Manufacturing network related (3) 36 15 72 25 Acquisition-related costs (4) 10 — 19 — Change in contingent consideration 12 — 23 — Other (income) costs (5) (10 ) — (5 ) — Stock-based compensation 22 28 46 54 Adjusted EBITDA (Non-GAAP) $ 522 $ 513 $ 1,006 $ 1,051 Adjusted EBITDA margin (Non-GAAP) 32.7 % 31.9 % 32.4 % 32.5 % (1) Excludes accelerated depreciation included in one-time costs. (2) Spin-related costs reflect certain costs incurred in connection with activities taken to separate Organon from Merck & Co., Inc., Rahway, NJ, US. These costs include, but are not limited to, $19 million and $40 million for the three and six months ended June 30, 2024, respectively, for information technology infrastructure, primarily related to the implementation of a stand-alone enterprise resource planning system and redundant software licensing costs, as well as $6 million and $20 million for the three and six months ended June 30, 2024, respectively, associated with temporary transition service agreements with Merck & Co., Inc., Rahway, NJ, US. (3) Manufacturing network related costs, including exiting of temporary manufacturing and supply agreements with Merck & Co., Inc., Rahway, NJ, US, reflect accelerated depreciation, exit premiums, technology transfer costs, stability and qualification batch costs, and third-party contractor costs. (4) Acquisition related costs for the three and six months ended June 30, 2025, reflect the amortization pertaining to the fair value inventory purchase accounting adjustment for the Dermavant transaction. (5) Other (income) costs for the three and six months ended June 30, 2025 include $46 million pre-tax gain related to the repurchase and cancellation of approximately $242 million of the 2031 Notes and the repayment and termination of the funding agreement with NovaQuest Co-Investment Fund VIII, L.P. and legal settlement reserves. As the costs described in (1) through (5) above are directly related to the separation of Organon and acquisition related activities and therefore arise from a one-time event outside of the ordinary course of the company's operations, the adjustment of these items provides meaningful, supplemental, information that the company believes will enhance an investor's understanding of the company's ongoing operating performance. Expand