German pharmaceutical services group Medios unveiled its long-term growth targets for 2031 at its Capital Markets Day, planning to raise group revenue from 2.1 billion euros in 2025 to approximately 3.1 billion euros, while lifting adjusted EBITDA to about 170 million euros, nearly double the current level. Following the announcement, Medios shares rose as much as 5%. Under the new reporting basis, Medios's 2025 adjusted EBITDA stands at 87 million euros, corresponding to a margin of 4.2%. The company has replaced its previous "EBITDA pre" metric with "adjusted EBITDA," which will now only exclude M&A costs and restructuring expenses.

About 1 Billion Euros in New Revenue by 2031, with 70% from Organic Growth

Medios expects to generate approximately 1 billion euros in additional revenue by 2031, of which about 700 million euros will come from organic growth, representing a compound annual growth rate of roughly 5%, while the remaining 300 million euros will come from M&A in the Compounding business. This means the company's growth over the coming years will not rely entirely on acquisitions — the core business itself must maintain steady expansion, while Compounding will become the primary direction for external growth.

Profit Growth to Outpace Revenue

Medios anticipates that adjusted EBITDA will grow faster than revenue going forward, mainly because the higher-margin Compounding business will continue to increase its share of the group. The company aims to raise the group's adjusted EBITDA margin to approximately 5.5% by 2031. Within that, the Specialty Pharma Supply business is expected to have a margin of about 3%, while the Compounding business will exceed 14%. Therefore, Medios's future profit improvement will not rely solely on revenue growth, but more on shifting the business mix toward higher-margin segments.

Business Structure to Be Reorganized into Two Segments

To support this strategy, Medios will reorganize its existing operations into two segments — Specialty Pharma Supply and Compounding — replacing the previous structure of Patient-Specific Therapies, Pharmaceutical Supply, and International Business. The existing international business will also be integrated into the new group architecture. This adjustment means the company's future organizational structure will be more directly centered around two main lines: "specialty pharmaceutical supply" and "individualized compounding."

Resources Further Tilting Toward Compounding

Medios is shifting more investment toward its Compounding business. This business primarily provides individualized medications and alternative formulations when commercial drugs are out of stock or discontinued. Since its margins are significantly higher than the traditional pharmaceutical supply business, Compounding will also become the company's core lever for improving profitability going forward. The company has already discontinued its Advanced Therapies business and is restructuring its production network, while agreeing to acquire a majority stake in Caesar & Loretz (Caelo). Caelo mainly supplies active pharmaceutical ingredients, excipients, and raw materials, and has GMP-compliant production facilities in Hilden and Bonn, Germany, with approximately 240 employees. The relevant antitrust approval has been completed, and the transaction is expected to close soon. Medios stated that this acquisition will strengthen its position in the German pharmaceutical compounding market and complement its Magis operations in Belgium and Meta operations in Spain.

Still About 325 Million Euros in M&A Capacity

As of the first half of 2026, Medios's net debt-to-EBITDA ratio stood at 1.32 times, below the company's internal ceiling of 2 times and well below the 3 times required by bank covenants. The company expects annual capital expenditure of approximately 10 million to 15 million euros going forward. Without breaching its internal leverage ceiling, it will still have cumulative M&A capacity of about 325 million euros through 2031. This means that future expansion of the Compounding business will not rely solely on internal growth but will continue to be advanced through acquisitions. At the same time, Medios stated it also plans to return capital to shareholders in the future, with share buybacks remaining the preferred method. Overall, the core of Medios's 2031 targets is not simply pursuing revenue scale expansion, but rather improving margins and cash flow performance ahead of revenue growth by increasing the share of Compounding.