Gerresheimer Faces Mounting Crisis as Accounting Scandal Deepens

Gerresheimer faces a perfect storm: a BaFin probe into flawed revenue recognition, delayed 2025 reports until 2026, and potential SDAX exclusion. Impairments up to €240M loom.

A perfect storm of accounting irregularities, regulatory scrutiny, and potential index exclusion is battering Gerresheimer AG. The full scale of the crisis became clear following an ad-hoc announcement on March 10, revealing a series of severe financial and operational challenges.

Regulatory Scrutiny and Delayed Reporting

At the heart of the issue are flawed revenue recognition practices. The company improperly recorded sales through "bill-and-hold" agreements before physical delivery of goods occurred. Germany's financial regulator, BaFin, has significantly expanded its investigation. Initially focused on the 2023/24 annual report, the probe now also covers the period from December 2024 through May 2025. This includes an examination of potentially misstated lease liabilities worth €65.5 million and capitalized development costs of €29.4 million. Gerresheimer has stated that certain employees violated internal policies and accounting rules.

This ongoing special audit, conducted by a second external auditing firm and focusing on business transactions from 2024 and 2025, has directly blocked the completion of the certified annual and group financial statements for 2025. The reports, originally expected by the end of March, are now anticipated no sooner than June 2026.

The delay has caused a cascade of postponements. The Q1 statement, initially scheduled for April 16, has been pushed back. The ordinary annual general meeting set for June 3 has been canceled. New dates for these events have not yet been established.

Financial Fallout and Strategic Dilemmas

The company is bracing for substantial financial impairments. Write-downs between €220 million and €240 million—primarily related to the Swiss subsidiary Sensile Medical and a Chicago-based facility—are expected to weigh heavily on the balance sheet. Earnings per share are projected to see a double-digit decline, with a loss now a distinct possibility. Furthermore, the adjusted EBITDA margin for 2025 will fall short of the company's own targets.

In an effort to shore up its financial position, Gerresheimer, advised by Morgan Stanley, is planning the sale of its US subsidiary Centor. This move presents a strategic paradox, as Centor operates in a high-margin segment. Its divestment would likely further pressure the group's already weakened profitability.

Gerresheimer has also entered discussions with its lenders to extend deadlines stipulated in its financing agreements.

Market Consequences and Shareholder Pressure

The company itself anticipates that the delayed publication of its financial statements will lead to its exclusion from the SDAX index. Such a removal would force index funds to sell their holdings, creating additional downward pressure on the share price.

The stock has already suffered dramatically, trading approximately 78% below its 52-week high of €80.55. It recently fell below the €20 mark for the first time since the 2009 financial crisis. Short-selling interest is growing, with one hedge fund increasing its short position to 0.62% of the share capital on March 11. Additionally, the German Association for the Protection of Securities Ownership (DSW) is examining potential damage claims against the management and supervisory boards.

Looking ahead, Gerresheimer has provided a revenue forecast of €2.3 to €2.4 billion for 2026, expecting a weaker first half-year followed by a hoped-for stabilization in the latter six months.

The critical test will come in June 2026. The scheduled release of the certified annual report is expected to reveal the full extent of the accounting issues and the progress made in negotiations with both BaFin and the company's banking partners.