Gerresheimer Faces SDAX Expulsion Amid Accounting Crisis

Gerresheimer removed from SDAX after failing to file 2025 accounts, triggering covenant breaches and a takeover bid from Silgan Holdings amid a 72% stock plunge.

The formal removal of Gerresheimer from Germany's SDAX index has now been confirmed, marking the culmination of a predictable decline. This automatic action by Deutsche Börse was triggered by the company's failure to submit its certified 2025 annual financial statements by the March 31 deadline. At the heart of this delay is a protracted accounting crisis that has consumed the pharmaceutical packaging specialist for months.

A Cascade of Consequences

The company's troubles stem from incorrect accounting treatment of specific "bill-and-hold" agreements, where revenue and associated costs were not recognized in accordance with IFRS standards. This discovery has led to a dual audit, with both KPMG and Grant Thornton now examining the financial statements for 2024 and 2025. Germany's financial regulator, BaFin, initiated a special audit in September 2025 and expanded its probe in early March 2026 following the identification of further irregularities.

The fallout extends well beyond the index exclusion. The delay constitutes a breach of Gerresheimer's financial covenants, forcing the company into negotiations with its lenders. Consequently, the publication of quarterly figures, scheduled for April 16, and the Annual General Meeting set for early June have been postponed. In a separate development, the firm announced non-cash impairment charges totaling between €220 million and €240 million, primarily related to technology projects at Sensile Medical AG and its Moulded-Glass facility in Chicago Heights, which is slated for closure by the end of 2026.

Technical Selling Meets Takeover Speculation

The official index deletion compels institutional investors and passive index funds to divest their holdings, creating technical selling pressure on a stock that has already plummeted approximately 72% over the past twelve months.

However, takeover rumors are providing a counter-narrative. According to Reuters, US-based Silgan Holdings is considering a bid exceeding €40 per share—a premium of roughly 80% to the current trading price. The recent disclosure of new stakes acquired by the CastleKnight Master Fund and Deka Investment at depressed levels suggests some investors are betting on a revaluation. Conversely, the Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) is examining potential claims for damages on behalf of shareholders.

An Uncertain Path Forward

For the current fiscal year, Gerresheimer has provided a revenue forecast of €2.3 to €2.4 billion. The reliability of this guidance, however, remains unverifiable until audited numbers are finally released, which the company states will not occur before June 2026. Until then, the ongoing BaFin investigations and the outcome of critical lender discussions will be the dominant sources of uncertainty for the market.