Gerresheimer Faces Triple Probe, Short Sellers Circle as June Audit Deadline Looms

Gerresheimer stock drops 11.7% in two days after brief rebound; BaFin probe, KPMG disciplinary case, and pending audit threaten credit renewal. Centor sale may hurt margins.

The stock has staged a dramatic 44% recovery from its yearly low, but a 60% 12-month loss and a short interest of 11.4% reveal deep skepticism beneath the surface. Gerresheimer’s rebound hit a wall on Wednesday, shedding 6.8% to close at €26.38 after breaking above an overbought RSI reading of 71. The selling continued Thursday, with shares sliding another 4.9% to €25.20, leaving the relative strength index at 28 — deep in bearish territory. Hedge funds remain split: Arrowstreet Capital trimmed its short exposure, while Millennium International Management LP added to its position, ensuring any upward move is met with fresh pressure.

A Rare Trio of External Examiners

The volatility is rooted in a complex accounting crisis that has drawn in three separate oversight bodies. Germany’s financial watchdog, BaFin, opened a probe on 6 March 2026 into Gerresheimer’s interim consolidated financial statements, suspecting improper impairment recognition and flawed revenue booking under bill-and-hold agreements. Simultaneously, the audit oversight authority APAS is pursuing a professional disciplinary case against KPMG, which gave an unqualified audit opinion for the 2024 annual accounts despite containing €35 million in erroneous revenue entries. KPMG had only taken over from Deloitte in 2024.

In response, management appointed Grant Thornton as a second external auditor. The goal: secure an unqualified audit certificate for the 2025 full-year statements by June 2026.

Creditors Grant Breathing Room, But the Clock Is Ticking

That audit is no mere formality — it is the condition for renewing the group’s bank credit lines. Lenders have shown flexibility. Schuldschein noteholders approved a deadline extension to the end of September 2026 by a 96% majority of the €870 million total volume, and banks agreed to the same reprieve. Key leverage covenants have been waived through the third quarter of 2026.

The annual general meeting remains postponed, with a new date to be announced only after the annual report is published in June. The half-year report is scheduled for 14 July 2026.

Centor Sale: A Double-Edged Sword

Alongside the accounting work, management is pushing ahead with the sale of US subsidiary Centor Inc., a maker of packaging systems for prescription drugs valued at €292 million at the end of 2024. Morgan Stanley is running the process, and a double-digit number of interested parties have emerged. Gerresheimer expects to close the transaction within 2026.

Yet the sale comes at a cost. Centor generates above-average margins, and its departure will further pressure an already diminished profitability profile. For the full year 2026, the group targets revenue between €2.3 billion and €2.4 billion and an adjusted EBITDA margin of 18% to 19% — but those targets are explicitly conditional on successful credit negotiations and the outcome of the BaFin investigation.

June’s Verdict Could Break the Deadlock

With the testated 2025 financials due in June, the month is shaping up as a critical inflection point. If the reports land without further negative surprises, the shares could begin to reprice on a cleaner footing. If new accounting irregularities surface, short sellers — who already hold positions well above the 12-month average — are likely to move quickly. For now, Gerresheimer remains caught between a fragile rally and a calendar full of deadlines.