Gerresheimer Faces Mandatory Index Removal Amid Accounting Crisis

Gerresheimer removed from SDAX after missing reporting deadline amid major accounting irregularities, triggering forced selling and a 71% stock decline.

The exclusion of Gerresheimer from Germany's SDAX index is now official. The Deutsche Börse enacted the removal automatically after the company failed to publish its audited 2025 financial statements by the March 31 deadline. This triggers forced selling by index-tracking funds, adding pressure to shares that have already suffered a severe decline.

Over the past twelve months, the stock has plummeted approximately 71%, trading well below its 200-day moving average of €31.01. The technical selling pressure from passive investment vehicles now impacts an equity already under significant strain.

Expanding Accounting Irregularities

At the core of the turmoil are systematic breaches of accounting standards. An independent law firm identified that revenue from so-called bill-and-hold agreements was recognized prematurely—a clear violation of IFRS rules. The scope of the review has widened, with Grant Thornton joining KPMG in examining the financial statements for 2024 and 2025.

Initially thought to be contained, the issues have multiplied. Suspected problems now include the incorrect accounting of lease liabilities, the potentially impermissible capitalization of development costs, and omitted impairment charges. For 2024, corrections of roughly €35 million are needed for revenue and about €24 million for Adjusted EBITDA. Looking ahead to 2025, Gerresheimer anticipates non-cash impairment charges between €220 million and €240 million, primarily related to technology projects at Sensile Medical AG and the glass plant in Chicago Heights, which is scheduled to close at the end of 2026.

Mixed Investor Sentiment and Ongoing Processes

Investor reactions present a divided picture. The German shareholder association DSW is examining potential damage claims against former executive and supervisory board members. Conversely, funds like CastleKnight Master Fund and Deka Investment have reported new stakes established at the depressed price level. In a move to streamline its balance sheet, Gerresheimer has mandated Morgan Stanley to oversee the sale of its US subsidiary, Centor Inc.

The company's revenue forecast of €2.3 to €2.4 billion for 2026 carries an explicit caveat. It remains contingent on the outcome of ongoing BaFin investigations and crucial negotiations with its financing partners. Management has acknowledged that the reporting delay constitutes a breach of existing credit agreements. With the audited annual report now targeted for June 2026, the success of these debt talks—and the path to a sustainable financial structure—will only become clear at that later date.