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UT

UNITED THERAPEUTICS Corp (UTHR)·Q2 2025 Earnings Summary

Executive Summary

  • Record total revenue of $798.6M (+12% y/y), marking 12 straight quarters of double-digit y/y growth; diluted EPS was $6.41, and the Board authorized up to $1B in share repurchases through March 31, 2026 .
  • Tyvaso franchise led performance: Tyvaso DPI revenue $315.2M (+22% y/y), total Tyvaso $469.6M (+18% y/y); Orenitram posted a record $123.9M (+16% y/y); Nebulized Tyvaso rose 10% y/y .
  • Versus S&P Global consensus, Q2 revenue was a slight miss and EPS/EBITDA missed more meaningfully due to higher SG&A (including a $21.7M PP&E impairment) and a higher effective tax rate (24% vs 22% y/y) .
  • Key catalysts: TETON 2 IPF data in September 2025; ADVANCE OUTCOMES (ralinepag) enrollment complete with top-line data expected 1H26; organ/organ-alternative programs advanced (first miroliverELAP patient treated) .

What Went Well and What Went Wrong

What Went Well

  • Tyvaso DPI delivered record revenue with strong referrals and starts; management reaffirmed “continued double digit revenue growth for Tyvaso” and total revenues well into the future .
  • Broad product strength: Double-digit y/y growth in Nebulized Tyvaso, Orenitram (record quarter), and Unituxin; Remodulin posted a top-five quarter in patient shipments and new Remunity pump launch is planned .
  • Pipeline momentum: TETON 2 completed with data expected in September; ADVANCE OUTCOMES enrollment concluded (728 participants), keeping 1H26 top-line timeline; organ programs saw a first-in-human miroliverELAP procedure .

What Went Wrong

  • EPS and EBITDA missed consensus, driven by higher SG&A (+20% y/y) including $21.7M PP&E impairment and a higher tax rate (ETR 24% vs 22% y/y) impacting net income conversion .
  • Ex-U.S. Nebulized Tyvaso showed sequential variability attributed to distributor ordering patterns; management emphasized strong end-of-quarter shipments nonetheless .
  • Competitive noise around Liquidia’s DPI prompted management to spend time addressing dose, tolerability, deposition, and ease-of-use claims; UTHR expects curiosity trials but remains confident in Tyvaso DPI’s positioning .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$735.9 $794.4 $798.6
Diluted EPS ($)$6.19 $6.63 $6.41
Operating Income ($M)$357.7 $382.8 $364.5
Total Operating Expenses ($M)$378.2 $411.6 $434.1
Net Income ($M)$301.3 $322.2 $309.5
EBITDA ($M)$381.6*$402.6*$385.6*
EBITDA Margin (%)51.8%*50.7%*48.3%*
Net Income Margin (%)40.9%*40.6%*38.8%*
Note: Values with an asterisk retrieved from S&P Global.

Estimates vs Actuals (S&P Global consensus)

MetricQ4 2024 Consensus*Q4 2024 ActualSurpriseQ1 2025 Consensus*Q1 2025 ActualSurpriseQ2 2025 Consensus*Q2 2025 ActualSurprise
Revenue ($M)734.7$735.9 +0.2%729.3$794.4 +8.9%803.6$798.6 -0.6%
Diluted EPS ($)6.27$6.19 -1.2%6.28$6.63 +5.6%6.94$6.41 -7.6%
EBITDA ($M)386.0381.6*-1.1%379.0402.6*+6.2%426.0385.6*-9.5%
Note: All consensus values retrieved from S&P Global.

Product revenue breakdown

Product ($M)Q4 2024Q1 2025Q2 2025
Tyvaso DPI$273.2 $302.5 $315.2
Nebulized Tyvaso$142.7 $163.8 $154.4
Total Tyvaso$415.9 $466.3 $469.6
Remodulin$134.5 $138.2 $134.7
Orenitram$107.8 $120.7 $123.9
Unituxin$67.5 $58.2 $58.4
Adcirca$4.7 $6.0 $6.5
Other$5.5 $5.0 $5.5

Geography breakdown (Total revenues)

Geography ($M)Q4 2024Q1 2025Q2 2025
U.S.$705.7 $749.6 $759.8
ROW$30.2 $44.8 $38.8
Total$735.9 $794.4 $798.6

Key operating expense details (Q2 2025)

  • SG&A was $212.5M (+20% y/y), including a $21.7M PP&E impairment; share-based compensation fell due to STAP exercise completion in Q1 .
  • Cost of sales rose to $87.6M (+13% y/y) mainly on higher royalties and production reserves .
  • R&D was $134.0M (-4% y/y), cycling a $36.0M device licensing payment last year while increasing spend on organ programs and paying a $5.0M device milestone .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total revenue growth outlook2025+Not formally guidedExpect continued double-digit revenue growth for Tyvaso and total revenues well into the future Maintained qualitative outlook
TETON 2 (nebulized treprostinil in IPF)Data timingEnrolled; data 2H25 (prior commentary)Data expected September 2025 Reaffirmed timing
TETON 1 (IPF)Data timing1H26Data expected 1H26 Maintained
Ralinepag ADVANCE OUTCOMESData timingAccruing events through 2025; top-line 1H26Enrollment completed (728); top-line 1H26 Progressed (enrollment complete)
Share repurchase authorizationThrough 3/31/26Prior ASR in 2024New $1B authorization through 3/31/26 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Tyvaso DPI competitive positioningStrong growth; PH-ILD contribution (Q4); record revenue start to 2025 (Q1) Detailed rebuttal to Liquidia claims (dose, tolerability, deposition, ease-of-use); record referrals/starts Heightened competitive messaging, confidence maintained
Ex-U.S Nebulized Tyvaso orderingTiming-driven international growth noted (Q1) Sequential ex-U.S variability attributed to ordering; strong June/July shipments Variability continues, demand seen solid
IPF program (TETON 1/2)Enrolled with data timelines (Q4/Q1) TETON 2 data in September; detailed statistical handling (death imputation at 2.5th percentile, MMRM/MI) Execution advancing toward data
Ralinepag ADVANCE OUTCOMESMomentum; best-in-class potential (Q4) Enrollment concluded; 1H26 data target reiterated On track; pivotal events accruing
Organ/alternativesUKidney IND clearance (Q4); multiple IND filings planned (Q1) First miroliverELAP patient treated; UKidney first transplant expected soon Visible clinical progress
Tax rate and OpExETR 22% (FY24); OpEx rising on growth/litigation (Q4) ETR 24%; SG&A up 20% y/y incl. PP&E impairment Higher tax rate/OpEx weigh on EPS

Management Commentary

  • “Our second quarter yet again produced record-setting results… starting with data from the TETON 2 study… expected in September…” — Martine Rothblatt, Chairperson & CEO .
  • “We expect continued double digit revenue growth for Tyvaso and total revenues well into the future…” — Michael Benkowitz, President & COO .
  • “Our Board of Directors has authorized the repurchase of up to $1 billion in our shares through March of next year.” — Martine Rothblatt .
  • “We… concluded that now was the right time to authorize this share repurchase… return of capital represents confidence in our near term as well as long term business prospects.” — James Edgemond, CFO .

Q&A Highlights

  • Tyvaso DPI adoption: Management sees expected curiosity trials of competitor DPI but emphasized record shipments, 10,000+ DPI patients and ~3,000 prescribers; confident in long-term DPI growth .
  • Ex-U.S nebulized sequential dynamics: Variability driven by distributor ordering; end-of-quarter shipments strong .
  • TETON statistical design: 80% power to detect 80 mL FVC change; deaths penalized at 2.5th percentile; discontinuations handled via MMRM/MI; extensive FDA engagement on SAP .
  • Competitive landscape (TPIP): UTHR views TPIP path to IPF label as remote before 2034 (ODE), with safety and timeline concerns; expects limited market impact .
  • Ralinepag: Once-daily oral prostacyclin with 0.65 HR powering assumption for clinical worsening; target on events accrual for 2025 and data in 1H26 .

Estimates Context

  • Q2 2025 versus S&P Global consensus: revenue slight miss (-0.6%), EPS miss (-7.6%), EBITDA miss (-9.5%); drivers include SG&A inflation (+$34.9M y/y) with a $21.7M impairment and higher ETR (24% vs 22%), partially offset by interest income .
  • Prior quarters: Q1 2025 saw broad beats (revenue +8.9%, EPS +5.6%, EBITDA +6.2%), reflecting strong Tyvaso DPI growth and international nebulized Tyvaso timing .
  • Near-term estimate revisions: Street may trim EPS/EBITDA on higher OpEx/ETR, while raising Tyvaso franchise revenue assumptions given DPI momentum and Orenitram strength; Q3 timing effects (ordering) may add volatility.
    Note: Consensus values retrieved from S&P Global.

Key Takeaways for Investors

  • Core thesis intact: Tyvaso DPI momentum and Orenitram strength drove another record quarter; total revenue up 12% y/y despite OpEx and tax headwinds .
  • Print vs. Street: Q2 EPS/EBITDA miss driven by PP&E impairment and higher ETR—not demand softness; revenue essentially in line with modest miss .
  • Catalysts approaching: TETON 2 IPF data in September could expand Tyvaso label and support multi-year growth; ralinepag’s 1H26 top-line offers paradigm-shift potential .
  • Capital allocation: $1B repurchase authorization reinforces confidence and offers potential EPS support amid pipeline catalysts .
  • Competitive DPI narrative: UTHR’s detailed rebuttal suggests sustained Tyvaso DPI positioning; expect some trialing but long-term share supported by device profile and experience .
  • Organ-alternative optionality: First miroliverELAP patient highlights progress across “Revolution” programs; adds long-dated upside scenarios .
  • Trading implications: Watch TETON 2 readout and DPI competitive updates; near-term EPS may be impacted by OpEx/tax mix, but revenue trajectory remains strong—set up favors catalyst-driven re-rating.