Gerresheimer shares plummeted sharply Wednesday after the German medical equipment maker warned an expanded accounting review will weigh on 2025 results. The company announced plans to sell its U.S. packaging unit Centor to strengthen its balance sheet amid the ongoing probe.

The scrutiny follows Germany's financial watchdog BaFin's September decision to examine the company's financial statements through November 30, 2024, amid concerns that revenue may have been booked too early on certain customer contracts. Gerresheimer has appointed a second audit firm to review revenue recognition and accounting practices for 2024 and 2025.

For 2025, Gerresheimer now expects revenue to decline toward the weaker end of its prior guidance range of minus 4% to minus 2%, with EBITDA margin forecast cut to 16.5% to 17.5% from 18.5% to 19.0%. Adjusted earnings per share are projected to fall in the high-double-digit percentage range and could turn negative. Kepler Cheuvreux analyst Oliver Reinberg downgraded the stock to Under Review from Buy, citing 'new disappointments and uncertainties' related to the delayed annual report.