Germany · Delayed Price · Currency is EUR Evotec SE Earnings Call Transcripts
Fiscal Year 2026
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Scientific expertise and broad offerings differentiate the business, but clearer market messaging is needed. The Horizon program targets €75 million in savings and operational simplification, while new licensing and strategic deals are expected to drive margin growth. Key milestones include delivering on Horizon and clarifying segment dynamics.
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Preliminary H1 2026 results show a 19% revenue decline and negative EBITDA, driven by delayed strategic partnership revenues and continued market softness. Full-year guidance is revised downward, but strong commercial indicators and cost-saving measures support a positive long-term outlook.
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Q1 2026 saw revenues decline 21.7% year-over-year due to non-recurring items and market softness, but underlying business showed resilience with improving commercial indicators and strong liquidity. Horizon transformation is underway, with cost savings and profitability improvements expected in H2 2026.
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Horizon transformation will streamline operations, reduce costs, and focus on scientific and commercial excellence, targeting EUR 75 million in savings by 2027 and a 20% EBITDA margin by 2028. 2026 is a transition year, with market recovery and operational improvements expected to drive growth from 2027.
Fiscal Year 2025
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2025 saw strong execution, cost savings, and a strategic pivot to higher-margin, technology-driven growth, with Just - Evotec Biologics and key partnerships driving performance. The Horizon transformation aims for EUR 75 million in savings by 2027, with recovery and margin expansion expected from H2 2026 onward.
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Group revenues declined 7% year-over-year to EUR 535.1 million, driven by a 12% drop in DNPD, while biologics grew 11% and secured a major Sandoz deal worth over $650 million. Cost reduction initiatives are ahead of plan, and the company confirmed 2025 guidance with improved free cash flow and a shift to a higher-margin, asset-light model.
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H1 2025 saw group revenues decline 5% year-over-year, with D&PD down 11% and JEB up 16%. Strategic focus shifted to an asset-light, higher-margin model, highlighted by the planned €300M sale of J.POD Toulouse to Sandoz. Full-year guidance and midterm growth targets remain on track.
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The presentation outlined a renewed strategic focus on innovation, operational excellence, and capital efficiency, with a shift toward integrated, success-sharing partnerships. Despite near-term market challenges, robust technology platforms and a strong pipeline position the company for above-market growth and improved margins by 2028.
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Q1 2025 results were mixed, with group revenue down 4% year-over-year due to a soft shared R&D market, but Just Evotec Biologics outperformed expectations. Strategic collaborations, cost-saving measures, and a diversified customer base support a stable outlook, with full-year guidance reaffirmed.
Fiscal Year 2024
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2024 saw modest revenue growth and strong Q4 results, with Just - Evotec Biologics driving expansion and cost-saving measures improving profitability. 2025 guidance anticipates 5%-10% revenue growth, continued operational discipline, and further investment in high-value, tech-driven segments.
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2024 was a transformative year, with flat group revenues and strong growth in biologics offsetting declines in Shared R&D. Cost-saving initiatives and new strategic partnerships improved liquidity and set the stage for a profit uplift in Q4, with 2024 guidance reaffirmed.
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Revenue grew 2% in H1 2024, driven by Just – Evotec Biologics, but profitability declined due to high fixed costs and ramp-up expenses. Revised 2024 guidance reflects delayed market recovery, with cost savings and strategic transformation underway to restore growth and margins.