Switzerland · Delayed Price · Currency is CHF Lonza Group AG Earnings Call Transcripts
Fiscal Year 2026
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H1 2026 saw robust 16% CER sales growth and a 34.8% Core EBITDA margin, with all business platforms delivering double-digit growth. The company completed its transformation to a pure-play CDMO, upgraded its full-year margin outlook, and continued disciplined investments in growth projects.
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Q1 saw strong performance across all CDMO platforms, with 2026 sales growth guided at 11%-12% CER and CORE EBITDA margin above 32%. Divestment of CHI and robust CapEx progress support a pure-play CDMO focus, while proactive risk management and healthy demand underpin the outlook.
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Divestment of 60% of the CHI business to Lone Star Funds completes the transformation to a pure-play CDMO, with total proceeds expected at or above CHF 3 billion. Proceeds will fund organic growth, bolt-on M&A, and a CHF 500 million share buyback, while maintaining a strong financial outlook and disciplined capital allocation.
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A major portfolio transformation is completed with the divestment of 60% of the CHI business, unlocking CHF 1.7 billion upfront and expected total proceeds of at least CHF 3 billion. Proceeds will fund organic growth, acquisitions, and a CHF 500 million share buyback, with the company now fully focused on its CDMO strategy and maintaining strong growth and margin outlooks.
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A clear strategy and robust financial model underpin strong growth, with major investments in global capacity and technology. The Vacaville acquisition strengthens U.S. presence, while ongoing regionalization and high customer retention support long-term value creation.
Fiscal Year 2025
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Delivered CHF 6.5 billion in sales (+21.7% constant currency), with core EBITDA margin up to 31.6% and free cash flow nearly doubling. Outlook for 2026 is 11%-12% sales growth and margin above 32%, supported by strong segment performance and disciplined capital allocation.
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Strong Q3 performance and robust contracting support confirmation of 2025 outlook, with CDMO sales growth of 20–21% and margin of 30–31%. Vacaville and CHI businesses are progressing as planned, and growth projects remain on track despite FX and funding headwinds.
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Delivered strong H1 2025 results with 19% CER sales growth and upgraded full-year CDMO guidance to 20%-21% sales growth and 30%-31% core EBITDA margin. Integrated Biologics and Advanced Synthesis drove performance, while CHI recovery and major CapEx projects progressed.
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Strong Q1 2025 performance supports a confirmed outlook for nearly 20% sales growth and a core EBITDA margin near 30%. Segment momentum is robust, with high asset utilization and ongoing growth projects, while risk from tariffs and FX is mitigated by global footprint and hedging.
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A new unified vision and strategy were outlined, focusing on becoming a pure-play CDMO and leveraging the Lonza Engine for growth. The company is exiting the CHI business, investing in global capacity, and targeting low-teens organic growth, with strong execution and positive market outlook.
Fiscal Year 2024
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2024 saw stable revenues at CHF 6.6 billion, with strong CDMO growth offsetting CHI declines and a core EBITDA margin of 29%. The outlook for 2025 is robust, with CDMO revenue expected to grow nearly 20% and margins to approach 30%, supported by new capacity and the Vacaville acquisition.
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A new unified strategy and organizational structure were unveiled, focusing on the 'Lonza Engine' to drive growth, operational excellence, and value creation. Guidance for 2025 includes CDMO sales growth near 20% and core EBITDA margin approaching 30%, with a shift to a rolling organic growth model and increased focus on disciplined M&A.
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Q3 performance is on track with full-year guidance, with strong momentum in Biologics, Small Molecules, and Cell & Gene, while Capsules and BioScience face headwinds. Growth projects and new contracts support future sales, and CapEx is trending below initial guidance.
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H1 2024 saw 1.8% sales growth and a 29.2% core EBITDA margin, with strong CDMO performance offset by CHI headwinds. The Vacaville acquisition will double mammalian capacity, and full-year guidance for flat sales growth and high-20s EBITDA margin is reaffirmed.