Eurofins Scientific (ERF) investor relations material

Executive summary

• Achieved 29% year-over-year EPS growth to €1.55 in H1 2026, driven by margin expansion, operational efficiencies, and digital transformation, with profitability nearing 2027 objectives ahead of schedule.

• Organic revenue growth was 2.7% year-over-year, with Life and Consumer & Technology Products Testing segments showing strong performance as the half progressed, while FX headwinds of 2.9% offset gains.

• Strategic focus advanced through divestment of non-core assets, including MET Labs and Electrical & Electronic Testing, and acquisition agreements for Element's Life Sciences Testing Services in North America.

• Integration of acquired companies and digital transformation progressing, with full benefits expected by end of 2027.

• Continued investment in laboratory networks, innovation, and infrastructure, including new labs and digital platforms.

Financial highlights

• Revenues rose to €3,701m (+2.5% reported, +2.7% organic); adjusted EBITDA increased 8.3% to €877m, with margin up 130bps to 23.7%; reported EBITDA margin at 23.3% (+190bps YoY).

• Basic EPS grew 29.4% to €1.55; net profit rose 22.4% to €302m.

• Free Cash Flow to the Firm before investment in owned sites rose 33% to €469m; after investment, up 46% to €403m; cash conversion improved to 47%.

• Leverage ratio stable at 2.2x; €206m invested in share repurchases and €128m in dividends paid in H1 2026.

• Net working capital intensity reduced to 4.9% of revenues; capex ratio at 5.7% of revenues.

Outlook and guidance

• Maintains mid-single-digit organic growth target for 2026, with €125m consolidated impact from acquisitions and €250m annualised revenues from acquisitions targeted.

• Adjusted EBITDA margin expected to progress toward 24% by 2027; SDI at EBITDA level to further decline.

• CapEx guidance remains at €400m per year, with potential to decrease after 2027.

• Long-term organic growth objective of 6.5% p.a. and leverage target of 1.5-2.5x reaffirmed.

• Expects to complete network integration and digital transformation by end of 2027, supporting future growth.