Eurofins Scientific (ERF) NA Investor Day 2025 Presentation summary

Key financial performance and growth

• Revenues reached €6,951m in 2024, with a 52% increase since 2019 and a 9% CAGR; adjusted EBITDA margin improved to 22.3% in 2024, with profit growth outpacing revenue due to margin expansion and cost discipline.

• Free cash flow to shareholders rose 419% since 2019, with €457m in 2024; cash conversion and capital discipline enabled self-financing of all needs before share buybacks.

• Financial leverage remains within the 1.5x–2.5x target range, with net debt at €2,996m at end-2024 and no major refinancing needs until 2026.

• ROCE excluding goodwill reached 34% in H1 2025, and over €1.5bn has been returned to shareholders since 2021 through dividends and share repurchases.

• Mid-term objectives include 6.5% organic growth p.a., adjusted EBITDA margin of 24% by 2027, and continued investment in digitalisation and network expansion.

Business model, network, and operational efficiency

• Operates over 950 laboratories in 60 countries, performing 450 million+ tests annually, with a unique digital hub-and-spoke network.

• Mature business scope is nearing the 24% margin target, while non-mature assets' EBITDA headwind is declining as recent investments ramp up.

• Major investments in laboratory networks are largely complete, reducing capex intensity and enabling higher productivity and margin leverage.

• Automation, digitalisation, and lean processes have driven a 57% increase in revenues per FTE and a 64% increase in revenue per sqm in Food & Feed Testing since 2020.

• Start-ups and bolt-on acquisitions accelerate growth, with new labs reaching profitability faster and consolidation yielding high ROI.

Market leadership and segment performance

• Holds #1 market share in North American Food & Feed Testing, supported by a hard-to-replicate network and comprehensive service offering.

• U.S. Environment Testing network has grown >100% in six years, with 7.5% organic growth CAGR and 28% EBITDA CAGR, driven by hub-and-spoke model and operational improvements.

• Largest PFAS testing network in the U.S., with technical leadership and capacity for >50,000 samples/month; strong position in emerging contaminants and microplastics.

• Global leader in BioPharma Product Testing, Discovery Pharmacology, and Agroscience CRO services, with 147 labs in 35 countries.

• BioPharma segment benefits from robust R&D pipeline growth, increased outsourcing, and onshoring trends, with solid organic growth in Product Testing and CDMO.