Eurofins Scientific (ERF) Q1 2026 earnings summary

Executive summary

• Q1 2026 reported revenues reached €1,789m, up 1.3% year-over-year, with organic growth of 2.6% despite severe weather disruptions in North America and Europe.

• Growth was driven by organic expansion and acquisitions, partially offset by a -4.8% FX headwind.

• Profitability and margins improved significantly, attributed to operational efficiencies and ongoing rationalization.

• Strategic focus reinforced by divestment of the Electrical & Electronic Testing business and continued digital transformation.

• The business remains resilient, with strong differentiation and ongoing investments in digital infrastructure.

Financial highlights

• Organic revenue growth in Q1 2026 was 2.6%, with reported revenues up 1.3% year-over-year.

• FX headwind of -4.8% due to Euro strength; M&A contributed €5m to consolidated revenues.

• Acquisitions closed in Q1 2026 generated €55m in 2025 revenues.

• Adjusted EBITDA margin was 22.5% in FY 2025, with further improvement expected toward 24% in FY 2027.

• Share repurchases totaled €110 million in Q1 2026.

Outlook and guidance

• FY 2026 targets mid-single-digit organic growth and €250m in potential acquisition revenues (with €125m consolidated impact in 2026).

• Adjusted EBITDA margin expected to improve above FY 2025's 22.5%, progressing toward 24% in FY 2027.

• Free Cash Flow to the Firm (FCFF) and ROCE expected to grow, with cash conversion above 50% by FY 2027.

• Management expects much of the Q1 revenue shortfall to be recovered over the year, though possibly not fully.

• Net operating capex projected at €400m per year, with an additional €200m for owned sites in 2026 and 2027.