Eurofins Scientific (ERF) Q2 2026 earnings summary

Executive summary

• Achieved 29% year-over-year EPS growth to €1.55 in H1 2026, with adjusted EBITDA margin up 130bps to 23.7% and revenues rising 2.5% to €3,701m, driven by operational efficiencies, digitalization, and network investments.

• Free Cash Flow to the Firm before investment in owned sites increased 33% to €469m, with cash conversion at 47% versus 36% in H1 2025.

• Net debt at June 2026 was €3,854m, with a stable leverage ratio of 2.2x, within the target range.

• Strategic focus included 17 acquisitions, divestment of MET Labs and other non-core businesses, and the announced acquisition of Element Materials Technology's Life Sciences Testing Services in North America.

• Ongoing network integration and digitalization programs are progressing, with full completion targeted by end of 2027.

Financial highlights

• Revenues: €3,701m (+2.5% y-o-y); organic growth 2.7%.

• Adjusted EBITDA: €877m (+8.3% y-o-y); margin 23.7% (+130bps).

• Reported EBITDA: €862m (+11.4% y-o-y); margin 23.3% (+190bps), including €19m in one-time legal settlement gains.

• Free Cash Flow to the Firm: €403m (+46.1% y-o-y); cash conversion improved to 47%.

• Leverage ratio stable at 2.2x net debt/EBITDA.

Outlook and guidance

• FY 2026 targets mid-single-digit organic growth, €250m annualised revenues from acquisitions, and further EBITDA margin improvement toward 24% by 2027.

• SDI at EBITDA level to further decline; FCFF and cash conversion to remain strong.

• Net operating capex expected at €400m/year, with €200m/year for owned sites in 2026-2027.

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