Evotec (EVT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues declined to €156.6 million, reflecting the absence of prior-year one-off license sales, continued market softness, and FX headwinds.

• Adjusted Group EBITDA was -€21.9 million, down from €3.1 million in Q1 2025, mainly due to lower revenues and negative FX impacts.

• Horizon transformation is underway, targeting operational excellence, cost reduction, and improved utilization, with site consolidation and workforce reduction in progress.

• Leadership changes included new CFO and COO appointments to drive financial stewardship and operational execution.

• Early signs of commercial stabilization and improved customer engagement, with a growing partnership pipeline.

Financial highlights

• Group revenues for Q1 2026 were €156.6 million, down 21.7% year-over-year, mainly due to the non-recurrence of a Sandoz license sale and FX headwinds.

• Adjusted Group EBITDA was -€21.9 million, compared to €3.1 million in Q1 2025.

• Gross margin declined to -1% from 14% year-over-year.

• R&D expenses were €10.1 million (6.4% of revenues), down from €14.9 million year-over-year.

• Liquidity at quarter-end was €444.8 million, down from €476.4 million at year-end 2025.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenues of €700–780 million (€730–810 million CER) and adjusted EBITDA of €0–40 million (€10–50 million CER).

• Operational improvements and profitability expected to become more visible in H2 2026, driven by market recovery and strategic partnerships.

• 20–30% of €75 million structural run-rate savings from Horizon expected to materialize in 2026.

• Mid-term (2026–2030): revenues expected to exceed €1 billion (8–12% CAGR), with adjusted EBITDA margin to reach 20% by 2028.