Evotec (EVT) Q2 2026 earnings summary

Executive summary

• Group revenue declined 19.2% year-over-year to €300.1m, mainly due to challenging market conditions and revenue timing effects.

• Discovery & Preclinical Development (D&PD) revenue fell 15.2% to €228.1m, while Just-Evotec Biologics (JEB) revenue dropped 29.3% to €72.3m, largely due to the prior year’s Sandoz License sale.

• Adjusted Group EBITDA loss widened to €42.7m from €1.9m loss in the prior year, reflecting lower revenues and significant reorganization costs.

• Net loss increased to €168.6m from €75.1m, driven by reorganization costs, asset impairments, and lower revenues.

• Project Horizon transformation is underway, targeting operational efficiency and cost savings.

Financial highlights

• Gross margin turned negative at (1.0)% versus 13.6% in the prior year, due to lower top-line and higher costs in JEB.

• R&D expenses decreased 30.8% to €20.3m, reflecting more focused capital allocation.

• SG&A expenses fell 11.1% to €83.1m, mainly from lower consultancy costs.

• Other operating expenses rose sharply to €51.2m, mainly due to a €42.3m impairment loss on a Hamburg laboratory building.

• Reorganization costs totaled €98.9m, related to Project Horizon.

Outlook and guidance

• Full-year 2026 revenue expected at €570–610m (previously €700–780m); adjusted Group EBITDA forecasted at €(70)–(105)m (previously €0–40m).

• Guidance reflects partnership timing shifts and lower revenue conversion.