Evotec (EVT) Q4 2025 earnings summary

Executive summary

• Delivered 2025 financials at the high end of guidance, with significant progress in pipeline advancement, technology-driven growth, and disciplined cost and CAPEX control, despite a challenging market environment.

• Introduced a new company strategy with four levers: scientific leadership, operational excellence, better monetization of Just - Evotec Biologics (JEB), and capturing pipeline value.

• Initiated the Horizon transformation to optimize operations, science, and commercial execution, targeting a more focused, agile operating model with first benefits expected in H2 2026.

• Strengthened commercial organization with new leadership, including the appointment of Dr. Ashiq Khan as Chief Commercial Officer, and improved customer engagement and funnel activity.

• Closed a major Sandoz transaction and secured new grants and agreements, strengthening biologics innovation.

Financial highlights

• Group revenues for FY 2025 reached €788.4m, at the high end of guidance, with Q4 revenues up 14.5% to €253.3m; adjusted group EBITDA was €41.1m, with Q4 EBITDA at €58.0m.

• Just - Evotec Biologics segment revenues grew 104.2% in Q4 and 39.8% for the full year, driven by the Sandoz partnership.

• D&PD segment revenues declined 16.6% in Q4 and 13.5% for the full year, mainly due to market softness and FX headwinds.

• R&D expenses decreased to €37.5m, below guidance, reflecting cost discipline.

• CapEx reduced by 38% year-over-year, with year-end liquidity at €476m and improved net cash position.

Outlook and guidance

• 2026 is a transition year; group revenues guided at €700–780m (incurred FX) and €730–810m (constant FX), with adjusted group EBITDA expected at €0–40m (incurred FX) and €10–50m (constant FX).

• Horizon transformation to deliver €75m in structural run rate savings by end of 2027, with 20–30% realized in 2026 and benefits visible from H2 2026.

• By 2030, group revenues expected to exceed €1bn, with adjusted EBITDA margin reaching 20% by 2028 and >20% by 2030.

• H1 2026 to remain soft, with recovery and growth expected in H2 driven by strategic partnerships and market stabilization.