Genus (GNS) H2 2026 earnings summary

Executive summary

• FY 2026 adjusted PBT and adjusted EPS each rose 35%; free cash flow reached £62m, and PIC China’s JV formation strengthened the balance sheet.

• Strategic progress included PRP approvals in four additional markets, initial commercialization preparations in Latin America, and a 10% proposed dividend increase plus a £60m buyback.

Financial highlights

• Revenue was £658.1m, down 2% in actual currency, primarily reflecting PIC China’s deconsolidation; adjusted PBT rose 35% to £100.2m and adjusted EPS rose 35% to £1.103.

• Adjusted operating profit including JVs increased 25% to £116m; margin rose 380 bps to 17.6%, or 350 bps to 16.8% excluding BCA milestones in both years.

• Statutory PBT was £310.5m, mainly reflecting a £204.1m gain on deconsolidating PIC China; exceptional expenses fell to £5.8m from £11.4m.

• Free cash flow rose to £62m from £40.9m; cash conversion was 94%, supported by higher adjusted EBITDA, increased JV dividends and lower exceptional cash payments.

Outlook and guidance

• FY 2027 underlying adjusted PBT in constant currency is expected to be moderately higher year over year than normalized FY 2026 PBT of £90.3m, with growth weighted to H2; group adjusted PBT is expected to be in line with consensus.

• Moderate adjusted operating profit growth is anticipated in both PIC and ABS; FY 2027 profit phasing is expected to flip from FY 2026, with North American PIC disease headwinds and Brazil weakness weighing on H1.

• FY 2027 free cash flow is expected to remain strong but be lower than FY 2026, reflecting China JV formation, modestly higher capital expenditure and the absence of the FY 2026 BCA milestone.

• FY 2027 normalized earnings considerations include annualized ABS VAP phase 3 benefits, higher bovine and porcine product development and PRP costs, and lower average net debt.

• ABS continues to target double-digit operating margins over the medium term; FY 2027 research costs are expected to rise but remain below 3% of revenue.