Lonza Group (LONN) H1 2026 earnings summary

Executive summary

• Achieved H1 2026 sales of CHF 3.4 billion, up 16.0% at constant exchange rates, with robust demand, operational execution, and favorable phasing across all business platforms.

• CORE EBITDA margin expanded by 4.4 percentage points to 34.8%, with CORE EBITDA of CHF 1.2 billion, reflecting strong productivity and maturing growth projects.

• Free cash flow improved to CHF 0.4 billion, up CHF 0.3 billion from H1 2025, supported by higher earnings and lower CapEx.

• Completed transformation to a pure-play CDMO with the divestment of the Capsules & Health Ingredients business for CHF 2.3 billion.

• Strategic collaborations and investments expanded, including ADC-related projects and a major US biopharma partnership.

Financial highlights

• Sales reached CHF 3,374 million, up 11.2% at actual exchange rates and 16.0% at CER year-over-year.

• CORE EBITDA rose 27.4% to CHF 1,175 million; margin increased to 34.8%.

• Free cash flow improved to CHF 426 million from CHF 116 million in H1 2025.

• CapEx was CHF 530 million (15.7% of sales), with 60% invested in growth projects.

• ROIC increased to 13.2% annualized, up 2.7 percentage points year-over-year.

Outlook and guidance

• Upgraded 2026 CORE EBITDA margin outlook to 33-34% (previously above 32%), with CER sales growth guidance unchanged at 11-12%.

• H2 2026 expected to reflect planned business phasing and a higher prior-year base, with margins minimally impacted by FX headwinds.

• CapEx for FY 2026 expected in the middle of the CDMO Organic Growth Model range.

• Long-term organic growth model targets low teens CER sales growth and expanding margins.