Sartorius Stedim Biotech (DIM) Q1 2025 earnings summary

Executive summary

• Q1 2025 began strongly with group sales revenue up 6.5% in constant currencies, driven by robust consumables demand, especially in Bioprocess Solutions, while equipment sales remained subdued.

• Margin expansion was supported by scale, product mix, and prior efficiency programs, with strong cash flow and a reduced leverage ratio.

• Book-to-bill ratio remained well above one for both divisions, indicating strong order intake.

• Strategic acquisition of MatTek/MATEC for ~$80 million to enhance advanced cell model technology, expected to close in Q2 2025.

• All regions contributed to growth, with Americas leading, EMEA and Asia Pacific also up, and Asia Pacific ex-China growing by about 10%.

Financial highlights

• Q1 2025 group sales revenue reached €883 million (+7.7% reported, +6.5% constant currency); underlying EBITDA grew 12.2% to €263 million, margin at 29.8%.

• Underlying EPS increased by around 21% to €1.22; net profit up 21.4% to €85 million.

• Operating cash flow more than doubled year-over-year, with free cash flow turning positive and capex ratio down to 8.6%.

• Equity ratio at 38%; net debt to underlying EBITDA improved to 3.9x.

• Book-to-bill ratio well above 1 for both divisions and group.

Outlook and guidance

• 2025 group sales revenue growth expected at 6% (±2%), with underlying EBITDA margin guidance of 29%-30%.

• Bioprocess Solutions sales growth guidance at ~7% (±2%), margin 31%-32%; Lab Products & Services sales growth at ~1% (±2%), margin 22%-23%.

• Capex ratio expected at ~12.5%; net debt/underlying EBITDA targeted at 3.5 by year-end.

• Margin guidance excludes potential tariff effects, which could temporarily affect profitability.

• Management projects FY 2025 sales revenue growth of ~7% (±2pp) and underlying EBITDA margin of 30–31%.