Evotec (EVT) Q2 2026 TU earnings summary

Executive summary

• Preliminary unaudited H1 2026 results show €300.1 million in revenue and adjusted EBITDA of -€42.7 million, with continued softness in early drug discovery and delayed strategic partnership revenues prompting a downward revision of full-year 2026 guidance.

• Revenue declines are primarily due to timing shifts in milestone and partnership revenues, with most deferred to 2027 rather than lost business.

• Positive commercial indicators in base CRO and CDMO businesses, including increased customer engagement, net sales up 28% year-over-year, and higher proposal value, support momentum for improvements from late 2026 and into 2027.

• Horizon transformation program is progressing, targeting €75 million in annual cost savings by end of 2027, with 20–30% of savings expected in 2026.

• Leadership team strengthened with new CCO, COO, CFO, and Supervisory Board members.

Financial highlights

• Group revenues for H1 2026 were €300.1 million, down 19% year-over-year; Q2 revenues at €143.5 million, down 16%.

• Adjusted group EBITDA for H1 2026 was -€42.7 million; Q2 at -€20.8 million.

• D&PD segment H1 revenues were €227.9 million, down 16%; JEB segment H1 revenues were €72.3 million, down 29%.

• Unfavorable FX movements reduced H1 revenues by €13 million.

• Liquidity as of June 30, 2026, was €465.6 million, up from Q1 due to proceeds from the Tubulis sale and a €116 million convertible bond placement.

Outlook and guidance

• Full-year 2026 group revenues now guided at €570–610 million (previously €700–780 million); adjusted group EBITDA expected at -€70 to -€105 million (previously €0–40 million).

• Most revenue shortfall is expected to shift into 2027, with no fundamental change in partnership pipeline quality.

• About 40% of the revenue gap is due to milestone and partnership phasing into 2027, 45% from delays in new strategic partnerships, and 15% from lower sales-to-revenue conversion.

• Horizon cost savings of 20–30% expected in 2026, aiming for €75 million annual run-rate savings by end of 2027.