Evotec SE

Preliminary Q2 2026 group revenue is expected to be EUR 143.5 million, down approximately 16% year over year; H1 2026 group revenue is expected to be EUR 300.1 million, down 19%. Adjusted group EBITDA is expected to be EUR -20.8 million in Q2 and EUR -42.7 million in H1 2026. In D&PD, Q2 revenue is expected to be EUR 108.1 million (-15%) and H1 revenue EUR 227.9 million (-16%); JEB revenue is expected to be EUR 35.4 million in Q2 (-17%) and EUR 72.3 million in H1 (-29%). Unfavorable FX is expected to be a EUR 13 million headwind to H1 revenue. Total liquidity at June 30, 2026 was EUR 465.6 million, up from EUR 444.8 million at the end of Q1, helped by about $100 million of gross proceeds from Tubulis and a EUR 116 million convertible bond placement, partly offset by about EUR 65.8 million of scheduled debt repayment. Full-year 2026 guidance was cut to revenue of about EUR 570 million-EUR 610 million at incurred FX (EUR 595 million-EUR 635 million at constant FX) and adjusted EBITDA of EUR -70 million to EUR -105 million at incurred FX (EUR -60 million to EUR -90 million at constant FX). Management said some delayed milestone revenue should move into 2027, and that new strategic partnerships and JEB milestones are also now expected to contribute mainly beyond 2026.

Christian Wojczewski said the first half came in line with expectations for a difficult period, but the second-half assumptions for strategic partnerships have shifted because deals are taking longer to close and milestone timing has slipped. He stressed that the partnership pipeline remains healthy, with multiple opportunities at different stages, and said the issue is timing rather than a fundamental deterioration in opportunity quality. He also highlighted improving leading indicators in the base business, including stronger customer engagement, more proposals, and higher net sales, which he expects to benefit revenue later in 2026 and into 2027.

Claire Hinshelwood walked through the preliminary numbers and liquidity, noting Q2 revenue of EUR 143.5 million, H1 revenue of EUR 300.1 million, and adjusted EBITDA of EUR -20.8 million in Q2 and EUR -42.7 million in H1. She said liquidity was EUR 465.6 million at June 30, 2026, up quarter over quarter because of the Tubulis proceeds and the EUR 116 million convertible bond, while scheduled debt repayment of about EUR 65.8 million reduced cash in the period. On guidance, she said the updated outlook reflects delayed existing partnership revenues, slower new-partnership timing, and some lower revenue conversion, with high fixed costs causing a large share of the revenue shortfall to flow through to EBITDA.

Analysts focused on the segment mix, the health of the partnership pipeline, BMS, JEB growth, and how much of the guidance cut reflected new business versus existing deals slipping. Management said there is no fixed long-term JEB/D&PD ratio, though JEB has grown faster in recent years and could grow a bit faster than D&PD over the long run. On the pipeline, Christian Wojczewski described roughly 10-20 strategic opportunities, with about 15% in late-stage discussions, around 60% in early-to-late term sheet talks, and the rest in early or diligence stages; he said some late-stage deals may close this year but won’t materially affect 2026 revenue. On BMS, management said the collaboration remains very healthy, 2026 is a transition year, and growth is expected to resume next year after refilling the pipeline and investing in proteomics and transcriptomics screening.