Evotec SE

Preliminary and unaudited H1 2026 group revenue is expected to be EUR 300.1 million, down 19% year over year, with adjusted group EBITDA expected at EUR -42.7 million. Q2 2026 group revenue is expected to be EUR 143.5 million, down approximately 16% year over year, and Q2 adjusted group EBITDA is expected to be EUR -20.8 million. D&PD revenue is expected to be EUR 227.9 million in H1, down 16%, while JEB revenue is expected to be EUR 72.3 million, down 29%; management also said unfavorable FX will be a EUR 13 million headwind to H1 revenue. 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 constant FX) and adjusted EBITDA of about EUR -70 million to EUR -105 million at incurred FX (EUR -60 million to EUR -90 million constant FX).

Christian Wojczewski framed the reset as mainly a timing issue in partnerships and conversion, not a structural change in the business. He said the company still has a healthy partnership pipeline, with 10-20 strategic opportunities across areas like obesity, women’s health, kidney/renal disease, molecular glues, cell therapy, iPSC, and omics, but many will not contribute meaningfully to 2026 revenue. He emphasized that commercial indicators in the base business are improving and that cost savings from Horizon and improved execution should support longer-term growth and profitability.

Claire Hinshelwood provided the key numbers behind the revision: Q2 revenue of EUR 143.5 million, H1 revenue of EUR 300.1 million, Q2 adjusted EBITDA of EUR -20.8 million, H1 adjusted EBITDA of EUR -42.7 million, and total liquidity of EUR 465.6 million at June 30, 2026. She said liquidity rose by EUR 20.8 million quarter over quarter, helped by about $100 million of gross proceeds from Gilead’s acquisition of Tubulis and a EUR 116 million convertible bond placement, while H1 liquidity also reflected an approximately EUR 65.8 million scheduled debt repayment. She also reiterated expected Horizon run-rate cost savings of about EUR 75 million by end-2027, with 20%-30% expected in 2026, and said a high proportion of the revenue shortfall flows through to EBITDA because of the fixed-cost base.

Analysts focused on the balance between JEB and D&PD growth, the health and timing of the partnership funnel, the outlook for BMS, and how much of the business is still driven by lumpy milestones. Management said there is no fixed long-term revenue ratio between JEB and D&PD, though JEB has grown faster recently; it described the partnership funnel as healthy but slow, with about 15% in late-stage discussions, about 60% in early-to-late term sheet talks, and the balance in early discussions or diligence. On BMS, management said the collaboration remains healthy, 2026 is a transition year, and growth should resume next year as the pipeline is refilled. On J.TRAIN, they said it is an additional opportunity rather than a replacement and should be viewed on a similar long-term timeline as strategic partnerships, not as a 2026 revenue driver.