Siegfried Holding AG

2025 group sales increased 4.3% in local currencies to CHF 1.33 billion. Drug Substance sales and Drug Products sales both grew 4.3% in local currencies. Core EBITDA margin was 23.5%, or 23.05% after excluding a CHF 7.5 million one-off payment; reported core EBITDA was CHF 354 million, up 7.6%, and core EBIT was CHF 312.3 million, up 9.3%. Operating cash flow rose 35% year over year. Management guided 2026 to low single-digit group growth, high single-digit growth in Drug Products, low single-digit growth in Drug Substance, and a core EBITDA margin above 23%, excluding the acquisition. Reto Suter said first-half 2026 currency headwind is expected to be about 2.8% for the group, with full-year headwind a bit more than 2% based on the first seven weeks; seasonality is expected to be similar to 2025, around 47%/53% rather than 48%/52%.

Marcel Imwinkelried struck an upbeat, confident tone, saying EVOLVE+ is ahead of plan and that the company is seeing momentum from operational excellence, commercial execution, and new wins. He emphasized that Siegfried won 30% more projects/new customers in 2025 versus 2024 across Drug Substance and Drug Products, and highlighted multiple capacity investments and certifications as foundations for growth. He also framed the Noramco/Extractas acquisition as strategically important for U.S. supply-chain resilience, controlled substances, and future exclusive business, and said the company is now well positioned from early development through commercial manufacturing.

Reto Suter described 2025 as a year of continued growth, structural margin expansion, strong cash generation, and record profitability despite currency headwinds and a difficult macro environment. He said the group grew to CHF 1.33 billion in sales, core EBITDA margin reached 23.5%, operating expenses stayed disciplined at 11.4% of sales, operating cash flow improved 35%, and strategic investments totaled CHF 231 million. He also noted a CHF 300 million bond, a CHF 50 million non-recourse factoring facility with CHF 40 million used at year-end, net debt-to-core EBITDA of 1.5x at year-end and 1.0x after receivables converted to cash, and a proposed CHF 0.4 per share par value repayment.

Analysts focused on the large Drug Substance customer whose volume is still awaiting confirmation, asking about destocking, compensation, timing, and whether lower 2026 volumes could be offset. Management said it is an existing product and long-standing customer, that the uncertainty is about short- to mid-term demand rather than customer loss, and that Siegfried is contractually protected on margin even if top line is lower. Questions also probed the Drug Products outlook, protein degraders, GLP-1/metabolic exposure, and the Noramco/Extractas acquisition; management said Drug Products growth is broad-based across sites and dosage forms, the new protein degrader wins are all separate products, and the acquisition is priced at less than 10x EBITDA with synergies not included.