Full Press Release Details
For further information, please contact: Dr. Sarah
Fakih, EVP Head of Global Communications and Investor Relations, sarah.fakih@evotec.com, M. +49.(0)151 70 688 784, www.evotec.com
FINANCIAL PERFORMANCE REFLECTS CONTINUED SOFTNESS IN D&PD
AND LOWER REVENUES IN JUST - EVOTEC BIOLOGICS
SEGMENT NEWS FLOW SHOWS STRONG PROGRESS ACROSS STRATEGIC PARTNERSHIPS
AND FUNDING MOMENTUM IN PROTEIN DEGRADATION & GLOBAL HEALTH PROGRAMS
does not include revenue from licenses, milestone fees and royalties
CORPORATE NEWS FLOW SHOWS MEANINGFUL PROGRESS IN STRATEGIC TRANSFORMATION
AND COMPANY EVOLUTION
Events after Period-End
FULL-YEAR GUIDANCE 2026
2026 represents a transition year as Horizon is implemented, with
operational improvements expected to become increasingly visible in the second half of the year.
MID-TERM FRAMEWORK 2026 - 2030
FINANCIAL HIGHLIGHTS
The following table provides an overview of the
financial performance in the first three months of 2026 compared to the same period in 2025. More detailed information can be found on
page 5 of this interim statement.
Key figures of consolidated
income statement & segment information
Evotec SE & subsidiaries - First three months of 2026 and 2025
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||
| In k | D&PD | JEB | Inter-segment Elimina-tions | Evotec Group | D&PD | JEB | Inter-segment Elimina-tions | Evotec Group | ||||||||||||||||||||||||
| Revenue 1) | 119,800 | 36,844 | 156,644 | 140,590 | 59,389 | 199,978 | ||||||||||||||||||||||||||
| Intersegment revenue | 97 | - | (97 | ) | - | 2 | - | (2 | ) | - | ||||||||||||||||||||||
| Cost of Revenue* | (112,721 | ) | (45,589 | ) | 97 | (158,212 | ) | (119,371 | ) | (47,373 | ) | 2 | (166,742 | ) | ||||||||||||||||||
| Gross profit (loss) | 7,176 | (8,744 | ) | - | (1,569 | ) | 21,221 | 12,015 | - | 33,236 | ||||||||||||||||||||||
| Gross margin in % | 6 | % | (24 | )% | - | % | (1 | )% | 11 | % | 20 | % | - | % | 14 | % | ||||||||||||||||
| Research and development* | (10,081 | ) | - | - | (10,081 | ) | (14,877 | ) | (52 | ) | - | (14,929 | ) | |||||||||||||||||||
| Selling, general and administrative expenses* | (34,827 | ) | (8,961 | ) | - | (43,788 | ) | (41,179 | ) | (8,356 | ) | - | (49,536 | ) | ||||||||||||||||||
| Other operating income | 11,930 | 527 | - | 12,457 | 12,312 | 665 | - | 12,977 | ||||||||||||||||||||||||
| Other operating expense | (2,823 | ) | (618 | ) | - | (3,442 | ) | (904 | ) | (660 | ) | - | (1,564 | ) | ||||||||||||||||||
| Reorganization costs | (74,974 | ) | - | - | (74,974 | ) | (192 | ) | - | - | (192 | ) | ||||||||||||||||||||
| Operating income (loss) | (103,599 | ) | (17,797 | ) | - | (121,396 | ) | (23,620 | ) | 3,611 | - | (20,008 | ) | |||||||||||||||||||
| Adjusted EBITDA | (9,800 | ) | (12,051 | ) | - | (21,851 | ) | (6,856 | ) | 9,964 | - | 3,107 |
1) Group revenue would have amounted to 166,890 k at
constant exchange rates.
*Certain costs previously reported within Cost of Revenue have been
reclassified to Research and development and Selling, general and administrative expenses to align with the revised function of the underlying
cost centers as a result of a reorganization. The reclassification relates primarily to In Silico & Bioinformatics as well as
Alliance Management. In accordance with IAS 1 Presentation of Financial Statements, comparative prior-year figures have been adjusted
accordingly to conform to the current period presentation. For the three months ended March 31, 2025, costs of 6.0 m previously
presented as Cost of Revenue have been reclassified to Research and development and Selling, general and administrative expenses in the
amount of 4.2 m and 1.8 m, respectively. These reclassifications solely impact the D&PD segment.
REPORT ON THE FINANCIAL SITUATION AND RESULTS
1. Results of operations
During the three months ended March 31, 2026 Group revenue
decreased by 21.7% to 156.6 m compared to the same period of the previous year (3M 2025: 200.0 m). The decrease was driven
by 14.8% lower revenues in the Discovery & Preclinical Development (D&PD) segment, whereas Just - Evotec Biologics
contributed 36.8 m during the three months ended March 31, 2026 versus 59.4 m in the comparable prior year period.
Excluding negative fx-effects, Group revenue decreased by 16.5% to 166.9 m. Excluding the license sale to Sandoz in Q1 2025,
revenues decreased by 5.6% from 176.9 m in 3M 2025 to 166.9 m in the three months ended March 31, 2026, driven
by the continued softer market for early stage discovery.and the
The Cost of revenue for the three months ended March 31,
2026 amounted to 158.2 m (3M 2025: 166.7 m) yielding a gross margin of (1.0)% (3M 2025: 16.6%). The decrease of Cost of
revenues was driven by lower personnel costs and lower project and material costs in both segments. D&PD saw continued underutilization
which is being addressed as part of Project Horizon.
R&D expenses amounted to 10.1 m, compared to
14.9 m in the three months ended March 31, 2025 (32.5% reduction), as investment continues to be tightly controlled on projects
most relevant to our partners.
SG&A expenses for the three months ended March 31,
2026 amounted to 43.8 m and were thus 5.7 m or 11.6% lower compared to last year (3M 2025: 49.5 m) mainly driven
by the JUST EU exit, lower personnel expenses, and reduced IT business consultancy costs.
For the three months ended March 31, 2026, other operating
income amounted to 12.5 m, compared with 13.0 m in the corresponding prior-year period. The year-on-year variance was
predominantly driven by two offsetting effects. On the one hand, Evotec recognized 2.5 m one-off insurance income related to the
2023 cyber incident in the prior period, which did not recur in 2026. On the other hand, during the three months ended March 31,
2026, Evotec accounted for 2.2 m of income related to transition services in connection with the sale of JUST EU (3M 2025:
Other operating expenses amounted to 3.4 m for the three
months ended March 31, 2026, representing an increase of 1.9 m compared with the prior-year period (3M 2025: 1.6 m).
The increase was primarily driven by 1.4 m of expenses related to transition services in connection with the sale of JUST EU.
Reorganization costs amounted to 75.0 m in the three
months ended March 31, 2026 (3M 2025: 0.2 m). These costs are driven exclusively by the initial provision for future expenditures
and asset impairments related to the recently announced Project Horizon.
Adjusted Group EBITDA for the three months ended March 31,
2026 amounted to (21.9) m (3M 2025: 3.1 m) primarily driven by the Sandoz License sale in Q1 2025, as well as negative
The net income (loss) as of March 31, 2026 amounted to
(121.9) m (3M 2025: (31.6) m), driven largely by the operating loss, which increased due to the reorganization provision
and lower revenues, and only slightly offset by an increased deferred tax income.
2. Results of operations in Discovery & Preclinical
Development and Just - Evotec Biologics
In the D&PD segment revenue (incl. intersegment revenues),
decreased by (14.7)% to 119.9 m (3M 2025: 140.6 m) due to a still challenging market environment, and negative FX-impacts.
In constant currency, revenues decreased by (10.0)%.
Cost of revenue within D&PD amounted to 112.7 m
in the three months ended March 31, 2026 (3M 2025: 119.4 m) driven by lower personnel expense and lower project and material
costs. This corresponds to a gross margin of 6.0% (3M 2025: 10.8%). R&D expenses came in at 10.1 m (3M 2025:
14.9 m). SG&A expenses decreased by (15.4)% to 34.8 m (3M 2025: 41.2 m), mainly caused by reduced IT
consultancy expense and lower personnel expense. For the three months ended March 31, 2026, other operating income amounted
to 11.9 m, compared to 12.3 m for the comparable prior year period. Other operating expenses were 2.8 m (3M
2025: 0.9 m) driven by expenses related to transition services in connection with the sale of JUST EU. In the first three months
of 2026, Reorganization expenses totalling 75.0 m related to the Horizon program were incurred (3M 2025: 0.2 m).
The adjusted EBITDA of the Discovery & Preclinical
Development (D&PD) segment was (9.8) m (3M 2025: (6.9) m), due to lower revenues which were mostly offset by reduced
Costs of revenues, R&D, and SG&A expenses.
Revenue (incl. intersegment revenue) within Just - Evotec
Biologics decreased to 36.8 m (3M 2025: 59.4 m). This decline of (38.0)% was driven by the USD 25 m Sandoz License sale
from Q1 2025. Excluding this effect and negative FX-impact, revenues increased by 11.3%. Cost of revenue was 45.6 m in
the first three months of 2026, compared to 47.4 m within the three months ended March 31, 2025. The decrease was driven
by the sale of the Toulouse site in Q4 2025, offset partially by temporarily higher material and project costs due to production phasing.
Due to the above effects, gross margin decreased to (23.7)% in the first quarter 2026 from 20.2% in the first three months of 2025. SG&A
expenses (3M 2026: 9.0 m vs. 3M 2025: 8.4 m) were broadly in line with prior year.
The adjusted EBITDA within Just - Evotec Biologics has
decreased to (12.1) m (3M 2025: 10.0 m) mainly driven by 2025 Sandoz License sale.
3. Financing and financial position
Cash flow used in operating activities in the first three months
of 2026 was (3.9) m (3M 2025: (31.8) m). The decrease in cash outflow is related to favorable changes in working capital
compared to the first three months of 2025.
Net cash used in investing activities for the three months
ended March 31, 2026 amounted to (12.4) m (3M 2025: (21.6) m). Capital expenditure decreased to (4.2) m (3M
2025: (18.2) m), primarily reflecting reduced investments after the sale of Just - Evotec Biologics EU SAS, Toulouse, France,
(Just EU) at the end of 2025. The decrease in capital expenditure was partially offset by an increase in purchase of intangible assets
and additions to capitalized development expenditures by (3.0) m to (6.6) m (3M 2025: (3.6) m), transaction costs