Full Press Release Details
FOR D JEB WITH CONTINUING STRONG MOMENTUM
DRIVING FORWARD STRATEGIC PRIORITIES
DEVELOPMENTS AFTER PERIOD-END
GUIDANCE FOR FULL-YEAR 2025 CONFIRMED
1Net income (loss) adjusted for interest, taxes, depreciation,
amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating income and expense,
change in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the presentation of the
financial performance of the Group.
CAGR: Compound annual growth rate
FINANCIAL HIGHLIGHTS
The following table provides an overview of the
financial performance in the first nine months of 2025 compared to the same period in 2024.
Key figures of consolidated income statement &
Evotec SE & subsidiaries - First nine months of 2025 and 2024
| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |||||||||||||||||||||||||||||||
| in k | D&PD | JEB | Intersegment eliminations | Evotec Group | D&PD | JEB | Intersegment eliminations | Evotec Group | ||||||||||||||||||||||||
| Revenues 1) | 391,861 | 143,239 | - | 535,100 | 447,016 | 128,723 | - | 575,739 | ||||||||||||||||||||||||
| Intersegment revenues | 195 | 126 | (321 | ) | - | 99 | 583 | (682 | ) | - | ||||||||||||||||||||||
| Costs of revenues | (360,231 | ) | (139,432 | ) | 321 | (499,342 | ) | (382,888 | ) | (124,363 | ) | 296 | (506,955 | ) | ||||||||||||||||||
| Gross profit | 31,825 | 3,933 | - | 35,758 | 64,227 | 4,944 | (387 | ) | 68,784 | |||||||||||||||||||||||
| Gross margin in % | 8.1 | % | 2.7 | % | - | 6.7 | % | 14.4 | % | 3.8 | % | - | 11.9 | % | ||||||||||||||||||
| R&D expenses | (27,610 | ) | (71 | ) | - | (27,681 | ) | (41,326 | ) | (188 | ) | 387 | (41,128 | ) | ||||||||||||||||||
| SG&A expenses | (109,033 | ) | (22,585 | ) | - | (131,619 | ) | (115,369 | ) | (22,928 | ) | - | (138,297 | ) | ||||||||||||||||||
| Other operating income | 38,516 | 2,856 | - | 41,371 | 33,385 | 1,599 | - | 34,983 | ||||||||||||||||||||||||
| Other operating expense | (7,224 | ) | (3,631 | ) | - | (10,855 | ) | (11,393 | ) | - | - | (11,393 | ) | |||||||||||||||||||
| Reorganization costs | 741 | - | - | 741 | (61,249 | ) | (1,007 | ) | - | (62,257 | ) | |||||||||||||||||||||
| Operating income (loss) | (72,786 | ) | (19,499 | ) | - | (92,284 | ) | (131,725 | ) | (17,581 | ) | - | (149,306 | ) | ||||||||||||||||||
| Adjusted EBITDA 2) | (18,826 | ) | 1,940 | - | (16,886 | ) | (6,752 | ) | 781 | - | (5,971 | ) |
1) Group revenues for the nine months ended September 30, 2025 would have amounted to 543.4 m at constant exchange rates
2) Net income (loss) adjusted for interest,
taxes, depreciation, amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating
income and expense, change in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the
presentation of the financial performance of the Group.
REPORT ON THE FINANCIAL SITUATION AND RESULTS
1. Results of operations
During the nine months ended September 30, 2025
Group revenues decreased by (7.1)% to 535.1 m compared to the same period of the previous year (9M 2024: 575.7
m). The decrease was driven by (12.3)% lower revenues in the D&PD segment, whereas JEB contributed 143.2 m during the nine
months ended September 30, 2025 versus 128.7 m in the comparable prior year period.
8.3 m of the 40.6 m reduction in revenue was driven by fx. Revenue from base business (excluding milestones and royalties)
decreased by (7.9)% from 572.5 m in 9M 2024 to 527.5 m in the nine months ended September 30, 2025.
of revenue for the nine months ended September 30, 2025 amounted to 499.3 m (9M 2024: 507.0 m) yielding a gross
margin of 6.7% (9M 2024: 11.9%). The reduction is driven by lower overall costs in the Discovery & Preclinical Development segment,
where we have recognized significant year over year savings in personnel expense, materials expense, and external spend. Despite the lower
cost base, continued overcapacity is driving the lower overall gross margin. This cost reduction within D&PD was partially offset
by Just-Evotec Biologics, where the continued growth of the business and continued investment in Toulouse build-out contributed to increased
R&D expenses were 27.7 m, compared
to 41.1 m in the nine months ended September 30, 2024 ((32.7)%), with a focused capital allocation to selected R&D projects.
SG&A expenses for the nine months ended
September 30, 2025 amounted to 131.6 m and were thus 6.7 m or -5% lower compared to last year (9M 2024: 138.3
m) especially driven by lower external spend and lower personnel expense due to reduced headcount.
For the nine months ended September 30, 2025,
other operating income amounted to 41.4 m, compared to 35.0 m for
the comparable prior year period. The increase was driven by an insurance reimbursement related to the cyber-attack, which occurred in
Other operating expenses decreased from
11.4 m in the first nine months of 2024 to 10.9 m in the first nine months of 2025, this was driven by a significant reduction
in expenses related to the cyber-attack in 2023, partially offset by costs incurred related to the planned sale of the Just Toulouse site,
as well as one off arbitration costs.
The Group has also reviewed its finite lived
intangible assets as well as Goodwill for impairment whenever triggering events or changes in circumstances indicate that carrying
amount value may not be recoverable. Following this review, the Group has not identified any impairment trigger.
months ended September 30, 2025 Reorganization costs showed an income due to reversal of provisions of 0.7 m (9M
2024: 62.3 m) related to the finalization of reorganization projects performed in the prior year.
The net income (loss) for the nine months
ended September 30, 2025 amounted to (118.1) m (9M 2024: (155.2) m), predominantly driven by lower reorganization expense,
and overall lower cost base, offset by lower revenues.
Adjusted Group EBITDA for the nine months
ended September 30, 2025 amounted to (16.9) m (9M 2024: (6.0) m) driven by the decrease in topline revenues and partially
offset by the cost reductions recognized in all cost positions.
2. Result in our reportable segments Discovery
& Preclinical Development and Just-Evotec Biologics
In the Discovery & Preclinical Development
segment, revenues (incl. intersegment revenues) decreased by (12.3)% to 392.1 m (9M 2024: 447.1 m) mainly driven
by weaker than anticipated demand, as the company continues to navigate a suppressed market.
Costs of revenue within D&PD were at
360.2 m in the nine months ended September 30, 2025 (9M 2024: 382.9 m), corresponding to a gross margin of 8.1% (9M 2024:
14.4%). The decrease in the gross margin was mainly driven by a lower top-line performance, as well as under-utilization in some
areas of Discovery & Preclinical Development, despite the overall drop in costs of revenue year over year.
R&D expenses came in at 27.6
m (9M 2024: 41.3 m), a reflection of our strategic focus regarding capital allocation to key R&D projects.
SG&A expenses decreased to
109.0 m (9M 2024: 115.4 m), mainly due to a decrease in consultancy costs and lower personnel costs after the implementation of
the priority reset. For the nine months ended September 30, 2025, other operating income amounted to 38.5 m, compared to
33.4 m for the comparable prior year period, driven by an insurance reimbursement related to the cyber-attack. Other
operating expenses amounted to 7.2 m (9M 2024: 11.4 m), which was predominantly caused by lower IT expenses
caused by the cyber-attack compared to the same period in the previous year.
EBITDA of the Discovery & Preclinical Development segment was (18.8) m (9M 2024: (6.8) m), due to reduced revenues,
which could only partially be offset by a lower cost base within Costs of revenues, R&D and SG&A.
Revenues (incl. intersegment revenues)
within Just-Evotec Biologics increased to 143.4 m (9M 2024: 129.3 m).
This growth of 11.3% was strongly driven
by the strong order book in our Redmond, US facility, specifically outside of our Sandoz and DoD collaborations (105% growth year over
Costs of revenues of 139.4 m were
incurred in the first nine months of 2025, with higher labor and service and supplier costs to cover the increased base business in the
US and the continuous ramp-up in France, compared to 124.4 m within the nine months ended September 30, 2024. In the same period,
the gross margin decreased to 2.7% from 3.8% in the first nine months of 2024, driven by the ramp up in France.
SG&A expenses (9M 2025: 22.6
m vs. 9M 2024: 22.9 m) remained essentially stable year-on-year, while Other Operating Expense showed an increase to
3.6 m in the nine months ended September 30, 2025 (9M 2024: 0.0 m). This increase is primarily due to the expenses incurred in
connection with the planned sale of the Toulouse site to Sandoz.
The adjusted EBITDA within Just-Evotec
Biologics has increased to 1.9 m (9M 2024: 0.8 m) as the revenue has increased stronger than the cost base, excluding
costs related to the planned sale of Just - Evotec Biologics EU SAS.
3. Financing and financial position
Cash flow from operating activities in
the nine months ended September 30, 2025 was (72.8) m compared with (56.0) m in the first nine months of 2024. This year's
figure is negatively affected by changes in working capital, mainly due to lower Contract liabilities ( (30.8) m) and lower Trade
and other payables ( (19.1) m), partially offset by a lower net loss compared to the previous year.
Net cash used in investing activities for
the nine months ended September 30, 2025 amounted to (50.8) m (9M 2024: (88.1) m). The lower cash outflow is mainly caused
by a decrease of purchases of property, plant and equipment (9M 2025: (57.8) m; 9M 2024: (102.3) m), most significantly
in relation to the Just - Evotec Biologics facilities.
Net cash provided by (used in) financing activities