Evotec (EVT) Q1 2025 earnings summary

Executive summary

• Q1 2025 group revenues declined by 4% to €200.0m, with Shared R&D underperforming and Just – Evotec Biologics (JEB) showing strong growth and outperforming expectations.

• Strategic partnerships advanced, including BMS collaborations and a €4.5m grant from the Korean government for lung fibrosis antibody development.

• A new strategy was unveiled post-period, focusing on high-growth segments, operational excellence, and a simplified business model.

• The market for shared R&D remained soft, but JEB expanded its customer base and contracts.

• Strategic review completed and execution initiated to address market challenges.

Financial highlights

• Group revenues were €200.0m, a 4% decrease year-over-year; at constant FX, revenues would have been €195.8m (down 6%).

• Shared R&D revenue declined 9% to €140.6m, mainly due to lower BMS activity and market softness; JEB revenue grew 10–11% to €59.4m.

• Adjusted group EBITDA was €3.1m, down 60% year-over-year but slightly better than planned; JEB contributed €10.0m.

• Gross margin declined to 13.6% from 16.2–16.7% year-over-year.

• R&D expenses reduced by 33–34% to €10.8m, reflecting focus on scalable platforms.

• Net loss widened to €31.6m from €20.7m in Q1 2024, driven by operating loss and lower deferred tax income.

• CapEx reduced to €18m from €40m in Q1 2024.

• Liquidity at quarter end was €371m, supported by a €44m R&D financing facility drawdown.

• Net debt increased to €107m, with net debt leverage at 5.97x adjusted EBITDA.

Outlook and guidance

• Full-year 2025 guidance reconfirmed: group revenues of €840–880m, R&D expenditure of €40–50m, and adjusted EBITDA of €30–50m.

• Midterm outlook unchanged: expected average annual growth rate of 8–12% over four years, with EBITDA margin to exceed 20% by 2028.

• No change to guidance despite segment mix shifts; confidence maintained due to strong pipeline and cost-saving measures.