Evotec (EVT) Status update summary

Strategic Transformation and Horizon Initiative

• Launched Horizon, a multi-stage transformation to drive operational excellence, scientific leadership, and commercial execution for sustainable growth through 2030, including a 2024 priority reset and targeted cost-out program.

• Streamlined global footprint from 19 to 10 sites by 2027, with approximately 800 workforce reductions and establishment of Centers of Excellence to deepen scientific leadership and competitiveness.

• Commercial organization upgraded for faster execution, improved customer engagement, and higher win rates.

• Operating model transformation aims to centralize innovation, simplify structures, and enhance commercial performance for sustainable growth, with a CAPEX-light approach targeting below 10% of revenues.

• Horizon aims to deliver greater agility, sustainable growth, and value creation through phased operational reset and scalable growth by 2030.

Financial Performance and Guidance

• Preliminary 2025 revenues expected at €788 million (€811 million CER), with adjusted EBITDA at €41 million (€52 million CER), and cash position at €476 million.

• 2026 is a transition year: group revenues expected at €700–780 million (€730–810 million CER), with adjusted EBITDA of €0–40 million (€10–50 million CER).

• Horizon measures expected to generate ~€75 million in run-rate savings by end of 2027, with total restructuring cash costs of ~€100 million over 2026–2028, half realized in 2026.

• Medium-term framework targets >€1 billion revenues by 2030, with EBITDA margin reaching 20% by 2028 and 8–12% CAGR.

• D&PD segment 2025 revenues expected at €529 million, down 13% YoY, while Just-Evotec Biologics segment 2025 revenues expected at €259 million, up 40% YoY, with €53 million adjusted EBITDA.

Operational and Market Outlook

• Industry shift post-pandemic: tighter early-stage biotech funding, greater R&D capital discipline, and increased demand for integrated platforms, with investments shifting toward clinical-stage development.

• Pharmaceutical R&D spend projected to grow, with advances in data science, automation, and AI supporting innovation and efficiency.

• Price competition intense in commoditized CRO services, but high-value, IP-driven offerings remain resilient; focus on higher-margin, technology-enabled, capital-efficient revenue streams.

• Anticipates market recovery in D&PD segment in the second half of 2026, with low single-digit growth and a phased approach from operational reset to scalable growth by 2030.

• Just Evotec Biologics to focus on licensing technology components and expanding high-margin, technology-driven partnerships.