Lonza Group (LONN) H1 2026 earnings summary

Executive summary

• Achieved H1 2026 sales of CHF 3.4 billion, up 16.0% at constant exchange rates, with robust demand, disciplined execution, and favorable phasing across all business platforms.

• CORE EBITDA margin expanded by 4.4 percentage points to 34.8%, with CORE EBITDA of CHF 1.2 billion, reflecting operational execution and maturing growth projects.

• Free cash flow improved to CHF 0.4 billion, up CHF 0.3 billion from H1 2025, supported by higher earnings and lower CapEx.

• Completed transformation to a pure-play CDMO with the divestment of the Capsules & Health Ingredients business for CHF 2.3 billion.

• Strategic collaborations expanded, including a major US biopharma partnership and investments in ADC drug product capacity.

Financial highlights

• Sales reached CHF 3,374 million, up 11.2% at actual rates and 16.0% at CER year-over-year.

• CORE EBITDA rose 27.4% to CHF 1,175 million; margin increased to 34.8%.

• EBIT increased 37.7% to CHF 789 million; profit for the period from continuing operations grew to CHF 572 million.

• Operational free cash flow (before acquisitions/divestitures) increased 267% to CHF 426 million.

• CapEx was CHF 530 million (15.7% of sales), with 60% invested in growth projects.

Outlook and guidance

• Upgraded 2026 CORE EBITDA margin guidance to 33-34% (previously above 32%) and reaffirmed 11-12% CER sales growth.

• H2 2026 expected to show continued absolute sales growth but lower percentage growth due to a high prior-year base, especially in Advanced Synthesis.

• CapEx for FY 2026 expected in the mid to high teens as a percentage of sales, focused on growth investments.

• FX headwinds expected to reduce 2026 sales by 2-3%, with minimal margin impact.

• Long-term organic growth model targets low teens CER sales growth and expanding margins.