Lonza Group (LONN) H2 2025 earnings summary

Executive summary

• Achieved CHF 6.5 billion in sales for 2025, representing 21.7% constant currency growth and CORE EBITDA of CHF 2.1 billion at a 31.6% margin, surpassing upgraded outlook and advancing strategic milestones under the One Lonza strategy.

• Implemented a new operating model focused on three business platforms, improving accountability and operational performance.

• Successfully integrated the Vacaville site, adding significant capacity and capabilities, now the largest US CDMO mammalian network.

• CHI (Capsules & Health Ingredients) business classified as Discontinued Operations, with exit/divestment process advancing as planned.

• Proposed dividend increase of 25% to CHF 5.00 per share, reflecting strong earnings.

Financial highlights

• Sales reached CHF 6,531 million in 2025, up 19.2% YoY and 21.7% in constant currency, with CORE EBITDA up 24.9% to CHF 2,064 million and margin at 31.6%.

• Net profit for the period was CHF 949 million, up 49% YoY; basic EPS CHF 13.04, up 53.2%.

• Free cash flow for continuing business was CHF 545 million, nearly double the prior year.

• CapEx for continuing business was CHF 1,277 million, with 60% allocated to growth assets across 23 projects.

• Net debt/CORE EBITDA ratio at 1.4; net debt increased 14% to CHF 3,258 million.

Outlook and guidance

• 2026 CER sales growth expected at 11%-12%, with CORE EBITDA margin projected to exceed 32%.

• CapEx intensity to normalize to high teens as a percentage of sales, aligning with the CDMO organic growth model.

• FX expected to impact sales and CORE EBITDA by around -2%.

• Continued focus on margin expansion, productivity, and disciplined capital allocation.