Lonza Group (LONN) Q1 2026 TU earnings summary

Executive summary

• Strong Q1 2026 performance across all CDMO platforms, maintaining momentum and aligning with full-year trajectory despite geopolitical and macroeconomic volatility.

• Completed transformation to a pure-play CDMO with divestment of Capsules & Health Ingredients and other non-core businesses.

• Multiple new drug substance and product deals secured, including extended commercial manufacturing agreements.

• No material financial impact anticipated from geopolitical or U.S. trade/tariff developments.

Financial highlights

• CER sales growth and CORE EBITDA margin expected to be notably stronger in H1 2026 than H2, due to campaign timing, prior-year base, and site shutdowns.

• Year-over-year FX headwind of -3% on sales expected for 2026, with H1 more impacted; margins protected by hedging.

• Net debt-to-EBITDA ratio below 2; CHF 500 million share buyback planned upon CHI exit proceeds.

• Robust commercial demand and strong growth in Integrated Biologics, Advanced Synthesis, and Specialized Modalities.

Outlook and guidance

• 2026 guidance reaffirmed: 11%-12% CER sales growth and CORE EBITDA margin above 32%.

• H1 2026 to outperform H2 due to revenue phasing, batch releases, and CapEx-related shutdowns.

• Full-year 2026 sales expected broadly in line with 2025 for key sites.

• Mid-term expectation: low teens percentage CER sales growth and CORE EBITDA growth ahead of sales.

• Sustained customer demand and strong business momentum expected to continue.