Evotec AG (EVO) Q2 2026 Earnings Report

The call presents a balanced picture: near-term financials were weak with material revenue declines (H1 revenues down ~19%) and negative adjusted EBITDA (H1 EUR -42.7m), and management revised full-year 2026 guidance downward due mainly to timing shifts in strategic partnership milestone recognition. Offsetting these weaknesses are encouraging commercial leading indicators (inbound inquiries +~30%, proposals >45%, base D&PD net sales +~28% in H1), a healthy pipeline of 10–20 strategic partnership opportunities, strong liquidity (EUR 465.6m), active cost-savings via the Horizon program (~EUR 75m run-rate by 2027), and recent senior hires to improve commercial conversion. Overall, the issues appear driven largely by timing and phasing rather than loss of pipeline quality, but 2026 results and guidance remain meaningfully impacted.

Evotec revised its full-year 2026 guidance to group revenues of EUR 570–610m at incurred FX (EUR 595–635m at constant FX) and adjusted group EBITDA of EUR -70m to -105m at incurred FX (EUR -60m to -90m at constant FX), down from prior expectations after preliminary H1 results of EUR 300.1m group revenues (Q2 ~EUR 143.5m, -16% YoY; H1 -19% YoY) and adjusted EBITDA of EUR -42.7m in H1 (Q2 -EUR 20.8m); the revision reflects that roughly 40% of the revenue shortfall is due to phasing/milestone deferral into 2027, ~45% from slower-than-expected new strategic partnership contributions, and ~15% from weaker sales-to-revenue conversion, plus an FX headwind of ~EUR 13m to H1 revenues; liquidity stood at EUR 465.6m at June 30 (up EUR 20.8m Q/Q), supported by ~USD 100m Tubulis proceeds, a EUR 116m convertible bond, and a EUR 65.8m scheduled debt repayment, while operational indicators show encouraging signs for recovery (inbound inquiries +~30%, proposals +>45%, proposal value +>20%, base D&PD net sales +~28% in H1, average sales cycle shortened >15%) and Horizon cost savings targeted at ~EUR 75m run-rate by end‑2027 (20–30% of that in 2026).