Evotec SE announced full-year 2025 results that matched the companys guidance ranges and broadly aligned with market expectations, but warned investors that 2026 would likely be a transitional period featuring lower earnings.
For 2025 Evotec recorded revenue of 788 million, which sits inside the companys guidance band of 760 -800 million and slightly above consensus of 774 million. Adjusted EBITDA for the year came in at 41 million, inside the guided 30 -50 million corridor and above the consensus estimate of 27 million.
Looking ahead to 2026, Evotec set a revenue range of 700 -780 million and an adjusted EBITDA interval of 0 -40 million. Management described 2026 as a "transition" year and said improvements were expected to become apparent in the second half.
Operationally, the company reported divergent performance across its divisions in 2025. The D&PD division generated 529 million in revenue, a decline of 9% year-on-year on a constant currency basis, and posted a negative EBITDA of 12 million. In contrast, the Just Evotec Biologics (JEB) division delivered 259 million in revenue, up 40% year-on-year, and an EBITDA of 53 million.
Evotec said it will receive an upfront cash payment of $100 million connected to Gileads acquisition of Tubulis.
The company reiterated its medium-term targets, maintaining a revenue compound annual growth rate (CAGR) goal of 8 - 12% for the period 2026 - 1030, and an objective to reach a 20% EBITDA margin by 2028, with a higher margin level envisioned by 2030.
As part of cost and structural realignment, Evotec introduced its Horizon plan, which seeks to reduce the company's site footprint to 10 locations and achieve 75 million in run-rate savings by the end of 2027.
Corporate changes noted in the update include the appointments of a new Chief Commercial Officer and a new Chairperson. The company also referenced pressure from activist investor MAK Capital, which has called for a U.S. initial public offering of the Just Evotec Biologics division, an accelerated transformation program, and representation on the board.
Context for investors - The companys 2025 results show execution consistent with prior guidance, while 2026s lower earnings band and the label of a transition year emphasize a near-term pause before management expects recovery in the back half of the year. The reported $100 million upfront tied to the Tubulis transaction provides a material cash inflow in the near term. The Horizon footprint reduction and associated 75 million run-rate savings are intended to improve structural profitability toward the 2028 margin target.