Oxford BioMedica has reaffirmed the parameters for its full-year 2026 performance, reiterating an expected revenue band of £220-240 million on a constant currency basis and signalling an EBITDA margin of roughly 10% for the year, according to a company report released today.
The business stated that 60% of the forecasted revenue is already secured through signed client contracts. When the company applies a risk-adjusted view to its commercial pipeline, coverage rises to in excess of 80% of the mid-point guidance, indicating a significant portion of anticipated income derives from committed or highly probable sources.
Management flagged that the 10% EBITDA margin forecast takes into account the final major technology transfer costs, which are scheduled to be incurred in the first half of 2026. These expenses relate to the dispersion of manufacturing capabilities across Oxford BioMedica's operational network and will be accompanied by planned maintenance shutdowns. The company expects these activities to produce a first-half EBITDA loss, with a recovery to a double-digit margin in the second half of the year.
On capital allocation, Oxford BioMedica has trimmed its expected capital expenditure for 2026-2027 to approximately £50 million, down from the previously communicated £60 million. The reduction is attributed to the acquisition of a Durham facility in the United States, which the company says offers a more capital-efficient approach to expanding production capacity in the US.
Turning to financial results for the prior year, Oxford BioMedica reported net revenue of £168.7 million for 2025, an increase of 31% on a reported basis. On a constant currency basis, revenue was £170.9 million, a 33% rise that slightly exceeded the earlier guidance range of £160-170 million.
Revenue breakdowns for 2025 showed manufacturing services at £81.1 million, up 19% year-over-year, driven by a greater number of batches for commercial products and activity from clients preparing product launches. Development services generated £60.1 million, up 27%, reflecting client advancement through development pipelines and increased process characterisation and validation work. Procurement services grew markedly to £22.3 million, quadrupling from 2024 as clients prepared for commercial launch. By contrast, licences, milestones and royalties amounted to £5.2 million, down 27%, which the company attributed to the timing of milestone recognitions and slightly lower Kymriah royalties as that product matures.
For 2025, reported EBITDA was £2.3 million. This figure included a one-off gain of £9.9 million related to the US site acquisition, together with deal and integration costs of £5.1 million. On an underlying basis, EBITDA was negative £2.5 million; however, at constant currencies the underlying EBITDA was a positive £3.3 million.
Cash on hand at the period end was £96.9 million. The report notes that RBC Capital Markets projects a balance-sheet low point of over £60 million at the end of 2026.
Operational momentum is reflected in order metrics. Order intake rose 20% year-over-year to £224 million in 2025, and the company’s order book expanded 36% to £204 million. Programmes under contract increased to 48 across 40 clients, up from 44 programmes for 37 clients in September 2025.
At September 2025 there were five late-stage clinical programmes and three commercial programmes - including those preparing for launch - coming from four and two clients respectively. The firm’s pipeline valuation stood at $597 million at the end of 2025, up from $541 million at the end of June 2025.
Looking further ahead, Oxford BioMedica continues to guide for revenue growth of 25-30% in each of 2027 and 2028, with EBITDA margin improvement to above 20% in 2027 and approaching 30% within five to six years.
RBC Capital Markets retains an Outperform rating on the stock with a price target of 1,170 pence. The shares closed most recently at 606 pence.