Eurofins Scientific released its fiscal 2025 results on Thursday, reporting top-line and margin metrics largely aligned with market expectations and a sequential improvement in the fourth quarter.
Top line and organic trends
Full-year revenues amounted to €7,296 million, narrowly under the consensus estimate of €7,311 million. Reported organic growth for the year was 4.1%, which adjusts to 3.7% when excluding a 0.4% working-day effect. The company highlighted a pickup in the fourth quarter, where organic growth reached 4.7%, up from 4.2% in the third quarter. Management noted that the Q4 comparison benefited from a 110 basis point easier year-on-year comparison.
Performance by business division
Segment-level movements were mixed during the quarter. BioPharma returned to growth with organic expansion of 3.7% in Q4, improving from a weak 0.4% in Q3. The Life division moderated, slowing to 5.9% growth from 7.2% in the prior quarter. Diagnostics showed an uptick, rising to 4.5% from 3.4% a quarter earlier. The combined effects produced total growth for the year of 5.0%.
Profitability, special items and earnings
Adjusted EBITDA reached €1,641 million, with adjusted margins of 22.5%, a 20 basis point improvement year-over-year. The company reported special items of €80 million, a 30% reduction compared with the prior year, primarily attributed to lower start-up losses. Adjusted basic earnings per share for the full year rose 24% year-over-year to €3.72, although that figure was 5% below consensus expectations. Eurofins declared a dividend of €0.72 per share.
Cash flow, working capital and capital expenditure
Free cash flow to the firm, excluding site investment, was €1,071 million, up 12% versus the prior year. Working capital demonstrated a pronounced unwind during the fourth quarter, delivering a €51 million inflow. Net capital expenditure came in at €522 million, 4% lower year-over-year and below expectations.
Guidance and medium-term targets
Looking ahead to fiscal 2026, Eurofins is targeting mid-single-digit organic growth and expects €250 million of growth from mergers and acquisitions. The company also aims for year-over-year improvement in EBITDA margins, reduced special items and stronger free cash flow. It reiterated its fiscal 2027 objectives: an average organic growth rate of 6.5%, €250 million in annual acquisitions, and a 24% EBITDA margin target, noting that the margin improvement is back-end weighted to 2027.
Takeaway
Overall, the results show a modest acceleration in organic growth in Q4 and meaningful free cash flow generation, while revenue and adjusted EPS slightly missed consensus. The company continues to lean on M&A as part of its growth strategy and maintained its medium-term financial targets.