Evotec AG on Tuesday disclosed a markedly wider preliminary earnings before interest, tax, depreciation and amortization loss for the first half of 2026 and cut its outlook for the full year, attributing the deterioration to weaker partnership revenues and slower-than-expected expansion of new sales channels.
For the six months ended June 30, 2026, the company reported preliminary group EBITDA of a loss of 42.7 million euros, versus a loss of 1.9 million euros in the same period a year earlier. Preliminary group revenue for the period was 300.1 million euros, down from 371.1 million euros the prior year.
In light of these results, Evotec lowered its revenue guidance for the full year to a range of 570 million to 610 million euros, down from a previous forecast of 700 million to 780 million euros. The firm also widened its expected annual group EBITDA loss to between 70 million and 105 million euros, compared with prior guidance that allowed for a loss of up to 40 million euros.
Management said the weaker outlook reflects delays in higher-margin partnerships. Specifically, about 40% of existing partnership revenues have been deferred into 2027 due to revised timing assumptions, which impacts the companys near-term revenue mix and expected milestone receipts.
While Evotecs core laboratory services for early-stage drug developers continue to see strong demand, the partnerships that typically generate milestone-based, higher-margin payments are expected to deliver delayed cash inflows tied to drug development milestones. These revised timings are the central factor behind both the reduced revenue outlook and the larger projected EBITDA loss for the year.
Chief executive Christian Wojczewski described the opening months of the year as a challenging start, but indicated that indications of a recovery are beginning to appear. He added that the company is in advanced discussions with several established partners on programs across renal disease, oncology, womens health, obesity, and other areas.
Summary
Evotec widened its preliminary H1 2026 EBITDA loss to 42.7 million euros and reported H1 revenue of 300.1 million euros. The company trimmed its full-year revenue guidance to 570 million to 610 million euros and now expects an annual group EBITDA loss between 70 million and 105 million euros, citing postponed partnership revenues and slower channel development. Management notes continued strength in the core business and says recovery signs are emerging while engaging in advanced partner discussions.
Key points
- Preliminary H1 2026 group EBITDA loss widened to 42.7 million euros from a 1.9 million euro loss a year earlier.
- Preliminary H1 revenue fell to 300.1 million euros from 371.1 million euros a year earlier; full-year revenue guidance cut to 570 million-610 million euros from 700 million-780 million euros.
- Annual group EBITDA loss guidance increased to 70 million-105 million euros, reflecting the deferral of about 40% of partnership revenues into 2027; core lab services demand remains strong.
Risks and uncertainties
- Timing risk from partnership revenues: Revised schedules have pushed roughly 40% of existing partnership revenue into 2027, creating near-term revenue and margin pressure. This primarily affects sectors tied to drug-development partnerships and milestone payments.
- Milestone payment delays: Expected payments from partnerships are now likely to be received later than previously anticipated, increasing uncertainty around cash flow and EBITDA performance for the current year.
- Slower channel expansion: Slower progress in gaining new sales channels may limit near-term revenue diversification and impact the companys ability to offset postponed partnership receipts.