Evotec SE (EVO): Financial results for H1 2026
Evotec SE (EVO) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 For further information, please contact : Dr. Sarah Fakih, EVP Head of Global Communications and Investor Relations, sarah.fakih@evotec.com, M. +49.(0)151 70 688 784, www.evotec.com INTERIM STATEMENT 6M 2026 HIGHLIGHTS 4 D&PD NET SALES 1 EXCLUDING STRATEGIC PARTNERSH
How this was made
The 30-second read
Why it matters
The earnings release shows a sharp revenue decline and a negative EBITDA, prompting a revision of full‑year guidance.
Market read
Earnings miss and lowered outlook may trigger a sell‑off in Evotec and influence peer biotech stocks.
What to watch
Potential upside from upcoming partnership milestones and grant funding not fully priced in.
Group revenues decreased by 19.2% to € 300.1 m and Adjusted Group EBITDA totaled € (42.7) m; FY 2026 outlook was updated for partnership timing shifts and lower revenue conversion.
Revenue declined across both segments, gross margin turned negative, adjusted EBITDA loss widened, net loss increased, and FY 2026 revenue and adjusted EBITDA guidance was reduced.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Group revenueother | € 300,123k | – | (19.2)% |
| Group revenue at constant exchange ratesother | € 313.2 m | – | (15.6)% |
| Base revenuesother | € 285.8 m | – | (17.8)% |
| Cost of revenueother | € (303,271)k | – | – |
| Gross profit (loss)other | € (3,148)k | – | – |
| Gross marginother | (1.0)% | – | – |
| Research and development costsother | € (20,338)k | – | (30.8)% |
| Selling, general and administrative expensesother | € (83,078)k | – | (11.1)% |
| Other operating incomeother | € 22,029k | – | – |
| Other operating expensesother | € (51,210)k | – | – |
| Reorganization costsother | € (98,924)k | – | – |
| Operating income (loss)other | € (234,669)k | – | – |
| Adjusted Group EBITDAnon-GAAP | € (42,684)k | – | – |
| Realized gain (loss) on investments and financial instruments revaluationother | € 70,027k | – | – |
| Net income (loss) before taxesother | € (170,300)k | – | – |
| Income taxesother | € 1,715k | – | – |
| Net income (loss)other | € (168,585)k | – | – |
| Net result per share (basic)other | (0.95) | – | – |
| Net result per share (diluted)other | (0.95) | – | – |
| Net cash provided by (used in) operating activitiesother | € (111,102)k | – | – |
| Capital expenditureother | € (13.3) m | – | – |
| Net cash provided by (used in) investing activitiesother | € 7,082k | – | – |
| Net cash provided by (used in) financing activitiesother | € 33,774k | – | – |
| Cash and cash equivalentsother | € 348,356k | – | – |
| Total Liquidityother | € 465.6 m | – | – |
| Current and Non-current financial liabilitiesother | € 475.9 m | – | – |
| Total stockholders' equityother | € 665,578k | – | – |
| Equity ratioother | 42.3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Discovery & Preclinical Development (D&PD)The decline was primarily driven by weak sales conversion across all business areas and softer-than-expected customer demand, reflecting the continued challenging market environment. | € 227,868k | – | (15.2)% |
| Just – Evotec Biologics (JEB)The decline was primarily driven by the Sandoz License sale in Q1 2025. Excluding Sandoz License sale and negative FX-impact, revenues decreased by 2.3%. | € 72,254k | – | (29.3)% |
FY 2026 outlook
- Revenue€ 570 – 610 m (€ 595 - 635 m CER; 2025: € 788.4 m)
- NoteAdjusted Group EBITDA is expected to reach € (70) – (105) m (€ (60) - (90) m CER; 2025: € 41.1 m)
Capital returns
- Evotec successfully placed € 116.1 m convertible bonds.
- Proceeds from convertible bonds and other loans were € 112,931k.
- Repayment of loans was € (65,791)k.
- Repayment of lease liabilities was € (10,482)k.
What drove it
- D&PD net sales excluding strategic partnerships increased by 28% YoY, reflecting strong customer engagement and commercial execution.
- JEB showed continued progress with high capacity utilization and an expanded customer base.
- R&D expenses decreased to € 20.3 m, driven by more focused capital allocation to selected R&D projects.
- SG&A expenses decreased by € 10.3 m or 11.1%, mainly driven by lower IT business consultancy expenses in D&PD.
- Project Horizon structural measures are expected to generate ~ € 75 m run-rate savings by end of 2027.
- The sale of Tubulis GmbH generated a gain on disposal of € 71,929k.
Concerns
- Customers continue to act cautiously amid ongoing economic, regulatory and geopolitical uncertainties, and any broader recovery in demand is expected to occur gradually.
- D&PD continued to experience underutilization.
- Group gross margin declined to (1.0)% from 13.6%.
- JEB gross margin declined to (18.3)% from 9.1%, reflecting delayed program activities, temporarily higher material and project costs due to production phasing, and the Sandoz License sale in Q1 2025.
- Other operating expenses included a € 42.3 m impairment loss relating to a laboratory building in Hamburg.
- Reorganization costs amounted to € 98.9 m for Project Horizon.
What to watch
- Revenue conversion and customer demand across D&PD business areas.
- D&PD utilization and the execution of Project Horizon operational and cost initiatives.
- JEB program activity timing, material and project costs, capacity utilization, and customer-base expansion.
- Delivery against FY 2026 Group revenue guidance of € 570 – 610 m and adjusted Group EBITDA guidance of € (70) – (105) m.
- Implementation of Project Horizon, including structural measures expected to generate ~ € 75 m run-rate savings by end of 2027.
Balance sheet and cash flow
- Net cash provided by (used in) operating activities was € (111,102)k.
- Net cash provided by (used in) investing activities was € 7,082k, including € 90,557k of proceeds from the disposal of associated companies, other non-current investments and convertibles, net of transaction costs.
- Evotec received net cash proceeds of € 89,339k from the sale of Tubulis GmbH.
- Cash and cash equivalents were € 348,356k as of June 30, 2026.
- Total Liquidity decreased to € 465.6 m.
- Current and Non-current financial liabilities increased by € 27.1 m to € 475.9 m.
- Total stockholders' equity decreased by € 148.1 m to € 665.6 m.
Analysis
Evotec reported a materially weaker first half. Group revenue decreased by 19.2% to € 300.1 m, while revenue at constant exchange rates declined by 15.6% to € 313.2 m. Base revenues decreased by 17.8% to € 285.8 m. Management attributed the D&PD decline to weak sales conversion and softer-than-expected customer demand amid a challenging market environment, while JEB's decline was primarily driven by the non-recurring Sandoz License sale in Q1 2025.
The revenue shortfall had a pronounced effect on profitability and utilization. Group gross margin fell to (1.0)% from 13.6%, with D&PD gross margin declining to 4.4% from 15.3% and JEB gross margin declining to (18.3)% from 9.1%. D&PD underutilization persisted, while JEB faced delayed program activities and temporarily higher material and project costs due to production phasing. Adjusted Group EBITDA moved to a loss of € (42.7) m from a loss of € (1.9) m, despite lower cost of revenue and reductions in R&D and SG&A expenses.
Reported losses also incorporated substantial transformation and asset charges. Reorganization costs were € 98.9 m in connection with Project Horizon, and other operating expenses included a € 42.3 m impairment loss related to a Hamburg laboratory building. Net loss totaled € 168.6 m versus a loss of € 75.1 m. The gain from the Tubulis GmbH sale supported non-operating income, with realized gain on investments and financial instruments revaluation of € 70.0 m, but did not offset the operating loss and restructuring charges.
Cash flow weakened alongside operating performance. Net cash used in operating activities was € (111.1) m versus € (5.3) m in 6M 2025. Tubulis proceeds contributed to net cash provided by investing activities of € 7.1 m, and convertible-bond and other-loan proceeds supported financing cash flow of € 33.8 m. Total Liquidity decreased to € 465.6 m, while current and non-current financial liabilities increased to € 475.9 m and the equity ratio declined to 42.3%.
The company updated FY 2026 guidance on July 13, 2026, citing partnership timing shifts and lower revenue conversion. Group revenue is expected at € 570 – 610 m, with adjusted Group EBITDA expected at € (70) – (105) m. Horizon remains central to the recovery plan, with structural measures expected to generate ~ € 75 m run-rate savings by end of 2027. The key operational markers are conversion of D&PD commercial activity into revenue, utilization improvement, and normalization of JEB program timing and cost absorption.
Not in the filing
stated, not guessed- GAAP and non-GAAP tax rate
- Free cash flow
- Non-GAAP EPS
- Dividend amount
- Share repurchase amount
- Quarterly revenue, margin, earnings, EPS, cash flow, and segment comparisons
- FY 2026 gross margin guidance
- FY 2026 operating expenses guidance
- FY 2026 tax rate guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Evotec SE is a German drug discovery and development company reporting its interim results for the first half of 2026 via SEC Form 6‑K.
Market effects
Highlights continued softness in biotech R&D spending and may affect peer valuations.
European biotech sector could see modest sell‑off.
Limited to biotech investors; no broad market impact.
Counterpoint
If the cost cuts materialize, margins could improve, offering a buying opportunity at lower valuations.
Key entities
- companyEvotec SE
German biotech firm reporting H1 2026 results.
