Evotec stock weighs weaker nine-month revenue against Q3 gains

Evotec reported its third-quarter and first-nine-month results for 2026 on Thursday, November 5. The Hamburg-based life science company combined weaker year-to-date revenue with a substantially narrower adjusted EBITDA loss in the third quarter. The results were released by Evotec through PR Newswire.

Evotec stock traded at 3.02 euros on Lang & Schwarz at 11:36 CET on Thursday, November 5. Investors are weighing the improved quarterly profitability against the decline in revenue for the first nine months.

Revenue declines through September

Group revenue reached 465.0 million euros in the first nine months, down 13.1% from 535.1 million euros in the same period of 2025. At constant exchange rates, revenue was 477.4 million euros. Adjusted Group EBITDA fell to minus 44.3 million euros from minus 16.9 million euros a year earlier, as lower revenue was only partly offset by a lower cost of revenue.

Research and development expenses declined to 29.7 million euros, or 6.4% of revenue, from 42.3 million euros, or 7.9%, in the prior-year period. Evotec ended the third quarter with liquidity of 400.9 million euros and reported a net debt position.

Quarterly profitability improves

Third-quarter revenue was 164.9 million euros, broadly unchanged from 163.9 million euros a year earlier. Adjusted Group EBITDA improved to minus 1.6 million euros from minus 15.0 million euros. Evotec attributed the improvement primarily to lower cost of revenue.

The Discovery and Preclinical Development segment generated third-quarter revenue of 120.1 million euros, down 2.3% year on year, while its adjusted EBITDA loss narrowed to 1.0 million euros from 9.5 million euros. Just - Evotec Biologics increased quarterly revenue by 9.4% to 44.8 million euros and reduced its adjusted EBITDA loss to 0.6 million euros from 5.5 million euros.

For the first nine months, Discovery and Preclinical Development revenue fell 11.2% to 348.0 million euros. Just - Evotec Biologics revenue declined 18.3% to 117.1 million euros, mainly reflecting the prior-year 25 million US dollar Sandoz license sale and delayed program activities. The company said net sales in the Discovery and Preclinical Development base business increased 24% year on year in the first nine months.

Guidance remains unchanged

Evotec reaffirmed its full-year 2026 outlook for Group revenue of 570 million to 610 million euros, or 595 million to 635 million euros at constant exchange rates. Adjusted Group EBITDA is expected at minus 105 million to minus 70 million euros, with the constant-exchange-rate range at minus 90 million to minus 60 million euros.

The Horizon transformation is progressing ahead of plan, according to management. By the end of September, more than 20% of the targeted 75 million euros in annual run-rate savings had been delivered. Around half of the planned workforce reductions had been implemented, while three of four planned site closures are expected by year-end and the final closure in the first quarter of 2027.

Long-term targets raise expectations

Evotec also presented a 2030 framework targeting around 1 billion euros in Group revenue, with potential upside. The company expects an adjusted EBITDA margin of 20% by the end of 2028 and more than 20% by the end of 2030. Just - Evotec Biologics is expected to account for about 40% of 2030 revenue as capacity, licensing income and contractually agreed royalties develop.

Management will discuss the figures in a webcast and conference call on Thursday at 2 p.m. CET. The next investor focus is likely to be the conversion of the Horizon savings into sustained revenue growth and cash generation.

For broader market context, see Current DAX market developments.

Find the real-time quote of Evotec stock for the latest trading information.

More news and analyses on Evotec stock are available here.