EVO · Evotec SE

Evotec’s Q1 2026 results reflect a deliberate transition year under the Horizon transformation, with financial performance materially impacted by the absence of the $25 million Sandoz license payment recorded in Q1 2025 — a non-recurring event that inflated prior-year comparables. Group revenue declined 22% YoY to €156.6 million, while adjusted EBITDA swung to a €21.9 million loss, driven not only by lower revenues but also by €75.0 million in Horizon-related reorganization costs (primarily personnel severance and asset impairments) and €3 million in foreign exchange headwinds. Segment dynamics diverged: D&PD revenue fell 15% to €119.9 million amid persistent market softness, though management expects CRO revenue recovery to low single-digit growth in H2 2026; Just–Evotec Biologics revenue dropped 38% to €36.8 million, yet the filing explicitly states that non-Sandoz/non-DoW activities are projected to grow ~40% in 2026 — underscoring resilience in the core biologics business. The Horizon initiative is now in active implementation, with footprint reduction to 10 sites underway and structural savings of ~€75 million targeted by end-2027. Leadership changes — including Claire Hinshelwood as CFO, Dr. Ingrid Müller as COO, and Dr. Ashiq H. Khan as CCO — signal intensified execution focus. Importantly, the company confirmed full-year 2026 guidance (€700–780 million revenue; €0–40 million adjusted EBITDA), affirming confidence in second-half improvement as Horizon benefits accrue and market conditions stabilize. The pending ~$100 million cash inflow from the Tubulis acquisition by Gilead further strengthens liquidity, supporting strategic flexibility during this inflection point.