Evotec SE Reports H1 2025 Results: Strong Progress on Strategy Execution

Rhea-AI Summary

Evotec SE (NASDAQ:EVO) reported H1 2025 financial results showing mixed performance across segments. Group revenues declined 5% to €371.2 million, with Discovery & Preclinical Development (D&PD) revenues down 11% to €269.0 million due to soft market conditions. However, Just - Evotec Biologics (JEB) showed strong growth of 16% reaching €102.2 million.

The company announced significant progress in strategic collaborations, including US$75 million in payments from Bristol Myers Squibb for protein degradation achievements and US$20 million for neuroscience research. Additionally, Evotec signed a non-binding agreement to sell its J.POD biologics facility in Toulouse for approximately US$300 million, marking a strategic shift towards an asset-lighter model.

For full-year 2025, Evotec expects revenues of €760-800 million and adjusted EBITDA of €30-50 million.

Positive

• Just - Evotec Biologics revenue grew 16% to €102.2 million
• Received US$95 million in milestone payments from Bristol Myers Squibb collaborations
• Potential sale of J.POD facility for US$300 million plus additional considerations
• Cost savings program exceeding targets
• Adjusted EBITDA guidance shows improvement to €30-50 million (vs €22.6m in 2024)

Negative

• Group revenues declined 5% to €371.2 million
• Discovery & Preclinical Development revenues dropped 11% to €269.0 million
• Adjusted Group EBITDA negative at €(1.9) million in H1 2025
• Soft drug discovery market environment expected to continue until 2026

Insights

Financial Analyst

Evotec shows mixed H1 2025 results with biologics growth offsetting discovery segment weakness; strategy progressing with planned asset sale and cost reductions.

Evotec's H1 2025 results reveal a 5% year-over-year revenue decline to €371.2 million, with diverging performance across business segments. The renamed Discovery & Preclinical Development (D&PD) segment saw revenues fall 11% to €269 million, reflecting persistent softness in the drug discovery market. This weakness isn't unique to Evotec, as the entire CRO sector faces similar headwinds with biotech funding challenges continuing to impact outsourcing decisions.

The bright spot is the Just - Evotec Biologics (JEB) segment, which posted impressive 16% growth to €102.2 million, driven by customer diversification beyond Sandoz and DoD. This performance validates the company's strategic pivot toward biologics capabilities while simultaneously transitioning to a more capital-efficient model.

Management's execution on cost control has kept adjusted EBITDA loss contained at €1.9 million, only slightly worse than last year's €0.5 million loss, despite the revenue decline. The company appears to be exceeding its previously announced cost-saving targets, which should support the full-year guidance of €30-50 million in adjusted EBITDA.

The most significant strategic development is the planned sale of Just - Evotec Biologics EU for approximately $300 million in cash plus additional technology-related consideration. This transaction, while still subject to regulatory approval, represents a pivotal shift toward an asset-lighter business model that better leverages Evotec's proprietary technology and IP without tying up capital in manufacturing infrastructure.

Progress in key collaborations with Bristol Myers Squibb has triggered substantial milestone payments totaling $95 million ($75 million for protein degradation and $20 million for neuroscience), providing important validation of Evotec's platform technologies and near-term revenue support.

Management expects the market recovery for discovery services to begin as early as 2026, maintaining full-year 2025 revenue guidance of €760-800 million (compared to €797 million in 2024). The guidance suggests H2 will show sequential improvement as cost measures take effect and collaboration revenues accelerate.

• Strategy for sustainable profitable growth progressing as planned with improving revenue mix and ahead-of-plan cost reductions

• Reporting segment formerly known as Shared R&D renamed to Discovery & Preclinical Development ("D&PD") to better reflect strategic focus

• Group revenues of € 371.2 m (-5%); D&PD (-11%) continues to see soft demand;Just - Evotec Biologics ("JEB"; +16%) exceeding expectations driven by broadened customer base

• Key progress in collaborations with Bristol Myers Squibb ("BMS") on targeted protein degradation and neuroscience

• Evolution of strategic partnership with Sandoz announced on 30 July

HAMBURG, DE / ACCESS Newswire / August 13, 2025 / Evotec SE (Frankfurt Stock Exchange:EVT, MDAX/TecDAX, Prime Standard, ISIN: DE0005664809, WKN 566480; NASDAQ:EVO) today announced financial results for H1 2025, demonstrating clear progress in the implementation of its new strategy for sustainable and profitable growth; highlighting Just - Evotec Biologics' strong growth as it transitions to an asset-lighter model.

Dr Christian Wojczewski, Chief Executive Officer of Evotec, said:

"We are firmly on track with the execution of our strategy: Evotec is making meaningful strides toward sustainable and profitable growth. JEB maintained its strong growth trajectory with first half revenues in excess of € 100 m, and the evolution of our strategic partnership with Sandoz is testament to its bright future as a scalable technology provider with a more capital-efficient model. Our base business in D&PD continues to face soft demand, but we see strong progress in core collaborations and are systematically expanding our platform technologies, such as our Molecular Patient Database. I am confident that our unrelenting focus on technology and science leadership will continue to drive tangible impact in the future".

Discovery & Preclinical Development impacted by soft market; Just - Evotec Biologics continues strong growth momentum

• Group revenues decreased by 5.0% to € 371.2 m (6M 2024: € 390.8 m)

• Total D&PD revenues decreased by 11.0% to € 269.0 m (6M 2024: € 302.4 m) with performance reflecting soft drug discovery market environment and phasing of revenues with Pharma partners; recovery of D&PD market expected as early as 2026

• Just - Evotec Biologics revenues increased by 16% to € 102.2 m (6M 2024: € 88.9 m); strong growth with non-Sandoz / non-DoD customers

• Adjusted Group EBITDA totalled € (1.9) m (6M 2024: € (0.5) m) in-line with expectations due to strong cost control across the business

Execution of strategy to refocus and deliver sustainable profitable growth fully on track

• Cost savings expected to exceed targets announced during the Q1 2025 results call on 06 May 2025

• Implementation of strategy and new organization initiated

Events after Period-End

• On 30 July 2025, Evotec announced the signing of a non-binding agreement on the potential sale of
  Just - Evotec Biologics EU - which owns the J.POD biologics manufacturing facility in Toulouse, France and to grant access to its proprietary platform for integrated development and advanced continuous manufacturing of biologics via a technology license

• Deal terms include purchase price of the site for around US$ 300 m in cash and additional further technology related consideration, future development revenues, milestones and product royalties

• Planned transaction validates JEB's end-to-end continuous manufacturing technology and marks milestone in planned transition of JEB to asset-lighter model that better scales and leverages its technology and IP

• Closing of the planned transaction remains subject to completion of the relevant information and consultation processes with employees and their representatives, final contractual agreements and to meeting regulatory requirements, expected in the fourth quarter

Progress in key strategic collaborations

• Significant progress in strategic protein degradation collaboration with BMS triggering performance-based and program-based payments of in total US$ 75 m

• Key progress in neuroscience collaboration with BMS triggering a research payment of US$ 20 m

• Grant awarded from The Gates Foundation ("GF") to support the development of next-generation treatment regimens for tuberculosis ("TB")

• Evotec joined NURTuRE-AKI consortium, expanding Molecular Patient Database and improving leadership position in the field of kidney disease

• Evotec welcomed the FDA's "Roadmap to Reducing Animal Testing in Preclinical Safety Studies" which is aligned with Evotec's long-term strategic investment in New Approach Methodologies (NAMs) and its 30+ year commitment to ethics and the principles of 3-Rs (Replacement, Reduction and Refinement)

Guidance for full-year 2025

• Group revenues expected in a range of € 760 - 800 m (2024: € 797.0 m)

• R&D expenditures are expected in a range of € 40 - 50 m (2024: € 50.9 m)

• Adjusted Group EBITDA is expected to reach € 30 - 50 m (2024: € 22.6 m)

More detailed information and financial tables are available in the half-year report published on the Evotec website under the following link: https://www.evotec.com/en/investor-relations/financial-publications

Webcast/Conference Call

The Company is going to hold a conference call to discuss the results as well as provide an update on its performance. The conference call will be held in English.

Webcast details

Date: Wednesday, 13 August 2025

Time: 2.00 pm CEST (1.00 pm BST, 8.00 am EDT)

To join the audio webcast and to access the presentation slides, please register via this link.

The on-demand version of the webcast will be available on our website: Financial Publications - Evotec .

Conference call details

To join via phone, please pre-register via this link. You will then receive a confirmation email with dedicated dial-in details such as telephone number, access code and PIN to access the call.

A simultaneous slide presentation for participants dialing in via phone is available under this link.

About Evotec SE
Evotec is a life science company that is pioneering the future of drug discovery and development. By integrating breakthrough science with AI-driven innovation and advanced technologies, we accelerate the journey from concept to cure - faster, smarter, and with greater precision.

Our expertise spans small molecules, biologics, cell therapies and associated modalities, supported by proprietary platforms such as Molecular Patient Databases, PanOmics and iPSC-based disease modeling.

With flexible partnering models tailored to our customers' needs, we work with all Top 20 Pharma companies, over 800 biotechs, academic institutions, and healthcare stakeholders. Our offerings range from standalone services to fully integrated R&D programs and long-term strategic partnerships, combining scientific excellence with operational agility.

Through Just - Evotec Biologics, we redefine biologics development and manufacturing to improve accessibility and affordability.

With a strong portfolio of over 100 proprietary R&D assets, most of them being co-owned, we focus on key therapeutic areas including oncology, cardiovascular and metabolic diseases, neurology, and immunology.

Evotec's global team of more than 4,800 experts operates from sites in Europe and the U.S., offering complementary technologies and services as synergistic centers of excellence. For additional information please go to www.evotec.com and follow us on X/Twitter @Evotec and LinkedIn .

Forward-looking statements
This announcement contains forward-looking statements concerning future events, including the proposed offering and listing of Evotec's securities. Words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding Evotec's expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Evotec's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information, please contact:

Investor Relations

Volker Braun
EVP Head of Global Investor Relations & ESG
Volker.Braun@evotec.com

SOURCE: Evotec SE

View the original press release on ACCESS Newswire

FAQ

What were Evotec's (EVO) H1 2025 revenue results?

Evotec reported group revenues of €371.2 million, representing a 5% decrease from H1 2024 (€390.8 million).

How did Just - Evotec Biologics (JEB) perform in H1 2025?

JEB showed strong performance with revenues increasing 16% to €102.2 million, driven by growth in non-Sandoz and non-DoD customers.

What milestone payments did Evotec receive from Bristol Myers Squibb in H1 2025?

Evotec received US$75 million in protein degradation collaboration payments and US$20 million for neuroscience research progress from Bristol Myers Squibb.

What is Evotec's full-year 2025 financial guidance?

Evotec expects full-year 2025 revenues of €760-800 million, R&D expenditures of €40-50 million, and adjusted Group EBITDA of €30-50 million.

What is the value of Evotec's potential J.POD facility sale?

Evotec signed a non-binding agreement to sell its J.POD biologics facility for approximately US$300 million in cash, plus additional technology-related considerations, development revenues, milestones, and royalties.