Evotec SE Reports Q1 2025 results: Paving the Way for 2025 Growth in Soft Market Environment

Rhea-AI Summary

Evotec SE reported Q1 2025 financial results with group revenues of €200.0m, down 4% from Q1 2024 (€208.7m). The company's Shared R&D external revenues decreased by 9% to €140.6m, while Just - Evotec Biologics external revenues grew 11% to €59.4m. Adjusted Group EBITDA was €3.1m, down from €7.8m in Q1 2024 but slightly ahead of plan. Notable achievements include a strategic partnership with Bristol Myers Squibb, triggering payments of US$75m to Evotec. The company confirmed its 2025 guidance with expected revenues of €840-880m and adjusted EBITDA of €30-50m. Looking ahead to 2028, Evotec targets revenue CAGR of 8-12% (2024-2028) and expects adjusted EBITDA margin above 20%.

Positive

• Strategic partnership with BMS yielded US$75m in milestone payments
• Just - Evotec Biologics segment showed strong 11% revenue growth
• Q1 2025 revenue of €200m slightly ahead of expectations
• Received grant from Korean government for antibody-based treatments
• Company maintains positive 2025 guidance and 2028 growth outlook

Negative

• Overall group revenues declined 4% year-over-year
• Shared R&D external revenues decreased 9%
• Adjusted Group EBITDA dropped to €3.1m from €7.8m in Q1 2024
• Soft market environment in drug discovery sector

Insights

Financial Analyst

Evotec faces temporary headwinds with decreasing revenues but biologics growth and lucrative partnerships signal strategic transformation toward higher-value segments.

Evotec's Q1 2025 results present a company in transition amidst challenging market conditions. Group revenues of €200 million decreased 4% year-over-year but were reportedly ahead of internal expectations. The revenue composition tells an important story: traditional Shared R&D revenues declined 9% to €140.6 million, reflecting the soft drug discovery market, while Just - Evotec Biologics delivered 11% growth to €59.4 million, continuing its growth trajectory.

Profitability indicators show near-term pressure with adjusted EBITDA falling to €3.1 million from €7.8 million in Q1 2024, though management notes this was slightly ahead of plan. This suggests the company has calibrated expectations appropriately as it navigates the current environment.

The $75 million milestone payment from Bristol Myers Squibb represents significant non-dilutive capital and validates Evotec's technological capabilities in protein degradation. Management's confirmation of full-year 2025 guidance (€840-880 million revenue and €30-50 million adjusted EBITDA) signals confidence in accelerating growth throughout the year.

Strategically, Evotec is prioritizing higher-margin, high-growth segments while simplifying its business model and enhancing operational efficiency. The 2028 outlook targeting 8-12% revenue CAGR and 20%+ adjusted EBITDA margin demonstrates management's commitment to long-term value creation through this transformation.

The planned reduction in R&D expenditure to €40-50 million (from €50.8 million in 2024) suggests a more focused approach to internal innovation, potentially improving return on research investment through prioritization of higher-potential programs.

Biotech Industry Expert

Evotec's biologics division shows robust growth and strategic BMS partnership delivers $75M milestone payment, validating their platform technology in protein degradation.

Evotec's Q1 results highlight the company's strategic pivot toward higher-value biologics and specialized drug discovery technologies. The Just - Evotec Biologics segment continues its impressive trajectory with 11% growth despite comparing against an already strong Q1 2024. This division is increasingly becoming a key differentiator and growth driver, with management noting plans to "further leverage its capabilities as a scalable technology provider."

The significant progress in their Bristol Myers Squibb protein degradation partnership represents a major scientific and commercial achievement. The $75 million in payments validates Evotec's platform for developing molecular glue degraders for previously undruggable targets. Protein degradation remains one of biopharma's most promising and competitive frontiers, potentially addressing disease targets that conventional small molecule approaches cannot reach.

Evotec's ability to secure both commercial partnerships and government funding (as evidenced by the Korean grant for antibody-based lung disease treatments) demonstrates scientific credibility across multiple modalities and therapeutic areas. This diversification of revenue sources creates valuable optionality and reduces dependence on any single partner or technology.

The company's strategy of focusing on specialized, high-value drug discovery services while building out biologics capabilities positions them well for when market conditions improve. Despite current softness in early drug discovery demand, Evotec maintains technological leadership in key areas that should command premium pricing and stronger partnership terms as the market recovers.

Management's emphasis on "writing the next chapter of Evotec's success story as a drug discovery pioneer" signals ongoing innovation rather than merely weathering current challenges, suggesting long-term commitment to scientific leadership alongside operational improvements.

• Group revenues of € 200 m, on track towards guidance; Shared R&D with similar trend as 2024; Just - Evotec Biologics with continuing growth momentum

• Strong progress in strategic protein degradation partnership with Bristol Myers Squibb

• Strategy building on technology and science leadership: Focus on high-growth, high-value segments, simplifying the business model and fostering operational excellence

• 2025 Guidance and 2028 Outlook confirmed

HAMBURG, DE / ACCESS Newswire / May 6, 2025 / Evotec SE (Frankfurt Stock Exchange:EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ: EVO) today announced its financial results for Q1 2025, highlighting progress in strategic partnerships and implementation of measures to generate sustainable profitable growth.

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

"With € 200 m of revenues we ended Q1 2025 slightly ahead of our expectation, despite a soft drug discovery market environment. Just - Evotec Biologics has again delivered strong growth against an already outstanding Q1 2024 and will further leverage its capabilities as a scalable technology provider. We are on track to refocusing Evotec on its core strengths, preparing for sustainable profitable growth. I am deeply convinced about our ability to benefit from the opportunities that lie ahead of us. We are writing the next chapter of Evotec's success story as a drug discovery pioneer."

Q1 2025 revenue and EBITDA as anticipated: Shared R&D soft; Just - Evotec Biologics with continuing growth momentum

• Group revenues decreased by 4% to € 200.0 m (3M 2024: € 208.7 m), in-line with expectations

• Shared R&D external revenues decreased by 9% to € 140.6 m (3M 2024: € 155.2 m); Just - Evotec Biologics external revenues increased by 11% to € 59.4 m (3M 2024: € 53.5 m)

• Adjusted Group EBITDA totalled € 3.1 m (3M 2024: € 7.8 m), slightly ahead of plan; driven by a single digit decrease in revenues and favourable phasing of work packages at Just - Evotec Biologics

• Group revenue growth expected to accelerate vs. 2024, while market demand for early drug discovery expected to remain around 2024 levels. Developments concerning tariffs & US government funding are currently not anticipated to have a significant impact on Evotec's business outlook

Strengthened partnerships paving the way for 2025 growth in soft market environment

• Expanded collaborations and new customers driving growth of Just - Evotec Biologics

• Key scientific achievements expand the pipeline of high value molecular glue degraders in strategic partnership with BMS for unmet medical needs. Performance-based and program-based achievements trigger payments of in total US$ 75 m to Evotec

• Evotec receives grant from Korean government to develop novel antibody-based treatments for lung diseases

Guidance for full-year 2025

• Group revenues expected in the range of € 840 - 880 m (2024: € 797.0 m)

• R&D expenditures are expected in a range of € 40 - 50 m (2024: € 50.8 m)

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

Outlook 2028

• Group revenues CAGR _2024-2028 targeted to be in a range of 8 - 12 %

• Adj. EBITDA margin 2028 expected to be above 20%

CAGR: Compound annual growth rate

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

Webcast/Conference Call

The Company plans 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: Tuesday, 06 May 2025

Time: 2.00 pm CEST (01.00 pm BST, 08.00 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 via phone is available under this link .

About Evotec SE
Evotec is a life science company shaping the future of drug discovery and development. By integrating breakthrough science with AI-powered platforms and advanced technologies, we accelerate the creation of life-changing medicines - faster, smarter, and with greater precision. Our expertise spans small molecules, biologics, and cell therapies, supported by proprietary platforms such as PanOmics and iPSC technologies.

With flexible partnering models tailored to our customers' needs, we work with all Top 20 Pharma companies, over 800 biotech companies, 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 and co-owned R&D projects, 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 centres 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) Q1 2025 revenue and EBITDA results?

Evotec reported Q1 2025 revenues of €200.0m (down 4% YoY) and adjusted Group EBITDA of €3.1m (down from €7.8m in Q1 2024).

How much did Evotec receive from Bristol Myers Squibb in Q1 2025?

Evotec received US$75m in performance-based and program-based payments from Bristol Myers Squibb for achievements in their molecular glue degraders partnership.

What is Evotec's revenue guidance for 2025?

Evotec expects full-year 2025 group revenues in the range of €840-880m, compared to €797.0m in 2024.

What is Evotec's growth target for 2024-2028?

Evotec targets a compound annual growth rate (CAGR) of 8-12% for group revenues from 2024 to 2028, with an adjusted EBITDA margin expected above 20% by 2028.

How did Just - Evotec Biologics perform in Q1 2025?

Just - Evotec Biologics showed strong performance with external revenues increasing 11% to €59.4m compared to €53.5m in Q1 2024.