The drastic guidance cut and worsening cash burn signal a company in deep operational distress. The Horizon restructuring is a multi-year turnaround with execution risk. Monitor Q3 2026 results (Nov 5) for any sign of revenue stabilization or further cash deterioration. The ongoing strategic evaluation could result in asset sales or a merger, creating binary event risk.
Price Chart
Executive Summary
Evotec SE reported H1 2026 results showing a sharp decline in financial performance, with Group revenues falling 19.2% YoY to €300.1m and Adjusted Group EBITDA swinging to a loss of €42.7m from a loss of €1.9m. The company confirmed a drastically reduced FY2026 outlook, now expecting revenues of €570-610m (from €700-780m) and Adjusted EBITDA of -€70 to -€105m (from €0-40m), citing partnership timing shifts and lower revenue conversion. While management highlights 28% growth in D&PD net sales ex-strategic partnerships as a positive leading indicator, the headline numbers represent a severe deterioration in the core business, compounded by €98.9m in Horizon restructuring charges and a €42.3m asset impairment.
Key Facts
- H1 2026 Group revenue decreased 19.2% YoY to €300.1m (€371.2m in H1 2025)
- Adjusted Group EBITDA was -€42.7m vs -€1.9m in H1 2025
- FY2026 guidance slashed: revenue now €570-610m (prev. €700-780m), Adj. EBITDA -€70 to -€105m (prev. €0-40m)
- Net loss widened to €168.6m from €75.1m, driven by €98.9m in reorganization costs and €42.3m in asset impairments
- Operating cash flow worsened to -€111.1m from -€5.3m
- Equity ratio fell to 42.3% from 47.5% at year-end 2025
- D&PD segment gross margin collapsed to 4.4% from 15.3%; JEB gross margin turned negative at -18.3% from 9.1%
- Issued €116.1m convertible bonds due 2033 to finance Horizon restructuring
Financial Impact
FY2026 revenue guidance cut by ~18% at midpoint (€590m vs €740m); Adj. EBITDA guidance cut by ~€105m at midpoint (-€87.5m vs +€20m). H1 operating cash burn of -€111.1m.
Risk Factors
- Further revenue deterioration if partnership timing shifts extend into 2027
- Cash burn may accelerate if Horizon cost savings are delayed or insufficient
- Potential goodwill impairment if the business does not stabilize
- Dilution risk from the €116.1m convertible bond (conversion price €6.53 vs current stock price)
- Going concern risk if operating losses persist and liquidity erodes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-095267 |
| Document: tm2623114d1_ex99-2.htm | 0001104659-26-095267 |
| Document: tm2623114d1_6k.htm | 0001104659-26-095267 |
| Document: 0001104659-26-095267-index-headers.html | 0001104659-26-095267 |
| Document: 0001104659-26-095267-index.html | 0001104659-26-095267 |
| Document: 0001104659-26-095267.txt | 0001104659-26-095267 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 6-K | $1.42 $1.38 | ▲ +2.82% | ▲ +1.71% | $1.52 (−7.04%) |
Oct 14, 2026 12d ago | SC 13D/A | $1.42 $1.38 | ▲ +2.82% | ▲ +1.71% | $1.52 (−7.04%) |
Oct 14, 2026 13d ago | 6-K | $1.43 $1.42 | ▲ +0.35% | ▲ +0.64% | $1.52 (−6.67%) |
Sep 29, 2026 28d ago | 6-K | $1.64 $1.71 | ▲ +4.27% | ▲ +4.47% | $1.52 (−7.32%) |
Sep 9, 2026 6w ago | 6-K | $1.81 $1.77 | ▼ −2.21% | ▼ −1.61% | $1.52 (−16.02%) |
Aug 13, 2026 10w ago | 6-K | $2.02 $1.96 | ▲ +2.97% | ▲ +2.77% | $1.52 (+24.75%) |
Jul 13, 2026 15w ago | Press Release | $2.43 $2.14 | ▲ +11.93% | ▲ +12.29% | $1.52 (+37.45%) |
Jun 30, 2026 16w ago | 6-K | $2.80 $2.85 | ▲ +1.79% | ▲ +1.92% | $1.52 (−45.71%) |
Jun 17, 2026 18w ago | 6-K | $2.61 $2.56 | ▼ −1.92% | ▼ −2.70% | $1.52 (−41.76%) |
US Market Status
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