Investors delivered a harsh verdict on Evotec SE’s latest strategic update, sending the company’s stock price tumbling approximately 14% to a fresh 52-week low of €4.61. The sell-off was triggered not solely by the announcement of a deep restructuring plan, but more critically, by a disappointing financial forecast for the coming year.
A Restructuring Plan Met with Skepticism
The biotech firm unveiled its “Horizon” program, a comprehensive reorganization designed to streamline operations. The plan involves reducing its global footprint to ten sites and cutting up to 800 positions. While the restructuring aims to generate annual savings of around €75 million from 2027 onward, it comes with a price tag of approximately €100 million in implementation costs through 2028.
The market’s negative reaction, however, centered on the guidance for 2026. Evotec anticipates revenue between €700 million and €780 million for the year. Even the top end of this range falls short of market expectations and below the preliminary 2025 revenue figure of roughly €788 million. More concerning to analysts was the adjusted EBITDA target, projected to be between zero and €40 million.
Charles Weston, an analyst at RBC Capital Markets, echoed widespread investor doubt, stating he simply could not reconcile the weak operational earnings target set for 2026.
Should investors sell immediately? Or is it worth buying Evotec?
Diverging Performance in Core Operations
The company’s 2025 preliminary results presented a mixed picture, highlighting the need for change. The core Drug Discovery & Preclinical Development unit struggled, with revenue declining 13% to about €529 million and adjusted segment EBITDA turning negative.
In contrast, the Just – Evotec Biologics segment showed robust growth, boosting revenue by roughly 40% to €259 million and contributing a positive adjusted EBITDA of approximately €53 million. The new “Horizon” program is structured around three pillars—Operations, Science, and Commercialization—to refocus the business on profitability.
Long-Term Goals Stand, But Credibility is Tested
Despite the challenging near-term outlook, Evotec’s leadership reaffirmed its medium-term ambitions. The company aims to grow revenue to over €1 billion by 2030 and achieve an adjusted EBITDA margin of 20% by 2028. Chief Financial Officer Paul Hitchin indicated the first operational benefits from the restructuring should materialize in the second half of 2026.
For shareholders, the central question remains the credibility of these targets. The company has recently navigated a series of setbacks, including a significant cyberattack, management changes, and accounting issues, which have eroded trust. The market is likely to await further clarity on April 8th, when Evotec is scheduled to release its audited 2025 results and provide more detailed mid-term financial goals.
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