Evotec Cuts Full-Year Guidance on Partnership Delays, Widening H1 Loss

Evotec AG (ETR:EVTG) has sharply reduced its financial guidance for 2026 after reporting a significantly wider preliminary loss for the first half of the year. The company attributed the downgrade to delays in high-margin partnerships and slower progress in developing new sales channels.

Revised Annual Forecast

Evotec announced on Tuesday that it has lowered its full-year outlook for both revenue and earnings. The company cited revised timings for partnership milestones, which will push a significant portion of expected income into the next year.

• Group Revenue: The new forecast is between €570 million and €610 million, a substantial reduction from the previous range of €700 million to €780 million.
• Group EBITDA: The company now expects an annual loss between €70 million and €105 million, much larger than the prior guidance for a loss of up to €40 million.

Evotec specified that approximately 40% of its existing partnership revenues are now anticipated in 2027 due to these delays.

Preliminary H1 Performance

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The revised guidance follows a challenging first six months of 2026, which saw both revenue decline and losses deepen compared to the prior year.

According to preliminary figures, Evotec's group earnings before interest, tax, depreciation, and amortization (EBITDA) was a loss of €42.7 million ($48.6 million) for the first half. This compares to a loss of just €1.9 million in the same period a year ago. Preliminary group revenue fell to €300.1 million from €371.1 million.

Management Commentary

Despite the setbacks, company leadership indicated that the core business of providing lab services to early-stage drug developers remains in high demand. CEO Christian Wojczewski acknowledged a "challenging start to the year" but noted that "signs of a recovery were now beginning to take hold."

Wojczewski added that Evotec is in advanced discussions with several partners on programs across multiple therapeutic areas, including renal disease, oncology, women’s health, and obesity. These talks signal potential for future revenue streams, though the timing remains a key variable for investors.