Lonza Lifts Margin Outlook After H1 Profit Jumps 44% on Strong Demand

Lonza Group AG (SIX:LONN) reported a 44% increase in its first-half profit and raised its full-year margin guidance, signaling strong momentum driven by high demand for its contract manufacturing services.

First-Half Financial Performance

The Swiss life sciences firm announced on Tuesday that profit from continuing operations for the six months ending June 30 reached CHF 572 million ($630 million), a substantial rise from the CHF 396 million recorded in the same period a year earlier.

Core EBITDA, a key measure of profitability, climbed 27.4% to CHF 1.18 billion. The company attributed the strong earnings to sustained commercial demand, improved operating leverage, a favorable product mix, and disciplined cost management.

Upgraded 2026 Outlook

Buoyed by the strong first-half execution, Lonza upgraded its profitability forecast for the full year. The company now expects its 2026 CORE EBITDA margin to be in the range of 33% to 34%, an increase from its previous guidance of above 32%.

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Lonza reaffirmed its full-year sales growth forecast, continuing to project an expansion of 11% to 12% at constant exchange rates.

Strategic Drivers

Lonza's performance was particularly strong in its contract development and manufacturing business, with notable demand in its Advanced Synthesis and Specialized Modalities units.

The company's confidence in its outlook is also supported by recent strategic developments. These include the expansion of a manufacturing collaboration with a major U.S. biopharmaceutical company and an announcement of additional commercial-scale capacity for antibody-drug conjugates (ADCs) in Switzerland.