Evotec SE ADR (NASDAQ:EVO) saw its stock decline 12.7% following a downward revision of its revenue guidance for fiscal year 2025, attributed to weaker-than-expected results in its Shared R&D base segment.
The company now anticipates revenues between €760 million and €800 million, a reduction from its earlier forecast of €840 million to €880 million. This updated range suggests a possible decrease compared to the €797 million reported in 2024. Despite this adjustment, Evotec reaffirmed its adjusted EBITDA guidance of €30 million to €50 million and maintained its R&D spending outlook of €40 million to €50 million.
Evotec highlighted that its Shared R&D base business underperformed during the first half of 2025 and expects ongoing challenging market conditions in the latter half of the year. Nevertheless, the company’s long-term targets for 2028 remain intact, aiming for a group revenue compound annual growth rate (CAGR) of 8% to 12% from 2024 to 2028, along with an adjusted EBITDA margin exceeding 20% by 2028.
In April, Evotec unveiled a strategic shift toward sustainable and profitable growth, emphasizing a transition to a less capital-intensive model. The company now anticipates faster-than-expected benefits from this plan, driven by higher-than-forecasted revenue from lucrative technology licensing agreements.
CEO Dr. Christian Wojczewski commented, “The company’s Priority Reset transformation program is now expected to exceed the cost-saving targets announced during its first quarter results call in May.” He added that the evolving revenue mix should have a positive impact on Evotec Group’s margin profile despite the lowered revenue outlook.
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