Evotec stock nears break-even in Q3 as 2026 outlook holds

Evotec SE reported a sharp improvement in third-quarter profitability on November 5, although the first nine months remained weaker than a year earlier. In a release carried by PR Newswire, the company said quarterly revenue was broadly stable while adjusted EBITDA moved close to break-even.

Evotec stock traded at EUR 3.04 on Lang & Schwarz at 12:11 CET on Wednesday, November 11, 2026, 2.56% below the Xetra close of Tuesday, November 10. The comparison uses the same euro-denominated share and the prior Xetra session close.

Profitability Improves In The Quarter

Group revenue reached EUR 164.9 million in the third quarter, compared with EUR 163.9 million in the prior-year quarter. At constant exchange rates, revenue was EUR 164.2 million. Adjusted Group EBITDA improved to a loss of EUR 1.6 million from a loss of EUR 15.0 million, an 89.1% year-over-year improvement that Evotec attributed primarily to lower cost of revenue.

The improvement was visible in both operating divisions. Discovery and Preclinical Development generated quarterly revenue of EUR 120.1 million and reduced its adjusted EBITDA loss to EUR 1.0 million from EUR 9.5 million. Just - Evotec Biologics increased revenue 9.4% to EUR 44.8 million and narrowed its adjusted EBITDA loss to EUR 0.6 million from EUR 5.5 million.

Nine-Month Results Stay Under Pressure

For the nine months ended September 30, group revenue fell 13.1% to EUR 465.0 million from EUR 535.1 million. Adjusted Group EBITDA declined to a loss of EUR 44.3 million from a loss of EUR 16.9 million in the prior-year period. The lower revenue base was only partly offset by lower cost of revenue.

Evotec said the D&PD base business continued to show commercial momentum, with net sales up 24% year over year during the first nine months. The company also pointed to higher proposal activity, faster proposal turnaround and growth in its customer base. However, D&PD nine-month revenue declined 11.2% to EUR 348.0 million, while JEB revenue fell 18.3% to EUR 117.1 million, partly because the prior-year period included a EUR 25 million Sandoz license sale.

Horizon Supports Long-Term Plan

Management said its Horizon transformation was progressing ahead of plan. By the end of September, more than 20% of the EUR 75 million annual run-rate savings target had been delivered, within the contribution planned for 2026. Evotec expects three of four site closures to be completed by year-end and the final closure in the first quarter of 2027.

Chief Executive Christian Wojczewski said the third quarter reflected stronger commercial execution and progress in Horizon. Chief Financial Officer Claire Hinshelwood said the initiatives were translating into improved profitability and operational momentum, while the company remained focused on sustainable revenue growth, cash generation and cost discipline.

Guidance And 2030 Ambition

Evotec reaffirmed its 2026 outlook for group revenue of EUR 570 million to EUR 610 million and adjusted EBITDA of a loss between EUR 105 million and EUR 70 million. At constant exchange rates, the revenue range is EUR 595 million to EUR 635 million and the adjusted EBITDA range is a loss of EUR 90 million to EUR 60 million. Management expects both measures toward the upper ends of their respective ranges, while cautioning that quarterly performance can vary.

The company also outlined a 2030 framework targeting group revenue of around EUR 1 billion, with an adjusted EBITDA margin of 20% by the end of 2028 and above 20% by the end of 2030. Evotec confirmed the selection of Just - Evotec Biologics by Vertex Pharmaceuticals for commercial manufacturing of povetacicept, adding a potential platform milestone as the biologics business scales.

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