Evotec stock narrows Q3 loss as 2026 outlook holds

Evotec reported a sharp improvement in quarterly profitability on November 5, 2026, while keeping its full-year outlook unchanged. The company's official results release said third-quarter revenue was broadly stable and that the adjusted EBITDA loss narrowed substantially as the Horizon transformation reduced the cost base.

Group revenue reached 164.9 million euros in the third quarter, compared with 163.9 million euros a year earlier. Adjusted Group EBITDA improved to a loss of 1.6 million euros from a loss of 15.0 million euros in the prior-year quarter, an 89.1% year-over-year improvement. Evotec attributed the progress primarily to lower cost of revenue. The results were published in the company's results release.

Quarterly improvement meets weaker nine-month base

The nine-month figures remained more challenging. Revenue fell 13.1% to 465.0 million euros from 535.1 million euros in the same period of 2025. Adjusted Group EBITDA declined to a loss of 44.3 million euros from a loss of 16.9 million euros. Evotec said the lower revenue base was only partly offset by lower costs.

The segment picture was mixed. Discovery and Preclinical Development revenue declined 2.3% year over year to 120.1 million euros in the quarter, while its adjusted EBITDA loss narrowed to 1.0 million euros from 9.5 million euros. Just - Evotec Biologics increased quarterly revenue 9.4% to 44.8 million euros and reduced its adjusted EBITDA loss to 0.6 million euros from 5.5 million euros. The nine-month comparison for that business was affected by a 25 million US dollar Sandoz license sale recorded in the first quarter of 2025.

Guidance remains unchanged

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

The Horizon program is central to the recovery plan. Evotec said it had delivered more than 20% of its 75 million euro annual run-rate savings target by the end of September. Three of four planned site closures are expected to be completed by year-end, with the final closure targeted for the first quarter of 2027.

Long-term targets raise execution demands

Evotec also outlined a 2030 framework calling for around 1 billion euros in Group revenue, with additional upside potential. The company targets an adjusted EBITDA margin of 20% by the end of 2028 and more than 20% by the end of 2030. The plan assumes greater contributions from the Discovery and Preclinical Development base business, strategic partnerships and Just - Evotec Biologics.

Evotec stock traded at 3.17 euros on Lang & Schwarz at 12:02 CET on Tuesday, November 10, 2026, 0.96 percent above the Xetra close of Monday, November 9. The move places the stock close to the lower end of its reported 52-week range and leaves the market focused on whether the quarterly margin improvement can translate into stronger revenue conversion and cash generation.

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