Evotec SE Q4 FY2025 earnings call

• 2025 was a year of significant progress with laying groundwork for sustainable and profitable growth, introducing a new company strategy with four levers of midterm value creation. - Discovery and Preclinical Development had robust clinical and scientific advancement across key therapeutic areas, with partnered assets moving into clinical studies and milestones from collaborations with BMS and Bayer. - Just - Evotec Biologics had a breakthrough year with a strategic pivot, a key agreement with Sandoz, and progress in global health programs. - Introduced Horizon initiative for operating model transformation across operations, science, and commercial execution, including site streamlining, scientific leadership consolidation, and commercial organization expansion.

Discovery and Preclinical Development: In 2025, revenues declined by EUR 82.5 million or 13.5% to EUR 528.9 million for the full year, driven by a challenging early - stage drug discovery environment. Just - Evotec Biologics: Revenues increased by EUR 73.8 million or 39.8% to EUR 259.4 million for the full year 2025 compared to 2024, driven by the Sandoz partnership and non - Sandoz, non - DoW customer growth. In Q4 2025, Just - Evotec revenues increased by EUR 59.4 million or 104.2%.

• Full year 2026 group revenues guided to approximately EUR 700 million to EUR 780 million, with adjusted group EBITDA expected to fall within approximately EUR 0 million to EUR 40 million at incurred foreign exchange rates and EUR 10 million to EUR 50 million at constant exchange rates. - First half of 2026 expected to be weaker due to early drug discovery market softness and non - repeat of certain items, second half expected to strengthen with increasing strategic partnerships and market recovery. - Horizon transformation expected to have structural run rate savings of approximately EUR 75 million by end of 2027, with 20% - 30% materializing in 2026 and remaining in 2027. - Midrange framework through to 2030 expects group revenues to grow to over EUR 1 billion, adjusted EBITDA margin to reach 20% by 2028 and exceed by 2030.

• Risk of customer disruption from talent loss due to Horizon - related workforce reductions and site consolidations, though Evotec has been in constant dialogue with customers and sees no material risk currently. - Uncertainties around the timing and amount of milestone payments and royalty streams from various partnerships and asset sales.

Q: Appreciated 40% year - over - year growth figure for non - Sandoz, non - DoW business in JEB segment, could give more detail on starting point in 2025; regarding future nature of BMS, can we assume more royalty milestone - based remuneration plan; current clinical plans BMS has for other asset in Phase I.

A: Paul stated non - DoW, non - Sandoz revenue growing 40%, expected to be about 50% of overall Just business by end of '26 compared to 25% in 2024 and 30% in 2025; Christian and Paul mentioned BMS program was constructed with increasing milestones and royalties; Cord mentioned can't comment on BMS clinical asset intentions but Evotec is excited about the program.

Q: Near - term focused on 2026, color on market recovery vs self - help from new commercial efforts; guidance on BMS for 2026 and milestone payments; assumptions around milestones related to BMS.

A: Christian and Cord said it's hard to split market and self - help in proposal and deal activities, expect BMS trough in 2026 with high single - digit decline relative to 2025, $10 million milestone in first quarter and similar in second half.

Q: On Horizon implementation, risk of customer disruption from talent loss and managing project continuity with BMS; post Toulouse site sale, quantify expected development revenues, milestones and timing of royalty stream from 10 biosimilar molecules and first biosimilar to market.

A: Christian said no material risk from Horizon - related talent loss as there's been no negative customer feedback; Paul said by 2028 around 10% of Just revenue from new products and licenses, royalties kick in beyond 2028 linked to LOE dates of disclosed drugs.

Q: Higher - level question on AI and its opportunity for JEB business.

A: Christian said AI is integral to Evotec's drug discovery platforms, seen from biopharma and AI companies, and could drive volume up.

Q: Follow - up on D&PD in 2026, clarification on orders and what's underpinning second half growth; pacing of Horizon going forward.

A: Christian said second half low single - digit growth for D&PD is mix of stand - alone business, integrated business and strategic deals, with prospects increasing leading to better sales order trajectory; Horizon site closures and workforce reductions subject to consultation processes with local workers councils.

Q: Follow - up on Tubulis upfront and other meaningful stakes in portfolio.

A: Christian said there are about 29 - 30 companies left in the portfolio, see upside in future but can't quantify or time it exactly.