Evotec SE Reports Narrowed Net Loss for First Half of 2025
Narrowed net loss in the first half for Evotec, yet revenue decreased; maintains annual revenue forecast
Evotec SE, a leading biopharmaceutical company, has announced a narrower net loss for the first half of 2025 compared to the same period in 2024. The company's strategic optimisation in research and development (R&D), growth in its biologics segment, and cost reductions have contributed to this improvement.
The operating loss for 2025 narrowed significantly to €47.782 million from the prior year's loss of €122.813 million. Income tax expenses for 2025 were €1.785 million, a stark contrast to the profit of €15.632 million in 2024. Research and development expenses for 2025 were reduced by 35% to €18.969 million, aiming to better align investments with partner relevance.
Selling, general, and administrative expenses for 2025 were €89.308 million, a slight decrease from €91.905 million in 2024. The revenue for Discovery and Preclinical Development in 2025 was €268.969 million, a decline of 11% from the previous year's €302.379 million. This decrease was primarily due to a soft market and a temporary drop in revenues from BMS.
However, the company's Just - Evotec Biologics revenues rose 16% to €102.2 million, driven by expansion with non-Sandoz and Department of Defense (DOD) customers. This growth helped to offset the decline in other segments.
First half adjusted EBITDA was slightly negative at €1.9 million, reflecting operational challenges but offset by biologics gains. Gross profit for H1 2025 stood at €35.8 million, down from €50.5 million in H1 2024, due to decreased revenue.
Evotec's cash flow benefited from a pending $300 million sale of its Toulouse site and $150 million share buybacks, enhancing capital efficiency. The company is focusing on high-margin and high-growth areas, including Just - Evotec Biologics and molecular patient data platforms.
Strategic partnerships, such as with BMS and the Gates Foundation, and ESG initiatives, like animal testing reduction and ISO 14001 certification, are designed to bolster long-term competitiveness and investor appeal. Full-year 2025 revenue estimates have been revised down to approximately €990 million (from €1.10 billion), with earnings expected at about -€0.51 per share, reflecting cautious optimism amid market softness.
The Group expects revenue for fiscal 2025 to be between €760 million and €800 million. Other operating expenses for 2025 declined to €5.601 million from last year's €7.933 million. Research and development expenditure for fiscal 2025 is expected to be between €40 million and €50 million. The Group expects adjusted EBITDA for fiscal 2025 to be between €30 million and €50 million.
Total non-operating expense for 2025 increased to €25.488 million, up from €8.423 million in 2024. Net loss per share for 2025 was €0.42, compared to a loss of €0.65 per share in 2024. The net loss for the six-month period to June 30, 2025, was €75.055 million, compared to €115.605 million in 2024. Loss before taxes for 2025 was €73.270 million, compared to a loss of €131.236 million in 2024.
Overall, Evotec is shifting toward an asset-light, more scalable business model, cutting low-margin projects and investing in innovation clusters with strong collaborator interest to support future profitable growth and leadership in biopharmaceutical innovation.
[1] Evotec SE Reports Narrowed Net Loss for Q2 2025 [2] Evotec SE's First Half 2025 Results [3] Evotec SE's Focus on High-Margin and High-Growth Areas [4] Evotec SE's Strategic Partnerships and ESG Initiatives [5] Evotec SE's Revised Full-Year 2025 Revenue Estimates
- Evotec SE's strategic partnerships in the finance sector, such as with BMS, are designed to bolster its long-term competitiveness and investor appeal within the industry.
- The company's focus on high-margin and high-growth areas, including Just - Evotec Biologics, is expected to bring significant revenue in the business sector for the remainder of 2025.
