Evotec surges in Q4 as Sandoz partnership drives EBITDA growth

Evotec (NASDAQ:EVO) reported strong financial results for the fourth quarter and full-year 2025 on April 8, 2026, delivering performance at the high end of its guidance and signaling the start of a major operational transformation under its new "Horizon" model.

The Hamburg-based drug discovery and development company saw group revenues for the fourth quarter rise to €253.3 million, a 14% increase compared to €221.2 million in the final quarter of 2024.

The growth was significantly amplified at the bottom line, with adjusted group EBITDA soaring 103% to €58 million.

This surge was primarily fueled by a €65 million incremental license payment from Sandoz, following a strategic agreement finalized in December 2025.

For the full year ended December 31, 2025, Evotec generated revenues of €788.4 million, representing a slight 1.1% decline from the previous year.

Despite the flat top-line growth, the company successfully executed aggressive cost-containment strategies.

Adjusted group EBITDA for the full year reached €41.1 million, nearly doubling the €22.6 million reported in 2024.

The company ended 2025 with a liquidity position of €476 million.

This financial stability was achieved through a combination of technology-driven revenue from the Just – Evotec Biologics segment, strategic equity divestments, and a 38% year-over-year reduction in capital expenditures (CAPEX) as part of a move toward a "CAPEX-lighter" business structure.

R&D expenses were also tightly managed, falling to €37.5 million—roughly 4.8% of total revenue—compared to over €50 million in the prior year.