Financial Results 2024: Strengths and Challenges
Evotec SE presented impressive financial results for the year 2024 on April 17, 2025, while also announcing a new strategy for sustainable profitable growth. Despite operational challenges, the company was able to increase its revenue by 2% to €797 million, particularly thanks to a strong fourth quarter that recorded revenue growth of 10% to €221.2 million. Despite a decline in adjusted EBITDA to €22.6 million, it remained within the projected range of €15 to €35 million.
Segment Development and Cost Efficiency
Within the segments, Just-Evotec Biologics performed particularly well with a 71% increase to €185.6 million, while the Shared R&D segment decreased by 9% to €611.4 million due to a cost-revenue imbalance. One-time expenses of €54.9 million from the “Priority Reset” program led to drastic cost reductions.
New Strategic Direction
Evotec is increasingly focusing on biologics and drug discovery with the expansion of partnerships with companies such as Sandoz, Pfizer, and Novo Nordisk. The “Priority Reset” program is expected to save €40 million annually starting in 2025.
Key growth targets by 2028 include a targeted revenue CAGR of 8–12% and an EBITDA margin of over 20%, based on economies of scale in biologics production.
Stock Price Development & Analyst Opinions
The stock of Evotec saw a decline of 61% in 2024, followed by a significant recovery. Analyst opinions are divided, with “Outperform” ratings from RBC Capital Markets and “Sell” ratings from Deutsche Bank.
Future Outlook
For 2025, Evotec plans revenue between €840–880 million and an adjusted EBITDA of €30–50 million. The improvement in net financing ratios is expected due to higher cash flows from partnerships.
Investors will closely monitor Evotec’s ability to compensate for margin pressure in the Shared R&D area.