Eurofins Makes Significant Progress in H1 2026 Towards Its Mid-Term 2027 Objectives, With 130bps of Adjusted EBITDA Margin Expansion, Strong Cash Conversion, and 29% EPS Growth

LUXEMBOURG--(BUSINESS WIRE)--Regulatory News:

Eurofins (Paris:ERF):

Financial highlights in H1 2026

• Basic EPS⁸ grew 29% to €1.55 in H1 2026 vs €1.20 in H1 2025, as Eurofins continued to accumulate the operational benefits from the five-year investment programme in its hub and spoke network of laboratories and digitalisation initiatives.
• Revenues of €3,701m increased by 2.5% as reported including a 2.9% headwind from foreign currency, and 2.7% organically¹³. Organic growth¹³ improved as the half progressed, with stronger performance in Life and Consumer & Technology Products Testing. There was no significant growth effect from public working days.
• The Adjusted¹ EBITDA³ margin¹⁸ reached 23.7% on total reported revenues in H1 2026, already approaching Eurofins’ mid-term (2027) objective for the Group, and representing 130 bps of expansion vs 22.4% in H1 2025. Adjusted¹ EBITDA³ was €877m, which is an 8% increase over H1 2025.
• The Reported EBITDA³ margin on €3,462m mature¹⁴ revenues achieved 25.1%, while the EBITDA³ losses on the non-mature scope startup & in integration perimeter, shown as Separately Disclosed Items (SDI) ² continued to reduce to €8m.
• The Reported EBITAS⁴ margin on mature¹⁴ revenues was 17.5%.
• Total SDI² at the EBITDA³ level was €15m, decreasing to 0.4% of revenues in H1 2026 from 1.0% in H1 2025. In H1 2026, SDI² included two one-time legal settlement gains totalling €19m. Excluding this benefit, SDI² still decreased year-on-year, as the profitability of non-mature businesses improved.
• As a result, Reported EBITDA³ of €862m was 11% higher year-on-year, with 190 bps of margin expansion to a Reported EBITDA³ margin of 23.3% in H1 2026, vs 21.4% in H1 2025.
• Free Cash Flow to the Firm before investment in owned sites¹⁶ was €469m in H1 2026, which is a 33% increase year-on-year, and in line with Eurofins’ stated objectives. Cash conversion²¹ was strong at 47%, significantly above the 36% recorded in H1 2025, reflecting lower capex and continued working capital discipline.
• Net debt¹¹ at the end of June 2026 was €3,854m. The resulting leverage ratio of 2.2x was unchanged from the end of December 2025, and is within Eurofins’ target range of 1.5-2.5x. Stable leverage was delivered while also returning significant capital to shareholders, with an investment of €206m in share repurchases in the half year, net of proceeds from exercise of Long Term Incentives.

Comments from the CEO, Dr Gilles Martin:

“I am pleased by Eurofins’ operational performance in the first half of 2026. As we enter the advanced stages of our investment programme, the financial profile described by our mid-term objectives is quickly becoming evident. Profitability is almost at our objective for 2027 with more than a year still to go, and as we move beyond the peak investment levels, lower capital expenditure is contributing to significantly higher cash generation.

Organic revenue growth has not yet returned to a normal level, although there was improvement as H1 progressed. Environment Testing activity rebounded well from the severe weather impacts of the first quarter, and while growth in BioPharma remained slow, particularly in the ancillary activities, we expect some acceleration in the second half of the year.

However, the first half of 2026 demonstrates that Eurofins’ ability to drive significantly higher returns is not dependent on the precise timing of end market recovery. Key drivers of realising the benefits of the hub and spoke network, maturing start-up investments, and the completion of projects to fully digitalise the laboratory network, are based on our teams’ delivery rather than on external factors, and the progress already achieved year-to-date illustrates that they are moving ahead at pace.

At the same time, the strength of the balance sheet and cash generation, with 32.6% growth in Free Cash Flow to the Firm before investment in owned sites¹⁶ and 46% growth in Free Cash Flow to the Firm¹⁰, has enabled Eurofins to allocate capital both to acquisitions, and also to repurchasing its own shares at what is still an historically low valuation, as further levers to create shareholder value.

The agreement to purchase Element Materials Technology’s Life Sciences Testing Services business in North America, announced on Monday 20 July 2026, is an illustration of the benefits of focus on few activities where excellence in service to clients can be delivered. This trend to focus on core activities is accelerating in the TIC sector, and the performance gap between highly specialised companies and diversified players appears to be increasing.”

Strategic highlights in H1 2026

• Eurofins continued to invest in its network in H1 2026, increasing its net surface area of laboratory, office and storage space by 17,000m², resulting in a total net floor area of 1,895,000m² at the end of June 2026. In line with the strategy to lease less and own more of its strategic sites, with land reserved for future expansion, Eurofins added 21,600 m² in total surface area of owned sites, while the surface area leased from third parties decreased by 4,600 m².
• Key projects delivered included new state-of-the-art sites for Environment Testing at Amersfoort in the Netherlands and Jena in Germany, adding new capacity and incorporating significant new process automations. Bringing these facilities into operation represents an important step towards Eurofins’ strategic priority of completing best-in-class hub and spoke networks for the European Life businesses.
• Investment in acquisitions continued in H1 2026, with Eurofins closing 17 transactions with FY 2025 pro-forma revenues of over €80m, at a cost of €138m. Transactions comprised 10 acquisitions in Europe, 6 in North America, and 1 in the Rest of the World; covering all major areas of activity. Acquisitions are an established source of value creation for Eurofins, with acquired businesses benefitting from the breadth of customer offering and the economies of scale of the hub and spoke laboratory networks.
• The Group’s multi-year programme of start-up investments also progressed, with 12 new start-up laboratories and 4 new start-up blood collection points (BCPs) established in H1 2026. The 345 start-ups and 141 BCPs launched since 2000 have made material contributions to the overall growth of the Group, accounting for 0.4% of the organic growth¹³ achieved in H1 2026.
• Eurofins returned substantial capital to shareholders in H1 2026, repurchasing 3,653,476 shares through buyback programmes at an average price of €63.04 per share.
• Eurofins has continued to review its portfolio actively. As part of this, Eurofins signed an agreement in June 2026 to divest a small loss-making clinical testing business in the Netherlands, that due to local regulatory constraints had no prospect of achieving target returns. This is in addition to both the agreement announced in April 2026 to divest Eurofins’ Electrical & Electronic Testing business to UL Solutions, and the divestment of another clinical testing business in the Netherlands in January 2026, and is aligned with Eurofins’ ongoing focus on allocating capital towards its core testing for life capabilities.
• Eurofins delivered significant innovation across the portfolio in H1 2026, with contributions to Testing for Life including:
  • Eurofins companies expanded their Hantavirus testing capabilities to support health authorities monitoring the Hantavirus outbreak and developments related to the Andes strain. Leveraging expertise across Eurofins Viracor, Eurofins Clinical Diagnostics Spain, Eurofins Biomnis and Gold Standard Diagnostics, Eurofins offers a broad range of molecular and serological testing solutions, including PCR, next-generation sequencing (NGS) and ELISA-based assays. These capabilities support the rapid detection and monitoring of Hantavirus infections and demonstrate Eurofins’ ability to respond quickly to emerging public health threats and evolving diagnostic needs.
  • Eurofins CDMO Alphora implemented an AI-enabled platform for high-throughput salt and co-crystal screening as part of its solid-state development services. Developed in collaboration with a local university, the machine-learning-based solution predicts salt and co-crystal formation for active pharmaceutical ingredients and intermediates, accelerating candidate selection, streamlining solid form selection by minimizing trial and error experimentation, shortening development timelines, and lowering screening costs.
  • Eurofins Viracor expanded its immunology testing portfolio with the launch of new plasma-based assays for CXCL9, CXCL10 and IL-18, to support minimally invasive immune monitoring in solid organ transplant, hematopoietic cell transplant, and other immunocompromised patient populations. These three new biomarkers are available as individual assays with 24-hour turnaround time, enabling faster, more informed immune monitoring alongside Eurofins Viracor's broader transplant and immunology portfolio.

Objectives

Eurofins is confirming its objectives for FY 2026, for the mid-term (post-2027) and for FY 2027:

• For FY 2026:
  • Eurofins targets mid-single-digit organic growth¹³ and potential annualised revenues from acquisitions of €250m, consolidated at mid-year (€125m consolidated impact in 2026). Organic growth will depend on the speed of pick-up of business in certain ancillary activities, and the end of contraction in others.
  • The adjusted¹ EBITDA³ margin¹⁸ is expected to show further progress towards the 2027 objective, with improvement above FY 2025 margin¹⁸ of 22.5%.
  • SDI² at the EBITDA³ level should further decline from the FY 2025 level
  • FCFF¹⁰ is expected to grow, with continued strong cash conversion²¹.

• In the mid-term and for FY 2027:
  • Eurofins confirms its long-term average organic growth¹³ objective of 6.5% p.a. driven by secular growth trends in its end markets and recovery of ancillary Biopharma activities, as well as its target for potential average revenues from acquisitions of €250m p.a. over the period consolidated at mid-year.
  • The adjusted¹ EBITDA³ margin on total revenues¹⁸ objective for FY 2027 remains 24%.
  • The objective for SDI² at the EBITDA³ level remains about 0.5% of revenues in FY 2027.
  • Further increases in FCFF¹⁰ and ROCE¹⁹ are expected as Eurofins completes its 5-year (2023-2027) investment programme. The objective for cash conversion²¹ in FY 2027 remains above 50%.
  • Eurofins targets to maintain a financial leverage in the range of 1.5-2.5x in the mid-term.

• Net operating capex is expected to remain at around €400m per year. In addition, investment to own Eurofins’ larger state-of-the-art sites will continue and is assumed to be around €200m annually in 2026 and 2027.
• These objectives assume average exchange rates that are unchanged from FY 2025. Actual results for each year will depend on the development of individual end markets, exchange rates, the evolution of inflation and the quantum and cost of M&A, among other factors.

Conference Call

Eurofins will hold a conference call with analysts and investors today at 14:00 CET to discuss the results and the performance of Eurofins, as well as its outlook, and will be followed by a questions and answers (Q&A) session.

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Business Review

The following figures are extracts from the Condensed Interim Consolidated Financial Statements and should be read in conjunction with the Condensed Interim Consolidated Financial Statements and Notes for the period ended 30 June 2026. The Half Year Report 2026 can be found on Eurofins’ website at the following link: https://www.eurofins.com/investors/reports-and-presentations/.

Alternative performance measures and separately disclosed items² are defined at the end of this press release.

Table 1: Half Year 2026 Results Summary

Revenues

Reported revenues increased year-on-year to €3,701m in H1 2026 vs €3,612m in H1 2025, supported by organic growth¹³ of 2.7% (2.7% excluding adjustment for public working days); and by acquisitions, which contributed €23m to consolidated revenues in H1 2026. Note that H1 2025 pro-forma revenues include a contribution of €94m from acquisitions that were completed, but not consolidated, in FY 2025. Growth also included a year-on-year headwind of 2.9% from foreign currency, although this impact was significantly reduced in the second quarter.

Table 2: Organic Growth¹³ Calculation and Revenue Reconciliation

Table 3: Breakdown of Revenue by Operating Segment

Europe

• Reported revenues increased in H1 2026 vs H1 2025 by 5.7%, driven by organic growth¹³ of 2.0%, and the benefit of acquisitions, notably SYNLAB’s clinical diagnostics operations in Spain which were only partially consolidated in H1 2025.
• Food & Feed Europe delivered solid market momentum during H1 2026, supported by mid-single-digit organic growth¹³ across most geographies and end markets. While activity was impacted by unusually adverse weather conditions during January, resulting in a slower start to the year, demand and operational performance strengthened throughout the remainder of the period. The business continued to invest in technology and digitalisation, including progress on IT-related initiatives aimed at further improving customer experience and operational efficiency. The business also advanced its footprint optimisation programme and delivered further productivity and efficiency gains across the network. These actions supported a stronger year-on-year profitability trajectory while enhancing scalability and service quality.
• The Environment Testing business in Europe showed clear growth compared with H1 2025, with environmental testing volumes rebounding strongly following a slow Q1. Increasing implementation of major EU environmental legislation remains the primary growth catalyst, driving underlying demand in various sectors including wastewater, drinking water, soil, and remediation programmes across all European markets. Growth in the asbestos testing market is being fuelled by stricter OHS regulations. Expansion in the number of urban wastewater treatment projects in multiple countries linked to the revised EU Urban Wastewater Directive should continue to drive increased testing requirements across Europe. The rollout of the new proprietary eLIMS-NG laboratory software platform is progressing across the Environment Testing network, alongside investments in automation, capacity expansion, and operational efficiency programmes.
• BioPharma Services revenue in Europe was slightly down on the prior year, but strong cost discipline and operational efficiencies still enabled growth in profitability. There was a mixed picture across activities, with growth in Medical Devices testing in H1 and the BioPharma Product Testing business broadly stable, but CDMO declining, including contract ends that have not yet been replaced.
• In Diagnostics, revenue growth was affected by the divestment of an entity in the Netherlands in January, and the implementation of the planned rationalisation of certain loss-making Clinical Diagnostics contracts in the former SYNLAB business in Spain and in Italy. In Spain, the integration project for the acquired operations has been successfully completed with a new leadership team appointed and fully operational. Continuous improvements are being made to operational processes and portfolio management, while work remains ongoing to capture pending synergies.

North America

• Reported revenues declined year-on-year by 2.7%, with organic growth¹³ of 2.0% offset by foreign exchange headwinds, with the depreciation of the U.S. Dollar vs the Euro that mostly affected Q1 2026.
• Food and Feed Testing in North America saw steady growth in the first half of 2026, with continued strength in categories such as GMO and OTC/Retail offset by some headwind from mix, attributable to clients in markets with specific challenges such as meat, produce and infant formula. Footprint expansion has continued, with three new laboratories added to the network in microbiology and food supplement testing, and the addition of further spoke laboratories expected in H2 2026.
• The Environment Testing business delivered mid-single-digit organic growth¹³ in H1 2026, despite a weather-impacted Q1. Market fundamentals remain favorable, supported by ongoing regulatory activity, infrastructure investment, environmental compliance requirements, and continued demand for advanced testing solutions. PFAS testing continues to be an attractive category, with double-digit growth driven by both market share gains and strong expansion in the PFAS remediation market. The drinking water and wastewater segment also continues to benefit from customer projects requiring analytical support in data centres, power utilities, water infrastructure, and port authorities. Investments are being made in the Environment Testing network both to unlock further growth opportunities and improve productivity, with a tripling of its microplastics testing capacity to meet rapidly increasing demand, and a robotics solution for gravimetric processes being rolled out across major laboratories.
• Market conditions for Eurofins BioPharma Services in North America remain varied. In BioPharma Product Testing, growth has stayed solid as Eurofins companies support customers investing in promising candidates in their pipeline, and with onshoring to the US a strong driver of activity for commercial phase support. Demand still remained soft across the ancillary activities. However, growth is expected to improve in both the CDMO and Bioanalytical Laboratories businesses in the second half of 2026, including the Bioanalytical business recovering from the effects of disruption around a site move in H1.
• Consumer Products and Technology Testing was supported by a strong first half in some end markets for Materials testing. There was good growth with semiconductor equipment customers, and from testing for aerospace and defence customers, reflecting the stronger defence spending in the US with the current geopolitical developments.

Rest of the World

• Revenues in Rest of the World increased by 5.2% year-on-year, with organic growth¹³ of 9.1%.
• Growth was solid across the Asia Pacific region, with significant growth from the Food & Feed Testing business line as a result of a strong position for export and domestic testing in Asia, and market share gains in the Pacific region. Ongoing investments in the network include a small Food Testing campus in Vietnam expected to be completed in 2026, a new microbiology laboratory in Indonesia, and the acquisition of a Food Testing business in New Zealand. Other developments included a Quality Assessment of Spice Testing audit of 13 independent laboratories in India, and new milestones reached in several laboratories in China for new analytical methods and U.S. Non-GMO Project official recognition.
• Latin America also remained a growth contributor, supported by solid performance across several business lines. In Brazil, the Food Testing business continues to deliver consistent results, with microbiology and chemical testing laboratories operating at high capacity to meet strict EU and US audit standards. In addition, Colombia is cementing its position in the BioPharma business as a regional pharmaceutical hub, with both local and multinational clients driving high demand for stability testing, bioequivalence trials, and pharmaceutical microbiology.

Table 4: Breakdown of Revenue by Area of Activity

Infrastructure Programme

In the first six months of 2026, Eurofins increased its net surface area of laboratory, office, and storage space by 17,000 m², resulting in a total net floor area of 1,895,000 m² at the end of June 2026.

For more information, please visit www.eurofins.com or contact:

Investor Relations
Eurofins Scientific SE
Phone: +32 2 766 1620
E-mail: ir@sc.eurofinseu.com