Eurofins Scientific: Sluggish Growth in Q1, Yet Margins Impress
In the first quarter of 2026, Eurofins Scientific reported an organic growth of 2.5%, hindered by extreme weather conditions in Northern Europe and North America, as well as by the rationalization of loss-making contracts. Despite this moderate revenue momentum, the company has made significant progress in profitability and margins, maintaining its targets for the current fiscal year.
Revenue Analysis and Geographical Impact
Eurofins reported revenues of EUR 1,789 million in Q1 2026, a 1.3% increase compared to the same period in 2025. However, this overall growth conceals two distinct trends. On one hand, the group's organic growth stood at 2.5% (or 2.6% adjusted for public holidays). On the other hand, this growth was tempered by a currency headwind of -4.8%, as the euro appreciated against most currencies compared to the same period last year. Geographically, organic growth varied significantly: Europe saw a growth of 1.7%, hampered by extreme weather conditions affecting agri-food and environmental testing activities, and by the rationalization of loss-making Clinical Diagnostics contracts in Spain and Italy. In North America, organic growth reached 2.1%, affected by unusually severe storms in January and February, while the rest of the world recorded a robust organic growth of 9.1%.
Profitability and Margin Improvements
The group notes significant progress in profitability and margins in Q1 2026 despite stagnant growth. The EBITDA margin adjustment on total revenues is nearing its 2027 target of 24%, improving from the 2025 margin of 22.5%. This progress is particularly notable given the temporary headwinds on revenue growth. The group continues to invest strategically, completing ten business combinations and asset transactions representing EUR 55 million in 2025 revenues, as well as initiating 5 start-up laboratories and 3 BCPs. CEO Gilles Martin emphasizes that the benefits of digitization initiatives and the transition to a state-of-the-art laboratory network are beginning to materialize. Concurrently, the group has repurchased EUR 110 million worth of shares in Q1 2026.
Reaffirming Goals for 2026 and Beyond
Eurofins reiterates its objectives for 2026 and the medium term. For the current fiscal year, the group aims for a mid-single-digit organic growth and annualized acquisition revenues of EUR 250 million, with EUR 125 million of consolidated impact in 2026. The adjusted EBITDA margin is expected to continue its progression towards the 2027 target, while the group anticipates growth in free cash flow. In the long term, the group confirms its target of an average annual organic growth of 6.5% and an EBITDA margin target of 24% by 2027, with an average annual acquisition contribution of EUR 250 million. The majority of improvement gains are expected to occur in 2027, when the effects of digitization and the completion of the hub-and-spoke networks will be more pronounced. The group also anticipates a partial rebound of revenues lost in Q1 over the course of 2026.
