Sartorius Stedim Biotech: Strong Q1 at €762M, but Margins Barely Hold
Sartorius Stedim Biotech kicked off 2026 in line with expectations, posting a 7.9% growth in constant currency revenue in the first quarter, driven by the momentum of its consumables. However, the current EBITDA margin slightly declined to 30.7% from 30.8% a year earlier, reflecting pressures from tariffs and the macroeconomic environment. The management has maintained its full-year guidance, expecting growth between 6 and 10% for the entirety of 2026.
Q1 Performance Overview
During the first three months of 2026, the group achieved a revenue of €762 million, up 7.9% at constant exchange rates compared to the same quarter of the previous year. This increase was largely fueled by recurring activities related to consumables for biopharmaceutical product manufacturing. On the other hand, bioprocess equipment activities showed the expected volatility. Geographically, all regions contributed positively: the EMEA region grew by 9.1% at constant exchange rates to €338 million, the Americas recorded a 5.6% increase to €261 million, and Asia-Pacific rose by 9.4% to €162 million. In reported figures, revenue growth was 2.3%, hampered by unfavorable exchange rate effects.
Financial Performance and Investments
The group's current EBITDA grew by 1.9% to reach €233 million in the first quarter, while the current EBITDA margin was set at 30.7%, slightly down from 30.8% in the same period last year. Positive volume effects and economies of scale were partially offset by product mix effects and impacts related to tariffs. The current net income reached €114 million, compared to €113 million a year earlier. Current net income per share was €1.17 (previously €1.16) and net income per share was €0.91 (previously €0.88). Concurrently, the group continued its investments in the global research and production infrastructure, with capital expenditures reaching €70 million versus €65 million the previous year, representing a ratio of 9.1% of revenue.
Outlook for 2026
The management confirmed its forecasts for the full year 2026, aiming for a revenue increase between 6 and 10% at constant exchange rates, with about a 1 percentage point contribution from US customs surcharges. Growth will be primarily driven by consumables activity, while equipment activity is expected to remain at least stable. The current EBITDA margin is expected to increase to just over 31%, supported by volume and scale effects. The net debt to current EBITDA ratio is expected to remain slightly above 2, compared to 2.38 at the end of 2025. The group also anticipates that the capital expenditure to revenue ratio will remain similar to that of 2025 (13.3%). These outlooks reflect, according to management, the solid fundamentals of the biopharmaceutical market, although the company operates in a context of increased volatility related to geopolitical tensions and macroeconomic uncertainties.
