Sartorius Stedim Biotech: Free Cash Flow Up 58.5% Over Nine Months, Targets Confirmed
Over the first nine months of 2026, Sartorius Stedim Biotech increased its operational activity by 7.8% at constant exchange rates, a pace above the published growth of 4.3% in revenue. Part of the variance stems from compensation payments to customers for American customs surcharges invalidated by the U.S. Supreme Court. These amounts are recorded as a reduction in revenue and cost of sales, with no net impact on profitability according to the group. In this context, the bioprocess equipment manufacturer based in Aubagne published on October 22, 2026 underlying EBITDA up 4.8%, free cash flow increasing 58.5%, and confirmed its sales and margin targets for fiscal year 2026.
Sales of €2,289 Million Over Nine Months, Growth Across All Regions
Revenue for the first nine months reached €2,289 million, compared to €2,195 million a year earlier. Incorporating customer compensation, which amounted to €28 million over the period, growth stood at 6.5% at constant exchange rates. Excluding this effect, it reached 7.8%. Consumables, which constitute recurring business, remained the primary driver, while bioprocess equipment also advanced. The EMEA region achieved €982 million in sales (+6.5% at constant rates) and Asia-Pacific €524 million (+10.6%), with a positive contribution from China. The Americas region, most affected by customs compensation, generated €783 million in sales: growth there is 7.6% at constant rates excluding this effect, and 3.9% including it. In the third quarter alone, the group's revenue reached €762.1 million, up 8.0% in reported data and 6.8% at constant rates, including compensation.
EBITDA Margin Slightly Up and Free Cash Flow of €264 Million
Underlying EBITDA increased 4.8% to €716 million, bringing the corresponding margin to 31.3%, compared to 31.1% over the first nine months of 2025. According to the group, volume effects and economies of scale more than offset an unfavorable product mix effect. In the third quarter alone, the margin stood at 31.1%, compared to 31.3% a year earlier. Net income reached €277 million, compared to €218 million, a 26.7% increase. Underlying net income increased 9.4% to €350 million and underlying earnings per share rose from €3.28 to €3.59. On the cash front, operating cash flows increased 11.6% to €498 million, supported by results and customs refunds received. Investments were reduced to €232 million, compared to €276 million, representing 10.1% of revenue versus 12.6%. Free cash flow thus reached €264 million, compared to €167 million. As of September 30, 2026, gross debt amounted to €2,310 million, compared to €2,599 million at end of 2025, and cash to €172 million, compared to €426 million. Net debt stands at €2,138 million and the net debt to underlying EBITDA ratio returned to 2.26, compared to 2.38 at December 31, 2025. The equity ratio increased from 51.7% to 54.6%.
Growth of 6 to 10% Confirmed, Investments Revised Downward
Management confirmed targeting revenue growth of approximately 6 to 10% at constant exchange rates for 2026. Operational growth excluding customs effects is expected around the middle of this range, and in its lower half when including customer compensation. The latter could reduce revenue by up to €35 million compared to initial assumptions. The group still expects an underlying EBITDA margin slightly above 31%. The investment to revenue ratio is now expected around 13%, slightly below the 13.3% level previously envisioned, and the debt ratio should return slightly above 2. Management also emphasized increased uncertainty in forecasts, linked to the evolution of trade policies and the geopolitical context. These figures are published as the share crossed the resistance level of €218.80 on October 14, 2026. According to the consensus of surveyed analysts, the stock trades at approximately 43.6 times expected earnings for the current fiscal year. Over nine months, operational growth of 7.8% falls within the confirmed annual range.
