Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sartorius Stedim Biotech SA SDMHF reported a solid top-line growth of 7.7% on an operational basis in H1 2026, driven by strong demand across both divisions.
- The company achieved an improved underlying EBITDA margin of 30.3%, reflecting higher volumes and operating leverage.
- Strong cash flow performance was noted, with free cash flow increasing by 70% in H1 2026.
- The Bioprocess Solutions division saw an 8.3% growth in constant currencies, with consumables being the primary driver.
- The company maintained a strong balance sheet, with an improved leverage ratio and a solid equity ratio of 41.6%.
Negative Points
- Tariff-related customer compensations created a temporary headwind to reported sales growth, impacting the overall revenue figures.
- The equipment business, although stabilized, showed only slight growth, indicating a slower recovery compared to consumables.
- Advanced modalities experienced volatility due to delayed orders from key customers, affecting recurring revenue growth.
- The company faces uncertainties related to U.S. tariffs, with the timing and amount of potential refunds remaining unclear.
- Negative extraordinary effects, although reduced, still impacted the quality of earnings compared to the prior year.
Q & A Highlights
Q: Based on the underlying performance of BPS in the first half and your guidance, how confident are you in the 9% to 12% growth outlook for BPS in the coming years?
A: Rene Faber, CEO of Sartorius Stedim Biotech, expressed confidence in the growth outlook, citing ongoing solid demand for commercial drugs, healthy pipeline growth, and recovery in advanced modalities. The company expects double-digit growth in consumables, supported by strong underlying trends in bioprocessing.
Q: Did the operational growth in Q2 include the tariff surcharge tailwinds, and how much was that? Also, can you provide details on the delayed programs and their impact?
A: Florian Funck, CFO, confirmed that the operational view includes the general surcharge, with a positive effect of 40 basis points on group growth. Rene Faber added that two key customers in advanced therapy delayed projects, impacting recurring revenue growth. However, the company remains confident in the market's long-term potential.
Q: Do you believe the issues with delayed revenue in advanced modalities are related to those experienced by Danaher with monoclonal antibody customers?
A: Michael Grosse, CEO of Sartorius AG, clarified that the issues are not related. Sartorius's delays are isolated to two customers in advanced therapy, and they do not see similar implications in their classical protein-based portfolio.
Q: What metrics support your confidence in strong underlying demand within BPS consumables and double-digit growth continuing since 2019?
A: Michael Grosse highlighted broad growth supported by large CDMO and biopharma customers in late-stage or commercial production. The visibility and outlook for classical protein-based therapies and some advanced therapies support the continuation of the growth journey.
Q: Can you provide additional detail on why bioprocessing product groups within equipment and consumables have been relatively weaker in terms of mix?
A: Florian Funck explained that the mix effect is not classical but rather within different product categories. Delayed projects in advanced therapy systems, which have high margins, contribute to the negative mix effect.
Q: Regarding the tariff dynamics, when did the potential for the tariff unwind become part of Sartorius's strategy, and how does it affect customer relationships?
A: Michael Grosse stated that the tariff refund was unexpected and not part of the initial guidance. Sartorius aims to maintain trust and partnership with customers by compensating them for tariff surcharges, which enhances customer relationships.
Q: Can you provide insights into the growth trajectory of the BPS business in North America and any orders related to reshoring in the U.S.?
A: Florian Funck noted healthy growth rates in North America, slightly above European levels, when adjusting for advanced therapy systems. Michael Grosse mentioned that reshoring discussions are translating into projects, with orders expected to be relevant in 2027 and sales materializing in 2028 and beyond.
Q: What are the swing factors that could drive BPS growth higher or lower within the guidance range?
A: Florian Funck pointed out technical effects from tariffs, which were a tailwind in H1 but will turn into a headwind in H2. The guidance reflects these technical effects, and the company expects no growth impulse from tariffs if they remain at the current level.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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