Eurofins stock slides as Biopharma weakness tempers steady Q3; outlook kept

Published 21/10/2025, 09:26
© Reuters

Investing.com -- Eurofins Scientific reported third-quarter revenue of €1.8 billion, up 4.6% year-on-year. Organic growth stood at 4.2% on a working-day adjusted basis, matching management’s full-year guidance for mid-single-digit growth, and marginally below the Visible Alpha consensus of 4.4%.

Shares in Eurofins slumped more than 6% after the release.

The BioPharma segment grew just 0.4% organically, down from 1.5% in the previous quarter, reflecting solid Product Testing but continued softness in genomics, early-stage services and ancillary areas.

Diagnostics improved to 3.4% organic growth from 1.9% in the second quarter, partly due to easier comparisons in France after last year’s price cuts. The Life Sciences division was the standout performer, rising 7.2%.

Regionally, Europe saw 3.6% organic growth, led by Food and Environment Testing, with Clinical Diagnostics improving sequentially. North America recorded 3.7% growth, while the rest of the world posted a stronger 7.7%, supported by broad-based demand.

For the first nine months of 2025, Eurofins’ revenues reached €5.42 billion, up 5.3% from a year earlier, driven by 4.0% organic growth (including a 0.7% adjustment for fewer working days) and acquisitions. Foreign exchange effects reduced revenue by 1.5% due to a stronger euro.

The company reaffirmed its 2025 guidance, expecting EBITDA margin improvement despite FX headwinds. It continues to target over 22.3% EBITDA margin and more than €954 million in free cash flow before site investments, with around €250 million of incremental revenue from acquisitions.

Morgan Stanley kept its Equal-weight rating and €61 price target on the stock, saying the steady growth and margin improvement outlook are positives but “concerns on Biopharma are unlikely to ease.”

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