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Investing.com -- Sartorius AG (ETR:SATG) reported solid second-quarter results, with group revenue rising 5.7% at constant exchange rates (CAR) to €884 million. The figure missed the consensus projection by 1%, according to Morgan Stanley (NYSE:MS).
The company’s shares slid over 6% in European trading after the release.
Adjusted EBITDA reached €264 million, with a margin of 29.9%, up from 27.5% a year earlier. Margin improvement was supported by growth in high-margin consumables, efficiency gains, and scale effects.
The Bioprocess Solutions (BPS) division posted 7.8% CER revenue growth to €717 million, modestly below expectations. EBITDA came in at €228 million, slightly ahead of consensus, with a 31.7% margin. The increase was driven by higher volumes and a better product mix, although equipment sales remained soft.
The Lab Products & Services (LPS) segment continued to face weak end-market demand. Revenues fell 2.6% CER to €167 million, and EBITDA missed consensus by 4%, with margins at 22%, just below estimates.
Sartorius also reported a slight sequential decline in order momentum, with its rolling 12-month book-to-bill (B2B) ratio now described as "above 1", down from "well above 1" in Q1 2025 and around 1.16x in Q4 2024. This suggests some moderation in order intake relative to sales, though it remains above the critical 1.0 threshold.
Sartorius reiterated its FY25 guidance, targeting group revenue growth of approximately 6% (range: 4–8%) and an EBITDA margin between 29–30%, in line with market expectations.
BPS revenue is expected to grow around 7% with margins of 31–32%, while LPS is guided for roughly 1% revenue growth and 22–23% margins.
"SRT delivered Q2 revenue growth of 5.7%, in line with the reiterated guidance, & 12m rolling B2B of “above 1”, commenting it is "consistently improving", which we believe will reassure the market of a continuing recovery," Jefferies analysts said.
Separately, Morgan Stanley analysts led by Thibault Boutherin said they "do not expect consensus to move meaningfully on the back of the release."
"With BPS the key focus and LPS expected to be weaker due to the macro/ policy headwinds for lab businesses, we see Q2 numbers as reassuring overall," they noted.
Sartorius maintained its capex target of 12.5% and expects to reduce net debt to around 3.5x by year-end.
The recent MatTek acquisition is expected to add about 1% to LPS revenue, with no significant margin impact.