Tecan shares fall as company signals lower end of guidance range

Investing.com - Tecan Group AG (BS:TECNz) on Monday reported mid-single-digit local currency growth for the third quarter of 2025, but its shares fell 6.5% after the Swiss laboratory equipment maker indicated full-year results would likely land in the lower half of its previously announced guidance range.

The company confirmed its full-year sales outlook of a range between a low single-digit percentage decline to low single-digit percentage growth in local currencies. However, Tecan specified that current trends point toward performance in the lower half of this range.

The company’s Partnering Business achieved sales growth in the low teens percentage range, while the Life Sciences Business recorded a low-single-digit sales decline.

"While our key markets continue to face challenges, we’re encouraged by the sequential improvement in our quarterly performance and strong order intake," said a Tecan executive. "Both segments maintained a book-to-bill ratio above 1 in the third quarter, indicating healthy future demand."

The company maintained its forecast for an adjusted EBITDA margin of 17.5% to 18.5% for full-year 2025, though this excludes approximately 200 basis points of negative impact from U.S. government tariffs and unfavorable currency exchange rates if current conditions persist.

Tecan provided updates on several key market segments, noting that U.S. Academia & Government sales are trending toward the middle of its initially assumed range, while demand in China remains subdued with sales tracking slightly below the lower end of expectations. Biopharma sales in the second half are expected to remain broadly in line with the stable development seen in the first half.

The company also flagged that some customers in its Synergence business may postpone fourth-quarter orders in anticipation of Tecan’s tariff mitigation measures, which are expected to be implemented by the first quarter of 2026.

Despite near-term challenges, Tecan reaffirmed its mid-term outlook, anticipating a return to mid- to high-single-digit percentage organic growth rates under normal market conditions, though it does not expect full market normalization in 2026.