DIM.PA
T2Sartorius Stedim Biotech S.A.
OverviewSartorius Stedim Biotech S.A., a Sartorius AG subsidiary, provides essential instruments, consumables, and services for the biopharmaceutical industry. Its Biop
Sartorius Stedim Biotech S.A., a Sartorius AG subsidiary, provides essential instruments, consumables, and services for the biopharmaceutical industry. Its Bioprocess Solutions division offers cell lines, bioreactors, and purification systems. Recurring consumables drive significant revenue, with equipment sales stabilizing. Serving pharmaceutical, food, and chemical manufacturers, plus R&D labs, the company focuses on bioprocessing, fluid management, and advanced data analytics to optimize drug development and production.
- What They Do (Plain English & Analogies)
- Sartorius Stedim Biotech is like a specialized toolkit provider for companies that make medicines, especially advanced biological drugs. They supply the essential equipment, disposable parts (like filters and bags), and services needed for every step of making these drugs, from growing cells in a lab to purifying and packaging the final product. Think of them as providing all the specialized 'ingredients' and 'kitchen equipment' for a complex pharmaceutical factory, ensuring the process is efficient, reliable, and meets strict quality standards. They also offer advanced tools for lab research, including systems that allow scientists to study cells in a more realistic 3D environment, helping to develop new treatments and reduce the need for animal testing.
- Very Brief History
- Sartorius Stedim Biotech S.A. is a global entity and a subsidiary of Sartorius AG, which was founded in 1870 in Göttingen, Germany, by Florenz Sartorius. The company began with the development of a short-beam analytical balance and has since evolved into a major international supplier of pharmaceutical and laboratory equipment.
- "Street Stereotype"
- Sartorius Stedim Biotech is generally perceived by investors and analysts as a pure-play powerhouse in bioprocessing hardware and consumables. It is seen as having unmatched leverage to the biotech funding recovery and aggressive global capacity buildouts, supported by highly sticky, recurring revenue streams.
- Subsidiaries On Linked In*
- Mattek - Part of Sartorius — Acquired by Sartorius, operates as a distinct entity focusing on lab-grown human tissue models.; LinkedIn: mattek-part-of-sartorius
- Customer Sectors & Example Clients
- Sartorius Stedim Biotech's customers operate in the pharmaceutical, food, and chemical manufacturing sectors, as well as research and development laboratories. A notable client and partner mentioned in the transcript is Sanofi, with whom they developed the Pionic Continuous bioprocessing platform. Other likely clients include major biopharmaceutical companies and contract development and manufacturing organizations (CDMOs) globally.
- New Customers / Segments They'Re Targeting
- The company is actively targeting new segments and customers through innovation and acquisitions. They are expanding their portfolio of advanced 3D cell models, particularly through the acquisition of MATTEK, which helps researchers mimic human tissue more closely and reduce animal testing. They are also enhancing capabilities in cell expansion and activation to support next-generation biologics through a partnership with Nanotein Technologies. Additionally, they are seeing increased activity and targeting smaller CDMO customers, who are becoming more active in both equipment and consumables.
- Supply Chain And Sourcing Geographies
- Sartorius Stedim Biotech maintains a resilient global manufacturing footprint. They have completed expansions in Aubagne, France, and are progressing with expansions in Germany, as well as the construction of a new greenfield site in Songdo, South Korea. This indicates key manufacturing and sourcing operations in France, Germany, and South Korea, ensuring scalability, supply reliability, and proximity to customers. MATTEK, a subsidiary, also has facilities and operations across the United States, Europe, and Asia, including dedicated production capacity in China.
- Sales Geographies And Expansion Plans
- The company currently sells its products globally across three main regions: EMEA (Europe, Middle East, and Africa), the Americas, and Asia Pacific (APAC). In 2025, EMEA sales grew by almost 6%, the Americas by 8.9%, and APAC also by 8.9%. China, within the APAC region, showed signs of stabilization and early recovery. While no explicit plans for expanding into entirely new geographies were disclosed, the ongoing investments in a global manufacturing footprint (e.g., South Korea) are intended to support scalability and supply reliability in existing and growing markets.
- How Key Themes May Help/Hurt
- Sartorius Stedim Biotech is well-positioned to benefit from the 'MedTech Long '26: Life Science Tools & Bioprocessing' theme. The robust demand for biologics and GLP-1 therapeutics drives demand for their specialized bioprocessing consumables and drug delivery systems. The recovery in biotech funding and expansion of R&D pipelines will increase demand for their analytical instruments, reagents, and lab services. Furthermore, pharma reshoring and increased CDMO outsourcing for supply chain resilience will drive significant investment in bioprocessing equipment and services, directly benefiting Sartorius Stedim Biotech. However, persistent geopolitical tensions and potential market weakness in China could hurt demand, particularly for equipment. A lagging translation of funding to actual customer spending and ongoing budgetary constraints could also temper overall market growth.
3 Main Long-Term Bull Details
- The company is a pure-play powerhouse in bioprocessing hardware and consumables, making it a primary beneficiary of the bioprocessing volume inflection and pharma reshoring trends.
- It possesses unmatched torque to the biotech funding recovery and aggressive global capacity buildouts, boasting highly sticky, recurring revenue streams, especially from its consumables business.
- Continuous innovation in areas like sustainable product design (PFAS-free filtration), advanced bioprocessing platforms (Pionic), and cutting-edge bioanalytical tools (3D cell models, live-cell imaging) strengthens its competitive position and ability to support next-generation biologics.
3 Main Long-Term Bear Details
- Persistent geopolitical tensions and slower-than-anticipated economic recovery in key markets like China could lead to reduced capital expenditure and potential tariff-related headwinds, impacting demand for life science tools and services.
- Despite improving biotech funding, there might be a significant lag before this translates into actual customer spending on instruments and services, coupled with cautious academic and government spending due to budgetary uncertainties.
- The normalization of high-growth segments and potential overcapacity built during the pandemic, particularly in equipment, could lead to slower demand for equipment and instruments compared to consumables, impacting overall growth and margin mix.
- Competitors And Differentiation
- Sartorius Stedim Biotech operates in a competitive landscape with major players such as Thermo Fisher Scientific, Danaher Corporation (Cytiva), Merck KGaA, GE HealthCare, Repligen Corporation, Agilent Technologies, Bio-Rad Laboratories, Tecan Group Ltd., Charles River Laboratories, Eurofins Scientific, Hamilton Company, and Corning Incorporated. The company differentiates itself through continuous innovation, offering solutions like PFAS-free filtration (Sartopore Evo), advanced downstream processing solutions (Sartocon cassettes), continuous bioprocessing platforms (Pionic), and cutting-edge bioanalytical tools including live-cell imaging systems with confocal microscopy and advanced 3D cell models. Their focus on single-use technologies also provides flexibility for customers.
- Recent Performance & What The Market'S Focused On
- In 2025, Sartorius Stedim Biotech achieved considerable profitable growth, with sales revenue increasing by 9.6% in constant currencies to nearly EUR 3 billion. This was driven by strong mid-teens growth in its high-margin recurring consumables business, which more than offset a soft but stabilizing equipment business. Underlying EBITDA increased by 17% to EUR 914 million, with the margin improving significantly to 30.8%. Order intake grew faster than sales, maintaining a 12-month rolling book-to-bill ratio consistently above 1. For 2026, the company expects sales growth of 6% to 10% in constant currencies and an underlying EBITDA margin slightly above 31%. The market is focused on the continued normalization of market dynamics, particularly the recovery and stabilization of equipment and instrument demand, the trajectory of consumable growth against higher comparables, and the impact of macroeconomic and geopolitical volatility on guidance.
- Revenue Segments And Estimated Mix
- Bioprocess Solutions (BPS) - Consumables — Mix: ~80% of BPS revenue; Source: Transcript, 2025 full year; Trend: Mid-teens growth in 2025, driving overall BPS growth.
- Bioprocess Solutions (BPS) - Equipment — Mix: ~20% of BPS revenue; Source: Transcript, 2025 full year; Trend: Remained soft but clearly stabilized in H2 2025, with H2 sales double-digit percentage above H1.
- Lab Products & Services (LPS) - Recurring Business — Mix: Largest part of LPS business; Source: Transcript, 2025 full year; Trend: Growth in H2 2025, supported by solid momentum in consumer goods and services.
- Lab Products & Services (LPS) - Instruments — Mix: n/m; Source: Transcript, 2025 full year; Trend: Impacted by constrained CapEx spending, but showed positive momentum in bioanalytics in H2 2025.
- Product Brands
- Sartopore Evo
- Sartocon cassettes
- Pionic Continuous bioprocessing platform
- MATTEK
- Mattek Dishes
- Mattek Tissues
- HUREL® Minipig™
- HUREL® Mouse™
- HUREL® Primate™
- HUREL® Rabbit™
- HUREL® Rat SD™
- HUREL® Rat WH™
- HUREL® ZooPlates™
- Biobrain Operate
Bull / Bear DetailsSartorius Stedim Biotech (DIM.PA) is a pure-play bioprocessing powerhouse, benefiting from the biopharma market's recovery, particularly strong demand for recur
Thesis
Sartorius Stedim Biotech (DIM.PA) is a pure-play bioprocessing powerhouse, benefiting from the biopharma market's recovery, particularly strong demand for recurring consumables. While equipment sales stabilized in 2025 and are expected to remain at least stable in 2026, the company's innovation in sustainable solutions, continuous bioprocessing, and advanced cell models, coupled with strategic capacity expansion, positions it for sustained profitable growth. Deleveraging is on track. Updated: 2026-07-21.
Bull case
Sartorius Stedim Biotech (SSB) continues to see robust, mid-teens growth in its high-margin recurring consumables business, which forms the largest part of its revenue. This is driven by normalizing demand in the biopharma market and increased manufacturing volumes, providing a stable and predictable revenue stream and strong operating leverage.
The company is actively investing in innovation, launching new solutions like PFAS-free filtration, Sartocon cassettes for viral vector purification, and the Pionic Continuous bioprocessing platform. Concurrently, strategic investments in global manufacturing footprint expansion (e.g., South Korea) ensure scalability, supply reliability, and proximity to customers, supporting future growth.
After a period of softness, the equipment business for Bioprocess Solutions stabilized in H2 2025 with sales significantly above H1. Management expresses cautious optimism for 2026, expecting equipment sales to be at least stable, supported by a strong order book and positive customer discussions, indicating a potential cyclical recovery.
Bear case
Despite stabilization, the equipment and instrument markets have not fully returned to long-term growth levels, with continued cautious investment activities by core customers. U.S. onshoring benefits are not expected to contribute revenue until 2027+, and China's equipment market is anticipated to remain muted in 2026, potentially limiting top-line upside.
The Lab Products & Services (LPS) division has experienced a fourth consecutive year of margin decline, with 2026 guidance projecting margins slightly below 21%. This is influenced by deliberate investments in advanced cell models, unfavorable product mix, FX headwinds, and tariff-related impacts, posing a drag on overall group profitability.
The company's 2026 guidance incorporates a broad range due to continued high macroeconomic and industry-specific volatility. While positive trends are expected, a cautious scenario reflecting weakening market conditions remains a possibility, which could impact both consumables and equipment demand, particularly given higher comparison bases from 2025.
Bull / Bear Case
- Bear Case
- Despite the broader market recovery, Sartorius Stedim Biotech faces headwinds. The equipment and instrument markets have not fully returned to long-term growth levels, with continued cautious investment from core customers. Benefits from U.S. onshoring are not expected to materialize until 2027 and beyond, and the China equipment market is anticipated to remain muted in 2026, limiting top-line upside. The Lab Products & Services (LPS) division is projected to experience a fourth consecutive year of margin decline in 2026, influenced by deliberate investments in advanced cell models, unfavorable product mix, FX headwinds, and tariff impacts, which will drag on overall group profitability. The company's 2026 guidance incorporates a broad range due to ongoing macroeconomic and industry-specific volatility, and higher comparison bases from strong consumables growth in 2025 could lead to a deceleration in growth. Furthermore, the high growth in the biopharma market increases the risk of greater competition from better-capitalized peers.
- Bull Case
- Sartorius Stedim Biotech is well-positioned to capitalize on the robust recovery and strong fundamentals in the biopharma and life science markets, evidenced by the biotech sector's significant rally in the past year. The company continues to demonstrate strong, mid-teens growth in its high-margin recurring consumables business, which is the largest part of its revenue and driven by normalizing demand and increased manufacturing volumes. Strategic investments in innovation, such as PFAS-free filtration, continuous bioprocessing platforms, and advanced 3D cell models, along with global manufacturing footprint expansion, ensure future growth and supply reliability. The stabilization of the equipment business in H2 2025, coupled with a strong order book and positive customer discussions, signals a potential cyclical recovery in this segment, further supported by increasing biotech funding and M&A activity in the broader industry. Management's commitment to deleveraging also strengthens the financial position.
- More Compelling & Why
- Bear. Sartorius Stedim Biotech's current EV/EBITDA of approximately 24.56x represents a premium compared to more diversified, high-quality peers like Danaher (EV/EBITDA ~21.71x) and Thermo Fisher Scientific (EV/EBITDA ~20.16x). The most compelling argument for the bear case is the persistent, four-year margin decline in the Lab Products & Services (LPS) division, projected to be slightly below 21% in 2026, which acts as a significant drag on overall profitability and signals underlying operational challenges. This, coupled with delayed U.S. onshoring benefits and a muted China equipment market, suggests that the current valuation may not adequately reflect these ongoing pressures. My view would flip to bullish if the LPS division demonstrated clear signs of margin stabilization and a credible path to recovery, or if the company's valuation compressed to be more in line with its diversified peers, reflecting the mixed growth and profitability profile.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| 12-Month Rolling Book-to-Bill Ratio (DIM.PA) | The book-to-bill ratio is a forward-looking indicator of demand, reflecting the health of the order book. A ratio consistently above 1 indicates growing demand and a strong pipeline for future revenue, supporting the bullish outlook for bioprocessing and life science tools. | Sartorius Stedim Biotech's 12-month rolling book-to-bill ratio reported quarterly. The ratio was consistently above 1 throughout 2025. | Bullish: Ratio remains consistently above 1.05, indicating strong order intake relative to sales. Bearish: Ratio falls below 1.0, suggesting weakening demand or order cancellations. | Sartorius Stedim Biotech quarterly earnings reports and conference calls (Q1 2026 results expected around late April/early May 2026). | Company investor relations website for historical book-to-bill trends and press releases. | Bloomberg Terminal: Company-reported order intake vs. revenue data |
| Recurring Consumables Revenue Growth (DIM.PA) | Recurring consumables represent the largest and highest-margin portion of Sartorius Stedim Biotech's business. Sustained strong growth confirms robust underlying demand from commercial manufacturing and late-stage clinical production, indicating healthy utilization of existing bioprocessing capacity and continued market share strength. | Quarterly year-over-year constant currency growth rate of recurring revenue within the Bioprocess Solutions division. Target: mid-teens growth. | Bullish: Recurring consumables growth in Q1 2026 and Q2 2026 remains in the low double-digit to mid-teens percentage range. Bearish: Recurring consumables growth in Q1 2026 or Q2 2026 falls below high single-digit percentage. | Sartorius Stedim Biotech quarterly earnings reports and conference calls (Q1 2026 results expected around late April/early May 2026). | BioProcess International: Industry surveys on bioprocessing consumables demand and market trends. | AlphaSense: Keyword search volume for 'bioprocessing consumables demand' in industry reports and competitor transcripts |
| Net Debt to Underlying EBITDA Ratio (DIM.PA) | This leverage ratio reflects the company's financial health and deleveraging progress. Improvement indicates strong cash flow generation and disciplined capital allocation, supporting an investment-grade rating and reducing financial risk, which is crucial for long-term investor confidence in the company. | Sartorius Stedim Biotech's net debt to underlying EBITDA ratio reported quarterly. Target: decrease to slightly above 2x by year-end 2026. | Bullish: Ratio decreases sequentially in Q1 2026 and Q2 2026, staying on track to meet the year-end target of slightly above 2x. Bearish: Ratio increases sequentially or shows slower-than-expected reduction, indicating potential cash flow issues or increased debt. | Sartorius Stedim Biotech quarterly earnings reports and conference calls (Q1 2026 results expected around late April/early May 2026). | Company financial statements available on the investor relations website. | S&P Capital IQ: Financial ratios and debt analysis for peer comparison |
| Global Biotech Venture Capital Funding | Biotech funding is a primary lead indicator for R&D spending by early-stage biotechs, which drives demand for life science tools, reagents, and early-stage bioprocessing services. A robust funding environment directly translates to increased customer activity for DIM.PA. | Total global biotech venture capital funding (USD Billions) for Q1 2026 and Q2 2026. | Bullish: Q1/Q2 2026 funding shows sequential and year-over-year growth, particularly exceeding prior year levels. Bearish: Q1/Q2 2026 funding declines sequentially or year-over-year, indicating reduced R&D spending. | PitchBook-NVCA Venture Monitor, Crunchbase (Q1 2026 data typically released late April/May 2026; Q2 2026 data late July/August 2026). | Fierce Biotech, Endpoints News: Major funding round announcements; Reddit (r/biotech): Sentiment and discussions on funding. | PitchBook: Detailed biotech funding rounds and deal values by stage and geography |
| Bioprocessing Equipment Sales Growth (DIM.PA) | Equipment sales stabilization and recovery are crucial for Sartorius Stedim Biotech, as this segment has been soft. A sustained recovery indicates renewed CapEx spending by biopharma customers and a broader market rebound, validating the cyclical recovery thesis for the MedTech Long theme. | Quarterly year-over-year constant currency growth rate of Bioprocess Solutions equipment sales. Monitor H1 2026 performance relative to H2 2025 and H1 2025. | Bullish: H1 2026 equipment sales for BPS are double-digit percentage above H1 2025, or show sequential growth over Q4 2025. Bearish: H1 2026 equipment sales for BPS are flat or decline year-over-year or sequentially from Q4 2025. | Sartorius Stedim Biotech quarterly earnings reports and conference calls (Q1 2026 results expected around late April/early May 2026). | Industry news on biopharma CapEx announcements; competitor earnings reports (e.g., Danaher, Thermo Fisher Scientific) commentary on bioprocessing equipment. | Thinknum: Bioprocessing equipment job postings growth (proxy for internal capacity build-out plans) |
Key Reported Metrics, Reratings Triggers & ResultsConsumables represent the high-margin, recurring part of the business and are a strong indicator of underlying demand and customer utilization in biopharma manu
| Key reported metrics | ||
|---|---|---|
| Metric | Last period | Why it matters |
| Recurring Consumables Business Growth (constant currencies) | Mid-teens % | Consumables represent the high-margin, recurring part of the business and are a strong indicator of underlying demand and customer utilization in biopharma manufacturing, driving future stability. |
| Sales Revenue Growth (constant currencies) | 9.6% | This is the primary top-line indicator, reflecting the company's ability to grow its business, especially in the biopharmaceutical market. It is a key driver for overall financial performance. |
| Underlying EBITDA Growth | 17.3% | This metric indicates the company's operational profitability and efficiency, crucial for assessing its ability to translate revenue growth into earnings, especially with ongoing investments. |
Key QuestionsWill Sartorius Stedim Biotech's bioprocessing equipment sales in Q1 2026 demonstrate a stronger recovery than the 'at least stable' expectation, signaling upsid
Will Sartorius Stedim Biotech's bioprocessing equipment sales in Q1 2026 demonstrate a stronger recovery than the 'at least stable' expectation, signaling upside potential for the full-year guidance?
- Question 2
Can Sartorius Stedim Biotech sustain its mid-teens growth in recurring consumables in Q1 2026, or will higher comparables and market dynamics lead to a deceleration, impacting the overall revenue trajectory?
- Question 3
Will the Lab Products & Services division's margins in Q1 2026 show initial signs of stabilization or improvement, validating the strategic investments in Advanced Cell Models and mitigating ongoing headwinds?
Earnings Transcript Summary
· 2025FY Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. Disciplined execution, targeted investments in innovation and capacity, and operational excellence: Management emphasized these as key to supporting customers as markets normalize and positioning Sartorius for sustainable innovation-led growth. They highlighted new product launches (e.g., PFAS-free filtration, continuous bioprocessing platform, live-cell imaging) and strategic acquisitions (MATTEK) and partnerships (Nanotein Technologies). 2. Expanding resilient global R&D and production capacity: The company completed expansions in Aubagne, progressed with expansions in Germany, and continued construction of a greenfield site in Songdo, South Korea, to ensure scalability, supply reliability, and customer proximity. 3. Financial discipline and a strong balance sheet: Management underscored their commitment to reducing the leverage ratio, which improved from 3.96x to 3.55x in 2025, and maintaining an investment-grade rating. | The overall takeaway of the call is that Sartorius delivered a strong performance in 2025, exceeding sales guidance and landing profitability in the upper half of initial guidance, primarily driven by improving demand for consumables and active operational management. The company is cautiously optimistic about 2026, expecting continued profitable growth, with stabilization in equipment and instruments, and ongoing strategic investments in innovation and capacity. The tone was cautiously optimistic, reflecting confidence in the company's business model and long-term market opportunities, while also acknowledging continued macroeconomic and industry-specific volatility, which led to a broad guidance range for 2026. | Sartorius Group (Q3 2025): Revenue growth of 10.6% year-over-year in constant currency. Bioprocess Solutions (BPS) (Q3 2025): Grew 7.8% year-over-year in constant currency. Lab Products & Services (LPS) (Q3 2025): Sales were up 4.4% year-over-year in constant currency. | 1. U.S. onshoring build-outs in 2026 and potential upside to guidance: Management responded that relevant reshoring activities would most likely not contribute revenue in 2026, but rather in 2027 and beyond, and thus nothing was baked into current expectations. 2. Equipment market conditions, confidence in stabilization, and timing of return to normal levels: Management confirmed stabilization in H2 2025 (H2 sales stronger than H1) and expressed cautious optimism for 2026 due to positive customer discussions, tangible projects, and a healthy order book. They believe it will take the full Q1 2026 to have better visibility on the continuation of order intake trends. 3. LPS margin decline and path to recovery: Management acknowledged the fourth year of margin decline for LPS and attributed the 2026 guidance of "slightly below 21%" to tariff impact, unknown FX effects, and ramping up investments in Advanced Cell Models. They stated that LPS is a "20% plus margin business going forward" and deferred a more detailed discussion to the Capital Markets Day. | Sartorius Group: Sales revenue increased by 7.6% in constant currencies and 4.7% in reported currencies. Bioprocess Solutions (BPS): Full year sales revenue growth of 9.5% in constant currency. This was driven by mid-teens growth in consumables, while equipment remained soft but stabilized, with H2 '25 sales being double-digit percentage above H1 '25 sales. Lab Products & Services (LPS): Sales were essentially flat at 0.2% in constant currencies. Growth was supported by solid momentum in recurring business, while instrument sales were impacted by constrained CapEx spending, but showed encouraging signs of stabilization in H2, driven by bioanalytics and new product launches. Sartorius Stedim Biotech Group (SSB): Sales increased by 9.6% in constant currencies and 6.7% in reported currencies. This was driven by mid-teens growth in the high-margin recurring consumables business, more than offsetting the soft but increasingly stabilizing equipment business. |
Transcript Tidbits
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| Sartorius launched several new solutions, including Sartopore Evo (a PFAS-free filtration solution) and Sartocon cassettes for efficient downstream processing, particularly for viral vector purification. They introduced the Pionic Continuous bioprocessing platform developed with Sanofi, supporting the industry's transition to continuous processes. The company advanced its bioanalytical portfolio with a live-cell imaging system with confocal microscopy inside an incubator. They strengthened their portfolio of advanced 3D cell models through the acquisition of MATTEK and enhanced capabilities in cell expansion and activation via a partnership with Nanotein Technologies. Investments in advanced cell models are deliberate, and smaller CDMOs are becoming more active, filling pipelines and driving demand for both equipment and consumables. | During the pandemic, Sartorius gained market shares due to its ability to supply and was able to protect roughly one-third of this gain. The main decision criteria in the industry for customers are technology and performance, where Sartorius sees itself as being ahead with a focus on innovation. The company has a facility in Marlboro, U.S., to assemble equipment and be close to customers. In China, after a period of strong preference for local players, Sartorius feels it can now maintain market shares and benefit from modest market growth. | 2025 was characterized by a return to normal demand behavior for consumables and continued cautious investment activities by core customers. The industry is transitioning from traditional batch production to continuous processes for faster, more efficient, and sustainable manufacturing workflows. While the industry is back on track, it has not yet fully reached its long-term growth level, especially for equipment and instruments, due to continued high macroeconomic and industry-specific volatility. The better the technology gets, especially in single-use manufacturing, the more it will be used, increasing the addressable market and improving titers and yields. Biotech funding has been strong, and the reluctance to invest in equipment is primarily due to macroeconomic, cash-driven impacts post-pandemic and existing overcapacities, rather than structural technological changes. | For 2026, Sartorius expects group sales growth of around 5% to 9% with an underlying EBITDA margin slightly above 30%. The company anticipates continued profitable growth, with positive development in Bioprocess Solutions (6% to 10% sales growth, equipment at least stable, EBITDA margin slightly above 32%) and recovery in Lab Products & Services (2% to 6% sales growth, instrument business at least stable, EBITDA margin slightly below 21%). The net debt to underlying EBITDA ratio for the group is expected to decrease to slightly above 3x by year-end, and for Sartorius Stedim Biotech, to slightly above 2x. The impact from large reshoring activities is not expected to contribute revenue in 2026 but rather in 2027 and beyond. Elevated CapEx ratios are expected for 2026, driven by expansion projects in Korea, with a reduction anticipated from 2027 onwards. The LPS business is expected to be a 20% plus margin business going forward. | The | Digital transformation of clinical research and AI/ML integration in R&D and operations are emerging broader themes. | Sartorius achieved considerable profitable growth. For the full year, we delivered results slightly ahead of our upgraded full year 2025 sales guidance. Profitability landed in the upper half of our initial guidance from April and exceeded our October EBITDA target, with a margin of 29.7%. Overall, in 2025, we laid a solid foundation for the year 2026. Our industry is back on track. We are confident that Sartorius is well positioned to benefit from continued recovery. Order intake developed strongly, growing faster than sales. We entered 2026 on the back of a strong order book. Underlying EBITDA increased overproportionately by 11.2% to EUR 1.052 billion, with the margin expanding by 170 basis points to 29.7%. Deleveraging is progressing as planned with the net debt to underlying EBITDA ratio improving to 2.38 by the end of 2025. We are very confident that these fundamentals and the volumes driving the growth of consumables are there are intact and are positive about the outlook in '26 and beyond. | Continued cautious investment activities by our core customers. Continued softness in equipment. U.S. dollar weakness, which represents a headwind of almost 300 basis points to reported sales growth in fiscal year 2025. Instrument sales were impacted by constrained CapEx spending in life science research and market. Our industry is back on track, but has not yet fully reached its long-term growth level, especially in terms of demand for equipment and instruments. Continued high macroeconomics and industry-specific volatility. The lower end of the range reflects the cautious scenario in which market conditions weaken. Technical margin dilution of around 50 basis points from tariff surcharges is already reflected. China will, in the year 2026, be a rather muted market. Comps are higher now looking in 2026. The guidance that you've given is marked the fourth year of margin decline in a row. |