Lonza FY 2025 Financial Results — CEO Wolfgang Wienand: Strong Contract Manufacturing Growth and Margin Expansion

Swiss life sciences specialist Lonza Group AG reported a robust set of full-year 2025 results, driven by strong demand across its contract development and manufacturing (CDMO) business and successful integration of the Vacaville site, under the leadership of CEO Wolfgang Wienand. Lonza delivered significant sales growth, expanded profitability and strengthened cash generation, while continuing to reposition its business around core high-growth platforms.

The FY 2025 performance reflects Lonza’s strategic focus on advanced manufacturing services for biotech and pharmaceutical partners, even as the company progresses with divestment plans for its legacy Capsules & Health Ingredients (CHI) unit.

Revenue & Overall Performance

For the full year ended 31 December 2025, Lonza reported:

• Total sales: CHF 6.5 billion, up 21.7 % at constant exchange rates (CER) versus the prior year.

• CORE EBITDA: CHF 2.1 billion, delivering a 31.6 % margin, up ~1.4 percentage points versus 2024.

• Proposed dividend: CHF 5.00 per share, up 25 % year-on-year.

• Free cash flow: CHF 545 million, nearly doubled compared with 2024.

The strong top-line growth significantly exceeded prior guidance and reflects exceptional commercial momentum across multiple platform technologies. Excluding the contribution from the recently acquired Vacaville facility, Lonza’s organic CDMO growth remained robust in the low-teens at CER, underscoring the underlying strength of the core business.

Business Segment Performance & Drivers

CDMO (Contract Development & Manufacturing Organization)

The CDMO segment was the primary engine of Lonza’s 2025 performance, accounting for the majority of revenues and delivering strong double-digit growth in both sales and profitability. The business benefitted from higher utilization, robust demand for mammalian and small molecule manufacturing, and contribution from integrated biologics platforms, particularly at the Vacaville plant in California.

Key tech platforms showing notable momentum included:

• Advanced Synthesis: High-growth small molecule and bioconjugate capabilities delivering >20 % organic CER expansion.

• Integrated Biologics: Significant contribution from mammalian manufacturing with ~30 %+ growth.

• Bioscience: Returned to healthy growth after recent softness.

These segments exemplify Lonza’s pivot toward high-value, technology-intensive operations that underpin long-term contractual revenue streams with leading biopharma customers.

Capsules & Health Ingredients (CHI)

The CHI business — historically a traditional segment focused on capsules and consumable health ingredients — delivered +3.9 % CER sales growth and an improved margin in 2025, though it remains classified as a discontinued operation as Lonza progresses with a strategic exit of this unit.

Profitability & Earnings

Lonza achieved significant profitability expansion in 2025:

• CORE EBITDA margin: 31.6 %, benefiting from operational leverage and scale.

• Margin improvement: Up ~140 basis points versus 2024 according to slide summaries.

• Free cash flow: Nearly doubled versus the prior year due to improved earnings and working capital discipline.

The margin expansion and robust cash flow position reflect disciplined cost management alongside growth investments — particularly in high-growth CDMO technologies — and successful execution of strategic initiatives such as operational integration across geographies.

R&D & Strategic Initiatives

While Lonza’s FY 2025 results primarily spotlight commercial execution rather than late-stage clinical R&D, the company emphasized key strategic developments that shape its competitive positioning:

• Completion of the Vacaville site integration, with multiple long-term commercial contracts signed during 2025, anchoring multi-year revenue visibility.

• Launch of the “One Lonza” operating model, designed to streamline customer engagement and standardize delivery across technology platforms.

• Continued strategic capital deployment on high-impact manufacturing assets while moderating peak CapEx spend.

These initiatives support Lonza’s transformation from a diversified life sciences supplier to a focused full-service CDMO leader.

CEO Commentary — Wolfgang Wienand

Lonza’s CEO Wolfgang Wienand commented on the results:

“FY 2025 was a standout year for Lonza, with strong organic growth and successful delivery on strategic priorities, including integration of the Vacaville site. Our diversified CDMO platforms continue to attract long-term contract commitments, and margin performance remains excellent. We remain committed to disciplined execution as we accelerate innovation and strengthen our service footprint globally.”

Wolfgang Wienand's remarks emphasize both the operational success and strategic clarity achieved in 2025, signaling confidence in Lonza’s market positioning as a preferred partner for biomanufacturing and advanced pharmaceutical development.

Outlook & 2026 Guidance

Looking ahead to 2026 at constant exchange rates, Lonza provided updated guidance that reflects continued growth with a degree of moderation from extraordinarily strong 2025 comparatives:

• CER sales growth: 11 %–12 %, driven by the CDMO business.

• CORE EBITDA margin: Expected to expand further above 32 %, reflecting operating leverage and continued mix improvements.

• Dividend plans incorporate a +25 % increase versus 2025.

The guidance acknowledges a normalization of growth rates as large integrations complete and high-growth project pipelines mature, yet retains overall confidence in Lonza’s strategic trajectory and market demand fundamentals.

Lonza’s FY 2025 financial results under CEO Wolfgang Wienand reflect strong contract manufacturing momentum, expanding profitability and enhanced cash generation, underpinned by technology-driven platform growth and strategic asset integration. The company’s repositioned focus on high-value CDMO operations, disciplined margin expansion and forward guidance for sustainable growth positions Lonza well for the next phase of development, even as legacy segments are divested and macroeconomic headwinds — including currency factors — are managed.