Lonza Group Ltd reported operating profit of CHF 1.24 billion for the financial year ended Dec 31 2025, up 36.5 percent year-on-year, as strong momentum across its biologics and small-molecule businesses propelled top-line growth. Revenue rose 19.2 percent year-on-year to CHF 6.53 billion, or 21.7 percent at constant exchange rates, aided by the first-time consolidation of the Vacaville large-scale mammalian facility and continuing demand for its contract development and manufacturing (CDMO) services.

Earnings per share were not disclosed, but the board will propose a dividend of CHF 5.00 per share, 25 percent higher than the prior year. Half of the payout is expected to come from the capital contribution reserve, exempting it from Swiss withholding tax, with payment slated after shareholder approval at the May 2026 annual general meeting.

Segmentally, the Integrated Biologics platform generated 32.2 percent CER revenue growth to about CHF 3.04 billion, buoyed by maturing projects and a CHF 0.6 billion contribution from Vacaville; its CORE EBITDA margin eased 0.9 percentage point to 35.3 percent due to portfolio mix effects. Advanced Synthesis sales climbed 22.4 percent in CER terms on rapid ramp-up of new small-molecule and bioconjugate projects, lifting its CORE EBITDA margin 5.2 points to 41.8 percent. Specialized Modalities saw a 3.0 percent CER revenue decline, reflecting softer cell-and-gene therapy demand and phasing in microbial operations, though its margin held broadly steady at 17.0 percent. Capital expenditure reached CHF 1.3 billion, or 19.6 percent of sales, as the group expanded mammalian, drug-product and advanced modality capacity.

Performance was tempered by weakness in Cell & Gene and timing issues in the Microbial business, while foreign-exchange movements provided a modest drag. Nonetheless, integration of the Vacaville plant progressed smoothly, including a successful U.S. FDA audit and the signing of a fifth major commercial contract.

Looking ahead, Lonza targets 11-12 percent CER sales growth and a CORE EBITDA margin above 32 percent for FY 2026. Management expects stronger momentum in the first half, while cautioning that currency effects—principally a softer U.S. dollar—could trim reported sales and EBITDA by about 2 percent, though natural and financial hedges should limit margin impact. The company plans continued capacity expansion, leveraging its global footprint to meet customers’ growing preference for regionalised supply chains; no material financial impact is foreseen from currently announced U.S. trade and tariff policies.

Chief executive Wolfgang Wienand attributed FY25’s outperformance to disciplined execution and diversification across technology platforms and geographies. He indicated that the new “One Lonza” operating model, launched in April 2025, is already streamlining operations and enhancing customer engagement, positioning the group to pursue both organic projects and selective acquisitions while completing the carve-out of its Capsules & Health Ingredients unit.