Eurofins (1K) | Buy | Q1 miss, thesis intact

Research evidence excerpt

Eurofins (1K) | Buy | Q1 miss, thesis intact

Eurofins Buy | Target Price: EUR86.00

A soft start to the year

Eurofins reported Q1 2026 revenues of EUR1,789m, up +1.3% year-on-year, with organic growth

of +2.6% significantly below consensus expectations (consensus was at 4.8%, KECH at 4.6%). FX

was a material drag at -4.8%, reflecting the strength of the euro versus most other currencies.

The quarter was weak versus the group’s mid-term ambitions, but management framed this as a

temporary disruption rather than a change in the overall trajectory. The main explanation was the

exceptionally severe weather in North America and Northern Europe in January-February, which

disrupted sampling, logistics, patient visits, and lab throughput.

Eurofins reiterated its FY 2026 objectives to achieve mid-single-digit organic growth, potential

annualised M&A revenues of EUR250m consolidated at mid-year, adjusted EBITDA margin

progression above FY 2025’s 22.5%, lower SDIs, and higher FCFF. For FY 2027, the company

reiterated its 24% adjusted EBITDA margin objective, SDIs at c. 0.5% of revenues, cash conversion

above 50%, and leverage within 1.5-2.5x.

The key pushback to the weak Q1 was that the company had already returned to mid-single-digit

growth in March, even adjusted for the additional working day, even if this was not enough to

completely offset the poor performance in January-February. Management expects part of the

weather-related shortfall to be recovered during the year, but not necessarily fully or immediately.

The issue is not only the 2.6% organic growth figure; it is that several drags occurred

simultaneously: weather, BioPharma ancillary softness, CDMO contract gaps, Clinical

Diagnostics rationalisation, US reimbursement/regulatory pressure, and FX. What was