BRAIN Biotech AG (AO) | Buy | Q2 26 breakdown EBITDA miss, but sequential recovery still intact

Research evidence excerpt

BRAIN Biotech AG (AO) | Buy | Q2 26 breakdown EBITDA miss, but sequential recovery still intact

News comment

Release date: 28 May 2026

Nicolas Pauillac

Equity Research Analyst

Buy +33 1 53 65 34 97BRAIN Biotech AG npauillac@keplercheuvreux.com

Germany | Pharma & biotech Beta Profile: MCap: EUR63.6M

Target Price: EUR5.00 Bloomberg: BNN GR Reuters: BNNn.DE

Current Price: EUR2.91 Free float 42%

Up/downside: 71.8% Avg. daily volume (EURm) 0.1

YTD abs performance 15.5% Market data: 27 May 2026

52-week high/low (EUR) 3.66/1.85

Q2 26 breakdown EBITDA miss, but sequential recovery still intact

Key points:

Group revenues of EUR11.5m declined 5% year on year, broadly reflecting the weak trading backdrop already flagged in Q1, with

continued bakery enzyme softness and temporary production interruptions linked to the Netherlands site relocation.

BRAINBiocatalysts revenue came in at EUR10.4m, down 4% year on year but 4% above Visible Alpha, while BRAINBioIncubator

revenue was EUR1.1m, down 19% year on year but 23% above consensus. The main disappointment was below the revenue line:

total operating performance was EUR11.2m, down 18% year on year and 13% below consensus, mainly due to a sharp negative

inventory effect of EUR-0.6m versus EUR+1.1m in Q2 24/25. Adjusted EBITDA came in at EUR-0.4m, 10% below consensus, while

reported EBITDA of EUR-0.8m was 28% below consensus and worse than EUR-0.6m in the prior year.

We would not view the Q2 miss as thesis-changing, but it confirms that the recovery in the core enzyme business is still early. The

revenue performance in BRAINBiocatalysts was better than feared, and management highlighted sequential growth versus Q1,

with the baking segment bottoming out and enzyme-related CRO demand remaining solid. However, lower capacity utilisation