tiprankstipranks
Trending News
More News >
Advertisement
Advertisement

Lonza Delivers Strong 2025 Growth, Integrates Vacaville and Lifts Margin Guidance for 2026

Story Highlights
Lonza Delivers Strong 2025 Growth, Integrates Vacaville and Lifts Margin Guidance for 2026

Claim 50% Off TipRanks Premium

Lonza Group Ltd ( (CH:LONN) ) has issued an update.

Lonza reported strong 2025 results, with sales rising 21.7% at constant exchange rates to CHF 6.5 billion and Core EBITDA increasing to CHF 2.1 billion, lifting the margin to 31.6% and surpassing its CDMO guidance. Growth was driven by robust demand across key technology platforms and a better‑than‑expected contribution from the newly acquired Vacaville mammalian drug substance facility, now fully integrated and already secured with a fifth major commercial contract. The group’s new “One Lonza” operating model, launched in April 2025, streamlined the business into three platforms and reinforced group functions, which the company says is already improving customer experience, productivity and collaboration, while a strengthened enterprise account and strategy/M&A setup underpins its pure‑play CDMO focus. Lonza continued to invest heavily with CHF 1.3 billion in capex to expand biologics, drug product, bioconjugates and cell and gene capacities, progressed the carve‑out of its Capsules & Health Ingredients unit (treated as a discontinued operation) and delivered modest growth and margin improvement in that business. The company also reported that it has already exceeded its 2030 intensity reduction targets for greenhouse gas emissions and waste, expanded renewable energy sourcing, proposed a 25% dividend increase to CHF 5.00 per share, and guided for 2026 constant‑currency sales growth of 11–12% and a Core EBITDA margin above 32%, despite expected currency headwinds.

The most recent analyst rating on (CH:LONN) stock is a Buy with a CHF670.00 price target. To see the full list of analyst forecasts on Lonza Group Ltd stock, see the CH:LONN Stock Forecast page.

More about Lonza Group Ltd

Lonza Group AG is a Switzerland-based pure-play contract development and manufacturing organization (CDMO) serving the biopharmaceutical and health-nutrition industries. The company provides development and manufacturing services across biologics, small molecules, bioconjugates, cell and gene technologies, drug product and capsules and health ingredients, with a global network of sites and a strategic focus on integrated offerings for pharma and biotech customers.

Average Trading Volume: 133,182

Technical Sentiment Signal: Strong Buy

Current Market Cap: CHF37.72B

For a thorough assessment of LONN stock, go to TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1