Tecan Group AG ((CH:TECN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Tecan Group AG painted a mixed picture for the company. While there were positive developments such as strong order entry and growth in the Life Sciences business, challenges in China, a decline in the Partnering Business, and external factors like tariffs and currency impacts posed significant hurdles. Despite these challenges, Tecan’s strategic initiatives in cost reduction and innovation were highlighted as positive steps, although the current market environment remains difficult.
Revenue and EBITDA
Tecan reported CHF 439.5 million in revenue for the first half of 2025, with an adjusted EBITDA of CHF 65.7 million and an adjusted EBITDA margin of 15%. This reflects the company’s efforts to maintain profitability despite a challenging market environment.
Positive Order Entry
Order entry for the first six months reached CHF 458.3 million, showing a sequential improvement in the second quarter. This reflects mid-single-digit growth in local currencies, indicating a healthy demand pipeline.
Life Sciences Business Growth
The Life Sciences segment returned to growth with a 1.6% increase in local currencies, driven by clinical diagnostics and a recovery in consumable sales. This marks a positive turnaround for the segment.
Operational Resilience and Cost Reduction
Tecan realized benefits from its cost reduction programs, including a streamlined R&D process in the Cavro business and improved supply chain efficiency, which contributed to operational resilience.
Innovation Achievements
The company launched new products such as the Veya workstation and Duo Digital Dispenser, which received strong customer interest and initial orders, showcasing Tecan’s commitment to innovation.
Share Buyback Program
Reflecting confidence in its long-term growth prospects and financial strength, Tecan announced a share buyback program of up to CHF 120 million.
Revenue Decline
Overall revenue for the first half of 2025 was down 5.9% in Swiss francs and 3.7% in local currencies, primarily due to lower sales volumes.
Challenges in China
Sales in China declined as expected, with subdued demand and delays in government tenders contributing to overall sales challenges.
Partnering Business Decline
The Partnering Business experienced a 9.2% decrease in sales in Swiss francs and a 7.1% decrease in local currencies, impacted by weak demand in China and inventory reductions.
Currency and Tariff Impacts
Adverse exchange rate movements and U.S. tariffs negatively impacted profitability, with potential further effects depending on future tariff developments.
Forward-Looking Guidance
Tecan maintained its full-year guidance, anticipating sales to range from a low single-digit percentage decline to growth, with an adjusted EBITDA margin between 17.5% and 18.5%, contingent on currency and tariff impacts. The company also announced a share buyback program of up to CHF 120 million, reflecting confidence in its long-term growth prospects.
In summary, Tecan Group AG’s earnings call highlighted a blend of positive developments and significant challenges. While the company is making strides in innovation and cost reduction, external factors and market conditions pose ongoing difficulties. The forward-looking guidance suggests cautious optimism, with expectations of stable to slightly improving financial performance.