Want to see CH:LONN full AI Analyst Report?
Top Page
Lonza Group Ltd
(LONN)
Select Model
Select Model
Rating:66Neutral
Price Target:
CHF609.00
▲(11.13% Upside)
Action:Reiterated
Date:07/22/26
The score is driven primarily by improving forward outlook and execution described on the earnings call (upgraded margin guidance, strong organic growth, and better free cash flow). Offsetting this are weaker historical cash-flow conversion with multi-year negative free cash flow and softer recent revenue/margin trends in the financial statements, while technicals are supportive and valuation signals are constrained by a negative P/E and a modest dividend yield.
Positive Factors
Strong organic sales growth
Sustained 16% CER organic growth across platforms signals durable end-market demand for outsourced R&D and manufacturing. Broad-based platform strength reduces customer concentration risk and supports multi-year revenue visibility as biotech/pharma outsource complex biologics and novel modalities.
Negative Factors
Persistent negative free cash flow
Chronic negative free cash flow after investments signals that operating cash inflows are strained by heavy capex and working-capital needs. Over time this limits financial flexibility for buybacks, debt reduction or opportunistic M&A unless conversion materially improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong organic sales growth
Sustained 16% CER organic growth across platforms signals durable end-market demand for outsourced R&D and manufacturing. Broad-based platform strength reduces customer concentration risk and supports multi-year revenue visibility as biotech/pharma outsource complex biologics and novel modalities.
Read all positive factors
Lonza Group Ltd (LONN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF38.99B
Dividend Yield0.86%
Average Volume (3M)125.05K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-10.77%
EPS Growth-114.77%
CountryCH
Employees20,141
SectorGeneral
Sector StrengthN/A
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.54
Shares Outstanding70,229,020
10 Day Avg. Volume135,283
30 Day Avg. Volume125,051
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)4.13
Price to Sales (P/S)5.78
P/FCF Ratio-185.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF698.29Price Target Upside27.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)18.1
Revenue Forecast (FY)CHF7.11B
Lonza Group Ltd Business Overview & Revenue Model
Company Description
Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and international...
How the Company Makes Money
Lonza makes money primarily by providing fee-based contract development and manufacturing services to life science customers (pharma and biotech companies) who outsource parts of their R&D-to-commercial production activities. Its core revenue mode...
Lonza Group Ltd Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial story: strong organic top-line growth (16% CER), material margin expansion (CORE EBITDA margin +4.4pp to 34.8%), markedly improved free cash flow, platform-level recovery and high-margin performance in Advanced Synthesis, and completion of the strategic transformation to a pure-play CDMO with a CHF 2.3bn divestment. Management upgraded margin guidance while reconfirming full-year CER sales growth of 11%-12% and outlined disciplined, high-return investments. Key near-term headwinds are FX translation effects, H2 phasing (including a planned Vacaville shutdown), elevated trade working capital, and expected margin normalization in H2 for some units after an exceptionally strong H1. Overall, the positives—robust organic growth, margin and cash-flow improvements, strategic clarity and targeted capacity investments—substantially outweigh the operational timing and FX headwinds.Positive Updates
Strong top-line growth
H1 2026 sales of CHF 3.4 billion, organic CER sales growth of 16% versus H1 2025 (entirely organic), and year-to-date momentum across all businesses.
Negative Updates
FX headwinds reduced reported growth
Reported sales growth in actual exchange rates was 11.2% (vs 16% CER), reflecting an FX headwind of almost 5 percentage points in H1 2026; full-year FX drag expected to be -2% to -3% on growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong top-line growth
H1 2026 sales of CHF 3.4 billion, organic CER sales growth of 16% versus H1 2025 (entirely organic), and year-to-date momentum across all businesses.
Read all positive updates
Company Guidance
The company upgraded 2026 guidance to a CORE EBITDA margin of 33–34% and reconfirmed expected CER sales growth of 11–12% (with an anticipated FX drag of –2 to –3 percentage points for the year); this follows a strong H1 (sales CHF 3.4bn, CER sales growth 16%, CORE EBITDA CHF 1.2bn and margin 34.8% up 4.4pp, CORE EBITDA growth +27.4%, free cash flow CHF 426m, ROIC ~13.2%), H1 CapEx CHF 530m (15.7% of sales), and an ongoing CapEx intensity target of mid‑ to high‑teens % of sales, including >CHF7bn organic CapEx planned to 2030 (investment return thresholds: IRR ≥15%, peak ROIC ≥30%); by platform they expect Integrated Biologics c. CHF 1.87bn H1 sales (+10% CER, 36% margin), Advanced Synthesis +27–28% CER (48.1% margin), and Specialized Modalities +22.6% CER (28% margin), with site‑level notes such as Vacaville ~CHF 0.6bn full‑year sales and project ramp timelines (e.g., ADC payload/linker ramp from 2029–2030, peak sales by mid‑2030s).Lonza Group Ltd Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.33B | 6.53B | 6.57B | 6.72B | 6.22B | 5.41B |
| Gross Profit | 2.27B | 2.31B | 2.16B | 1.95B | 2.44B | 2.11B |
| EBITDA | 1.97B | 1.31B | 1.54B | 1.53B | 2.12B | 1.38B |
| Net Income | -110.00M | 949.00M | 636.00M | 654.00M | 1.22B | 2.94B |
Balance Sheet | ||||||
| Total Assets | 18.26B | 18.97B | 19.73B | 16.85B | 17.36B | 16.46B |
| Cash, Cash Equivalents and Short-Term Investments | 487.00M | 719.00M | 1.71B | 1.67B | 2.22B | 3.18B |
| Total Debt | 4.17B | 4.54B | 5.12B | 3.13B | 2.59B | 2.75B |
| Total Liabilities | 10.11B | 9.78B | 10.35B | 7.34B | 6.69B | 6.64B |
| Stockholders Equity | 8.12B | 9.13B | 9.33B | 9.45B | 10.60B | 9.75B |
Cash Flow | ||||||
| Free Cash Flow | 163.00M | -204.00M | -143.00M | -263.00M | -833.00M | -126.00M |
| Operating Cash Flow | 1.44B | 1.17B | 1.27B | 1.39B | 1.04B | 1.22B |
| Investing Cash Flow | -1.16B | -732.00M | -2.92B | -1.10B | -991.00M | 1.02B |
| Financing Cash Flow | -639.00M | -755.00M | 1.28B | -152.00M | -286.00M | -1.28B |
Lonza Group Ltd Technical Analysis
Positive
548.00
Price Trends
541.49
Positive
516.33
Positive
523.66
Positive
Market Momentum
6.17
Positive
62.37
Neutral
75.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LONN, the sentiment is Positive. The current price of 548 is below the 20-day moving average (MA) of 564.28, above the 50-day MA of 541.49, and above the 200-day MA of 523.66, indicating a bullish trend. The MACD of 6.17 indicates Positive momentum. The RSI at 62.37 is Neutral, neither overbought nor oversold. The STOCH value of 75.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:LONN.
Lonza Group Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | CHF230.61B | 23.76 | ― | 2.92% | -5.88% | -11.57% | |
70 Outperform | CHF3.59B | 20.48 | 15.68% | 0.57% | 2.57% | 4.31% | |
67 Neutral | CHF5.52B | 37.44 | 10.56% | 1.20% | 4.51% | 11.05% | |
66 Neutral | CHF38.99B | -376.36 | ― | 0.91% | -10.77% | -114.77% | |
62 Neutral | CHF28.65B | 44.36 | 3.69% | 0.50% | -3.08% | -33.39% | |
62 Neutral | CHF32.02B | 59.09 | 10.09% | 1.26% | 0.81% | 165.32% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:LONN
Lonza Group Ltd
579.60
44.02
8.22%
CH:NOVN
Novartis AG
126.80
33.62
36.07%
CH:ALC
Alcon
58.32
-10.41
-15.14%
CH:BANB
Bachem Holding AG
74.50
8.35
12.63%
CH:SFZN
Siegfried Holding AG
78.85
-8.00
-9.22%
CH:SDZ
Sandoz Group Ltd
72.26
25.79
55.48%
Lonza Group Ltd Corporate Events
Lonza Lifts 2026 Margin Outlook as CDMO Strategy and ADC Investments Drive Strong Half-Year Results
Jul 22, 2026
Lonza reported first-half 2026 sales of CHF 3.4 billion, with constant currency growth of 16.0% and a core EBITDA margin rising to 34.8%, driven by strong demand, operational leverage and favorable product mix. Free cash flow improved to CHF 0.4 b...
Lonza Deepens US Biopharma Partnership in Multi-Billion CHF Biologics Deal
Jul 1, 2026
Lonza has expanded its strategic collaboration with a leading US-based biopharmaceutical company, reinforcing its position as a key outsourcing partner for biologics development and manufacturing. The deal adds two new commercial biologics program...
Lonza Boosts HPAPI and Payload-Linker Capacity to Capture ADC Growth
Jun 30, 2026
Lonza plans to expand payload-linker manufacturing capacity at its Visp, Switzerland site, enhancing its drug-linker center of excellence to support surging demand in antibody-drug conjugates. The investment will add commercial-scale capabilities ...
Lonza Restates 2025 Interim Results as CHI Divestment Advances
Jun 23, 2026
Lonza has restated its Half-Year 2025 financial statements to classify its Capsules Health Ingredients business as discontinued operations, aligning interim reporting with its Full-Year 2025 accounts. The move follows a December 2024 decision to ...
Lonza Names Hans Trees Global Head of Communications
Jun 9, 2026
Lonza has appointed Hans Trees as Global Head of Communications, Senior Vice President and member of the Extended Executive Committee, effective 1 September 2026. Trees, who succeeds David Carter, brings extensive communications and leadership exp...
Lonza shareholders back board slate and raise dividend at 2026 AGM
May 8, 2026
Lonza’s 2026 Annual General Meeting saw shareholders approve all proposals from the Board, underscoring strong investor support for the company’s governance and strategy. Jean-Marc Huët was re-elected as Chairman, all incumbent di...
Lonza Posts Strong Q1, Completes Shift to Pure-Play CDMO and Confirms 2026 Outlook
May 8, 2026
Lonza reported a strong Q1 2026 performance across its pure-play CDMO operations, with momentum in Integrated Biologics, Advanced Synthesis and a return to healthy growth in Specialized Modalities. Management reiterated guidance for 2026 of 11R...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.