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Euroapi SA (FR:EAPI)
:EAPI
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Euroapi SA
(EAPI)
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Rating:44Neutral
Price Target:
€1.50
▼(-34.78% Downside)
Action:ReiteratedDate:03/06/26
The score is held down primarily by weak financial performance (widening net losses and declining revenue) and very bearish technical signals (price far below major moving averages with weak momentum). Guidance points to another year of sales decline, partially offset by improved EBITDA, cash generation, and a stronger net cash position, but not enough to materially lift the overall risk profile.
Positive Factors
Improved cash generation & net cash
Sustained positive operating cash flow and restored free cash flow with a net cash balance materially improves liquidity and reduces refinancing risk. Durable cash generation funds targeted capex, supports the restructuring envelope and provides flexibility through API demand cycles over the next 2–3 years.
Conservative balance sheet / low leverage
Very low leverage gives the company financial flexibility to absorb restructuring costs and invest selectively in strategic projects without pressuring liquidity. This balance-sheet cushion supports multi-year transition to higher-margin differentiated APIs and shields against cyclical pharma demand shocks.
Shift to differentiated products & stronger CDMO mix
A growing share of differentiated APIs and a later-stage CDMO project mix improve revenue defensibility and reduce exposure to commodity price pressure. Progress toward a 70% differentiated sales target is a structural move to steadier margins and more durable, contract-backed revenue streams over coming years.
Negative Factors
Declining revenue and widened net losses
Sustained top-line deterioration coupled with material net losses erodes earnings power and shareholder equity. Continued revenue weakness undermines operating leverage, raises per-unit costs, increases probability of further impairments and constrains the company's ability to invest for growth over the medium term.
Significant impairments & non‑recurring charges
Large impairments and one-off charges reflect prior overinvestment or value destruction in certain projects and reduce book equity. These items signal risks of further write‑downs, weaken capital cushions and may limit strategic flexibility while management executes the transformation over the next 2–3 years.
Material 2026 top-line headwind & customer concentration loss
Deliberate SKU discontinuations and a sharp drop in a major customer create a structural revenue gap. A guided ~10% sales decline reduces scale benefits, pressures margins and delays FOCUS‑27 targets, increasing execution risk and extending the timeline to restore prior growth and profitability.
Euroapi SA (EAPI) vs. iShares MSCI France ETF (EWQ)
Market Cap
€119.90M
Dividend YieldN/A
Average Volume (3M)96.43K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-9.32%
EPS Growth56.88%
CountryFR
Employees3,187
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.93
Shares Outstanding95,589,775
10 Day Avg. Volume94,877
30 Day Avg. Volume96,428
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.27
Price to Sales (P/S)0.25
P/FCF Ratio4.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.48
Revenue Forecast (FY)€762.88M
Euroapi SA Business Overview & Revenue Model
Company DescriptionEuroapi SA (EAPI) is a leading European contract development and manufacturing organization (CDMO) specializing in the production of active pharmaceutical ingredients (APIs) for the pharmaceutical industry. The company focuses on providing high-quality, customized solutions for its clients across various therapeutic areas, including oncology, cardiovascular, and infectious diseases. Euroapi operates several state-of-the-art manufacturing facilities and is committed to sustainability and innovation in the production of APIs.
How the Company Makes MoneyEuroapi SA generates revenue primarily through its contract manufacturing services, where it partners with pharmaceutical companies to produce APIs on a contractual basis. The company charges its clients based on the volume of products manufactured, the complexity of the processes involved, and the duration of the contracts. Additionally, Euroapi earns revenue from its development services, which include formulation development and regulatory support, helping clients navigate the complexities of bringing new drugs to market. Significant partnerships with major pharmaceutical firms enhance its revenue stream, as these collaborations often lead to long-term contracts and increased production volumes.
Euroapi SA Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Neutral
Balanced call: the company demonstrated clear execution on cost discipline, cash generation, sustainability validation and portfolio quality improvements (core EBITDA +31%, net cash up to EUR 68.2m, SBTi validation, 66% differentiated sales). However, meaningful top-line decline, substantial impairments (EUR 77.8m), a widened net loss (EUR 211.2m) and continued CDMO early-stage underperformance create significant near-term challenges, with management guiding to ~10% sales decline in 2026 and signaling that some 2027 targets will be missed. The positives on operational control and liquidity are offset by material revenue and profit headwinds.Q4-2025 Updates
Positive Updates
Core EBITDA and Margin Improvement
Core EBITDA reached EUR 66.2 million in 2025, a 31% increase versus 2024, with a core EBITDA margin of 7.8% (up from 5.5%). Reported EBITDA moved to ~EUR 10 million versus negative EUR 44 million in 2024.
Strong Cash Generation and Net Cash Position
Operating cash flow generated EUR 128.5 million in 2025. Free cash flow before financing was EUR 51.5 million (vs EUR 15.0 million in 2024). Net cash position improved to EUR 68.2 million at year-end 2025 from EUR 24.6 million at end-2024.
Working Capital Improvements
Working capital contributed EUR 120.1 million to cash flow, including inventory reduction of EUR 38.9 million and trade receivables reduction of EUR 45.4 million (of which EUR 26.5 million was factored). Months on hand stood at 7 and DSO at 36.
Sustained Cost Discipline and OpEx Savings
The company sustainably reduced external expenses and personnel costs; ~EUR 20 million of OpEx savings delivered over the past two years and 380 positions removed as part of footprint/organization simplification.
CapEx Discipline with Targeted Strategic Investment
CapEx was EUR 77 million in 2025 (≈9% of net sales), down from EUR 108 million in 2024 and EUR 137 million in 2023. 65% of 2025 CapEx was dedicated to growth/performance projects (peptides, oligonucleotides, prostaglandins, corticosteroids).
Sustainability Milestones Achieved
Near-term carbon emission reduction targets were validated by SBTi; company achieved half of its targeted Scope 1 & 2 reductions in 2025 and exceeded its Scope 3 target.
Portfolio Quality and FOCUS-27 Progress
66% of 2025 sales came from differentiated products (up from 57% at end-2023) and the company is on track toward a 70% target by 2027. CDMO pipeline quality improved with ~70% of projects late-stage; Haverhill divested and industrial consolidation actions executed.
Improved Financial Expenses and Financing
Net financial expenses improved by EUR 7.5 million versus 2024 and reported cost of debt decreased to around EUR 3 million following refinancing and financing plan implementation.
Negative Updates
Declining Net Sales and High Sanofi Exposure Reduction
Net sales fell to EUR 848.2 million in 2025 (down 7% vs 2024; comparable -5.9%). Sales to Sanofi were materially lower: CEO cited Sanofi sales down 26.4% and API solutions to Sanofi decreased 34.2%, driving significant top-line pressure.
Material 2026 Top-Line Headwind from Portfolio Rationalization
Discontinuation of API product lines accounted for ~EUR 70 million of sales in 2025. Management expects a residual EUR 10–15 million in 2026 and a EUR 55–60 million headwind overall, contributing to an expected ~10% comparable net sales decline in 2026.
Widened Net Loss and Large Impairments
Net loss increased to EUR 211.2 million in 2025 versus a EUR 130.6 million loss in 2024. Asset impairments rose to EUR 77.8 million driven by discontinuation of the vitamin B12 project and reassessment of economic potential.
Significant Nonrecurring and Idle Costs Related to Transformation
Total nonrecurring items amounted to EUR 56.3 million including EUR 36.1 million of idle costs (mainly Frankfurt) and EUR 13.7 million of employee-related expenses tied to redundancies. A cash restructuring envelope of ~EUR 100 million is expected for 2026–2027.
CDMO Slowdown and Missed Growth Expectations
CDMO sales to other clients decreased 13.6% due to downsizing and slowdown in early-stage CDMO activity. Management expects the initially targeted incremental core EBITDA by 2027 will not be achieved on the original timetable given lower sales.
Increased Competitive Pressure from Low-Cost Asian Players
Intensified competition and price pressure from lower-cost Asian suppliers affected commodity APIs (notably vitamin B12) and contributed to strategic discontinuations and margin pressure in exposed segments.
Operational and Social KPIs Below Targets
Diversity targets for 2025 were missed amid reorganization (though trend prior to 2025 was positive). Safety performance did not improve and injury rate remained stable, prompting an Accident Prevention Plan rollout in 2026.
Residual Uncertainties on CapEx Envelope and Future Impairments
Although management continues to prioritize capital discipline, the company has spent EUR 185 million of an originally planned EUR 350–400 million CapEx envelope for 2024–2027 and indicated potential need to optimize remaining projects; future impairments or adjustments cannot be fully ruled out.
Company Guidance
The company reiterated 2026 guidance saying net sales will decline by about 10% on a comparable basis (with ~90% of that decrease driven by its deliberate portfolio rationalization), noting the prior discontinuations drove ~EUR 70m of lost sales in 2025 (including ~EUR 20m of stockpiling) and that residual revenue of EUR 10–15m from those SKUs is expected in 2026 (implying a EUR 55–60m headwind); management expects to hold full‑year 2026 core EBITDA margin roughly flat versus 2025’s 7.8% (core EBITDA EUR 66.2m on EUR 848.2m net sales in 2025), target a CapEx/sales ratio around 8% (2025 CapEx was EUR 77m, ~9% of sales), and absorb planned cash restructuring costs of ~EUR 100m over 2026–27; other relevant 2025 metrics referenced as context included EBITDA ~EUR 10m (vs -€44m in 2024), net cash EUR 68.2m (vs EUR 24.6m at end‑2024), cash from operations EUR 128.5m, free cash flow before financing EUR 51.5m, months on hand 7, DSO 36, EUR 56.3m of non‑recurring items (including EUR 36.1m idle costs and EUR 13.7m employee costs), an asset impairment of EUR 77.8m on vitamin B12, 66% of 2025 sales from differentiated products (target 70% by 2027), and that the prior FOCUS‑27 targets (incremental core EBITDA EUR 75–80m by 2027) are now expected to be missed given the lower sales backdrop.Euroapi SA Financial Statement Overview
Summary
Income statement is the key weakness: revenue has declined and net losses widened materially in 2025 (net margin ~-25%), despite a rebound in EBITDA. Positives include low leverage (debt-to-equity ~0.08) and improved cash generation with positive free cash flow in 2024–2025, but earnings quality remains mixed given deep net losses and notable charges/impairments.Income Statement
Revenue has been choppy and has recently declined (down ~4% in 2025 vs. 2024, after a larger drop in 2024 vs. 2023). Profitability remains a key issue: net losses persisted across the period and widened materially in 2025 (net margin ~-25%), despite gross margin holding in the mid-teens and EBITDA margin rebounding to ~16.8% in 2025. The mix of positive EBITDA but deeply negative net income points to meaningful non-operating costs and/or charges weighing on bottom-line performance.34
Negative
Balance Sheet
Leverage looks conservative, with debt-to-equity remaining low (about 0.08 in 2025 and 0.07 in 2024), providing balance-sheet flexibility. However, shareholder returns are weak because the company is loss-making, with return on equity notably negative (about -27% in 2025). Equity has also declined from 2024 to 2025, which, if sustained, could reduce the cushion that currently supports the low-leverage profile.63
Positive
Cash Flow
Cash generation improved versus the weak 2022–2023 period: operating cash flow was solid in 2024–2025 (~€123–126M) and free cash flow turned positive in 2024–2025 (about €15M to €47M). That said, free cash flow growth is volatile (sharp deterioration in the reported growth rate for 2025) and the business has a history of negative free cash flow in 2021–2023, indicating execution and working-capital swings remain a risk. Cash flow being positive while net income is deeply negative in 2025 also suggests earnings quality is mixed.56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 848.20M | 919.20M | 1.02B | 980.90M | 892.80M |
| Gross Profit | 140.50M | 142.40M | 164.60M | 176.90M | 109.10M |
| EBITDA | 142.30M | -34.70M | 71.00M | 120.20M | 62.40M |
| Net Income | -211.20M | -130.60M | -189.70M | -15.00M | -8.10M |
Balance Sheet | |||||
| Total Assets | 1.30B | 1.49B | 1.61B | 1.74B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 113.80M | 73.00M | 34.50M | 74.50M | 10.30M |
| Total Debt | 65.40M | 69.10M | 225.50M | 120.80M | 24.10M |
| Total Liabilities | 516.70M | 506.00M | 684.70M | 625.90M | 607.00M |
| Stockholders Equity | 788.00M | 983.50M | 927.70M | 1.11B | 1.01B |
Cash Flow | |||||
| Free Cash Flow | 47.00M | 14.90M | -127.70M | -122.60M | -17.10M |
| Operating Cash Flow | 125.50M | 122.90M | 5.10M | 44.80M | 71.50M |
| Investing Cash Flow | -77.00M | -108.00M | -137.30M | -167.40M | -87.90M |
| Financing Cash Flow | -10.30M | 26.50M | 92.20M | 187.80M | 26.50M |
Euroapi SA Technical Analysis
Negative
2.30
Price Trends
2.02
Negative
2.50
Negative
2.79
Negative
Market Momentum
-0.25
Positive
12.12
Positive
2.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EAPI, the sentiment is Negative. The current price of 2.3 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 2.02, and below the 200-day MA of 2.79, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 12.12 is Positive, neither overbought nor oversold. The STOCH value of 2.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:EAPI.
Euroapi SA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | €225.12M | 26.96 | 1.32% | ― | 12.47% | -65.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | €23.21M | -5.20 | -17.18% | ― | 138.92% | 11.14% | |
47 Neutral | €180.97M | -0.80 | 59.08% | ― | 6.75% | 15.48% | |
44 Neutral | €119.90M | -1.02 | ― | ― | -9.32% | 56.88% |
* Healthcare Sector Average
FR:EAPI
Euroapi SA
1.26
-1.52
-54.75%
FR:ALERS
Eurobio-Scientific SA
22.50
-2.85
-11.24%
FR:ALDMS
Diagnostic Medical Systems
1.27
0.25
23.90%
FR:ALIKO
Ikonisys SA
1.47
0.00
0.00%
FR:ALMDT
Median Technologies
4.81
2.23
86.80%
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.