By: IPP Bureau
Last updated : July 23, 2026 8:38 am
The company posted sales of CHF 3.4 billion in H1 2026, representing 16.0% growth at constant exchange rates (CER) and 11.2% growth at actual exchange rates
Lonza, a leading Contract development and manufacturing organization (CDMO), has reported a strong first-half performance for 2026, driven by robust outsourcing demand from pharmaceutical and biotechnology companies.
The company has witnessed double-digit growth across all business platforms, and improved operational execution.
The company posted sales of CHF 3.4 billion in H1 2026, representing 16.0% growth at constant exchange rates (CER) and 11.2% growth at actual exchange rates (AER). CORE EBITDA increased 27.4% year-on-year to CHF 1.2 billion, while the CORE EBITDA margin expanded by 4.4 percentage points to 34.8%.
Free cash flow improved to CHF 0.4 billion, an increase of CHF 0.3 billion compared with the same period last year, supported by higher earnings and lower capital expenditure as investment spending normalized.
The company attributed its performance to sustained demand for strategic outsourcing from both large pharmaceutical companies and biotechnology firms, highlighting the resilience of its business despite ongoing macroeconomic and geopolitical uncertainties.
All of Lonza's business platforms recorded double-digit sales growth at constant exchange rates during the first half. While the Mammalian business contributed the largest absolute revenue increase, the Bioconjugates, Microbial, Drug Product, Bioscience and Small Molecules businesses delivered particularly strong growth rates.
Wolfgang Wienand, CEO of Lonza, said: "As macroeconomic and geopolitical volatility continues, Lonza's strong H1 2026 performance once again demonstrates the resilience and attractiveness of our unique business model. Through our focus on quality and operational excellence, the global Lonza team has converted the trust of our customers and high demand for our services into strong profitable growth and further progress in cash generation."
CDMO expansion gathers pace
Lonza said it continues to invest in expanding its manufacturing capabilities across key technology platforms. Capital expenditure during the first half stood at CHF 0.5 billion, or 15.7% of sales, with major investments progressing across mammalian manufacturing, drug product, bioconjugates, and cell and gene therapy facilities.
The company confirmed that its large-scale mammalian manufacturing asset in Visp, Switzerland, commenced commercial operations during the first half of 2026 as planned.
Further strengthening its position in the rapidly growing antibody-drug conjugate (ADC) market, Lonza announced plans to expand its aseptic drug product manufacturing capacity in Stein, Switzerland, by adding a new commercial-scale multipurpose filling line dedicated to ADCs.
The facility is expected to become operational in 2030 and is backed by a long-term collaboration agreement with a major pharmaceutical company for clinical and commercial ADC manufacturing.
Outlook upgraded
Reflecting its strong first-half performance, Lonza raised its full-year 2026 CORE EBITDA margin guidance to 33–34%, up from its previous outlook of above 32%, while reaffirming its expectation of 11–12% constant exchange rate sales growth for the year.
The company expects another strong full-year performance, although growth and profitability in the second half will reflect planned business phasing, particularly within its Advanced Synthesis business, and a higher comparative base from the previous year.
Lonza also cautioned that currency fluctuations, particularly the weaker US dollar, are expected to create a 2–3% foreign exchange headwind on sales during 2026. However, it expects the impact on margins to remain limited due to its natural hedging strategy and financial hedging programme.
The results underscore continued momentum in the global CDMO market, with outsourcing demand from innovator pharmaceutical and biotechnology companies remaining robust across biologics, small molecules, drug product manufacturing and advanced therapeutic modalities.