Swiss MNC Lonza has reported a blockbuster FY 2025, posting sales of CHF 6.5 billion, up 21.7% on a constant exchange rate (CER) basis and 19.2% at actual exchange rates (AER) compared to 2024.

CORE EBITDA hit CHF 2.1 billion, delivering a margin of 31.6%, up 1.4 percentage points from the prior year, driven by maturing growth projects, operational efficiency, and strong leverage.

Excluding Vacaville-related business, organic CER sales growth reached the low-teens with improved CORE EBITDA margins, in line with Lonza’s CDMO Organic Growth Model.

Momentum came from Mammalian, Bioconjugates, Small Molecules, Drug Product, and Bioscience Technology Platforms, with the Vacaville site delivering higher-than-expected contributions. Performance in Cell & Gene (CG) and Microbial lagged slightly.

In fact, 2025 was a transformative year for Lonza. On 1 April, the company rolled out a simplified operating model under the One Lonza strategy, consolidating three business platforms—Integrated Biologics, Advanced Synthesis, Specialized Modalities—supported by strengthened cross-platform operations and quality functions. Organizational changes were “executed seamlessly,” earning strong feedback in employee surveys.

The launch of a Strategic Enterprise Account Management team boosted customer engagement, reflected in a marked increase in Lonza’s net promoter score. A new team for corporate strategy, innovation, and M&A is tasked with driving value creation through organic and inorganic growth. Meanwhile, the CHI carve-out and exit process continued as planned.

“2025 was a strong year for the One Lonza team, marked by significant revenue growth with expanding profitability alongside tangible progress on our transformation journey,” said CEO Wolfgang Wienand.

“We executed our existing business with rigor and, at the same time, continued to lay the foundations for future growth. In the face of geopolitical and economic volatility, Lonza’s business model, once again, proved resilient and delivered on the promise to effectively diversify risks across the broadest technology offering, commercial portfolio and global manufacturing footprint in the CDMO industry. Based on what we achieved together in 2025, we are well positioned to continue executing our strategy in 2026 and beyond – for the benefit of our customers and their patients, our shareholders and our people.”

The Vacaville large-scale mammalian drug substance facility continued to shine, securing a fifth major commercial contract and advancing further agreements. The site is now fully integrated into Lonza’s global network, completing post-merger integration, a successful FDA audit, the first technical transfer of a new commercial product, and operational flexibility upgrades.

CapEx totalled CHF 1.3 billion (19.6% of sales), supporting ongoing organic growth across Mammalian, Drug Product, Bioconjugates, and CG technologies while gradually reducing intensity. Strategic projects progressed well, solidifying Lonza’s leadership in the global CDMO market.

The CHI business met its 2025 outlook, posting CER sales growth of +3.9% for the full year and +8.0% in H2, with CORE EBITDA margin improving by 1.6 points to 25.9%. Following the carve-out, CHI delivered +4.4% CER growth at a CORE EBITDA margin of 24.7%.

Lonza exceeded its 2030 sustainability targets ahead of schedule, cutting Scope 1 and 2 GHG emissions and waste intensity by more than 50% versus 2018 levels. All electricity purchased in the US, Europe, and China is now renewable.

The board nominated Claudia Süssmuth-Dyckerhoff as independent member and vice-chair, pending election at the May 2026 AGM. Lonza also plans to raise its dividend by 25% to CHF 5.00 per share, with half exempt from Swiss withholding tax.

Lonza expects continued growth in 2026, projecting CER sales growth of 11–12% and CORE EBITDA margin above 32%. Growth is anticipated to be stronger in H1 than H2. Despite a -2% FX headwind from a weaker US dollar, robust hedging measures will protect margins.

“Given recent geopolitical and geoeconomic shifts toward more regional supply chains and its extensive and well‑diversified global manufacturing network across key regions and technologies, Lonza is well positioned to support customers seeking to align regional supply with regional demand,” Wienand said.

The company highlighted its Vacaville facility as a key driver of its US biologics offering, supporting customers’ regional supply needs. Large pharmaceutical investments are expected to shift CapEx toward the US, while biotech companies continue to favor outsourcing to CDMOs for efficiency.