Lonza is raising its long-term growth ambitions after completing its transformation into a pure-play contract development and manufacturing organization (CDMO), citing stronger operational performance, maturing growth projects and attractive market opportunities.
At its Capital Markets Day in Vacaville, California, the company said it had made significant progress in executing its One Lonza Strategy, upgrading its Organic Growth Model to reflect accelerating margin expansion, improving capital efficiency and stronger cash generation.
Less than two years after launching its transformation, Lonza has completed its shift to a pure-play CDMO following its exit from the Capsules & Health Ingredients business and further divestments.
The upgraded model targets average low-teens organic sales growth at constant exchange rates (CER) over time, with CORE EBITDA margins now expected to reach the high thirties in the medium term. Lonza also introduced a medium-term return on invested capital (ROIC) ambition of two to three times its current weighted average cost of capital (WACC), alongside improving free cash flow (FCF) conversion over time.
Wolfgang Wienand, CEO of Lonza, said the company’s performance and strategic execution had strengthened its confidence in the business model.
“Lonza performed well in Q3 2026 and we continued to successfully execute our One Lonza Strategy. The transformation into a pure-play CDMO has created a stronger, more integrated global organization that is delivering for our customers across all Business Platforms.
"The power of the Lonza Engine and the improvements we are bringing to the business further strengthen our confidence in our Organic Growth Model and our ability to improve margin faster over time.
"We continue to significantly grow, expand profit margins and returns, increase cash generation, and allocate capital with discipline. It is this highly differentiated model that will drive sustainable long-term value creation for our customers and their patients, our shareholders and our people at One Lonza."
Lonza said its upgraded ambitions reflect progress across high-return growth projects, operational and commercial improvements, capital expenditure (CapEx) performance and continued discipline in overhead costs.
The company expects these initiatives to accelerate CORE EBITDA margin expansion, with margins reaching the high thirties in the medium term. Its updated model also incorporates an ambition to deliver ROIC of two to three times current WACC, while improving FCF conversion on average over time.
Lonza expects organic CapEx to fluctuate around the mid-to-high teens as a percentage of sales, unchanged from its previous model. The company also reaffirmed its commitment to a progressive dividend policy, consistent with its Capital Allocation Framework first outlined in 2024.
The strategy positions Lonza as a long-term growth compounder, combining resilient, repeatable above-market organic sales growth with expanding margins and stronger cash generation to fund future investments at attractive returns.
Lonza reported that its business performed well in the third quarter of 2026, in line with expectations across all Business Platforms.
The company reaffirmed its full-year 2026 outlook, upgraded following the first half of the year, forecasting 11–12% CER sales growth and a CORE EBITDA margin of 33–34%.
Lonza also maintained its expectation of a negative foreign exchange impact of approximately 2% to 3% on 2026 sales growth.
Performance in Capsules & Health Ingredients was also in line with expectations. Lonza continues to forecast mid-single-digit CER sales growth and further CORE EBITDA margin expansion for the business in full-year 2026.
With its pure-play CDMO transformation complete, Lonza is now focusing on translating operational improvements, growth investments and capital discipline into faster margin expansion, stronger returns and sustainable long-term shareholder value.
