Sartorius AG Investor Relations

We focus in both divisions on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.

Key Growth Drivers

• Growing world population
• Increasing incomes and better access to healthcare services in emerging economies
• Aging population and rise in age-related diseases in industrialized countries

Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.

Sartorius has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:

• Integration of innovations through acquisitions
• Alliances with partners
• Own product development

With around 60 production and sales locations worldwide, Sartorius is represented in all major biopharma markets. As part of a long-term investment program that is now well advanced, the company has been investing in the expansion of its research and production infrastructure for several years. In addition to expanding capacity, these investments are aimed at further diversifying and increasing the flexibility of the production network, Sartorius is well positioned to capture strong organic growth.

North America and Asia are the key focal areas of the regional growth strategy. The USA is the world's largest market for bioprocess equipment and laboratory products. Yet because it is home to the company’s main competitors for both company divisions, Sartorius formerly had a lower market share in this region than in Europe and Asia. By systematically strengthening its sales and service capacities, Sartorius has gained market share in North America in recent years and intends to expand this further.

The Asian market also offers significant growth potential for Sartorius. The drivers here are demographic change, increasing prosperity, rising government spending on healthcare and the expansion of the regional biopharmaceutical industry. To benefit from this dynamic development, Sartorius has significantly strengthened its presence in this region.

Recurring business with sterile single-use products accounts for about 75% percent of the Group´s sales revenue. These offer customers cost advantages, flexibility, and less resource usage, and thus a better ecological footprint compared with conventional processes employing reusable stainless-steel components.

The high share of recurring revenues is also bolstered by the strict regulatory requirements on the part of the customers. Because health authorities validate production processes as an integral part of an application for approval of a new medical drug, the components initially validated can be replaced only at considerable expense once they have been approved.

Beyond this, the company’s broad and stable customer base that is primarily addressed directly through a specialized sales force also contributes to this favorable risk profile.
The bioprocess technology market is characterized by relatively high entry barriers arising in part from the biopharmaceutical industry’s strong degree of regulation and its technological complexity.

Acquisitions that are complementary to or extend the company’s strengths appropriately have been and will remain part of the portfolio strategy for both divisions. Due to high innovation dynamics, the company considers further additions to be possible on an ongoing basis across the entire breadth of the product portfolio.

Acquisition Criteria

• Complementarity of technologies to our existing portfolio
• Strong market positioning, for example, through innovative products with unique selling propositions
• Integration capability
• Appropriate valuation
• Growth and profitability profile

For many years, we have firmly embedded sustainability at many levels in our business. To us, it means operating responsibly and nurturing long term relationships – with respect to customers, employees, investors, business partners and society as a whole.

The positive business development in 2025 confirms the assessment of the Executive Board that the dampening short-term industry factors are losing momentum, while the structural growth drivers of the life science market are regaining importance.

“The biopharmaceutical market remains dynamic and continues to offer enormous opportunities. Rising demand for biologics meets growing cost pressure in healthcare systems, thereby increasing the need for technologies that make the development and manufacturing of these therapies more efficient. Looking at 2026, it is clear that our industry is back on track but has not yet fully reached its long-term growth level, especially in terms of demand for equipment and instruments. In addition, there are macroeconomic and geopolitical uncertainties that require a high degree of flexibility,” said Sartorius CEO Dr. Michael Grosse. “Since the year is still young, we have set a broad guidance range to account for the continued high macroeconomic and industry-specific volatility. The lower end of the range reflects a cautious scenario in which market conditions weaken. However, we currently expect market dynamics to continue normalizing and positive trends to continue. I am convinced that based on our strong market position and resilient business model, we are very well set up. Our clear focus on our customers, innovation, and operational excellence enables us to actively shape the development of the industry and grow profitably in the medium term.”

For fiscal 2026, Sartorius expects its profitable growth trajectory to continue, with a continued positive development in the Bioprocess Solutions Division and a recovery in the Lab Products & Services Division. Management forecasts the Sartorius Group’s sales revenue growth in constant currencies to be between around 5 and 9 percent, including a contribution of approximately 1 percentage point from the MATTEK acquisition and US tariff surcharges. The underlying EBITDA margin should increase to slightly above 30 percent due to volume and scale effects (PY: 29.7 percent).

The ratio of capital expenditures to sales revenue is expected to remain at a similar level to 2025 (12.5 percent). This reflects the continued strategic investments in research and production capacities, technologies, and innovation to support the Group’s medium-term growth ambitions. Management expects the ratio of net debt to underlying EBITDA, excluding potential capital measures and/or acquisitions, to be slightly above 3 (PY: 3.55).

The Bioprocess Solutions Division is anticipated to achieve sales revenue growth in constant currencies of around 6 to 10 percent, mainly driven by the consumables business, while the equipment business is expected to remain at least stable. The underlying EBITDA margin should be slightly above 32 percent (PY: 31.7 percent).

For the Lab Products & Services Division, management forecasts sales revenue growth in constant currencies of around 2 to 6 percent, including a growth contribution from MATTEK of around 1.5 percentage points. This reflects a continued strong business with consumables and services as well as an at least stable instruments business. The underlying EBITDA margin should be slightly below 21 percent (PY: 21.5 percent), mainly influenced by increased investments in the Advanced Cell Models business, unfavorable currency and product mix effects, as well as the dilutive effect of the current tariffs.

Due to the continued high dynamics and volatility across the life science industry, the forecast remains subject to greater uncertainty, which is reflected in the current guidance range. Potential additional US tariffs are likewise not included.

_{All forecast figures are based on constant currencies, as in past years. Management points out that the dynamics and volatilities in the industry have increased significantly in recent years. In addition, uncertainties due to the changed geopolitical situation, such as the emerging decoupling tendencies of various countries as well as the trade policy framework conditions, are playing a greater role. This results in higher uncertainty when forecasting business figures.}

Sartorius intends to continue its profitable growth path in the long term and expects to grow faster than the market. According to the new medium-term targets, the Group plans to achieve average annual growth in the lower double-digit percentage range over the five-year period to 2028 of which acquisitions are anticipated to contribute around a fifth. The underlying EBITDA margin is also expected to increase and reach around 34 percent in 2028. The margin targets include expenses of around 1 percent of Group sales revenue for measures to reduce the company’s CO2 emission intensity.

In terms of its two segments, Sartorius expects the Bioprocess Solutions division to grow on average in the low to mid-teens percentage range per year between now and 2028 with an underlying profit margin of around 36 percent. The Lab Products & Services division is projected to expand at an average annual rate by a mid to high single-digit percentage with a margin of 28 percent in 2028.

All forecasts are based on constant currencies, as in the past years. Management points out that the industry has become increasingly dynamic and volatile in recent years. In addition, uncertainties due to the shifting geopolitical situation, such as various countries’ nascent decoupling tendencies, are playing an increasing role. This results in increased uncertainty when forecasting business figures.

Sartorius is a globally operating company with subsidiaries in more than 30 countries. The holding company Sartorius AG is the parent company of the Sartorius Group. The corporation is headquartered in Göttingen, Germany, and listed on the German Stock Exchange with preference and ordinary shares.

Sartorius manages its bioprocess business as a legally independent subgroup whose parent corporation is Sartorius Stedim Biotech S.A., which is listed on Euronext Paris.