Q3 2025 Qualitative Update: Tecan reports mid-single-digit local currency growth in the third quarter and confirms full-year 2025 outlook

Core Insights - Tecan reports mid-single-digit local currency growth in Q3 2025, confirming its full-year 2025 outlook despite previous declines in Q1 and Q2 [1][2][3] Financial Performance - Sales for Q3 2025 increased by a mid-single-digit percentage in local currencies, following a mid-single-digit decline in Q1 and a low-single-digit decline in Q2 [2] - The Life Sciences Business experienced a low-single-digit sales decline, while the Partnering Business achieved a sales increase in the low teens percentage range [2] - Order intake exceeded sales in Q3, maintaining a book-to-bill ratio above 1 [2] Full-Year Outlook - Tecan confirms its full-year sales outlook, expecting sales in local currencies to range from a low single-digit percentage decline to low single-digit percentage growth, with current trends indicating performance will be in the lower half of this range [3] - The adjusted EBITDA margin forecast for full-year 2025 is reiterated at 17.5% to 18.5% of sales [4] Impact of Tariffs and Exchange Rates - The estimated net impact on the adjusted EBITDA margin for 2025 could be around 100 basis points due to higher reciprocal tariff levels [5] - If the current US dollar to Swiss franc exchange rate persists, it may lead to an additional negative impact of approximately 100 basis points on the adjusted EBITDA margin [5] Mid-Term Outlook - Tecan maintains its mid-term outlook, anticipating a return to average organic growth rates in the mid- to high-single-digit percentage range under normal market conditions [6] - Full normalization of end markets is not expected until 2026, with guidance for 2026 to be provided alongside full-year 2025 results [6] Regional Performance - Sales in the US Academia & Government sector are trending toward the middle of the initially assumed range, while demand in China remains subdued [7] - Biopharma sales in the second half of 2025 are expected to align with stable sales development seen in the first half [7] - Newly launched products and growth segments are contributing positively, with sales to the largest Partnering Business customer expected to be stable compared to the prior year [7] Market Positioning - Tecan is well-positioned to benefit from robust underlying megatrends driving increased demand for healthcare solutions [8] - The company generated sales of CHF 934 million (USD 1,062 million; EUR 984 million) in 2024, with a global presence in over 70 countries [9]