Lonza confirms strong 2025 CDMO growth outlook, secures major Vacaville contract

Swiss pharmaceutical contract manufacturer Lonza confirmed its full-year 2025 outlook, expecting constant exchange rate (CER) sales growth of 20-21% and a CORE EBITDA margin of 30-31% for its CDMO business, which comprises about 86% of its half-year sales. The company reported strong Q3 performance and signed a significant long-term commercial supply agreement for its Vacaville facility, which is expected to contribute around half a billion Swiss francs in sales at a better-than-expected margin. Lonza's Capsules and Health Ingredients (CHI) segment has recovered and returned to growth, with plans underway to divest this business. Analysts view the Vacaville contract as a key positive development, alleviating investor concerns over newsflow compared to competitors. Despite some negative currency impacts expected to reduce sales and EBITDA by 2.5-3.5%, Lonza remains confident in achieving its targets, supported by a strong manufacturing presence in the U.S. and no anticipated material effects from current U.S. trade policies.