5 Key Takeaways from Lonza’s Blockbuster 2025 Report

Takeaway 1: Record-Breaking Growth That Beat Expectations

The Headline Growth is Impressive, But The Real Story is Deeper

The top-line financial results for Lonza’s continuing Contract Development and Manufacturing Organization (CDMO) business in 2025 were formidable. The company reported sales of CHF 6.5 billion, marking an impressive +21.7% growth at constant exchange rates (CER). This was accompanied by a CORE EBITDA of CHF 2.1 billion and a strong margin of 31.6%. These results successfully outperformed Lonza’s upgraded outlook for the year, but the real story is in the details: excluding the business related to the newly acquired Vacaville site, organic CER sales growth was in the low-teens, highlighting the powerful impact of strategic acquisitions on the headline number.

Takeaway 2: A Tale of Divergent Fortunes Across Business Divisions

Not All Divisions Are Created Equal

A closer look at the results reveals a more nuanced story, with Lonza’s newly formed business platforms showing vastly different performance trajectories. The numbers highlight areas of explosive growth alongside segments facing headwinds.

• Advanced Synthesis: This division delivered “exceptionally strong” CER sales growth of +22.4% and an impressive CORE EBITDA margin of 41.8%.
• Integrated Biologics: This platform saw robust CER sales growth of +32.2%, driven by sustained demand and the significant contribution of the newly acquired Vacaville site, which added approximately CHF 0.6 billion in sales.
• Specialized Modalities: In contrast, this platform reported a CER sales decline of -3.0%. However, this masks an improving trend, as the business returned to growth in the second half of the year, particularly in Microbial. Furthermore, the Bioscience platform reported robust CER sales growth throughout 2025.

This divergence is a reminder that even within a hugely successful company, there are always areas of both exceptional outperformance and unique challenges that shape the overall picture.

Takeaway 3: A Strategic Overhaul for a Sharper Focus

A New “One Lonza” and a Strategic Exit

One of the biggest stories of 2025 was a major organizational overhaul. On April 1, 2025, the company launched its “One Lonza” operating model, streamlining its structure into three distinct Business Platforms. This move was designed to simplify the organization, and it is already showing tangible benefits. For instance, the establishment of a group-wide Strategic Enterprise Account Management team led to a significant uplift in Lonza’s already industry-leading net promoter score.

Parallel to this internal restructuring, Lonza made the strategic decision to exit its Capsules & Health Ingredients (CHI) business, which is now classified as “Discontinued Operations.” This pivotal move sharpens the company’s focus, allowing it to concentrate resources and strategy entirely on its core CDMO business.

“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. 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.” — Wolfgang Wienand, CEO, Lonza Group

Takeaway 4: A Major Boost for Shareholders

Confidence You Can Bank On: A 25% Dividend Hike

In a clear signal of financial strength, Lonza’s Board of Directors is proposing a dividend of CHF 5.00 per share for 2025. This represents a significant increase of +25% compared to the prior year. For shareholders, there’s an added benefit: subject to AGM approval, 50% of this dividend will be paid from the capital contribution reserve, making it exempt from Swiss withholding tax. Such a substantial and tax-efficient hike in shareholder returns demonstrates the board’s strong confidence in the company’s current financial health and its positive outlook for the future.

Takeaway 5: Smashing Sustainability Goals Years Ahead of Schedule

The Surprise Overachiever: Sustainability

Perhaps one of the most surprising highlights was Lonza’s remarkable progress on its long-term sustainability targets. In 2025, the company achieved reductions of more than 50% in both greenhouse gas (GHG) and waste intensity against its 2018 baseline. This outstanding achievement means Lonza has already surpassed its 2030 intensity targets, well ahead of schedule. Crucially, this doesn’t mean the work is done; beyond these intensity metrics, Lonza is also on track to meet its near-term science-based target of reducing absolute Scope 1 and 2 emissions by 42% by 2030. Further underscoring this commitment, as of January 2026, all electricity purchased by the company across the US, Europe, and China now comes from renewable sources.

Conclusion: A Resilient Past and a Focused Future

Lonza’s 2025 results reveal more than just record growth; they showcase a company in the midst of a successful strategic transformation. The divergent performance across its divisions underscores the rationale behind the “One Lonza” restructuring and the strategic exit from the CHI business. This sharpened focus is already paying off, fueling the strong financial performance and the board’s confidence to issue a major dividend hike. By streamlining its operations, Lonza has fortified its position as a pure-play CDMO. As Lonza moves forward with its streamlined strategy, how will its focused approach allow it to innovate and lead in the ever-evolving landscape of global healthcare?

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