Sartorius Aktiengesellschaft (ETR:SRT) opened 2026 with what management described as a “good start” to what it continues to frame as a transition year, supported by resilient recurring revenue in both divisions and improving cash flow. On the company’s first-quarter 2026 results call, CEO Michael Grosse said sales “developed well” and underlying EBITDA was up year-over-year, with profitability “resilient” despite tariffs and mix effects.
Q1 sales growth led by consumables; equipment expected to improve in Q2
CFO Florian Funck reported group sales revenue of EUR 899 million, up 7.5% in constant currencies and 1.8% reported. Bioprocess Solutions (BPS) generated EUR 735 million of revenue, up 8.1% in constant currencies (and 2.4% reported), while Lab Products & Services (LPS) posted EUR 164 million, up 4.9% in constant currencies, though down 0.6% reported due to foreign exchange.
In the Q&A, René Fáber, Head of the Bioprocessing Division and CEO of Sartorius Stedim Biotech, said the equipment outlook is consistent with expectations: Q2 should be stronger than Q1, and the second half is expected to be stronger than the first, based on customer discussions and funnel development. Funck later added that visibility into Q2 is supported by the order book, while acknowledging customer timing adjustments can occur.
Regional performance positive; China contribution improves in BPS
Funck said the quarter showed “healthy growth momentum across all regions.” In constant currencies, group sales grew 8.0% in EMEA, 6% in the Americas, and 8.9% in Asia Pacific, with China “contributing nicely” to Asia’s BPS growth.
Asked about China, Grosse said the company was “encouraged” to see a positive contribution after “two rather difficult and reasonably weak years.” He noted demand remains “muted” for equipment and instruments, which has a larger impact on LPS, but added the company saw strong performance on the “BPS and consumer business side,” citing “around close to 30%” group-level performance “on that basis” and describing China’s growth contribution as positive on consumables.
Profitability resilient despite tariffs, mix, and investments
Underlying EBITDA rose 1.6% year-over-year to EUR 267 million, with an underlying EBITDA margin of 29.7%. Funck said volume and scale benefits were offset by mix effects within BPS consumables, tariff impacts, and continued investments in growth initiatives—particularly in LPS. He quantified tariff effects as roughly 40 basis points of margin headwind in Q1 at the group level.
At the divisional level:
- Bioprocess Solutions underlying EBITDA increased to EUR 233 million, and margin improved 30 basis points to 31.8%, as volumes and operating leverage more than offset tariffs and consumables mix effects.
- Lab Products & Services underlying EBITDA margin was 20.7%, unchanged versus Q4 2025. Funck said the outcome reflects a multi-year investment program, consistent with full-year expectations, and was “of course” negatively impacted by tariffs.
On margin mechanics, Funck told investors that foreign exchange played a key role in the reported gross margin versus other operating income presentation: the company’s rolling hedging impacts flow into “other income,” creating what he called a “mismatch” when comparing gross margin and other operating income line items. He reiterated the company guides on underlying EBITDA margin rather than gross profit margin.
Net profit and cash flow improve; deleveraging continues
Reported net profit increased 16% to EUR 56 million, which Funck attributed to lower extraordinary items compared with the prior year (when costs were driven mainly by an S/4HANA changeover). Operating cash flow increased to EUR 189 million, up nearly 36% year-over-year, driven by higher EBITDA and lower tax payments, partially offset by working capital needs.
Funck said working capital changes were “mainly explained by higher accounts receivable at quarter end,” reflecting strong late-quarter sales and invoicing that had not yet converted into cash due to timing and the Easter holiday season. Free cash flow rose to EUR 113 million. The Q1 CapEx ratio was 8.6%, while management reiterated an expectation of around 12.5% for the full year.
Net debt fell slightly to EUR 3.727 billion, even after the March 31 dividend payout to Sartorius AG shareholders, and the leverage ratio (net debt to underlying EBITDA) improved to 3.53x from 3.55x at year-end 2025. Funck said the company remains focused on maintaining a “strong investment-grade credit profile.”
Guidance confirmed; FX headwind expected in Q2
Grosse confirmed the company’s full-year 2026 guidance. Sartorius expects group sales growth of 5% to 9% in constant currencies and an underlying EBITDA margin “slightly above 30%.” By division, management forecast:
- Bioprocess Solutions: sales growth of 6% to 10%, driven primarily by recurring business; equipment expected to be “at least stable.”
- Lab Products & Services: sales growth of 2% to 6%, reflecting recurring strength and a “stabilizing instruments environment.”
Management said group growth includes around one percentage point from the MatTek acquisition and U.S. tariff-related surcharges, while LPS includes roughly 1.5 percentage points from MatTek. Grosse added that Sartorius expects net debt to underlying EBITDA to decline to “slightly above 3 times” by year-end.
On foreign exchange, Grosse said the company expects a headwind of roughly -2.5 percentage points in Q2 (and -4 percentage points for H1 cumulative), while still expecting full-year FX impact of around -2 percentage points.
Management also addressed geopolitical and energy-related risks. Funck said Sartorius is not an energy-intensive company, describing electricity as a “very low single-digit %” of cost of goods sold. He said the company uses longer-term rolling contracts rather than short-term hedging and does not expect spot-market spikes to have “any larger impact” on 2026–2027 P&L, though it is monitoring potential second-round effects such as freight and oil-based raw materials. He estimated a potential risk of “around about EUR 10 million” for 2026 and said countermeasures could include price increases or freight surcharges if needed.
Looking ahead, Grosse said the company expects the second half of 2026 to be stronger than the first half in absolute terms on a constant-currency basis, citing a positive biopharma market backdrop, a strong order book, and the company’s ability to navigate macro and geopolitical volatility.
About Sartorius Aktiengesellschaft (ETR:SRT)
Sartorius Aktiengesellschaft provides bioprocess solutions and lab products and services in the United States and internationally. The company offers multi-parallel, benchtop, single-use, stainless steel, cell culture, rocking motion, and microbial bioreactors, and software apps for bioreactors and cell culture shake flask; fermenters; cell culture media products; cellcelector flex, incubator flowbox, nanowell arrays, and capillaries and tips; fluid management products; microbiology products; and Ultrafiltration membrane filters, glass and quartz microfiber filters, clarification, syringeless and in-line filters, lab chromatography, and filters and blotting papers.
