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Revenue: Group revenue was flat at approximately 150 million for the first half of 2026, impacted by the absence of a large license deal that occurred in the prior year period.
Radiopharmaceuticals Growth: Radiopharmaceutical sales grew by 3% year-over-year, and by double digits when adjusted for the prior year's license deal.
EBIT (Adjusted): Adjusted EBIT was slightly lower than the prior year, primarily due to the missing license deal and a less favorable product mix in the isotope segment.
Net Income: Net income increased by 5% compared to the prior year, supported by positive effects in financial results.
Medical Segment Revenue: Revenue grew by 3 million in CDMO, 2 million in lutetium, 2 million in Y90, and 2 million in generators.
Medical Segment EBIT (Adjusted): Adjusted EBIT grew by 7%, with the adjusted margin exceeding 30%.
Isotope Segment Revenue: Revenue was flat, with adjusted EBIT down 24% due to a less favorable product mix and lower-margin industrial business.
Q2 Performance: Q2 adjusted EBIT was only 5% below the prior year, a significant improvement from the nearly 50% decline seen in Q1, with Q2 results actually 5% better than the prior year's Q2.
Cash Position: Cash and receivables remained strong at over 100 million, with loan liabilities reduced to just 10 million.
Full-Year Outlook: The company reaffirmed its guidance for revenue of 320 million and adjusted EBIT of 80 million for the full year 2026.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Radiopharmaceuticals business grew double-digit (license-adjusted) in H1 2026, with strong momentum in lutetium, Y90, and generators.
Medical segment delivered a strong EBIT-adjusted margin above 30%, driven by high-margin products like Y90 and lutetium.
CDMO business continues to grow, adding 3 million in revenue versus last year.
Company remains debt-free with 100 million cash and a stable equity ratio, providing financial flexibility.
China expansion on track with new cyclotron and hot cell installation, positioning for long-term growth in a high-demand market.
New GalliaPharm 200 generator launch planned for early 2027, targeting high-volume radiopharmacies and expanding market reach.
Q2 2026 EBIT-adjusted improved to +5% versus last year, showing a positive trend after a weak Q1.
Strong order intake for industrial products in Q3, signaling a potential recovery in the isotope segment.
M&A activity in the sector (e.g., BWXT, Lantheus) validates market growth and Eckert & Ziegler's strategic position.
Partnership with TOR Medical for Pb-212 evaluation opens new opportunities in emerging isotopes.
Overall H1 2026 revenue flat due to absence of a 5 million license deal from prior year, making comparisons difficult.
Isotope segment EBIT-adjusted declined 24% due to unfavorable product mix, with weaker industrial and oil well logging sales.
Engineering (ITD) business in Dresden remains weak with lower demand and order intake, dragging medical segment performance.
Full-year guidance of 80 million EBIT requires significant H2 improvement, with only 33 million achieved in H1.
Competition in gallium generators is intensifying with new entrants like Curium/Monrol, potentially pressuring market share.
Actinium sales growth is limited by slower-than-expected customer demand, despite production capacity readiness.
China sales were lower in H1 due to missing license deal, and geopolitical risks remain a concern.
Medical segment margin may normalize as engineering business recovers, potentially reducing the current high margin.
No major M&A plans due to financial constraints, limiting ability to consolidate in a rapidly consolidating market.
Guidance for radiopharmaceutical sales of 160 million implies a strong H2 acceleration, which may be ambitious given current trends.
Q: Can you talk about your confidence and the drivers behind the full-year guidance of 80 million EBIT, given you achieved only 33 million in the first half and need a significant step-up in the second half? Also, how do you see the product mix in the isotope segment developing in H2 after suffering from industrial weakness?A: Julian Schroeder (Head of Group Controlling) explained that the medical segment is performing well, and combined with a 5 million license payment expected in H2, the math supports the guidance. The decisive factor will be the isotope products, where momentum is growing. While the product mix remains weak due to industrial and oil well logging, they expect a more favorable mix in H2 as these areas increase. Additionally, a one-time negative effect in H1 from a prior-year correction will not repeat, improving the holding segment's performance.
Q: What were the drivers behind the strong lutetium revenue momentum, and should we expect this trend to continue? Also, what is the ideal long-term geographic revenue split, particularly for China? And is the 31% medical segment margin partly due to the underperformance of the engineering business?A: Harald Hasselmann (CEO) stated that lutetium sales are on track to reach double-digit millions on an annualized basis, driven by a major customer ramping up production and smaller hospitals intensifying orders. Regarding China, the target is to generate 25-30% of group revenues there, including contributions from the local joint venture. On the medical margin, he noted that while 30%+ is excellent, the company aims to invest profits, which will increase depreciation, so a sustainable target of 25%+ is more realistic than maintaining a very high margin.
Q: How did you manage to generate more EBIT in the medical segment despite flat sales, especially considering the loss of a high-margin license deal from last year?A: Julian Schroeder explained that the improvement is due to a favorable product mix, with high-margin products like Yttrium-90 and Lutetium performing well. Costs remain flat while revenues increase, particularly from weekly lutetium production. Additionally, the weak engineering business (hot cells) had very low margins, so its decline in sales actually improved the bottom line. The CEO added that while the company is a first-class supplier, demand for isotopes like Actinium is not scaling as fast as capacity, so the guidance remains an ambitious target.
Q: Can you comment on the competitive landscape for gallium generators, especially with Curium's acquisition of Monroe and their entry into the market?A: Harald Hasselmann acknowledged the increasing competition, noting that the market is growing, which attracts new players. However, he emphasized Eckert & Ziegler's long track record of over a decade, reliability, and diversified supply sources for germanium. He expressed confidence in defending their market position, stating that while competitors may gain some customers, the company is well-equipped to maintain its leadership through quality and experience.
Q: What effects have you seen from Telix's introduction of Gazelix, and what is the current order book status for generators? Also, can copper Dotatate take share from gallium?A: Harald Hasselmann responded that Eckert & Ziegler will launch a new generation generator, GalliaPharm 200, in early 2027, which will be compatible with the Gazelix kit, allowing hospitals without cyclotrons to use it. He is confident the company will benefit from the growing market. Regarding copper, he noted that the current race is between F-18 and gallium, with no indication of losing business to copper. On the order book, he stated that while the lead time is six weeks, the company can predict generator sales for the rest of the year with high accuracy.
Q: Do the recent M&A deals in the radiopharmaceutical market (BWXT Medical and Lanteus) have any impact on your business, and are you considering playing an active role as a consolidator?A: Harald Hasselmann expressed surprise at the high valuations but viewed them as a positive signal for the industry's growth. He noted that Eckert & Ziegler will not take on massive debt for large acquisitions but is open to smaller M&A deals and partnerships, such as the ongoing evaluation with TOR Medical for lead-212. He assured that the company will carefully consider opportunities that fit its strategy and will inform the market of any developments.
Q: Regarding the upcoming GalliaPharm 200, what purpose does it serve for remote hospitals, and what does it offer that the GalliaPharm 100 does not?A: Harald Hasselmann explained that the GalliaPharm 200 is designed for high-volume radiopharmacies in the US market that require high activity from the start or perform numerous elutions daily. It demonstrates Eckert & Ziegler's innovation leadership. He noted that initial sales will be low, but the product will grow gradually, positioning the company at the forefront of high-activity generator technology.
Q: Do you see any chances for guideline changes in the prostate cancer space before the Telix bypass phase three readout?A: Harald Hasselmann stated that guideline changes will take longer and are not expected before the readout. He highlighted that the bypass study is a promising indication that could enable urologists to replace biopsies with gallium PET scans. If results are positive, it would boost the overall business, but he does not expect it to influence this year's guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.