Sartorius AG ADR

Solid 9M’26 performance + profitability/cash strong (Group) - Management reported solid growth in the first nine months of 2026, with both divisions contributing. - Operational sales growth (excluding tariff effects): +8.1% YoY in constant currencies; including tariff customer compensation: +6.9%. - Underlying EBITDA: EUR 828m (+6.9% YoY); margin: 30.2% (+50 bps YoY) driven mainly by higher volumes/operating leverage (offset by mix + ongoing investments).

Division trends: BPS recovery continues; LPS strong but with timing/pull-forward - Bioprocess Solutions (BPS): - Operational sales: +8.1% constant currency; including tariff comp: +6.8%. - Growth driven by consumables (healthy single-digit) and double-digit consumables growth; recurring benefiting from clinical trial activity/approvals/commercial manufacturing. - Non-recurring business recovered YoY confirming the equipment recovery trajectory. - Lab Products & Services (LPS): - Operational sales: +8.3% constant currency; including tariff comp: +7.5%. - Very strong Q3 exceeded expectations, but management stressed it likely includes demand pull-forward/timing effects after a prolonged period of subdued customer investment—not guaranteed as a new run-rate. - MatTek contributed ~2 percentage points to LPS growth (in line with expectations).

Tariffs: headwind emerged in Q3; refunds timing uncertainty - Tariff-related dynamics affected reported growth: - In Q3 received an additional EUR 5m tariff refunds (U.S. Treasury). - Refunds received in 9M: EUR 31m, with ~EUR 40m total claimed; remaining ~EUR 9m expected by year-end but timing uncertain. - Customer compensation reduced growth: ~120 bps in 9M, ~60 bps in Q3. - Also noted: tariff surcharge rate reduction changed impact from tailwind in H1 to headwind in Q3 (roughly ~40 bps headwind for group/BPS and ~50 bps for LPS in Q3).