Sartorius AG

Strong 9M 2026 performance; profitability + cash flow improve - Group: solid growth with both divisions contributing; free cash flow up 55% to EUR 310m (operating cash flow +10% to EUR 562m), helping deleveraging. - Profitability: Underlying EBITDA +6.9% to EUR 828m, margin +50 bps to 30.2% (driven by higher volumes + operating leverage; some mix headwind but offset). - Balance sheet: Equity ratio 42.8% (from 39.8% end-2025); net debt EUR 3.68bn (≈EUR 200m lower vs 12 months ago); net debt / underlying EBITDA 3.3x.

Underlying demand trends: consumables strong; equipment recovery progressing - Bioprocess Solutions (BPS): operational sales +8.1% (constant currency); including tariff compensation +6.8%. Recurring/consumables strong; non-recurring equipment recovery continues (management confirms equipment recovery “as anticipated” and supports further progression). - Lab Products & Services (LPS): operational sales +8.3%; including tariff compensation +7.5%. Q3 exceeded expectations but includes demand pull-forward/timing (management explicitly warns it’s not a new run-rate). - Notable “surprising/good” momentum: LPS bioanalytics especially strong, plus some Q3 pull-forward. Octet and AI-driven workflows highlighted as growth drivers.

Tariff surcharges were a major swing factor (good to understand comparability) - Company received EUR 31m tariff refunds in first 9 months (claimed ~EUR 40m total); remaining ~EUR 9m expected by year-end but timing uncertain. - Tariff customer compensation reduced sales growth by about 120 bps in 9M (almost 60 bps in Q3). - Q3 also faced a shift in tariff surcharge rates (tailwind in H1 → headwind in Q3): management estimates this created a ~40 bps headwind (group/BPS) and ~50 bps headwind (LPS) in Q3; they argue underlying momentum actually accelerated once stripped out.