Lonza Group sets ambitious mid-term financial growth targets

Lonza Group, the Swiss pharmaceutical contract development and manufacturing organization (CDMO), has announced updated mid-term financial targets ahead of an investor day in Vacaville, California.

The company aims for average organic revenue growth of 10% to 13% at constant exchange rates. Lonza expects its operating profit margin to increase into the high 30% range, up from a projected 33% to 34% in 2026. The company intends for its core EBITDA to grow faster than its revenue.

Key financial metrics included in the new model are a target return on invested capital (ROIC) of two to three times the weighted average cost of capital (WACC) and improved cash flow generation. Capital expenditure is expected to remain in the mid-to-high single digits of revenue. To support shareholder value, Lonza aims for stable or increasing annual dividends and maintains the option for selective share buybacks.