(RTTNews) – Tecan Group AG (TCHBF,TECN.SW), a Swedish laboratory instruments and biopharmaceuticals solution provider, on Monday reported that third-quarter sales improved by mid-single-digit percentage in local currencies from the preceding second quarter. Further, the company confirmed fiscal 2025 and medium-term outlook.
In its third-quarter trading update, the firm reported that the Life Sciences Business segment recorded a low-single-digit sales decline, while the Partnering Business segment achieved a low teens percentage range sales improvement, both in local currencies and in line with expectations.
For both segments, order intake exceeded sales in the third quarter.
In the second quarter, sales had declined in a low-single-digit percentage in local currencies.
Looking ahead, for fiscal 2025, Tecan continues to expect sales in local currencies to be within the previously communicated range of a low single-digit percentage decline to low single-digit percentage growth. However, the current trends indicate the full-year performance will be in the lower half of the range.
The firm also reiterated its adjusted EBITDA margin forecast of 17.5% to 18.5% of sales for full-year 2025.
The company projects, as earlier communicated, that if the higher reciprocal tariff levels are maintained, the estimated net impact on the adjusted EBITDA margin for 2025 would be around 100 basis points.
However, if the US dollar to Swiss franc exchange rate were to remain at current spot levels for the rest of the year, there would be a further negative impact on the adjusted EBITDA margin of approximately 100 basis points.
Additionally, the firm updated that for US academia and government, sales are expected to trend toward the middle of the initially assumed range, from a halving of 2024 revenues to a decline in the teens.
In China, sales are tracked slightly below the lower end of the initially assumed range of high single-digit percentage decline to a stable sales range due to subdued demand.
Further, Tecan reiterated its mid-term outlook, anticipating a return to average organic growth rates in the mid- to high-single-digit percentage range in local currencies under normal market conditions. However, end markets are expected to recover gradually, so a full normalisation is not anticipated by the firm in 2026.
On Friday, the stocks had closed 1.65% lower at 148.70 Swedish Kronor in the Swiss market.
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