Selvita to focus on organic growth in 2026, expects approx. PLN 27 mln savings, higher margins

"Currently, we are focusing in 2026 primarily on organic growth. M&A (...) will depend on offers and opportunities on the market. There are big structural changes on the market (...) and this may be a decisive factor on whether we seize this opportunity," CEO Boguslaw Sieczkowski told a conference call.

Asked about the possibility to report EBITDA at the level of around PLN 90 million (EUR 21 mln) in 2026, as assumed by market consensus, the CEO assessed that this was an ambitious goal.

"A lot depends on how the situation develops in terms of macro and geopolitics, but the company will definitely put every effort into making 2026 the best possible year. But it is not all up to us," Sieczkowski added.

Selvita aims at improving its margins year after year, but sees a return to the levels noted e.g. in 2022 as a challenge.

"In 2022, exchange rates were helpful for us. We would like to improve EBITDA year by year, but are such high levels achievable? This would probably be a big challenge, though year after year, we should improve our margins," management board member Dariusz Kurdas said.

In 2025, the group's adjusted EBITDA amounted to PLN 69 million.

According to estimates, the EBITDA margin in the first quarter of 2026 was in the range of 13-16 percent, on revenue of PLN 72-82 million (vs. 16.3 percent and PLN 91 million, respectively, a year earlier and 15.1 percent and PLN 77 million in the same period of 2024).

The group's full-2026 backlog inched up by 0.3 percent y/y to PLN 218.9 million. Contracts dynamics is by 5.4 pp higher than in January.

Backlog of the drug discovery segment went down by 13 percent y/y to PLN 130 million, while that of the drug development segment rose by 22 percent y/y to PLN 75 million.

"I think we have to wait (...) the second and third quarters will be decisive, so actually, we will be able to say reliably how the whole year will look like only in September," the CEO said.

He assessed that the fourth quarter of 2025 was very good for the company, unlike the beginning of 2026.

"Delays and lower contract levels meant that the first quarter results are below our expectations, but at this moment, we are at a small positive figure in terms of backlog dynamics in annual terms," Sieczkowski added.

Last year's savings and optimalisation efforts are contributing to improved profitability and should strengthen it in coming months, the CEO also noted.

Selvita announced it expected savings to the tune of around PLN 27 million in 2026.

According to the CEO, Selvita's main growth driver is the drug development segment.

"We believe in the segment's further growth, we are working on getting the portfolio ready for providing services with higher margins. (...) All the time, the growth outlook is very promising," Sieczkowski said.

In the drug discovery segment, Selvita started the year with a wide-ranging programme of technological transformation geared towards AI solutions in virtually all the services it offers.

In the mid and long-term, the company has secured its growth by the possibility to expand its lab infrastructure.

"We have 1.5 years to decide about launching the construction of a lab that could be ready by the middle of 2029, so the main burden of costs would be in the second half of 2028 and un 2029," the CEO said.

"We have time till the end of 2027 to launch the investment. (...) If it goes ahead, this will be a matter not for 2026, but rather for the ending of 2027," he added.

Selvita plans its CAPEX at around 30 million in 2026.

"We have entered 2026 with a strong note. The first two months, in line with expectations, were at a good level of financing, an IPO window has been opened," he also said noting that market outlook was positive in terms of higher spending.

Selvita is a Contract Research Organisation (CRO) and provides comprehensive solutions to support customers and their projects in a wide range of therapeutic areas, specialising in infectious diseases, inflammation, fibrosis and oncology, among others.

doa/ tom/ ao/