Investing.com -- Oxford BioMedica (LSE:OXB) has reaffirmed its full-year 2026 guidance, expecting revenue of £220-240 million at constant exchange rates, with 60% already secured through contracted client orders, according to a report released today.
The company said coverage rises to over 80% when including the risk-adjusted pipeline. EBITDA margin is expected to reach approximately 10%, with the final major technology transfer expenses set to be incurred in the first half of the year.
The technology transfer costs relate to spreading capabilities across Oxford BioMedica's network, alongside planned maintenance shutdowns, which will drive a first-half EBITDA loss and a double-digit second-half margin.
Capital expenditure for 2026-2027 is now expected to be approximately £50 million, down from the previously communicated £60 million. The reduction follows the acquisition of a new Durham facility in the United States, which provided a capital-efficient route to expanding US capacity.
For 2025, Oxford BioMedica reported net revenue of £168.7 million, up 31% on a reported basis. At constant exchange rates, revenue reached £170.9 million, up 33% and slightly ahead of the original guidance range of £160-170 million.
Manufacturing services reached £81.1 million, up 19% year-over-year, driven by increased batches for commercial products and for clients preparing to launch. Development services reached £60.1 million, up 27%, from clients advancing their pipelines and from increased process characterisation and validation work.
Procurement services reached £22.3 million, quadrupling from 2024, driven by clients preparing for commercial launch. Licences, milestones and royalties totalled £5.2 million, down 27%, due to timing of milestones and slightly reducing Kymriah royalties as the product matures.
The company reported EBITDA of £2.3 million for 2025, which included a one-off gain of £9.9 million on the US site acquisition, plus deal and integration costs of £5.1 million. On an underlying basis, EBITDA was negative £2.5 million, although at constant currencies, this was positive £3.3 million.
Cash stood at £96.9 million at period end. RBC Capital Markets projects a low-point on the balance sheet of over £60 million at end-2026.
Oxford BioMedica's order intake grew 20% year-over-year to £224 million in 2025, while its order book increased 36% to £204 million. The company now has 48 programmes from 40 clients, up from 44 programmes from 37 clients in September 2025.
There are five late-stage clinical programmes and three commercial programmes, including those preparing for launch, from four and two clients respectively at September 2025. The company's pipeline was $597 million at end-2025, up from $541 million at June 2025.
The company continues to expect revenue growth of 25-30% in each of 2027 and 2028, with EBITDA margin rising to over 20% in 2027 and approaching 30% in five to six years.
RBC Capital Markets maintains an Outperform rating on Oxford BioMedica with a price target of 1,170 pence. The stock closed at 606 pence.
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