Negative Points

• Group EBITDA margin declined to 26.8% in Q3 from 32.3% in the prior year, impacted by lower DDS utilization and production optimization costs.

• DDS segment EBITDA margin fell to 29.4% for nine months from 35.1% in the prior year, due to lower utilization, impairment, and one-off costs.

• Nine-month net income decreased 9% year-on-year to EUR103.4 million, with EPS down to EUR0.68 from EUR0.75.

• DDS nine-month revenue was flat at constant currencies, reflecting weak H1 due to lower polymer syringe volumes for mRNA.

• Q4 DCS revenue is expected to be seasonally weaker, potentially below Q3 levels, which could temper overall growth.

• A one-off revenue contribution of approximately EUR15 million from the glass syringe agreement will create a headwind for 2027 growth comparisons.

• Production infrastructure and process optimization costs in Q3 caused temporary inefficiencies, which may recur.

• Inventory impairment on customer-specific glass syringes in H1 weighed on profitability.

• DCS margin declined sequentially from Q2 to Q3 due to product mix, with a weaker HVS share in Q3.

• Management did not provide specific guidance for 2027, leaving uncertainty about growth sustainability beyond the current year.

Q & A Highlights

Q: Can you provide more color on the agreement with the specific glass syringe customer, and was any revenue or compensation recognized in Q3 or expected in Q4? A: Christian Mias (CEO) explained that the agreement is primarily based on future revenues, structured as a take-or-pay agreement for the upcoming years. The first impacts will be seen in Q4 2026 and in the years to come, underlining a strong agreement benefiting both partners. Reinhard Mayer (CFO) later clarified that there was no impact on Q3 growth from this agreement, as it was signed in July, and quantified the Q4 one-off contribution at approximately EUR15 million.

Q: Your full-year margin guide implies a big step-up in Q4 margin. Where should we think that comes from, and is the lower end of the 27% to 28% range more likely? A: Reinhard Mayer (CFO) stated that the margin increase will be driven by a stronger portion of DDS growth, supported by better factory utilization and a stronger polymer side in the segment. He confirmed the range is fully intact, stating, "We actually see a clear opportunity in the fourth quarter to substantially increase the EBITDA margin so far reached," and clarified that there is no lower-end or higher-end perspective, just that the range is intact.

Q: One of the GLP-1 market leaders recently booked notable termination fees due to downsizing large supplier contracts. Should we read this as a risk to your full-year or midterm targets? A: Reinhard Mayer (CFO) responded that SCHOTT Pharma has concluded a new contract with at least one large client that rebalances terms, including take-or-pay clauses. He noted that most large contracts have similar structures, and so far, the company has been able to deliver growth and margins as expected, supporting the midterm guidance laid out at the beginning of the year, which remains intact and confirmed.

Q: Could you quantify how much of the 8% organic sales growth in Q3 came from the new agreement with the glass customer, and is there any reason growth should not be broadly in line with your medium-term guidance next fiscal year? A: Reinhard Mayer (CFO) confirmed there was no impact on Q3 growth from the new agreement, as it was signed in July. Regarding 2027, he reminded that the midterm guidance of 6%-8% top-line growth for 2027-2029 was based on this arrangement. The Q4 one-off compensation effect will not repeat in 2027, but all growth drivers remain intact and structurally in place. He declined to give specific 2027 guidance, deferring to the Q4 report.

Q: Can you comment on the potential for further upside in your high-value solution (HVS) product portfolio next year following the strong increase to 59% in Q3? A: Christian Mias (CEO) stated that the company expects continuous growth in the glass syringe business, driven by GLP-1, and further growth in polymer that should overcompensate the reduction in mRNA, driven by new applications like aesthetics, IV, and long-acting injectables. He expressed confidence that the company is on a good track to further increase its HVS share.

Q: Where is the polymer strength coming from, and can you help quantify the sequential step-up from Q2 and expectations for Q4? A: Reinhard Mayer (CFO) explained that the company has seen a slowing decline of mRNA volumes while other applications have expanded, now compensating for the declining mRNA polymer volumes. The polymer strength is broad-based across the five other applications in the segment. He declined to provide specific growth numbers but indicated the strength will continue.

Q: Can you quantify the costs associated with production infrastructure incurred in Q3, and what were those specifically related to? A: Christian Mias (CEO) explained that the company is constantly optimizing infrastructure and production processes, which can temporarily impact production efficiency. These costs were driven by ramp-up activities and optimization efforts. He emphasized that results are in line with plan, these are isolated cases rather than structural issues, and while similar effects could occur again, the company believes it is on top of the specific issues.

Q: On your Indian business, have you seen a notable tick up in demand since semaglutide went generic, and is that mainly in vials? Also, where does utilization for the vials business sit today? A: Christian Mias (CEO) confirmed that growth in the Indian business is well on track and according to expectations, or maybe a little bit above. Regarding vials, he noted strong utilization of vial capacities and highlighted the recent completion of the US facility expansion, particularly focused on RTU vials, positioning the company well to serve increasing market demand.

Q: Can you comment on the progress of the ramp-up and utilization of the new Hungary and Switzerland facilities, and how much of those facilities are already contracted? A: Christian Mias (CEO) stated that the ramp-up in Hungary and Switzerland is in progress and according to plan. He indicated that the additional capacity will be needed to satisfy customer demands coming in the future, confirming the company is well on track with its expansion projects.

Q: What drove the sequential decline in DCS margin from Q2 to Q3 2026? A: Christian Mias (CEO) attributed the sequential decline primarily to product mix, noting that the portion of high-value solutions was a little weaker in Q3 compared to Q2, which is simply a product mix effect in quarter-over-quarter comparison.

Q: Are you seeing any changes in customer order behavior by geography or format regarding GLP-1 demand, and where do you see the higher return investment opportunities? A: Reinhard Mayer (CFO) stated that GLP-1 demand is strong in relevant growth regions, specifically on the glass syringe side, and the company is well-positioned in all formats. Regarding investments, he confirmed that 2027 CapEx levels are expected to be above 2026 levels, tapering off thereafter. Ongoing projects include glass syringe, specialty vials expansion, and ready-to-use cartridge and syringe expansions, all on plan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .