Tecan's Big Bet: 'Rewired' for Growth After CHF 110M Net Loss

MÄNNEDORF, SWITZERLAND – March 16, 2026 – Laboratory automation specialist Tecan Group today reported a challenging financial year, posting a net loss of CHF 110.7 million for 2025. The loss was driven by a significant one-time, non-cash impairment charge of CHF 139.5 million related to strategic restructuring. However, looking beyond the headline loss, the company revealed a business showing signs of recovery, with a return to sales growth in the latter half of the year and a robust increase in new orders.

In a move to address the performance and navigate a complex market, Tecan unveiled 'Rewired,' a comprehensive transformation program designed to streamline operations, enhance profitability, and position the company to lead what it calls the "AI- and data-driven future" of laboratory science. The company reaffirmed its medium-term ambition to reach CHF 1 billion in sales by 2028, signaling a bold bet on its ability to execute this strategic pivot.

A Financial Reset for Future Gains

While the net loss of CHF 110.7 million marks a stark contrast to the CHF 67.7 million profit reported in 2024, a closer look at Tecan's financials reveals a more nuanced picture. The company's sales for 2025 stood at CHF 882.5 million, a modest 1.6% decline in local currencies for the full year. Crucially, the second half of the year saw a return to growth, with sales increasing by 0.4% and order entry surging by an impressive 8.6% in local currencies. This late-year momentum suggests that customer demand is beginning to rebound.

The substantial net loss is almost entirely attributable to a CHF 139.5 million non-cash impairment charge. This write-down stems from a strategic decision to restructure its Partnering Business, discontinuing certain less profitable product lines and design functions acquired with Paramit in 2021. Tecan stated it will now leverage its core design capabilities alongside Paramit's manufacturing expertise, aiming for greater synergy and efficiency. An additional CHF 5.3 million asset write-off was recorded for exiting selected activities at Tecan Genomics.

Despite the accounting loss, the company's operational health appears solid. Operating cash flow was strong at CHF 138.0 million, and net liquidity increased from CHF 153.7 million to CHF 160.8 million by year-end. This financial stability has allowed the Board of Directors to propose an unchanged dividend of CHF 3.00 per share, a move intended to signal confidence in Tecan's future and its commitment to shareholder returns.

Adjusted EBITDA, which excludes the impairment and other one-off costs, was CHF 142.1 million, resulting in a margin of 16.1%. This figure was dampened by significant headwinds from adverse foreign exchange rates and tariffs, which together had a negative impact of 200 basis points. Without these external pressures, the underlying margin would have been 18.1%, in line with the company's previous guidance.

'Rewired': A New Blueprint for Profitability

At the heart of Tecan's strategy is 'Rewired,' a new transformation program designed to drive growth and efficiency. CEO Monica Manotas was candid in her assessment of the company's recent performance, stating, "Our 2025 performance does not reflect Tecan's potential. We are acting decisively to change that."

The program is built on three core pillars: portfolio optimization, commercial excellence, and operational excellence. Through 'Rewired,' Tecan aims to not only return to profitable growth but also to outpace the market by capitalizing on major industry trends.

"The forces shaping its future, AI integration, automation, scientific complexity, economic pressure, are powerful and durable," Manotas commented. "We expect them to drive significant growth in laboratory automation over the coming decade, and we intend to outgrow the market by leading its AI- and data-driven future."

The financial targets tied to 'Rewired' are ambitious. Tecan is aiming for CHF 1 billion in sales and a 20% adjusted EBITDA margin by 2028. The transformation program itself is expected to contribute 200-300 basis points to that margin goal through a combination of incremental revenue and cost efficiencies. For 2026, the company forecasts an initial underlying profitability improvement of 50 to 150 basis points as a direct result of the program's early initiatives.

Navigating a Mixed Market Landscape

Tecan's performance in 2025 reflected the varied conditions across its customer segments. The Life Sciences Business, which serves end-customers, saw sales decline by 1.0% in local currencies. This was largely due to budget uncertainties in academic and government sectors, particularly in the US and China. However, the segment showed resilience with solid growth in diagnostic accounts and a significant pickup in orders from biopharma clients in the second half of the year.

The Partnering Business, which provides OEM components and manufacturing services, experienced a 2.0% sales decrease in local currencies. While weak demand for life science instrumentation affected sales of its Cavro OEM components and Paramit manufacturing services, this was partially offset by strong growth in in-vitro diagnostics systems.

Looking ahead, Tecan is projecting a gradual recovery. For 2026, it anticipates low single-digit sales growth in local currencies, with the broader market expected to remain largely flat. The company is forecasting an adjusted EBITDA margin of 15.5% to 16.5%, which includes an anticipated 110-basis-point headwind from foreign exchange and tariffs but also the initial positive impact from the 'Rewired' program.

Bolstering Leadership for the Turnaround

To steer this strategic shift, Tecan is also reinforcing its leadership. The company has proposed the election of Guillaume Daniellot, CEO of the Straumann Group, to its Board of Directors. With extensive experience in the medtech industry and a track record of leading a global healthcare company, Daniellot is expected to bring valuable expertise to the board as Tecan navigates its transformation.

The combination of a new strategic plan under CEO Monica Manotas and a strengthened board underscores the company's commitment to executing its ambitious vision. While the 2025 results were marred by significant write-downs, the underlying operational strength and the clear, decisive path forward with the 'Rewired' program suggest that Tecan is positioning itself for a new chapter of growth and innovation in the evolving world of laboratory automation.