Bachem Charts Aggressive Growth Path Following Strong Results

Bachem launches major expansion with 35-45% revenue growth forecast for 2026, backed by over CHF 400M in capital investment and strong 2025 profit surge.

The specialty chemicals firm Bachem is shifting into a higher gear. After a successful 2025 fiscal year, the company is embarking on an aggressive expansion phase, backed by a revenue growth forecast of up to 45% for the current year and substantial capital investments. This strategic push signals a decisive move to significantly scale its business operations.

Capital Expenditures Fuel Ambitious Targets

A cornerstone of Bachem's growth strategy is a significant increase in capital investment. Having already channeled over CHF 332 million into capacity expansion in 2025, the company has budgeted more than CHF 400 million for the current year. A key project is the "Building K" at its Bubendorf headquarters. Following a successful regulatory inspection in late 2025, commercial production at this facility is being ramped up progressively throughout 2026.

This infrastructure build-out supports management's confident outlook. For 2026, Bachem anticipates revenue growth, measured in local currencies, to land between 35% and 45%. The company expects its EBITDA margin to stabilize in the low-thirties percent range.

Shareholder Rewards and Profitability Surge

The company's financial performance for the past year provides a solid foundation for its ambitious plans. Group revenue increased by 14.8% to CHF 695.1 million. Profitability metrics showed even stronger momentum, with operating earnings (EBITDA) climbing 21.8% to CHF 214.7 million. This represents a robust margin of 30.9%. Net profit saw parallel growth, rising nearly a quarter to CHF 148.8 million.

Shareholders are set to benefit directly from this performance. The Board of Directors has proposed raising the dividend to CHF 0.90 per share.

Growth was primarily driven by high demand for proprietary peptides in the commercial active ingredients segment, where sales reached CHF 343.4 million. The research chemicals and specialty products division also contributed positively to the overall result, posting growth of 8.8%.

Market Reaction and Technical Positioning

The recent announcements have spurred activity in the equity market. Bachem shares recorded a gain of 12.59% over a seven-day period, closing at GBP 61.30 on Friday. Despite this short-term rally, the stock price remains approximately 18% below its 52-week high of GBP 74.63.

Technical indicators suggest the recent upward move may follow a period of significant selling pressure. With a Relative Strength Index (RSI) reading of 25.4, the chart signals an oversold condition, which can often precede a recovery. Market attention is now firmly on the scheduled commissioning of the new production lines, which is critical for the company to meet its ambitious annual targets.