Original-Research: Eckert & Ziegler SE (von NuWays AG): BUY

Classification of NuWays AG to Eckert & Ziegler SE

Company Name:	Eckert & Ziegler SE
ISIN:	DE0005659700
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 23
Target price on sight of:	12 months
Last rating change:
Analyst:	Simon Keller

Q1 released: Medical powers ahead

The takeaway from Eckert & Ziegler’s Q1 results is positive: Medical delivered strong underlying growth without licence revenues, while Isotope Products offers a recovery lever for the rest of the year. At group level, fx-adj. sales rose 11% yoy to € 72.9m, while reported sales rose 7% yoy. Adj. EBIT came in roughly flat yoy at € 16m, with the margin declining 1.8pp yoy to 21.9% (details on p.2).

Medical was the clear positive driver and looks well ahead of the required FY run-rate. Segment sales rose 21% yoy to € 41.5m, driven by pharmaceutical radioisotopes, especially generators and CDMO. Adj. EBIT increased 31% yoy to € 14m, supported by positive mix effects. This is particularly relevant against the FY26 segment guidance, which implies a 4% yoy decline in Medical adj. EBIT to € 49m, mainly due to lower expected Ac-225 licence income. Q1 already delivered 28% of the FY adj. EBIT target despite no licence revenues, vs € 5m in Q1'25. Further € 5.6m in licence revenues are expected during the remainder of the year. The quarter thus underpins Medical as the core value driver of the group, with higher structural growth and margin potential than IP. The Ga-68 generator business remains the most tangible near-term growth driver, with 2025 sales of c. € 65m expected to roughly double by 2030e (eNuW).

Isotope Products, the drag in Q1. Segment sales declined 7% yoy (fx-adj.: -2% yoy) to € 31.5m and adj. EBIT almost halved to € 2.9m. The weakness appears to reflect pull-forward effects into Q4 as well as still sluggish demand in oil well logging equipment, which weighed on the industrial product portfolio. Importantly, after a soft January and February, March regained momentum, supporting the FY26 segment targets, according to the company. EUZ still expects IP adj. EBIT to rise to € 33m in FY26 (+17%) implying an increase of c. 32% yoy during Q2-4.

Beyond Q1 results and Ga-68 momentum, Lu-177 is likely to become the next visible growth driver. EUZ expects global sales of Lu-177-based therapies in the two currently approved indications, prostate cancer and neuroendocrine tumors, to grow at a 31% CAGR (2025-30) to € 600m, with treatment volumes rising more than 4x. We estimate EUZ’s own Lu-177 sales at c. € 2m in 2025, rising to c. € 7m in 2026, with Q1 26 already showing a c. € 0.7m yoy improvement. Demand could accelerate further if Lantheus launches PNT2003, its generic version of Novartis’ Lutathera, after the 30-month regulatory block expires in June 2026. A launch would likely activate EUZ’s Lu-177 supply agreement with POINT/Lilly, worth up to € 100m (eNuW). On the supply side, EUZ is investing € 10m into a Lu-177 production line near Boston, scheduled to start operations in 2027.

Further catalysts remain embedded in the balance sheet and isotope monetisation. With € 124m in cash, only € 12m in loan liabilities and a 56% equity ratio, EUZ has the flexibility to pursue selective isotope-related bolt-ons without stretching the balance sheet. In parallel, further licence deals could offer a direct way to monetise its strong position in key radiopharma isotopes and add high-margin upside to an otherwise largely volume-driven outlook. BUY with a € 23 PT, based on DCF.

You can download the research here: eckert-and-ziegler-se-2026-05-13-previewreview-en-f0931
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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