Oxford Biomedica Posts 44% Revenue Growth in H1 2025, Nears Profitability

Oxford Biomedica H1 2025: 44% revenue jump, margins up, guidance intact

Oxford Biomedica’s first half delivered exactly what investors wanted to see from a scaling CDMO: faster growth, tighter execution and a clearer path to profit. Revenue rose 44% to £73.2 million, gross margin improved to 43% and the operating EBITDA loss narrowed to £(8.3) million – or £(3.9) million on a constant currency basis after a chunky FX headwind. Management has reiterated full-year guidance and, post-period, shored up the balance sheet with new debt capacity and an equity raise to fund expansion.

Key numbers at a glance

Where growth came from: late-stage demand and a new revenue stream

The mix tells an encouraging story for scalability. Manufacturing services rose 25% to £34.4 million as clients moved through clinical and commercial-readiness phases. Development services climbed 48% to £28.5 million, helped by process characterisation and validation work – a sign programmes are maturing.

Procurement and storage services contributed £8.6 million – a new line since H2 2024 that recognises OXB’s role securing raw-material supply for clients heading into commercial preparation. Licences, milestones and royalties fell to £1.7 million due to timing and the maturing Kymriah royalty stream, but that’s not the core of the CDMO story.

Geographically, revenue was dominated by the United States at £58.2 million, with Europe at £13.5 million and the UK at £1.4 million.

Order book surge and visibility: why it matters for 2025-2027

• Contracted value of client orders signed in H1: £149 million (+166% year-on-year).
• Revenue backlog at 30 June: £222 million.
• £171 million of FY 2025 revenues are contracted versus £106 million at the same point last year.
• Revenue pipeline stood at $541 million at 30 June.

In plain English: more clients are locking in work earlier, especially around late-stage and commercial activity. That boosts utilisation and margin potential, and it gives investors line of sight on full-year delivery. Management kept FY 2025 guidance unchanged at £160-170 million of revenue and low single-digit £ million operating EBITDA on a constant currency basis, with revenues weighted to H2.

Profitability trajectory: FX noise masks underlying improvement

The step-up in gross margin to 43% from 35% is meaningful. It reflects client and product mix, higher activity, and a benefit from cancellation fees in the period. Operating EBITDA improved by £12.0 million year-on-year; the reported £(8.3) million loss includes a £4.7 million FX loss. On a constant currency basis, the EBITDA loss was £(3.9) million – not far from breakeven.

Operating expenses are under better control too. Adjusted operating expenses fell 3% to £40.5 million despite running a larger group. Cash discipline is evident: net cash outflow shrank to £(4.8) million from £(48.6) million, and working capital management improved via deposits and upfront client payments.

Balance sheet reset: fresh firepower for US GMP expansion

Post period-end, OXB put more fuel in the tank to meet demand:

• New four-year Oaktree loan facility of up to $125 million, with $60 million drawn to refinance the prior $50 million facility and for general purposes. There is an option to draw a further $25 million and an additional $40 million tied to revenue milestones.
• Equity placing and subscription raising approximately £60 million gross at £4.31 per share. Following admission, the share count rose to 120,173,462.

Cash stood at £113.7 million on 31 August 2025. The funds will expand US commercial-scale GMP capacity and build a complete end-to-end offering, which is critical if late-stage demand keeps accelerating. OXB also acquired the remaining 10% of OXB US LLC in June, taking ownership to 100%.

Medium-term guide: faster top-line, fatter margins

• 2025: revenue £160-170 million; operating EBITDA profitability at low single-digit £ millions (constant currency).
• 2026: revenue £220-240 million; EBITDA margin >10%.
• 2027-2028: 25-30% revenue growth year-on-year; EBITDA margin at least 20%.
• Long term: potential to approach c.30% operating EBITDA margin within five-to-six years.
• Capex: 2025 low double-digit £ million; about £60 million across 2026-2027; £20-25 million per year thereafter.

These targets sit against buoyant sector fundamentals – 2,210 cell and gene therapies in the clinical pipeline as at Q2 2025 – and OXB’s strengthening mix of late-stage work. Delivery will hinge on ramping new capacity efficiently, particularly in the US.

Operational execution: “One OXB” model doing the heavy lifting

OXB’s multi-site, multi-vector approach is translating into parallel execution across the UK, US and France. AAV platform transfer to France is underway, with GMP capability targeted by H1 2026, while UK development, QC and GMP capacity are being expanded using suite refits and shift changes. Innovation efforts such as the inAAVate platform and the multi-serotype AEX toolbox should support productivity and cost of goods for clients – helpful levers for margin progression.

Re-entry to the FTSE 250: a sentiment boost

Re-joining the FTSE 250 in September 2025 is a nice credibility marker and could broaden the shareholder register. Combined with a larger cash balance and clearer guidance, it should improve confidence in the equity story.

What I like, and what to watch

Positives

• Strong H1 growth with improved gross margins and a sharply smaller EBITDA loss.
• Order momentum: £149 million of H1 signed orders and a £222 million backlog provide visibility.
• Strategic funding in place to add US commercial-scale GMP capacity at the right time.
• Guidance reiterated, with credible medium-term margin targets.

Watch-outs

• Still loss-making at the operating line in H1 (£(23.6) million), so the H2 ramp needs to arrive on time.
• FX is a swing factor – guidance excludes FX impacts.
• Equity raise adds dilution – share count now 120,173,462.
• CDMO execution risk remains: capacity qualification, late-stage programme timing and client mix can all move margins.

Bottom line

This is a solid step forward from Oxford Biomedica. The business is growing into late-stage and commercial work, the order book points to sustained activity, and the balance sheet now supports the next wave of capacity. With H2 weighted and FX still noisy, management’s reiterated 2025 guidance feels appropriately measured. If the US scale-up lands to plan, the medium-term revenue and margin targets look achievable – and that’s when this story gets interesting for long-term holders.