Bavarian Nordic (CSE: BAVA) upgraded its 2026 earnings outlook on Friday after reporting a 23% year-over-year increase in second-quarter revenue to 2.03 billion Danish crowns, driven by strong demand for travel health vaccines.
The Danish biotech company posted EBITDA of 925 million crowns, a 71% rise from the same period last year, lifting its EBITDA margin to 45.4% from 32.8%. Net profit more than doubled to 732 million crowns. Travel health revenue surged 45% to 1.02 billion crowns, primarily due to higher sales of rabies vaccines RabAvert, Rabipur and Encepur. Public preparedness revenue grew 6% to 975 million crowns.
For 2026, Bavarian Nordic now expects revenue of about 5.7 billion crowns, matching the upper end of its prior guidance range of 5.5 billion to 5.7 billion crowns. The company also raised its EBITDA margin forecast to roughly 30%, up from 28%, citing a favorable revenue mix and improved manufacturing efficiency.
The outlook adjustment comes despite a downward revision to its forecast for Vimkunya, its chikungunya vaccine, now projected at 200 million crowns in 2026, down from 250 million crowns. The reduction reflects slower-than-anticipated U.S. sales, attributed to the absence of a recommendation from the CDC's Advisory Committee on Immunization Practices in the MMWR publication.
Bavarian Nordic also announced a new share buyback program valued at up to 750 million Danish crowns ($117.4 million), set to commence in the third quarter. The company completed a 500 million crown buyback in July and held 4.49% of its shares as treasury stock as of August 21. Additionally, it plans to terminate its unused 1 billion crown revolving credit facility.
