WuXi AppTec (02359) Q3 new orders reached RMB26 billion, 1.6 times revenue.

On October 26, WuXi AppTec (02359, 603259.SH) disclosed its third-quarter report. According to the company's Q3 report, its key operating metrics for the first three quarters all exceeded full-year 2025 levels, with third-quarter revenue hitting a new single-quarter high. Growth was mainly driven by order volume. In the third quarter, the company's newly signed orders totaled at least RMB26 billion, 1.6 times its third-quarter revenue, indicating that new order growth outpaced revenue recognition. As of the end of the third quarter, the company's backlog exceeded RMB70 billion, equivalent to more than four quarters of revenue, providing strong visibility for performance growth over the next one to two years. Meanwhile, the order mix continued to improve. In the third quarter, small-molecule D&M commercial projects exceeded 100 for the first time, with commercial and Phase III clinical projects continuing to increase, reflecting that customer projects are accelerating toward later-stage development and commercialization. In the first three quarters of 2026, the company converted 314 molecules from R to D, and its small-molecule D&M pipeline added a cumulative 1,089 molecules, with the total reaching a new high of 3,863. As molecules advance to later stages, this is expected to further increase per-project service revenue and overall profitability. Supported by the improvement in orders and project mix, the company continued to step up investment. Its 2026 capital expenditure guidance was adjusted to RMB8 billion to RMB8.5 billion, with global capacity construction advancing as needed. Based on the greater success of multiple customer products, the company raised its full-year revenue guidance for the fourth time in 16 months to RMB61 billion to RMB61.9 billion, and simultaneously raised its guidance for continuing operations revenue growth, capital expenditure and adjusted free cash flow. Free cash flow in the first three quarters has already exceeded full-year 2025 levels, providing support for subsequent expansion and shareholder returns.