Emergent BioSolutions Reports First Quarter 2026 Financial Results
- First Quarter 2026 Total Revenues of $156.1 million
- First Quarter 2026 Net Income of $6.8 million and Net Income Margin of 4%
- First Quarter 2026 Adjusted EBITDA of $35.6 million and Adjusted EBITDA Margin of 23%
GAITHERSBURG, Md., April 30, 2026 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the first quarter ended March 31, 2026.
“Emergent’s first quarter results demonstrate a strong and positive start to 2026, with healthy topline revenue of $156 million, above the high-end of our guidance range, and adjusted EBITDA of $36 million,” said Joe Papa, president and CEO of Emergent. “We are further strengthening our financial position in 2026 through our recently announced debt refinancing, which increases our strategic flexibility and meaningfully reduces interest expense payments. Additionally, we are pleased to have monetized our capability and capacity in our Canton facility by securing a strategic manufacturing partnership with Substipharm Biologics, which includes a manufacturing agreement and exclusive U.S. (future) distribution rights to its Japanese Encephalitis vaccine, following U.S. FDA approval. We maintained our market share position with NARCAN® Nasal Spray through our efforts across multiple distribution channels, as well as by launching a new carrying case and multipack presentations, and we continued to deliver our biodefense medical countermeasures to multiple government partners in the United States, Canada and around the world. Our mission to protect and save lives remains a prominent driving force for our entire team and we are proud to do so while executing our multi-year transformation plan and turnaround strategy to build several growing and profitable verticals over time."
FINANCIAL HIGHLIGHTS (1)
Q1 2026 vs. Q1 2025
| ($ in millions, except per share amounts) | Q1 2026 | Q1 2025 | % Change | ||||
| Total Revenues | $ | 156.1 | $ | 222.2 | (30)% | ||
| Net Income | $ | 6.8 | $ | 68.0 | (90)% | ||
| Net Income per Diluted Share | $ | 0.07 | $ | 1.19 | (94)% | ||
| Adjusted Net Income(2) | $ | 11.9 | $ | 42.2 | (72)% | ||
| Adjusted Net Income per Diluted Share(2) | $ | 0.21 | $ | 0.74 | (72)% | ||
| Adjusted EBITDA(2) | $ | 35.6 | $ | 79.1 | (55)% | ||
| Net Income Margin | 4 | % | 31 | % | |||
| Adjusted EBITDA Margin(2) | 23 | % | 36 | % | |||
| Gross Margin % | 41 | % | 50 | % | |||
| Adjusted Gross Margin %(2) | 52 | % | 58 | % | |||
RECENT BUSINESS UPDATES
- Secured two new strategic manufacturing partnerships with:
- SAB Biotherapeutics to advance its type 1 diabetes candidate, SAB-142
- Substipharm Biologics to support its Japanese Encephalitis vaccine in the United States
- Refinanced term loan with new $150 million facility and amended asset-backed loan facility
- Appointed John D. Fowler, Jr. to Board of Directors
- Announced partnership with British Columbia to supply NARCAN® Nasal Spray for the launch of the expanded BC Take Home Naloxone Program
- Partnered with professional baseball player Davis Schneider to raise awareness of NARCAN® Nasal Spray in Canada
- Announced launch of new NARCAN® Nasal Spray Carrying Case and Multipacks to expand opioid overdose preparedness following U.S. FDA approvals on supplemental new drug applications
- Announced participation in several international preparedness conferences
- Secured over $60 Million in new contract award with the U.S. Government and new orders with an international government partner for smallpox medical countermeasures
- Secured approximately $140 million in medical countermeasures contract awards with the Government of Canada
- Secured delivery order up to $21.5 Million to supply BioThrax® (Anthrax Vaccine Adsorbed) to the U.S. Department of War in 2026
- Announced the Board of Directors authorized up to $50.0 million in repurchases from February 25, 2026 through March 31, 2027
- Announced resolution of New York Attorney General investigation related to legacy claims
- Received approval from Singapore Health Sciences Authority for expanded indication of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include mpox
- Announced continued support to PANTHER for the ongoing Africa CDC-led Mpox Study in Africa
FIRST QUARTER 2026 FINANCIAL PERFORMANCE (1)
Revenues
The Company uses the following categories in discussing revenues:
- Naloxone — comprises contributions from NARCAN® Nasal Spray and KLOXXADO® Nasal Spray
- Anthrax MCM — comprises contributions from CYFENDUS®, BioThrax®, ANTHRASIL®, and Raxibacumab
- Smallpox MCM — comprises contributions from ACAM2000®, CNJ-016® (VIGIV) and TEMBEXA®
- Other Products — comprises contributions from BAT®
- All Other Revenues — comprises revenues from the Services operating segment and contracts and grants revenues
| ($ in millions) | Q1 2026 | Q1 2025 | $ Change | % Change | ||||
| Product sales, net:(3) | ||||||||
| Naloxone | $ | 42.9 | $ | 45.3 | $ | (2.4 | ) | (5)% |
| Anthrax MCM | 21.6 | 47.9 | (26.3 | ) | (55)% | |||
| Smallpox MCM | 64.2 | 106.4 | (42.2 | ) | (40)% | |||
| Other Products | 16.0 | 2.3 | 13.7 | NM | ||||
| Total Product sales, net | $ | 144.7 | $ | 201.9 | $ | (57.2 | ) | (28)% |
| All other revenues | $ | 11.4 | $ | 20.3 | $ | (8.9 | ) | (44)% |
| Total revenues | $ | 156.1 | $ | 222.2 | $ | (66.1 | ) | (30)% |
| NM - Not Meaningful | ||||||||
Product Sales, net (3)
Naloxone
For Q1 2026, revenues from Naloxone products decreased $2.4 million, or 5%, as compared with Q1 2025. The decrease was primarily attributable to lower sales of OTC NARCAN®, driven primarily by an unfavorable price-volume mix in US sales, partially offset by increases in Canadian sales of branded NARCAN® and the timing of the integration of KLOXXADO® into the Company’s product portfolio.
Anthrax MCM
For Q1 2026, revenues from Anthrax MCM products decreased $26.3 million, or 55%, as compared with Q1 2025. The decrease was due to lower international sales of ANTHRASIL®, mainly to the Canadian government, coupled with lower volumes of CYFENDUS® sales to the USG, primarily due to the impact of timing. These decreases were partially offset by an increase in USG BioThrax® sales due to timing of exercised purchase options. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and the Company’s delivery of orders that follow.
Smallpox MCM
For Q1 2026, revenues from Smallpox MCM products decreased $42.2 million, or 40%, as compared with Q1 2025. The decrease was primarily driven by lower ACAM2000® sales, largely due to reduced international volumes and an overall decline in TEMBEXA® sales driven by lower USG sales volume due to timing partially offset by higher international sales. These decreases were partially offset by an increase in CNJ-016® (VIGIV) USG sales due to timing. Fluctuations in revenues from Smallpox MCM result from the timing of the exercise of annual purchase options in the existing procurement contracts, the timing of USG purchases, the availability of governmental funding and the Company’s delivery of orders that follow.
Other Products
For Q1 2026, revenues from Other Product sales increased $13.7 million, or 596%, as compared with Q1 2025. The increase was primarily due to higher Canadian and other international BAT® sales.
All Other Revenues
Services
For Q1 2026, revenues from Services decreased $2.2 million, or 31%, as compared with Q1 2025. The decrease was primarily attributable to a decline in production at the Company’s Winnipeg facility.
Contracts and Grants
For Q1 2026, revenues from contracts and grants decreased $6.7 million, or 51%, as compared with Q1 2025. The decrease was primarily due to lower project spend on Ebanga™ related development work.
Operating Expenses
| ($ in millions) | Q1 2026 | Q1 2025 | $ Change | % Change | |||||
| Cost of product and services sales, net | $ | 72.0 | $ | 88.5 | $ | (16.5 | ) | (19 | )% |
| Research and development (“R&D”) | 10.5 | 15.1 | (4.6 | ) | (30 | )% | |||
| Selling, general and administrative (“SG&A”) | 46.6 | 52.4 | (5.8 | ) | (11 | )% | |||
| Amortization of intangible assets | 16.5 | 16.3 | 0.2 | 1 | % | ||||
| Total operating expenses | $ | 145.6 | $ | 172.3 | $ | (26.7 | ) | (15 | )% |
Cost of Product and Services Sales, Net
For Q1 2026, cost of product and services sales, net decreased $16.5 million, or 19%, as compared with Q1 2025. The decrease was driven by reductions in cost of MCM Product sales of $13.4 million and cost of Services of $5.4 million, partially offset by an increase in cost of Commercial Product sales of $2.3 million.
Research and Development Expenses
For Q1 2026, R&D expenses decreased $4.6 million, or 30%, as compared with Q1 2025. The decrease was primarily due to lower project spend on Ebanga™ related development work, partially offset by increases in development overhead spend.
Selling, General and Administrative Expenses
For Q1 2026, SG&A expenses decreased $5.8 million, or 11%, as compared with Q1 2025. The decrease was primarily due to lower professional services, marketing, and administrative support expenses, primarily attributable to cost-saving initiatives implemented as part of the Company’s ongoing turnaround and transformation efforts.
ADDITIONAL FINANCIAL INFORMATION(1)
Capital Expenditures
| ($ in millions) | Q1 2026 | Q1 2025 | % Change | ||||
| Capital expenditures | $ | 2.4 | $ | 3.6 | (33)% | ||
| Capital expenditures as a % of total revenues | 2 | % | 2 | % | |||
For Q1 2026, capital expenditures decreased largely due to reduced development activities across the Company’s facilities.
REPORTABLE SEGMENT INFORMATION
The Company manages the business with a focus on three operating segments: (1) a Commercial Products segment consisting of NARCAN® Nasal Spray and KLOXXADO® Nasal Spray; (2) a MCM Products segment consisting of Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment consisting of our Bioservices offerings (“Services”). Commercial Products and MCM Products are our two reportable segments. The Services operating segment no longer meets the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280, Segment Reporting, and as such is categorized within “All other revenues” along with “Contracts and Grants”. The Company evaluates the performance of these reportable segments based on revenues and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales but does not include inter-segment services. The Company does not allocate contracts and grants revenue, R&D, SG&A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments.
FIRST QUARTER 2026 REPORTABLE SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Quarter Ended March 31, | |||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||
| Revenues | $ | 42.9 | $ | 45.3 | $ | (2.4 | ) | (5 | )% | ||
| Cost of sales | 26.8 | 24.5 | 2.3 | 9 | % | ||||||
| Intangible asset amortization | 9.4 | 9.5 | (0.1 | ) | (1 | )% | |||||
| Gross margin* | $ | 6.7 | $ | 11.3 | $ | (4.6 | ) | (41 | )% | ||
| Gross margin %* | 16 | % | 25 | % | |||||||
| Add back: | |||||||||||
| Intangible asset amortization | $ | 9.4 | $ | 9.5 | $ | (0.1 | ) | (1 | )% | ||
| Segment adjusted gross margin ** | $ | 16.1 | $ | 20.8 | $ | (4.7 | ) | (23 | )% | ||
| Segment adjusted gross margin % ** | 38 | % | 46 | % | |||||||
| * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| ** Segment adjusted gross margin, which is a non-GAAP financial measure, for our Commercial Products segment is calculated as gross margin plus intangible asset amortization. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. | |||||||||||
Cost of Commercial Product sales increased $2.3 million, or 9%, to $26.8 million for the quarter ended March 31, 2026. The increase was primarily due to higher KLOXXADO® sales due to timing of its integration into the Company’s product portfolio, and Canadian branded NARCAN® sales.
Commercial Products gross margin decreased $4.6 million, or 41%, to $6.7 million for the quarter ended March 31, 2026. Commercial Products gross margin percentage decreased 9 percentage points to 16% for the quarter ended March 31, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCAN® as well as Canadian branded NARCAN®. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.4 million.
| ($ in millions) | MCM Products
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