STOCK TITAN
  1. Home
  2. News
  3. EBS
  4. Emergent BioSolutions Reports First Quarter 2025 Financial Results

Emergent BioSolutions Reports First Quarter 2025 Financial Results

Rhea-AI Impact
(High)
Rhea-AI Sentiment
(Neutral)
Tags
earnings
Rhea-AI Summary
Emergent BioSolutions (NYSE: EBS) reported Q1 2025 financial results with total revenues of $222.2M, down 26% year-over-year. Despite lower revenues, the company showed significant profitability improvements with net income of $68M, up 656% from Q1 2024. Key metrics include gross margin of 50% and adjusted EBITDA of $77.6M, up 16%. Notable business updates include securing contracts worth $20M for BioThrax supply to U.S. DoD, $16.7M for Ebanga development, and a $65M agreement with Ontario for NARCAN supply. The company completed the sale of its Baltimore-Bayview facility for $36.5M and announced a $50M stock buyback program. Product sales showed mixed performance: NARCAN sales declined 62% to $45.3M, Anthrax MCM decreased 14% to $47.9M, while Smallpox MCM increased 112% to $106.4M. The company reaffirmed its FY 2025 guidance with expected revenues of $750M-$850M and adjusted EBITDA of $150M-$200M.
Emergent BioSolutions (NYSE: EBS) ha riportato i risultati finanziari del primo trimestre 2025 con ricavi totali di 222,2 milioni di dollari, in calo del 26% rispetto all'anno precedente. Nonostante i ricavi inferiori, l'azienda ha mostrato un notevole miglioramento della redditività con un utile netto di 68 milioni di dollari, in aumento del 656% rispetto al primo trimestre 2024. I principali indicatori includono un margine lordo del 50% e un EBITDA rettificato di 77,6 milioni di dollari, in crescita del 16%. Aggiornamenti commerciali importanti comprendono la stipula di contratti per un valore di 20 milioni di dollari per la fornitura di BioThrax al Dipartimento della Difesa degli Stati Uniti, 16,7 milioni per lo sviluppo di Ebanga e un accordo da 65 milioni con l'Ontario per la fornitura di NARCAN. L'azienda ha completato la vendita della struttura di Baltimore-Bayview per 36,5 milioni di dollari e ha annunciato un programma di riacquisto azionario da 50 milioni di dollari. Le vendite dei prodotti hanno mostrato performance contrastanti: le vendite di NARCAN sono diminuite del 62% a 45,3 milioni di dollari, quelle del MCM per l'antrace sono calate del 14% a 47,9 milioni, mentre le vendite del MCM per il vaiolo sono aumentate del 112% a 106,4 milioni. L'azienda ha confermato le previsioni per l'intero anno fiscale 2025, con ricavi attesi tra 750 e 850 milioni di dollari e un EBITDA rettificato tra 150 e 200 milioni.
Emergent BioSolutions (NYSE: EBS) reportó los resultados financieros del primer trimestre de 2025 con ingresos totales de 222,2 millones de dólares, una disminución del 26% interanual. A pesar de los ingresos menores, la compañía mostró mejoras significativas en la rentabilidad con un ingreso neto de 68 millones de dólares, un aumento del 656% respecto al primer trimestre de 2024. Las métricas clave incluyen un margen bruto del 50% y un EBITDA ajustado de 77,6 millones de dólares, un incremento del 16%. Las actualizaciones comerciales destacadas incluyen la obtención de contratos por valor de 20 millones de dólares para el suministro de BioThrax al Departamento de Defensa de EE. UU., 16,7 millones para el desarrollo de Ebanga y un acuerdo de 65 millones con Ontario para el suministro de NARCAN. La empresa completó la venta de su instalación Baltimore-Bayview por 36,5 millones de dólares y anunció un programa de recompra de acciones por 50 millones. Las ventas de productos mostraron un desempeño mixto: las ventas de NARCAN disminuyeron un 62% a 45,3 millones, las del MCM para ántrax bajaron un 14% a 47,9 millones, mientras que las del MCM para viruela aumentaron un 112% a 106,4 millones. La compañía reafirmó sus previsiones para el año fiscal 2025 con ingresos esperados entre 750 y 850 millones de dólares y un EBITDA ajustado entre 150 y 200 millones.
Emergent BioSolutions(NYSE: EBS)는 2025년 1분기 재무 실적을 발표하며 총 매출 2억 2,220만 달러로 전년 동기 대비 26% 감소했습니다. 매출 감소에도 불구하고 회사는 순이익 6,800만 달러로 2024년 1분기 대비 656% 증가하는 등 수익성에서 큰 개선을 보였습니다. 주요 지표로는 50%의 총이익률과 7,760만 달러의 조정 EBITDA가 16% 상승했습니다. 주요 사업 업데이트로는 미국 국방부에 BioThrax 공급 계약 2,000만 달러, Ebanga 개발 계약 1,670만 달러, 온타리오주와 NARCAN 공급 계약 6,500만 달러를 확보한 점이 있습니다. 또한 회사는 볼티모어 베이뷰 시설을 3,650만 달러에 매각 완료하고 5,000만 달러 규모의 자사주 매입 프로그램을 발표했습니다. 제품 판매는 혼조세를 보였습니다: NARCAN 매출은 62% 감소한 4,530만 달러, 탄저병 MCM은 14% 감소한 4,790만 달러, 천연두 MCM은 112% 증가한 1억 640만 달러를 기록했습니다. 회사는 2025 회계연도 가이던스를 재확인하며 매출 7억 5,000만~8억 5,000만 달러, 조정 EBITDA 1억 5,000만~2억 달러를 예상하고 있습니다.
Emergent BioSolutions (NYSE : EBS) a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires total de 222,2 millions de dollars, en baisse de 26 % par rapport à l'année précédente. Malgré des revenus inférieurs, l'entreprise a enregistré une amélioration significative de sa rentabilité avec un bénéfice net de 68 millions de dollars, en hausse de 656 % par rapport au premier trimestre 2024. Les indicateurs clés incluent une marge brute de 50 % et un EBITDA ajusté de 77,6 millions de dollars, en hausse de 16 %. Parmi les actualités importantes, on note la signature de contrats d'une valeur de 20 millions de dollars pour la fourniture de BioThrax au ministère de la Défense américain, 16,7 millions pour le développement d'Ebanga, et un accord de 65 millions avec l'Ontario pour la fourniture de NARCAN. L'entreprise a finalisé la vente de son site de Baltimore-Bayview pour 36,5 millions de dollars et annoncé un programme de rachat d'actions de 50 millions de dollars. Les ventes de produits ont présenté des performances contrastées : les ventes de NARCAN ont diminué de 62 % à 45,3 millions, celles du MCM contre l'anthrax ont baissé de 14 % à 47,9 millions, tandis que les ventes du MCM contre la variole ont augmenté de 112 % à 106,4 millions. L'entreprise a confirmé ses prévisions pour l'exercice 2025 avec un chiffre d'affaires attendu entre 750 et 850 millions de dollars et un EBITDA ajusté entre 150 et 200 millions.
Emergent BioSolutions (NYSE: EBS) meldete die Finanzergebnisse für das erste Quartal 2025 mit Gesamtumsätzen von 222,2 Mio. USD, was einem Rückgang von 26 % im Jahresvergleich entspricht. Trotz geringerer Umsätze zeigte das Unternehmen erhebliche Verbesserungen bei der Profitabilität mit einem Nettoeinkommen von 68 Mio. USD, was einem Anstieg von 656 % gegenüber dem ersten Quartal 2024 entspricht. Wichtige Kennzahlen sind eine Bruttomarge von 50 % und ein bereinigtes EBITDA von 77,6 Mio. USD, ein Anstieg von 16 %. Wichtige Geschäftsentwicklungen umfassen den Abschluss von Verträgen im Wert von 20 Mio. USD für die BioThrax-Lieferung an das US-Verteidigungsministerium, 16,7 Mio. USD für die Entwicklung von Ebanga und eine Vereinbarung über 65 Mio. USD mit Ontario für die Lieferung von NARCAN. Das Unternehmen hat den Verkauf seiner Einrichtung in Baltimore-Bayview für 36,5 Mio. USD abgeschlossen und ein Aktienrückkaufprogramm im Wert von 50 Mio. USD angekündigt. Die Produktverkäufe zeigten eine gemischte Entwicklung: Die NARCAN-Verkäufe sanken um 62 % auf 45,3 Mio. USD, die Anthrax-MCM-Verkäufe gingen um 14 % auf 47,9 Mio. USD zurück, während die Smallpox-MCM-Verkäufe um 112 % auf 106,4 Mio. USD stiegen. Das Unternehmen bestätigte seine Prognose für das Geschäftsjahr 2025 mit erwarteten Umsätzen von 750 bis 850 Mio. USD und einem bereinigten EBITDA von 150 bis 200 Mio. USD.
Positive
  • Net income increased 656% to $68M vs Q1 2024
  • Gross margin expanded 500 basis points to 50%
  • Adjusted EBITDA increased 16% to $77.6M
  • Smallpox MCM revenues grew 112% to $106.4M
  • Secured new contracts worth over $100M combined
  • Generated $36.5M from Baltimore-Bayview facility sale
  • Announced $50M stock buyback program
Negative
  • Total revenues declined 26% to $222.2M vs Q1 2024
  • NARCAN sales decreased 62% to $45.3M
  • Anthrax MCM revenues fell 14% to $47.9M
  • Other Products revenue declined 95% to $2.3M
  • Services revenue decreased 61%

Insights

Emergent BioSolutions showed dramatically improved profitability despite 26% revenue decline, reflecting successful transformation from volume to margin-focused business.

Emergent BioSolutions' Q1 results reveal a company deliberately pivoting from volume to value in its ongoing business transformation. While total revenues declined 26% year-over-year to $222.2 million, profitability metrics have dramatically improved, with net income soaring 656% to $68 million and earnings per share increasing 600% to $1.19.

The company's margin expansion tells the strategic story: gross margin improved 5% to 50%, adjusted EBITDA margin expanded 13% to 35%, and adjusted gross margin reached 58%. This reflects successful operational streamlining with SG&A expenses reduced by 38% and capital expenditures down 67%.

A fundamental shift in revenue composition underlies these results. NARCAN Nasal Spray sales decreased 62%, primarily due to lower OTC sales and Canadian retail weakness. Meanwhile, Smallpox MCM products increased 112%, driven by ACAM2000 and TEMBEXA timing. This pivot toward higher-margin government contracts appears to be a calculated strategic choice.

Investors should note the significant quarter-to-quarter volatility in Emergent's business. Q2 2025 revenue guidance of $95-120 million represents a substantial sequential decline from Q1, highlighting the inherent lumpiness in government contract timing. Despite this near-term fluctuation, management maintained full-year guidance of $750-850 million in revenue.

The company's strategic initiatives reinforce their transformation narrative: selling their Baltimore-Bayview facility for $36.5 million, securing new government contracts (DOD BioThrax, BARDA Ebanga), expanding commercial rights (KLOXXADO), and authorizing a $50 million share repurchase program.

For investors, these results present a mixed picture: improved profitability and strategic focus, but at the cost of top-line growth and with significant quarterly volatility. Management is clearly prioritizing sustainable profitability over revenue scale in this multi-year strategic transformation.

  • First Quarter 2025 Total Revenues of $222.2 million, decrease of 26% versus prior year
  • First Quarter 2025 Net Income of $68.0 million, increase of 656% versus prior year
  • First Quarter 2025 Gross Margin % of 50% and Adjusted Gross Margin % of 58%, an expansion of 500 bps and 700 bps, respectively, versus prior year
  • First Quarter 2025 Adjusted EBITDA of $77.6 million, increase of 16% versus prior year
  • First Quarter 2025 Adjusted EBITDA Margin of 35% of Total Revenues, an improvement of 1,300 bps versus prior year
  • Reaffirmed FY 2025 Guidance

GAITHERSBURG, Md., May 07, 2025 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the first quarter ended March 31, 2025.

"Over the past 12 months, we have been executing our multi-year strategic plan to stabilize the company, streamlining operations with an eye toward driving profitability and transforming the company to achieve long-term, sustainable growth built on Emergent’s strengths and unique capabilities," said Joe Papa, president and CEO of Emergent. "We believe our solid first-quarter results are marked by revenues within our guidance range, overall increased profitability margins, increased cash on hand and improved cash flow, further demonstrating that our disciplined approach is setting the momentum for our continued turnaround actions this year. We remain confident in our 2025 financial guidance and anticipate delivering a strong second half of the year."

FINANCIAL HIGHLIGHTS(1)

Q1 2025 vs. Q1 2024

($ in millions, except per share amounts)Q1 2025Q1 2024% Change
Total Revenues$222.2 $300.4 (26)%
Net Income$68.0 $9.0 656%
Net Income per Diluted Share$1.19 $0.17 600%
Adjusted Net Income(2)$40.7 $31.1 31%
Adjusted Net Income per Diluted Share(2)$0.71 $0.59 20%
Adjusted EBITDA(2)$77.6 $66.9 16%
Adjusted EBITDA Margin(2) 35% 22% 
Gross Margin % 50% 45% 
Adjusted Gross Margin %(2) 58% 51% 
        

RECENT BUSINESS UPDATES

  • Announced the exercise of contract option and modification valued at approximately $20.0 million to supply BioThrax® (Anthrax Vaccine Adsorbed) to the U.S. Department of Defense
  • Received contract option valued at approximately $16.7 million to continue development collaboration with BARDA on Ebanga™ (ansuvimab-zykl) treatment for Ebola
  • Gained exclusive commercial rights to KLOXXADO® (naloxone HCI) Nasal Spray in U.S. and Canada from Hikma Pharmaceuticals; Hikma received Health Canada approval for the product
  • Announced investment agreement and pursuit of a strategic relationship for next-generation product candidates with Rocketvax Ltd
  • Secured approximately $27.0 million in international orders targeted for delivery in 2025 associated with medical countermeasures ("MCM") portfolio
  • Completed the sale of our Baltimore-Bayview facility for $36.5 million
  • Earned $50.0 million in development milestone payments from Bavarian Nordic as part of the sale of the Travel Health Business, $30.0 million of which was paid during the quarter
  • Announced that Board of Directors authorized the repurchase of up to $50.0 million of the Company’s common stock on or before March 27, 2026
  • Secured a three-year agreement valued at approximately $65.0 million to supply the Ontario Ministry of Health with NARCAN® Nasal Spray

FIRST QUARTER 2025 FINANCIAL PERFORMANCE (1)

Revenues

The Company uses the following categories in discussing revenues:

  • NARCAN® — comprises contributions from NARCAN® Nasal Spray
  • Anthrax MCM — comprises contributions from CYFENDUS®, previously known as AV7909, BioThrax®, Anthrasil® and Raxibacumab
  • Smallpox MCM — comprises contributions from ACAM2000®, VIGIV CNJ-016® and TEMBEXA®
  • Other Products — comprises contributions from BAT® and RSDL® (3)
  • All Other Revenues — comprises revenues from the Services operating segment and contracts and grants revenues
    
($ in millions)Q1 2025Q1 2024% Change
Product sales, net:(4)   
NARCAN®$45.3$118.5(62)%
Anthrax MCM 47.9 55.9(14)%
Smallpox MCM 106.4 50.2112%
Other Products 2.3 49.3(95)%
Total Product sales, net$201.9$273.9(26)%
    
All other revenues$20.3$26.5(23)%
    
Total revenues$222.2$300.4(26)%
 

Product Sales, net (4)

NARCAN®

For Q1 2025, revenues from NARCAN® (naloxone HCl) Nasal Spray decreased $73.2 million, or 62%, as compared with Q1 2024. The decrease was primarily driven by lower sales of OTC NARCAN® and lower Canadian retail sales of branded NARCAN®, primarily driven by an unfavorable price and volume mix.

Anthrax MCM

For Q1 2025, revenues from Anthrax MCM products decreased $8.0 million, or 14%, as compared with Q1 2024. The decrease reflects the impact of the timing of sales related to CYFENDUS®, partially offset by the timing of sales related to Anthrasil®. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the U.S. government (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 Company delivery of orders that follow.

Smallpox MCM

For Q1 2025, revenues from Smallpox MCM products increased $56.2 million, or 112%, as compared with Q1 2024. The increase was primarily due to higher ACAM2000® and TEMBEXA® sales due to timing, partially offset by lower VIGIV CNJ-016®, 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 Company delivery of orders that follow.

Other Products

For Q1 2025, revenues from Other Product sales decreased $47.0 million, or 95%, as compared with Q1 2024. The decrease was primarily due to lower BAT® sales due to timing and no RSDL® product sales due to the sale of RSDL® to SERB Pharmaceuticals in 2024.

All Other Revenues

Services

For Q1 2025, revenues from Services decreased $11.3 million, or 61%, as compared with Q1 2024. The decrease was primarily attributable to revenue from the Company’s Camden facility in the prior period, which was sold to Bora Pharmaceuticals in the third quarter of 2024, partially offset by an increase in production at the Company's Winnipeg facility.

Contracts and Grants

For Q1 2025, revenues from contracts and grants increased $5.1 million, or 64%, as compared with Q1 2024. The increase was primarily due to development work in connection with Ebanga™.

Operating Expenses

($ in millions)Q1 2025Q1 2024% Change
Cost of product and services sales, net$88.5$144.6(39)%
Research and development (“R&D”) 15.1 15.1—%
Selling, general and administrative (“SG&A”) 52.4 84.7(38)%
Amortization of intangible assets 16.3 16.21%
Total operating expenses$172.3$260.6(34)%
 

Cost of Product and Services Sales, Net

For Q1 2025, cost of product and services sales, net decreased $56.1 million, or 39%, as compared with Q1 2024. The decrease was driven by decreases in cost of Commercial Product sales of $27.6 million, cost of Services of $16.5 million and cost of MCM Product sales of $12.0 million.

Research and Development Expenses

For Q1 2025, R&D expenses were consistent at $15.1 million as compared with Q1 2024.

Selling, General and Administrative Expenses

For Q1 2025, SG&A expenses decreased $32.3 million, or 38%, as compared with Q1 2024. The decrease was primarily due to decreases in compensation and other employee costs as a result of the restructuring initiatives that began during the first quarter of 2023, a reduction in marketing costs, lower professional services fees related to general corporate initiatives in 2024, including organizational transformation consulting fees and lower legal service fees.

ADDITIONAL FINANCIAL INFORMATION(1)

Capital Expenditures

($ in millions)Q1 2025Q1 2024% Change 
Capital expenditures$3.6 $10.8 (67)%
Capital expenditures as a % of total revenues 2% 4%  

For Q1 2025, capital expenditures decreased largely due to lower 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®; (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. In the first quarter of 2025, the Company’s determined that its 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 2025 REPORTABLE SEGMENT RESULTS

($ in millions)Commercial Products
Quarter Ended March 31,
 2025  2024 $ Change% Change
Revenues$45.3 $118.5 $(73.2)(62)%
Cost of sales 24.5  52.1  (27.6)(53)%
Intangible asset amortization 9.5  9.4  0.1 1%
Gross margin**$11.3 $57.0 $(45.7)(80)%
Gross margin %** 25% 48%  
Add back:    
Intangible asset amortization$9.5 $9.4 $0.1 1%
Segment adjusted gross margin(2)$20.8 $66.4 $(45.6)(69)%
Segment adjusted gross margin %(2) 46% 56%  
     
** Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues.
 

Cost of Commercial Product sales decreased $27.6 million, or 53%, to $24.5 million for the three months ended March 31, 2025. The decrease was primarily due to lower sales of OTC NARCAN® and lower Canadian retail sales of branded NARCAN®.

Commercial Products gross margin decreased $45.7 million, or 80%, to $11.3 million for the three months ended March 31, 2025. Commercial Products gross margin percentage decreased 23 percentage points to 25% for the quarter ended March 31, 2025. The decrease was largely due to lower sales of OTC NARCAN® and lower branded NARCAN® sales. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.5 million.

  
($ in millions)MCM Products
Quarter Ended March 31,
 2025  2024 $ Change% Change
Revenues$156.6 $155.4 $1.2 1%
Cost of sales 50.2  62.2  (12.0)(19)%
Intangible asset amortization 6.8  6.8  — —%
Gross margin**$99.6 $86.4 $13.2 15%
Gross margin %** 64% 56%  
Add back:    
Intangible asset amortization$6.8 $6.8 $— —%
Changes in fair value of financial instruments —  0.5  (0.5)(100)%
Restructuring costs (0.8) (0.1) (0.7)*
Inventory step-up provision 1.8  —  1.8 NM
Segment adjusted gross margin(2)$107.4 $93.6 $13.8 15%
Segment adjusted gross margin %(2) 69% 60%  
     
* % change is greater than +/- 200%    
** Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues.
NM - Not Meaningful
 

Cost of MCM product sales decreased $12.0 million, or 19%, to $50.2 million for the three months ended March 31, 2025. The decrease was primarily due to lower sales of BAT® and CYFENDUS®, due to timing, coupled with no RSDL® product sales due to the sale of RSDL® to SERB, partially offset by an increase in Anthrasil® and ACAM2000® sales, due to timing.

MCM Products gross margin increased $13.2 million, or 15%, to $99.6 million for the three months ended March 31, 2025. MCM Products gross margin percentage increased 8 percentage points to 64% for the quarter ended March 31, 2025. The increase was primarily due to a favorable sales mix which was weighted more heavily towards higher margin products and a decrease in shutdown costs compared to the prior quarter. MCM Product segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $6.8 million, inventory step-up provision of $1.8 million and restructuring costs of $(0.8) million.

2025 FINANCIAL FORECAST

The Company provides the following updated financial forecast for full year 2025 and Q2 2025, reflecting management's expectations based on the most current information available.

    
METRIC
($ in millions)		Updated Range
(as of 05/07/2025)		ActionPrevious Range
(as of 03/03/2025)
Total revenues$750 - $850UNCHANGED$750 - $850
Net income$20 - $70INCREASED$16 - $66
Adjusted net income(2)$20 - $70UNCHANGED$20 - $70
Adjusted EBITDA(2)$150 - $200UNCHANGED$150 - $200
Adjusted gross margin %(2)48% - 51%UNCHANGED48% - 51%
    
Segment Level Revenue   
MCM Products(3)$435 - $485UNCHANGED$435 - $485
Commercial Products(5)$265 - $315UNCHANGED$265 - $315


Key Assumptions
($ and shares in millions)		Updated Range
(as of 05/07/2025)
Interest expense~$55
R&D~6% to 7% of Revenue
SG&A~27% to 28% of Revenue
Weighted avg. fully diluted share count~54
Capex~$17
Depreciation & amortization~$100

Q2 2025

METRIC
($ in millions)		Q2 2025 Forecast
Total revenues$95 - $120
  

FOOTNOTES

(1) All financial information included in this release is unaudited.

(2) See “Non-GAAP Financial Measures” and the "Reconciliation of Non-GAAP Financial Measures" tables for the definitions and reconciliations of these non-GAAP financial measures to the most closely related GAAP financial measures.

(3) Our MCM Products revenue in 2025 and forecasted revenue excludes revenues related to RSDL®, which was sold during the third quarter of 2024.

(4)Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with GAAP.

(5) Our Commercial Products forecast consists of revenues for NARCAN® Nasal Spray and revenues from distribution of Kloxxado™ naloxone HCl nasal spray 8 mg pursuant to an agreement with Hikma Pharmaceuticals PLC in January 2025.

CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION

Company management will host a conference call at 5:00 pm eastern time today, May 7, 2025, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company's website or through the following:

By phone
Advanced registration is required.
Visit https://register.vevent.com/register/BI55c44c8318724673999b4e3fa8f61b7b to register and receive an email with the dial-in number, passcode and registrant ID.

By webcast
Visit https://edge.media-server.com/mmc/p/xrqjtg3j
A replay of the call can be accessed from the Emergent website.

ABOUT EMERGENT BIOSOLUTIONS INC.

At Emergent, our mission is to protect and save lives. For over 25 years, we’ve been at work preparing those entrusted with protecting public health. We deliver protective and life-saving solutions for health threats like smallpox, mpox, botulism, Ebola, anthrax and opioid overdose emergencies. To learn more about how we help prepare communities around the world for today’s health challenges and tomorrow’s threats, visit our website and follow us on LinkedIn, X, Instagram, Apple Podcasts and Spotify.

NON-GAAP FINANCIAL MEASURES

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain of these financial measures are considered not in conformity with GAAP (“non-GAAP financial measures”) under the United States Securities and Exchange Commission (“SEC”) rules. Specifically, we have referred to the following non-GAAP financial measures:

  • Adjusted Net Income
  • Adjusted Net Income per Diluted Share
  • Adjusted EBITDA
  • Adjusted EBITDA Margin
  • Adjusted Gross Margin
  • Adjusted Gross Margin %
  • Segment Adjusted Gross Margin
  • Segment Adjusted Gross Margin %

We define Adjusted Net Income and Adjusted Net Income per Diluted Share, which are non-GAAP financial measures, as net income and net income per diluted share, respectively, excluding the impact of changes in fair value of financial instruments, acquisition and divestiture-related costs, severance and restructuring costs, loss on assets held for sale, inventory step-up provision, non-cash amortization charges, contingent consideration milestones, other income (expense) items and tax effect. We use Adjusted Net Income for the purpose of calculating Adjusted Net Income per Diluted Share. Management uses Adjusted Net Income per Diluted Share to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with an additional understanding of our business operating results, including underlying trends.

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net loss before income tax provision, interest expense, net, depreciation and amortization, excluding the impact of changes in fair value of financial instruments, acquisition and divestiture-related costs, severance and restructuring costs, loss on and assets held for sale, inventory step-up provision, contingent consideration milestones and other income (expense) items. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provides management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry, although it may be defined differently by different companies. Therefore, we also believe that this non-GAAP financial measure, considered along with corresponding GAAP financial measures, provides management and investors with additional information for comparison of our operating results with the operating results of other companies.

We define Adjusted Gross Margin, which is a non-GAAP financial measure, as Gross Margin, excluding the impact of intangible asset amortization, restructuring costs, changes in the fair value of financial instruments and inventory step-up provision. We define Adjusted Gross Margin %, which is a non-GAAP financial measure, as Adjusted Gross Margin as a percentage of Products and services sales, net.

We define Segment Adjusted Gross Margin, which is a non-GAAP financial measure, as a segment's Gross Margin excluding the respective impact of intangible asset amortization, restructuring costs, changes in the fair value of financial instruments and inventory step-up provision. We define Segment Adjusted Gross Margin %, which is a non-GAAP financial measure, as Segment Adjusted Gross Margin as a percentage of a segment's revenues.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

SAFE HARBOR STATEMENT

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or any of our businesses, our business strategy, future operations, future financial position, future revenues and earnings, our ability to achieve the objectives of our restructuring initiatives and divestitures, including our future results, projected costs, prospects, plans and objectives of management, are forward-looking statements. We generally identify forward-looking statements by using words like “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “may,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. These forward-looking statements are based on our current intentions, beliefs, assumptions and expectations regarding future events based on information that is currently available. You should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from our expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement contained herein. Any such forward-looking statement speaks only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update any forward-looking statement to reflect new information, events or circumstances.

There are a number of important factors that could cause our actual results to differ materially from those indicated by such forward-looking statements, including, among others, the availability of USG funding for contracts related to procurement of our medical countermeasure ("MCM") products, including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA) Adjuvanted), previously known as AV7909, ACAM2000® (Smallpox (Vaccinia) Vaccine, Live), VIGIV CNJ-016® (Vaccinia Immune Globulin Intravenous (Human)), BAT® (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)), BioThrax® (Anthrax Vaccine Adsorbed) EbangaTM (ansuvimab-zykl) and/or TEMBEXA® (brincidofovir) among others, as well as contracts related to development of medical countermeasures; our ability to meet our commitments to quality and compliance in all of our manufacturing operations; our ability to negotiate additional USG procurement or follow-on contracts for our MCM products that have expired or will be expiring; the commercial availability and impact of a generic and competitive marketplace on future sales of NARCAN® (naloxone HCL) Nasal Spray and over-the-counter NARCAN® Nasal Spray; our ability to perform under our contracts with the USG, including the timing of and specifications relating to deliveries; the ability of our contractors and suppliers to maintain compliance with current good manufacturing practices and other regulatory obligations; our ability to negotiate new or further commitments related to the collaboration and deployment of capacity toward future commercial manufacturing related to our bioservices and under existing Bioservices contracts; our ability to collect reimbursement for raw materials and payment of service fees from our Bioservices customers; the results of pending government investigations and their potential impact on our business; our ability to satisfy the conditions of the final settlement, and the potential impact of the final settlement agreement, including the funds to resolve the litigation, on our business; our ability to comply with the operating and financial covenants required by (i) our term loan facility under a credit agreement, dated August 30, 2024, among the Company, the lenders from time to time party thereto and OHA Agency LLC, as administrative agent, (ii) our revolving credit facility under a credit agreement, dated September 30, 2024, among the Company, certain subsidiary borrowers, the lenders from time to time party thereto and Wells Fargo, National Association, as Agent, and (iii) our 3.875% Senior Unsecured Notes due 2028; our ability to maintain adequate internal control over financial reporting and to prepare accurate financial statements in a timely manner; our ability to maintain sufficient cash flow from our operations to pay our substantial debt, both now and in the future; our ability to invest in our business operations as a result of our current indebtedness; the impact of our share repurchase program; the procurement of our product candidates by USG entities under regulatory authorities that permit government procurement of certain medical products prior to FDA marketing authorization, and corresponding procurement by government entities outside the United States; our ability to realize the expected benefits of the sale of our travel health business to Bavarian Nordic, the sale of our Drug Product facility in Baltimore-Camden to Bora Pharmaceuticals Injectables Inc., a subsidiary of Bora Pharmaceuticals Co., Ltd., the sale of RSDL® to BTG International Inc., a subsidiary of SERB Pharmaceuticals and the sale of our Baltimore-Bayview drug substance manufacturing facility to Syngene International; the impact of the organizational changes we announced in January 2023, August 2023, May 2024 and August 2024; the success of our commercialization, marketing and manufacturing capabilities and strategy; our ability to identify and acquire companies, businesses, products or product candidates that satisfy our selection criteria; our ability to realize the full benefits from our divestitures and sales of assets; the impact of cybersecurity incidents, including the risks from the unauthorized access, interruption, failure or compromise of our information systems or those of our business partners, collaborators or other third parties; and the accuracy of our estimates regarding future revenues, expenses, capital requirements and need for additional financing. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. Readers should consider this cautionary statement, as well as the risks identified in our periodic reports filed with the Securities and Exchange Commission, when evaluating our forward-looking statements.

Trademarks

Emergent®, BioThrax®, BaciThrax®, BAT®, Trobigard®, Anthrasil®, CNJ-016®, ACAM2000®, ​NARCAN®, CYFENDUS®, TEMBEXA® and any and all Emergent BioSolutions Inc. brands, products, services and feature names, logos and slogans are trademarks or registered trademarks of Emergent BioSolutions Inc. or its subsidiaries in the United States or other countries. All other brands, products, services and feature names or trademarks are the property of their respective owners, including RSDL® (Reactive Skin Decontamination Lotion), which was acquired by SERB on July 31, 2024.

Investor Contact
Rich Lindahl
Executive Vice President, Chief Financial Officer
lindahlr@ebsi.com
Media Contact
Assal Hellmer
Vice President, Communications
mediarelations@ebsi.com


 
Emergent BioSolutions Inc.
Consolidated Balance Sheets
(unaudited, in millions, except per share data)
 March 31, December 31,
 2025   2024 
ASSETS   
Current assets:   
Cash and cash equivalents$149.1  $99.5 
Restricted cash 3.7   6.1 
Accounts receivable, net 203.7   154.5 
Inventories, net 314.0   311.7 
Prepaid expenses and other current assets 30.2   26.9 
Assets held for sale 6.1   — 
Total current assets 706.8   598.7 
    
Property, plant and equipment, net 221.0   270.6 
Intangible assets, net 485.2   501.5 
Other assets 13.1   18.9 
Total assets$1,426.1  $1,389.7 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$58.1  $60.9 
Accrued expenses 13.2   17.7 
Accrued compensation 24.7   56.1 
Other current liabilities 11.1   27.7 
Liabilities held for sale 4.8   — 
Total current liabilities 111.9   162.4 
    
Debt 665.7   663.7 
Deferred tax liability 60.4   41.7 
Other liabilities 35.4   39.1 
Total liabilities$873.4  $906.9 
    
Stockholders’ equity:   
Preferred stock, $0.001 par value per share; 15.0 shares authorized, no shares issued and outstanding —   — 
Common stock, $0.001 par value per share; 200.0 shares authorized, 60.1 and 59.9 shares issued; 54.5 and 54.3 shares outstanding, respectively. 0.1   0.1 
Treasury stock, at cost, 5.6 and 5.6 common shares, respectively (227.7)  (227.7)
Additional paid-in capital 930.8   928.0 
Accumulated other comprehensive loss, net (6.1)  (5.2)
Accumulated deficit (144.4)  (212.4)
Total stockholders’ equity$552.7  $482.8 
Total liabilities and stockholders’ equity$1,426.1  $1,389.7 
 


Emergent BioSolutions Inc.
Consolidated Statements of Operations
(unaudited, in millions, except per share data)
 Three Months Ended March 31,
 2025   2024 
Revenues:   
Product and services sales, net$209.1  $292.4 
Contracts and grants 13.1   8.0 
Total revenues 222.2   300.4 
    
Operating expenses:   
Cost of product and services sales, net(1) 88.5   144.6 
Research and development 15.1   15.1 
Selling, general and administrative 52.4   84.7 
Amortization of intangible assets 16.3   16.2 
Total operating expenses 172.3   260.6 
    
Income from operations 49.9   39.8 
    
Other income (expense):   
Interest expense (14.7)  (24.3)
Loss on assets held for sale (12.2)  — 
Other, net 69.7   (3.4)
Total other income (expense), net 42.8   (27.7)
    
Income before income taxes 92.7   12.1 
Income tax provision 24.7   3.1 
Net income$68.0  $9.0 
    
Earnings per common share   
Basic$1.25  $0.17 
Diluted$1.19  $0.17 
    
Weighted average shares outstanding   
Basic 54.4   52.2 
Diluted 57.3   52.2 
    
(1)Exclusive of intangible asset amortization
 


Emergent BioSolutions Inc.
Consolidated Statements of Cash Flows
(unaudited, in millions)
 Three Months Ended March 31,
 2025   2024 
Operating Activities   
Net income$68.0  $9.0 
Adjustments to reconcile net income to net cash used in operating activities:   
Share-based compensation expense 1.5   5.9 
Depreciation and amortization 25.4   27.9 
Change in fair value of contingent obligations, net —   0.5 
Amortization of deferred financing costs 2.3   6.9 
Deferred income taxes 18.6   (12.2)
Noncash loss on assets held for sale 12.2   — 
Change in fair value of warrant liability (9.5)  — 
Loss on disposal of assets 0.3   — 
Other (11.3)  (3.1)
Changes in operating assets and liabilities:   
Accounts receivable (73.3)  (50.0)
Inventories (2.2)  (4.5)
Prepaid expenses and other assets 9.5   (6.0)
Accounts payable (5.4)  (2.4)
Accrued expenses and other liabilities (7.2)  1.1 
Long-term incentive plan accrual 0.8   1.2 
Accrued compensation (32.2)  (33.3)
Income taxes receivable and payable, net (8.4)  16.1 
Contract liabilities (0.3)  (19.7)
Net cash used in operating activities (11.2)  (62.6)
Investing Activities   
Purchases of property, plant and equipment (3.6)  (10.8)
Proceeds from sale of property, plant and equipment 38.1   — 
Milestone payments from prior asset divestiture 30.0   — 
Purchase of convertible note receivable (5.0)  — 
Net cash provided by (used in) investing activities 59.5   (10.8)
Financing Activities   
Principal payments on term loan facility —   (3.9)
Proceeds from revolving credit facility —   50.0 
Principal payments on revolving credit facility —   (5.0)
Proceeds from share-based compensation activity 0.1   — 
Taxes paid for share-based compensation activity (0.5)  (0.4)
Net cash provided by (used in) financing activities: (0.4)  40.7 
Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.7)  — 
Net change in cash, cash equivalents and restricted cash 47.2   (32.7)
Cash, cash equivalents and restricted cash, beginning of period 105.6   111.7 
Cash, cash equivalents and restricted cash, end of period$152.8  $79.0 
Supplemental cash flow disclosures:   
Cash paid for interest$16.7  $21.5 
Cash paid for income taxes, net of refunds$14.5  $12.4 
Non-cash investing and financing activities:   
Purchases of property, plant and equipment unpaid at period end$1.5  $3.3 
Gain on extinguishment of debt$—  $0.3 
Reconciliation of cash and cash equivalents and restricted cash:   
Cash and cash equivalents$149.1  $78.5 
Restricted cash 3.7   0.5 
Total$152.8  $79.0 
 


Emergent BioSolutions, Inc.
Reconciliation of Non-GAAP Financial Measures
Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share(1)
($ in millions, except per share data)Three Months Ended March 31, 
 2025  2024 Source
Net income$68.0 $9.0  
Adjustments:   
Non-cash amortization charges$18.6 $23.2 Amortization of intangible assets ("IA"), Other Income
Severance and restructuring costs (1.3) (0.5)Cost of product and services sales, net, SG&A and R&D
Inventory step-up provision 1.8  — Cost of product and services sales, net
Acquisition and divestiture costs 0.2  — SG&A
Loss on assets held for sale 12.2  — Other Income (Expense)
Contingent consideration milestones (50.0) — Other Income (Expense)
Changes in fair value of financial instruments (9.5) 0.5 Cost of product and services sales, net and Other Income (Expense)
Other expense (income), net items (7.9) 3.1 Other Income (Expense)
Tax effect 8.6  (4.2) 
Total adjustments:$(27.3)$22.1  
Adjusted net income$40.7 $31.1  
Net income per diluted share$1.19 $0.17  
Adjustments:   
Non-cash amortization charges$0.32 $0.44 Amortization of IA, Other Income (Expense)
Severance and restructuring costs (0.02) (0.01)Cost of product and services sales, net, SG&A and R&D
Inventory step-up provision 0.03  — Cost of product and services sales, net
Acquisition and divestiture costs —  — SG&A
Loss on assets held for sale 0.21  — Other Income (Expense)
Contingent consideration milestones (0.87) — Other Income (Expense)
Changes in fair value of financial instruments (0.17) 0.01 Cost of product and services sales, net and Other Income (Expense)
Other expense (income), net items (0.14) 0.06 Other Income (Expense)
Tax effect 0.16  (0.08) 
Total adjustments:$(0.48)$0.42  
Adjusted net income per diluted share$0.71 $0.59  
Diluted shares used in computing Adjusted net income per diluted share 57.3  52.2  
        


Emergent BioSolutions, Inc.
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin(1)
($ in millions)Three Months Ended March 31,
 2025  2024 
Net income$68.0 $9.0 
Adjustments:  
Depreciation & amortization$25.4 $27.9 
Income taxes 24.7  3.1 
Total interest expense, net 14.0  23.8 
Inventory step-up provision 1.8  — 
Changes in fair value of financial instruments (9.5) 0.5 
Severance and restructuring costs (1.3) (0.5)
Acquisition and divestiture costs 0.2  — 
Loss on assets held for sale 12.2  — 
Contingent consideration milestones (50.0) — 
Other expense (income), net items (7.9) 3.1 
Total adjustments$9.6 $57.9 
Adjusted EBITDA$77.6 $66.9 
   
Total revenues$222.2 $300.4 
   
Adjusted EBITDA margin 35% 22%
       


Emergent BioSolutions, Inc.
Reconciliations of Total Revenues to Product and Services Sales, Net and of Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin %(1)
 Three Months Ended March 31,


($ in millions)		 2025  2024 
Total revenues$222.2 $300.4 
Contracts and grants 13.1  8.0 
Product and services sales, net$209.1 $292.4 
   
Cost of product and services sales, net 88.5  144.6 
Intangible asset amortization 16.3  16.2 
Gross margin$104.3 $131.6 
Gross margin % 50% 45%
Add back:  
Intangible asset amortization$16.3 $16.2 
Inventory step-up provision 1.8  — 
Restructuring costs (0.9) (0.3)
Changes in fair value of financial instruments —  0.5 
Adjusted gross margin$121.5 $148.0 
Adjusted gross margin % 58% 51%
       


Emergent BioSolutions, Inc.
Reconciliation of Net Income Forecast to Adjusted Net Income Forecast
($ in millions)2025 Full Year ForecastSource
Net income$20 - $70 
Adjustments:  
Non-cash amortization charges$65Amortization of IA and Other Income (Expense)
Changes in fair value of financial instruments(9)Other Income (Expense)
Severance and restructuring costs(3)Cost of products and services, net, SG&A and R&D
Inventory step-up provision5Cost of products and services, net
Loss on asset held for sale12Other Income (Expense)
Settlement charge, net(10)SG&A
Contingent consideration milestones(50)Other Income (Expense)
Other expense (income), net items(3)Other Income (Expense)
Tax effect(7) 
Total adjustments:$— 
Adjusted net income$20 - $70 


Reconciliation of Net Income Forecast to Adjusted EBITDA Forecast
($ in millions)2025 Full Year Forecast
Net income$20 - $70
Adjustments: 
Depreciation & amortization$100
Income taxes33
Total interest expense, net55
Inventory step-up provision5
Changes in fair value of financial instruments(9)
Severance and restructuring costs(3)
Loss on assets held for sale12
Settlement charge, net(10)
Contingent consideration milestones(50)
Other expense (income), net items(3)
Total adjustments$130
Adjusted EBITDA$150 - $200
  


Emergent BioSolutions, Inc.
Reconciliations of Forecasted Total Revenues to Forecasted Product and Services Sales, Net and of Forecasted Gross Margin and Gross Margin % to Forecasted Adjusted Gross Margin and Adjusted Gross Margin %(1)


($ in millions)		2025 Full Year Forecast
Total revenues$750 - $850
Contracts & Grants(25) - (30)
Product and services sales, net$725 - $820
  
Cost of product and services sales, net$381 - $403
Intangible asset amortization60
Gross margin$284 - $357
Gross margin %39% - 44%
Add back: 
Intangible asset amortization$60
Inventory step-up provision5
Restructuring costs(1)
Adjusted gross margin$348 - $421
Adjusted gross margin %48% - 51%
  

FAQ

What were Emergent BioSolutions (EBS) key financial results for Q1 2025?

In Q1 2025, EBS reported revenues of $222.2M (down 26%), net income of $68M (up 656%), and adjusted EBITDA of $77.6M (up 16%) compared to Q1 2024.

Why did EBS stock revenue decline in Q1 2025?

The revenue decline was primarily due to lower NARCAN sales (down 62%), decreased Anthrax MCM sales (down 14%), and reduced Other Products revenue (down 95%).

What is EBS's financial guidance for 2025?

EBS reaffirmed its 2025 guidance with total revenues of $750M-$850M, net income of $20M-$70M, and adjusted EBITDA of $150M-$200M.

What major contracts did EBS secure in Q1 2025?

EBS secured a $20M contract for BioThrax with U.S. DoD, $16.7M for Ebanga development with BARDA, and a $65M agreement with Ontario for NARCAN Nasal Spray.

How much is EBS's stock buyback program worth?

EBS announced a $50M stock buyback program to be executed on or before March 27, 2026.
Stock EBS logo
Emergent Biosolutions Inc

NYSE:EBS

EBS Rankings

N/A Ranked by Market Cap
N/A Ranked by Dividends

EBS Latest News

May 1, 2025
Emergent BioSolutions Reinforces Commitment to Opioid Emergency Preparedness Efforts in Canada Through Multi-Year Contract with Ontario Ministry of Health
Apr 22, 2025
Emergent BioSolutions to Report First Quarter 2025 Financial Results on May 7, 2025
Mar 31, 2025
Emergent BioSolutions Announces Stock Repurchase Program
Mar 20, 2025
Emergent BioSolutions New Hire Equity Grant Under NYSE Rule 303A.08
Mar 20, 2025
Hikma announces Health Canada approval of KLOXXADO® (naloxone HCl) Nasal Spray 8 mg

EBS Stock Data

345.68M
52.89M
3.1%
64.59%
14.97%
Drug Manufacturers - Specialty & Generic
Pharmaceutical Preparations
Link
United States
GAITHERSBURG