EBS

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 5 p.m. ET Vice President and Treasurer - Frank Vargo President and Chief Executive Officer - Joseph C. Papa Jr. Executive Vice President and Chief Financial Officer - Richard S. Lindahl Operator: Good day, and thank you for standing by. Welcome to the Q2 26 Emergent BioSolutions Inc Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Frank Vargo, Vice President and Treasurer. Please go ahead. Frank Vargo: Good afternoon, everyone. And thank you for joining us as Emergent discusses its operational and financial results for the second quarter of 2026. As is customary, today's call is open to all participants. it is being recorded. And is copyrighted by Emergent BioSolutions. In addition to today's press release, a slide presentation accompanying this webcast is available to all webcast participants. Turning to slide 2, During today's call, Emergent may make projections and other forward looking statements related to its business, future events, prospects or future performance. These forward looking statements are based on our current intentions, beliefs and expectations regarding future events, Any forward looking statement speaks only as of the date of this conference call, And except as required by law, Emergent does not undertake to update any forward looking statement to reflect new information, events or circumstances. Investors should consider this cautionary statement as well as the risk factors identified in Emergent's periodic reports filed with the SEC, when evaluating these forward looking statements. During today's call, Emergent may also discuss certain non GAAP financial measures that include adjustments to GAAP figures to provide additional transparency regarding the company's operating performance. Please refer to the tables included in today's press release. Turning to slide 3. The agenda for today's call includes remarks from Joe Papa, President and Chief Executive Officer who will provide an update on the company's transformation plan, business performance, and key highlights. Richard S. Lindahl, EVP and Chief Financial Officer, will then review the second quarter 26 financial results and provide an update on full year 2026 guidance. Joe Papa will conclude with a discussion of the company's key catalysts for growth followed by a question and answer session. Finally, for the benefit of those who may be listening to the replay of this webcast, this call was held and recorded on 08/05/2026. Since that time, Emergent may have made announcements related to topics discussed during today's call. With that, I would now like to turn the call over to Joe Papa. Joe? Joseph C. Papa Jr.: Thank you, Frank. Hello, everyone, and thank you for joining us to discuss Emergent's Second Quarter 26 Financial Results. This is Joe Papa, President and CEO of Emergent. And I am joined today by Richard S. Lindahl, our Chief Financial Officer. This afternoon, I will share updates on our multiyear transformation, our strong second quarter business performance and our continued work to protect and save lives. Following my remarks, Richard will detail our quarter 26 financial results and provide our updated 2026 guidance I will close the call with a discussion of our 2026 business outlook, and the catalysts we believe will enable growth as we continue to execute on our turnaround priorities. Then we will open up the call for Q&A. I will now begin on Slide 5. For more than 25 years, Emergent has responded to complex and urgent public health threats with preparedness solutions and active response capabilities. Today, we believe Emergent is the leader in biodefense preparedness in naloxone, serving patients customers and government partners around the world. Our mission remains clear. To protect and save lives. That mission guides how we prioritize patient safety, quality, and compliance, and how we invest in the capabilities that matter most for our future. Our multiyear transformation plan continues to guide our business. We remain focused on improving operating performance advancing strategic transformation for long term growth and profitability. Identifying growth opportunities aligned with our internal capabilities and continuing to strengthen the balance sheet. As an example, through a great team effort, we achieved strong second quarter results significantly ahead of consensus and exceeded our own internal expectations. However, we also experienced some changes in NLX at the end of the second quarter. On Slide 7, let me address the naloxone business directly. Since the NARCAN launch in 2016 and the OTC FDA approval in 2023, Emergent has maintained its leadership position and adapted to the evolving market landscape. However, recently, we saw 2 new nasal naloxone entrants. Including a new 4 milligram over the counter approval on 06/16/2026, and a 10 milligram prescription agent that will launch in August 2026. and more aggressive pricing across the naloxone segment. These are changes in the signals we must proactively address. That said, opioid overdose deaths remain unacceptably high, with 45 thousand lives lost annually in The US our work as a trusted brand leader remains critical for communities across the US and Canada. As market dynamics change, we need to proactively get ahead of these issues. Progressing to slide 8, as we navigate through our turnaround and broader transformation and also address the Naloxone business market dynamics, we are taking action to align our resources with current business realities and prepare Emergent for 2027 and beyond. Beginning today, we are implementing several restructuring actions intended to improve our overall cost structure. Keep Emergent efficient and nimble and align resources to the current needs of the organization. Our restructuring efforts are expected to yield annualized savings of approximately $40 million. These actions include a reduction in workforce of approximately 90 positions, the closure of 2 wet laboratories in Maryland, the sale of an unutilized office building for $6.4 million and exiting of a central warehouse lease. Also, we have integrated growth under 1 team leader and establish a group where scientific discovery portfolio strategy, clinical development, commercial insight, and external innovation will all be harmonized. The bottom line, we are taking the steps now that are needed to ensure the future of Emergent as a strong and prosperous throughout our transformation journey. Before handing it over to Richard for a more detailed financial review, I would like to highlight our strong second quarter performance on Slide 10. Q2 revenue was $234 million significantly exceeding the high end of our guidance range coming in ahead of our internal expectations. Year to date revenue was $390 million reflecting strong execution and acceleration of our MCM deliveries in Q2 through our ongoing collaborative partnerships with the U. S. Government. We delivered Q2 adjusted EBITDA of $97 million with a 41% margin, and year to date adjusted EBITDA was $132 million with a 34% margin. These results demonstrate the excellent focus execution of our teams have brought to the business. Finally, as we continue to focus on pursuing targeted business development, we are also responding to public health threats like Ebola, by initiating our Pan-Ebola Therapeutic Program. We also advanced important regulatory activities during the quarter including the receipt of Saudi FDA approval for the ACAM2000 and the Singapore Health Sciences Authority approval to expand ACAM2000 to include the MPOXX indication. The MPOXX study in Africa, or MOSA, is also evaluating TEMBEXA, has over 100 patients enrolled in the study sponsor, Panthera, with Africa CDC and other partners are opening additional sites. Turning to Slide 11. Our MCM business remains core to Emergent's mission and is a key growth driver. We continue to support the US government and allied government partners with critical products and capabilities that help prepare for, respond to, and recover from serious public health threats. Today, we announced that we are seeking to collaborate with AI leaders and partners to address the potential risk of bioterrorism and improve biodefense response preparedness. In Q2, MCM revenue was $168 million the highest second quarter revenue since 2020. We received multiple US government contract awards and international product orders, including a contract modification of $52.7 million for ACAM2000 and a $64.5 million contract modification for botulism antitoxin. Year to date, we have secured over 10 contract awards. International momentum is also building, and we continue to see the realities of our world becoming increasingly dangerous when Ebola virus is on the rise in Africa. International MCM sales represent approximately 20% of our total first half 2026 MCM revenues, reflecting continued engagement with the US, and allied governments and the importance of bio preparedness in an increasingly dangerous world. Let me now hand the call over to Richard. Following Richard's comments, I will spend some time elaborating on our business outlook and growth catalyst. Richard S. Lindahl: Thank you, Joe. Good afternoon, everyone, and thank you for joining our call today. We delivered a strong second quarter and first half of 2026 with revenue and adjusted EBITDA, exceeding both our internal expectations and the analyst consensus. We continue to advance key strategic priorities generated strong operating cash flow and maintained a solid cash position while also making the $50 million Ebanga investment milestone payment during the quarter. And we improved our capital structure with the April 2026 term loan refinancing which lowered interest expense, extended maturities, and enhanced our financial flexibility. Performance in our medical countermeasures segment remained very solid and consistent with our full year outlook even as we accelerated some deliveries into the second quarter. In the commercial segment, recent developments in the naloxone market have led to increased competitive intensity with implications for our near to medium term outlook and the book value of our NARCAN asset group. As Joe highlighted, we have responded by implementing actions to drive greater efficiency and cost savings as we exit this year and prepare for 2027. We expect these restructuring actions to generate approximately $40 million in annualized net savings and other improvements, partially offset by approximately $11 million of cost to achieve. We also executed a transaction to sell our underutilized building in Gaithersburg, Maryland for approximately $6 million. In light of the increasingly competitive landscape for NARCAN, we recorded a noncash impairment charge of approximately $191 million in the second quarter. This accounting adjustment reflects our updated assessment of the product expected future cash flows in the context of current market dynamics. Including pricing and competitive factors. Importantly, this charge is noncash and does not affect our cash position, liquidity, operating cash flow or adjusted EBITDA. It does, however, reduce our GAAP net income for the quarter is an important factor in understanding the year over year comparison. Turning to slide 13. Our second quarter results exceeded expectations and reflect continued progress on execution. Total revenue for the second quarter of 26 was $234 million which came in above the $185 million high end of our prior Q2 revenue guidance. This outcome was primarily driven by our continued strong partnership with the U. S. Government which resulted in the acceleration of medical countermeasure deliveries into Q2. Adjusted EBITDA for the quarter was $97 million representing a 41% adjusted EBITDA margin compared with $33 million and a 23% margin in the prior year period. Adjusted gross margin was 58%, up from 49% in the second quarter of 2025, largely driven by product mix and overall volume. Operating expenses were $54 million in the quarter, down approximately $2 million year over year. Demonstrating continued cost discipline across the business. Moving on to Slide 14, we highlight the notable revenue elements driving second-quarter comparison. MCM revenue was the primary contributor to the year over year increase, supported by accelerated deliveries and contract activity related to ACAM and BAT. Commercial revenue continues to reflect NARCAN's market leadership position while year over year performance was affected by new competitive pressure and continued pricing and volume dynamics. Turning to slide 15. Year to date results were also quite strong. Total revenue was $390 million for the first 6 months of 2026, up from $363 million in the prior year period. Driven primarily by accelerated MCM deliveries and strong execution with the U.S. and international government customers. Adjusted EBITDA was $132 million year-to-date, representing a 34% margin compared with $112 million and a 30% margin in the prior year period. Adjusted gross margin was 56%, up 100 basis points year over year, reflecting the benefit of product mix and disciplined operational execution. Moving to Slide 16. The notable year-to-date revenue elements show the same dynamics we saw in the quarter. MCM revenue was the primary driver of the year over year increase, supported by the timing of product deliveries accelerated contract awards, and meaningful international sales. Commercial revenue continues to reflect NARCAN's strong leadership position while year to date performance has been pressured by a more competitive naloxone market. Overall, the first half reflects strong MCM performance offsetting pressure in the commercial portfolio. On Slide 17, we highlight continued stability in our financial metrics. We ended the second quarter with $140 million of cash and $190 million of total liquidity. While cash has declined versus the prior year period, the business continued to generate significant operating cash flow while also absorbing the $50 million Ebanga investment milestone payment during the quarter. In addition, we have already received $145 million of cash through July from the $190 million accounts receivable balance at June 30, which further improves our operating cash flow and liquidity. Gross debt was $590 million as of June 30, 2026, compared with $700 million in the prior year. Net debt was $450 million and our net leverage ratio remained stable year over year at 1.9x trailing 12-month adjusted EBITDA. On Slide 18, turning to capital allocation, our priorities remain focused on strengthening the business and creating long term shareholder value. We completed the April 2026 term loan refinancing establishing a new $150 million term loan with maturity extended to 2031 reduced interest rates, and enhanced operating and financial flexibility. In addition, our board authorized a new $75 million debt repurchase program And as previously mentioned, we have a $50 million share repurchase program through March 2027. During the second quarter, we repurchased 1.1 million shares for approximately $9 million, bringing year to date repurchases to 1.9 million shares for $18 million. As of quarter end, $37.5 million remained available under the authorized share repurchase program. We continue to balance debt reduction, disciplined share repurchases, and investments in international MCM growth, internal R&D, including the Ebanga program, and business development opportunities. Turning to slide 19, we have updated our revenue and profitability guidance. We are revising full-year 2026 total revenue guidance to a range of $645 million to $675 million, compared with our prior range of $720 million to $760 million The revision primarily reflects lower expected commercial revenue in the second half of the year, driven by increased competitive pressure in NARCAN, as well as continued pricing and volume pressure across the naloxone market. For MCM, we continue to expect contributions from U. S. Government procurement and sales, with the first half benefit from accelerated deliveries already reflected in our year to date results. We are also revising our profitability outlook to reflect updated revenue expectations the anticipated impact of restructuring actions and the NARCAN noncash impairment charge. Our GAAP net loss guidance is now expected to be within a range of negative $245 million to negative $225 million which includes the effect of noncash items and restructuring related expenses. Adjusted net income guidance is now expected to be $10 million to $30 million We are revising adjusted EBITDA guidance to $130 million to $150 million compared with our prior range of $155 million to $175 million At the midpoint, the adjusted EBITDA reduction is substantially less than the revenue reduction, because the lower revenue outlook is partially offset in 26, by the impact of the cost savings initiative announced today, along with continued operating expense discipline. We are also revising adjusted gross margin guidance to 42% to 44% reflecting the expected mix impact from lower commercial revenue. For the third quarter, we expect total revenue to be between $110 million and $130 million Q3 outlook reflects an anticipated step down following the accelerated MCM deliveries in the first half, as well as continued commercial pressure from the evolving naloxone marketplace. Even with the lower revenue outlook, we remain focused on cash generation, disciplined capital management and execution of our cost savings program to support profitability and liquidity through the balance of 2026. In summary, Q2 was a strong quarter for Emergent and capped a solid first half of the year. We exceeded the high end of our Q2 revenue guidance, delivered EBITDA of $97 million with a 41% margin and generated strong operating cash flow. We ended the quarter with $140 million of cash which increased significantly in early Q3 through accounts receivable collections, And during the quarter, we continued to execute our capital management priorities. Following the April 2026 term loan refinancing we have enhanced financial flexibility through extended maturities, lower interest expense, and improved covenant flexibility. We will continue to demonstrate financial discipline as we sustain our current business pursue growth opportunities and create shareholder value over time. And with that, I would like to turn the call back over to Joe to discuss our business outlook and growth catalyst before we go into Q&A. Joe? Joseph C. Papa Jr.: Frank you, Richard. Turning to Slide 21, I would like to write context around our business outlook and the catalysts we believe can enable growth from 2026 and beyond. Our growth outlook is focused on 4 principal areas: First, expanding international MCM orders and opportunities Second, launching additional line extensions for the naloxone business, including the NARCAN nasal spray carrying case, including the in the multipack configurations. Third, driving organic growth through internal R&D programs, including TEMBEXA, Ebanga and raxibacumab. And fourth, accelerating growth through selective external business development opportunities that are value accretive. Additionally, as I previously mentioned, we are unifying R&D and business development into the growth organization. Which we believe will help us make faster, more informed, portfolio decisions and allocate capital with greater discipline. Turning to Slide 22. Near term pipeline and current asset strategy is focused on maximizing the value of programs where Emergent has differentiated experience, clear mission alignment, and the potential to support sustainable growth. The important note here is that our pipeline is about focusing our resources on assets and programs where Emergent can lead or capabilities matter and where we can continue to help protect and save lives against public health threats. Now moving to our summary on slide 23. While Emergent is continuing to execute on its multiyear transformation plan, we are taking decisive action now to address NARCAN business realities prepare the company for 2027, and beyond, and remain focused on our mission to protect and save lives. We are restructuring our business operation to improve overall cost structure, drive efficiencies and align resourcing to the current needs of the organization. Our MTM business continues to support The U. S. And international preparedness, and our Naloxone business continues to deliver on Emergent's mission to protect and save lives. We remain committed to patient safety, quality and compliance across the enterprise while pursuing growth initiatives in creating long term value for shareholders. With that, I look forward to your question. Operator, if we can please open the line for questions. Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Raghuram Selvaraju of H.C. Wainwright & Co. Your line is now open. Raghuram Selvaraju: Thanks very much for taking our questions. Firstly, with respect to the NARCAN situation, I was wondering if you could provide us with some additional granularity on any potential initiatives that you think are likely to be particularly effective in, A, slowing the pace at which NARCAN sales might erode. And b, potentially leverage the brand recognition that you have in order to position the franchise more effectively as effectively the key line of defense against next gen fentanyl analogs, which as I understand are significantly more addictive and more likely to be fatal. than fentanyl itself. Secondly, I was wondering if you could just give us some more insight into your strategic thinking behind the reorientation of the company away from what sounds like basic R&D and how you anticipate redeploying those resources, particularly with potentially greater focus going forward on strategic in licensing and asset acquisition. And then lastly, I was wondering if you could give us a sense of given the fact, I think you said this multiple times in your prepared remarks, that we are increasingly living in a more and more dangerous world, whether you are seeing any emergent trends in MCM contract procurement demands outside of the United States. Thank you. Joseph C. Papa Jr.: Sure. A lot of good questions there. I will take them 1 at a time, make sure I answer all of them. On the NARCAN initiatives, yes, absolutely we are looking at things to continue to keep the share we have today and potentially grow that share. We are looking at, obviously, number 1, the brand NARCAN itself is important. We have that brand name. When you are looking at the opportunities that face the marketplace. Having the brand name NARCAN is very important that we have had a chance to talk to consumers about that. They obviously recognize the importance of the NARCAN brand name. Number 2, as the market leader, we are continuing to bring out new innovation. That new innovation we bring out includes things like the carrying case that is perfect for those students that are college students that clip it onto their back pack as an example. We are also looking at multi packs where we are putting additional NARCAN together to make it easier for the high user first responders who are high-volume users have the NARCAN available. And packs beyond just the 2 nasal sprays in 1 kit. As an example, just bringing out new innovation, bringing out what we are doing not only with the carrying case, but also the multipacks, but also the wall kits that we have that we are trying to get additional exposure for. So those are the innovation things that we are doing beyond the brand name. And then finally, to be clear, we are still the market leader. We still have, we believe, over a 50% market share of the naloxone market. Having said that, though, we recognize with additional competition we expect there will be some additional price pressures on the product. that is why we made some of the decisions we talked about today. But we clearly believe NARCAN will continue to be the gold standard here, and we are prepared for that. But we wanna make sure we are looking at realistic what we think the numbers and what the issues are for NARCAN. From a pricing pressure point of view with the knowledge that we have 2 new competitors coming into the space. On the second question, on the R&D side, I would say the answer to that is that we are looking at R&D still being pivotally important to us. We are continuing to still invest behind products like TEMBEXA, products like Ebanga, products like rexibacumab. We are continuing to look, as I mentioned in my comments, what can we do in Africa to do the MOSA trials to get some additional data on TEMBEXA and its benefits in mPOXX. So we are going to continue to invest in R&D to be clear. We think, however, by putting the decisions into 1 group, where we bring the external business development and the internal R&D projects together into 1 decision maker, we will have the ability to make faster decisions better allocation of capital to the future pipeline opportunities and that is where we think we will get better return on investment for our shareholders going forward. But to be clear, there is still going to be all the efforts we need on the R&D side to ensure we are going to have the appropriate decision making and just we think we can make faster, better decisions by putting together this 1, let's call it a chief of growth for the company to help us to make those decisions quickly. And focused on all the right return on investment metrics and trying to continue to advance our mission. On the question of the increasingly dangerous world, the answer to that is, are we seeing things, absolutely, correctly we are. We are hearing from governments around the world. What some of the issues are. Some of you may have seen recent articles back going back into June where some of the AI CEO leadership are specifically writing letters of concern that AI could be utilized by bad actors to create new pathogens, pathogens that could be very, very chaotic and cause additional problems. We intend, as we put out a release today, to collaborate with the AI leadership to make sure that we are going to be front and center there on helping governments around the world to prepare for the potential activities that could happen through AI that could expedite bad actors creating pathogens that are problematic. So we are absolutely as a leader in this area of medical countermeasure preparedness wanna be up front and center coordinating all the activities based on our experience. So those are the things that we think are important. We are going to continue to move forward and make progress with those because it is an increasingly dangerous world out there. Operator, next question. Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Jessica Fye of JPMorgan. Your line is now open. Jessica Fye: Hey, guys. Good afternoon. Thanks for taking our questions. First, just on the kind of financial picture. It seems like other revenue was a key driver of year over year revenue growth in the first half. Can you outline just what is in there and how sustainable that is? And then for NARCAN, can you elaborate on what you are seeing in the naloxone market a little more specifically and talk about what your latest price and volume expectations are for NARCAN for the rest of this year? And longer term? And then lastly, sorry. Third question. As it relates to the revenue guidance update, should we take that as entirely NARCAN related Was there any, say, upside from other business lines being more than offset by the NARCAN headwinds? Just want to kind of better understand what is below the surface there. Thank you. Joseph C. Papa Jr.: So Hi, Jessica. Thanks for the question. On the other revenue, the biggest driver there is our BAT product our botulism antitoxin, and we had a significant delivery that occurred in the second quarter that really drove that year over year increase. The question of naloxone and where we are with the market and pricing. So what is out there in the market? The market's still a strong market in terms of what we are seeing in terms of unfortunately, 45 thousand people still dying because of opioid overdoses. So we still think the market need is there. We still are preparing to be out there with our units with NARCAN out there. Having said that, though, we have seen competitive price pressures. We think the correlation of the new entrants and people preparing for new entrants to make sure that they can hold on to their share is, as with other generic companies, when they come in, to compete with the brand, they will look at price as an option to try to get some incremental share. We just want to make sure that we are prepared. I mean, to be clear, NARCAN is up versus the first quarter. So we did see it grow over the first quarter. However, as we thought about the remainder of this year, and going into next year, we wanted to be prepared knowing what we have seen with other markets when additional generic players show up into the market. So that was the logic and how we thought about it for the rest of this year. And into next year. But we do expect to see additional price erosion, to be clear. We think the market's going to be should be flat maybe in terms of total naloxone units should be relatively flat, somewhere around that area. And we will obviously continue to look to maintain a leadership position in terms of market share for our NARCAN business. The last question you asked was about the guidance. Richard, do you want to take that? Richard S. Lindahl: Yes. Thank you. So the biggest driver of the change in our guidance is, in fact, that commercial segment or the view on naloxone revenue for the year. As we had previously guided for medical countermeasures, we thought it would be flat to slightly down on the year. That really our view really has not changed. For that segment. But for the factors that Joe highlighted just now and earlier on the call, we do see lower overall commercial revenue driven by naloxone for the balance of the year and for the full year. Thank you for the question, Jessica. Joseph C. Papa Jr.: Operator, any additional questions? Operator: Yes. Thank you. 1 moment for our final question. Our next question comes from the line of Alex Kelsey of Wells Fargo. Your line is now open. Alex Kelsey: Hey, guys. appreciate you taking the questions. I will layer mine in sequential order as well. Just on the July comment about AR was that through a securitization program, or is that just collecting AR in normal course then regardless of the mechanism, you know, pro forma, all else equal, am I correct to think that cash, you know, pro forma is closer to, you know, the $140 million plus $145 million, so $285 million. that is number 2. And then number 3, the comment on the $75 million debt repurchase authorization Am I safe to assume that would be targeted at the senior notes, or is there any reason that you would look to address the new term loan before the bonds? Richard S. Lindahl: Thanks, Alex. Appreciate the questions. The collection of the $145 million is all from accounts receivable related to deliveries that occurred in the second quarter and that were in the balance as of the end of the second quarter. It is not related to a securitization or any other kind of financing facility. it is just pure, you know, working capital, accounts receivable, collection. As far as the impact on cash flow, yes, that certainly flows through to the cash balance. Obviously, there is some expenses as we come through the month, but safe to assume that a very meaningful portion of that, you know, flowed through to our cash balance as of the end of July. And then finally, the $75 million authorization is specifically to repurchase the senior unsecured notes. And so that there will be a little more detail on that in the 10 Q when we file that. Alright. Alex Kelsey: And if I am still on the line, regard to the $40 million cost savings, any sense of timing as to when we should expect that to be realized and annualized in the numbers? Joseph C. Papa Jr.: Sure. We are going to start now. As I mentioned on the call, in terms of that realization, obviously, the full run rate of that would be in a full year of 2027, but we are starting now. We will pick up some in 2026, but the full run rate of a $40 million would be in 2027 and beyond. Great. Thank you very much. Operator, any other question? Operator: That was the final question. So this concludes the question and answer session. I would now like to turn it back over to Joseph Papa for closing remarks. Joseph C. Papa Jr.: All right. Well, thank you, everyone, for joining us today Please note an archived version of today's webcast as well as a PDF version of the slides used during today's call will be available later today and accessible through our Investors landing page on the company website. Thank you again for joining us. We look forward to speaking to you all in the near future. Frank you, everyone. Goodbye. Operator: Thank you for your participation in today's conference. This does conclude the program. 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Interested in Emergent Biosolutions Inc.? Here are five stocks we like better. Q2 performance exceeded expectations: Revenue reached $234 million and adjusted EBITDA rose to $97 million, driven by accelerated medical countermeasure deliveries and strong U.S. government contract activity. NARCAN competition is pressuring the business: Emergent recorded a $191 million non-cash impairment charge and announced restructuring measures expected to deliver approximately $40 million in annualized savings, including 90 job cuts and facility closures. Full-year guidance was reduced: 2026 revenue guidance fell to $645 million–$675 million, while adjusted EBITDA guidance declined to $130 million–$150 million, reflecting expected naloxone pricing and volume pressure in the second half. 3 Small-Cap Stocks to Watch After the Fed’s Rate Cuts Emergent Biosolutions (NYSE:EBS) reported second-quarter 2026 revenue and adjusted EBITDA above its prior guidance and analyst consensus, driven by accelerated medical countermeasure deliveries to U.S. government customers. The company also lowered its full-year outlook as increased competition and pricing pressure in the naloxone market are expected to weigh on sales of NARCAN. Revenue for the second quarter totaled $234 million, above the high end of the company’s prior guidance range of $185 million. Adjusted EBITDA was $97 million, representing a 41% margin, compared with $33 million and a 23% margin in the year-earlier period. Year-to-date revenue reached $390 million, up from $363 million in the first half of 2025, while adjusted EBITDA increased to $132 million from $112 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Big Rallies Brewing? 3 Analyst Favorites to Watch Closely Chief Executive Officer Joseph Papa said the results reflected “strong execution and acceleration” of medical countermeasure, or MCM, deliveries during the quarter. MCM revenue totaled $168 million, which Papa said was the company’s highest second-quarter MCM revenue since 2020. Emergent said its MCM business remains a central growth driver, supported by contracts with the U.S. government and international customers. During the quarter, the company received a $52.7 million contract modification for ACAM2000 and a $64.5 million contract modification for botulism antitoxin. It secured more than 10 contract awards year to date. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Watch These 4 Overbought Stocks As Market Rotation Continues International MCM sales accounted for approximately 20% of total first-half 2026 MCM revenue, according to Papa. The company cited continued engagement with U.S. and allied governments amid heightened concerns about biodefense preparedness. Papa also said Emergent is seeking to collaborate with artificial intelligence leaders and partners to address potential bioterrorism risks and improve preparedness. He noted that the company continues to pursue programs including TEMBEXA, Ebanga and Raxibacumab. The MOSA study in Africa, which is evaluating TEMBEXA in Mpox, has enrolled more than 100 patients, with additional sites being opened by the study sponsor and partners. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High During the quarter, Emergent received Saudi Food and Drug Authority approval for ACAM2000 and approval from Singapore’s Health Sciences Authority to expand ACAM2000’s label to include an Mpox indication. Management said the naloxone market changed late in the second quarter with a new 4-milligram over-the-counter nasal naloxone approval on June 16 and the anticipated August launch of a 10-milligram prescription product. The company also cited more aggressive pricing across the category. Papa said Emergent believes NARCAN retains more than 50% of the naloxone market and remains the market leader. However, he said the company expects further price erosion as new competitors enter the market. Management expects overall naloxone unit demand to remain relatively flat. In response, Emergent announced restructuring actions expected to generate about $40 million in annualized net savings. The measures include: A reduction of approximately 90 positions; The closure of two wet laboratories in Maryland; The sale of an underutilized office building for $6.4 million; and An exit from a central warehouse lease. The company expects to incur approximately $11 million in costs to achieve the savings. Papa said the company will begin realizing some savings in 2026, with the full $40 million annualized run rate expected in 2027. Chief Financial Officer Rich Lindahl said Emergent recorded a non-cash impairment charge of approximately $191 million during the second quarter related to the NARCAN asset group. The charge reflected the company’s revised assessment of expected future cash flows amid pricing and competitive developments. Lindahl said the impairment does not affect cash, liquidity, operating cash flow or adjusted EBITDA, but will reduce GAAP net income. Emergent plans to seek growth in the commercial franchise through additional NARCAN offerings, including a carrying case, multipack configurations and wall kits. Emergent lowered its full-year 2026 revenue guidance to $645 million to $675 million, from a prior range of $720 million to $760 million. The revision primarily reflects lower expected commercial revenue in the second half due to increased NARCAN competition and naloxone pricing and volume pressure. The company maintained its view that MCM revenue would be flat to slightly down for the full year, with the first-half benefit from accelerated deliveries already reflected in reported results. GAAP net loss: $245 million to $225 million Adjusted net income: $10 million to $30 million Adjusted EBITDA: $130 million to $150 million, down from prior guidance of $155 million to $175 million Adjusted gross margin: 42% to 44% Third-quarter revenue: $110 million to $130 million At June 30, Emergent had $140 million in cash and $190 million in total liquidity. Gross debt was $590 million and net debt was $450 million. Lindahl said the company collected $145 million through July from accounts receivable outstanding at quarter-end, describing the collections as normal working-capital activity rather than a securitization or financing transaction. The company completed a term loan refinancing in April, establishing a $150 million term loan maturing in 2031. Its board also authorized a $75 million program to repurchase senior unsecured notes. During the second quarter, Emergent repurchased 1.1 million shares for approximately $9 million, bringing year-to-date share repurchases to $18 million. Emergent BioSolutions is a global specialty biopharmaceutical company focused on developing, manufacturing and commercializing medical countermeasures and specialty products that address public health threats. The company's portfolio includes vaccines, antibody therapies and critical care products designed to protect against biological, chemical and emerging infectious disease threats. Emergent has longstanding partnerships with government agencies, including the U.S. Department of Defense and the Biomedical Advanced Research and Development Authority (BARDA), to support national preparedness programs. Key commercial products in Emergent's lineup include BioThrax (anthrax vaccine adsorbed), ACAM2000 (smallpox vaccine) and Vaxchora (cholera vaccine), alongside therapeutic treatments such as Anthrasil (anthrax immune globulin) and the naloxone-based nasal spray Narcan for opioid overdose reversal. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Emergent Biosolutions Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved strong Q2 performance driven by the acceleration of Medical Countermeasure (MCM) deliveries through collaborative U.S. government partnerships, resulting in the highest Q2 MCM revenue since 2020. Implemented a comprehensive restructuring plan to yield $40 million in annualized savings, responding to a shift in market realities and the need for a leaner cost structure. Recorded a $191 million non-cash impairment charge on the NARCAN asset group, reflecting updated cash flow expectations due to aggressive pricing and new market entrants. Unified scientific discovery, portfolio strategy, and business development under a single 'growth organization' to harmonize capital allocation and expedite decision-making. Maintained market leadership in the naloxone segment with over 50% share, despite the entry of new 4mg OTC and 10mg prescription competitors. Expanded international MCM footprint, with global sales representing approximately 20% of total first-half MCM revenues as allied governments prioritize biopreparedness. Revised full-year 2026 revenue guidance downward to $645 million–$675 million, primarily accounting for sustained pricing and volume pressure in the commercial naloxone market. Anticipate a sequential revenue step-down in Q3 following the pull-forward of MCM deliveries into the first half of the year. Focusing R&D and business development on high-differentiation programs including TEMBEXA, Ebanga, and raxibacumab where the company has clear mission alignment. Targeting 2027 for the full realization of the $40 million annualized cost savings run-rate, with initial benefits expected to offset revenue headwinds in late 2026. Initiating collaborations with AI leaders to address emerging bioterrorism risks, specifically the potential for AI-generated pathogens. Reduction in workforce of approximately 90 positions and closure of two wet laboratories in Maryland as part of the efficiency drive. Divested an unutilized office building for $6.4 million and exited a central warehouse lease to optimize the real estate footprint. Authorized a new $75 million debt repurchase program specifically targeting senior unsecured notes to improve the capital structure. Completed a $50 million investment milestone payment for the Ebanga program during the quarter while maintaining a stable net leverage ratio of 1.9x. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is introducing new innovations like carrying cases for students and high-volume multipacks for first responders to maintain brand preference. Acknowledged that while NARCAN remains the 'gold standard,' the company is proactively modeling for additional price erosion due to generic-style competition. The consolidation under one 'chief of growth' is intended to ensure faster decision-making and better return on investment for shareholders. Clarified that the company is not exiting R&D but is focusing resources on assets with the highest potential for sustainable growth and mission alignment. Confirmed the collection of $145 million in cash through July from the June 30 accounts receivable balance, significantly boosting early Q3 liquidity. Clarified that these collections were standard working capital movements and not the result of a securitization or financing facility.

Second Quarter 2026 Total Revenues of $234.3 million, an improvement of 66% versus prior year Second Quarter 2026 Net Loss of $180.2 million worsening 1,402% versus prior year, largely due to a $191.3 million non-cash impairment charge Second Quarter 2026 Adjusted Net Income of $30.9 million improved 134% versus prior year Second Quarter 2026 Gross Margin % of 50% and Adjusted Gross Margin % of 58%, an expansion of 1400 bps and 900 bps, respectively, versus prior year Second Quarter 2026 Adjusted EBITDA of $96.5 million and Adjusted EBITDA Margin of 41%, an improvement of 1,800 bps versus prior year Restructuring business operations to align resourcing to current needs; expected to result in annualized savings of approximately $40 million when fully implemented GAITHERSBURG, Md., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the second quarter ended June 30, 2026. “Emergent delivered a strong second quarter, significantly exceeding the high end of our guidance range with revenues of $234 million, primarily driven by accelerated MCM/biodefense contract modifications secured with the U.S. government. This performance reflects the focus, discipline and commitment of our teams, and it reinforces the strength of our mission, our portfolio and the steadiness of our multi-year plan toward transformation," said Joe Papa, CEO of Emergent. "However, alongside of these strong results, we are at a critical juncture in our turnaround and transformation, primarily stemming from our naloxone business. Today we are implementing an organizational restructuring plan and taking proactive steps to strengthen our financial foundation, align the company to the realities of the naloxone business and preserve our ability to invest in the areas that matter most for Emergent’s future. Additionally, we seek to collaborate with AI partners for bioterrorism preparedness.” FINANCIAL HIGHLIGHTS (1) Q2 2026 vs. Q2 2025 Year to Date ("YTD") 2026 vs YTD 2025 RECENT BUSINESS UPDATES Secured contract modification from U.S. government and completed delivery of approximately $52.7 million of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) Executed $64.5 million for BAT® (Botulism Antitoxin Heptavalent (A, B, C, D, E, F, G) – (Equine)) contract modification with U.S. government Secured two new strategic manufacturing partnerships with: Refinanced term loan with new $150 million facility and amended asset-backed loan facility Announced partnership with British Columbia to supply NARCAN® Nasal Spray for the launch of the expanded BC Take Home Naloxone Program Supported National Naloxone Awareness Day to increase awareness of life-saving naloxone 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 multipack configurations to expand opioid overdose preparedness following U.S. FDA approvals on supplemental new drug applications Received Saudi Food and Drug Authority Approval for ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) Received approval from Singapore Health Sciences Authority for expanded indication of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include mpox Announced participation in several international preparedness conferences RESTRUCTURING UPDATES Efforts aim to improve overall cost structure, drive efficiencies and align resourcing to the current needs of the organization; includes reduction of approximately 90 roles Creation of a new Growth organization that integrates the capabilities of R&D, Business Development, Strategy into one function led by Stephanie Duatschek, Senior Vice President, Chief Global Strategy & Franchise Development Officer, who will assume the role of Executive Vice President, Chief Growth Officer, with responsibility for the Company’s strategic growth SECOND 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 Product Sales, net (3) Naloxone For Q2 2026, revenues from Naloxone products decreased $15.1 million, or 22%, as compared with Q2 2025. The decrease was primarily attributable to lower sales of OTC NARCAN®, mostly driven by an unfavorable price-volume mix in the U.S. public interest channels, partially mitigated by increases in Canadian sales of branded NARCAN® and KLOXXADO® sales. Anthrax MCM For Q2 2026, revenues from Anthrax MCM products increased $0.7 million, or 6%, as compared with Q2 2025. The increase was primarily attributable to a more favorable pricing mix driven by international sales of BioThrax®. This increase was partially offset by the absence of international sales of ANTHRASIL® in the current period, compared to international sales in the prior-year period. 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 Q2 2026, revenues from Smallpox MCM products increased $61.0 million, or 150%, as compared with Q2 2025. The increase was primarily attributable to higher USG sales of ACAM2000® due to timing, higher CNJ-016® (VIGIV) sales with a more favorable price and volume mix of U.S. and international sales and higher TEMBEXA® international 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 Q2 2026, revenues from Other Product sales increased $47.9 million as compared with Q2 2025. The increase was primarily due to higher USG and international BAT® sales due to timing. All Other Revenues Services For Q2 2026, revenues from Services increased $2.0 million, or 45%, as compared with Q2 2025. The increase was primarily attributable to production activity at the Company’s Winnipeg facility. Contracts and Grants For Q2 2026, revenues from contracts and grants decreased $3.1 million, or 29%, as compared with Q2 2025. The decrease was primarily due to lower Ebanga® related development work, reflecting timing and nature of work performed. Operating Expenses Cost of Product and Services Sales, Net For Q2 2026, cost of product and services sales, net increased $30.2 million, or 45%, as compared with Q2 2025. The increase was driven by higher cost of MCM Product sales of $27.0 million and cost of Services of $3.3 million, partially offset by a decrease in cost of Commercial Product sales of $0.1 million. Research and Development Expenses For Q2 2026, R&D expenses decreased $3.3 million, or 26%, as compared with Q2 2025. The decrease was primarily due to lower project spend on Ebanga® related development work. Selling, General and Administrative Expenses For Q2 2026, SG&A expenses increased $0.9 million, or 2%, as compared with Q2 2025. The increase was primarily due to lower insurance reimbursement benefits recognized in the current year period compared with the prior year period, partially offset by lower compensation, marketing and administrative support expenses. Impairment of Long-Lived Assets For Q2 2026, impairment of long-lived assets was $191.3 million. This was the result of a non-cash impairment charge in the second quarter of 2026 related to our NARCAN® asset group within the Commercial reporting unit. ADDITIONAL FINANCIAL INFORMATION(1) Capital Expenditures For Q2 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. SECOND QUARTER 2026 REPORTABLE SEGMENT RESULTS Cost of Commercial Products sales decreased $0.1 million to $36.3 million for the quarter ended June 30, 2026. Despite decreases in U.S. sales volumes of OTC NARCAN® compared with the prior year period, cost of sales remained substantially flat due to increased costs and volumes associated with KLOXXADO® sales and Canadian sales of branded NARCAN®. Commercial Products gross margin decreased $15.0 million, or 69%, to $6.7 million for the quarter ended June 30, 2026. Commercial Products gross margin percentage decreased 19 percentage points to 13% for the quarter ended June 30, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCAN® across most U.S. sales channels, partially offset by lower product costs related to Canadian sales. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.4 million and the portion of stock-based compensation expense recorded as cost of sales of $0.1 million. Cost of MCM product sales increased $27.0 million, or 105%, to $52.8 million for the quarter ended June 30, 2026. The increase was primarily attributable to higher product sales volumes for BAT®, ACAM2000®, CNJ-016® (VIGIV), BioThrax®, and TEMBEXA®, as well as a significant non-recurring manufacturing cost related to the production of CYFENDUS®. These increases were partially offset by a decrease in cost of sales for ANTHRASIL® driven by lower sales volumes. MCM Products gross margin increased $81.6 million to $107.4 million for the quarter ended June 30, 2026. MCM Product gross margin percentage increased 20 percentage points to 64% for the quarter ended June 30, 2026. The increase in gross margin percentage was primarily driven by a more favorable sales mix and increased sales volumes, which improved absorption of fixed manufacturing costs. These improvements were partially offset by a significant non-recurring manufacturing cost related to the production of CYFENDUS®. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $7.8 million, the portion of stock-based compensation expense recorded as cost of sales of $0.7 million and inventory step-up provision of $0.2 million. YTD 2026 REPORTABLE SEGMENT RESULTS Cost of Commercial Product sales increased $2.2 million, or 4%, to $63.1 million for the six months ended June 30, 2026. The increase was primarily due higher KLOXXADO® sales and Canadian sales of branded NARCAN®, largely offset by lower sales volumes of OTC NARCAN® in the U.S. Commercial Products gross margin decreased $19.7 million, or 60%, to $13.3 million for the six months ended June 30, 2026. Commercial Products gross margin percentage decreased 15 percentage points to 14% for the six months ended June 30, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCAN® across all U.S. sales channels and product mix due to the introduction of KLOXXADO®, partially offset by lower product costs related to the Canadian sales. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $18.9 million and the portion of stock-based compensation expense recorded as cost of sales of $0.1 million. Cost of MCM product sales increased $13.6 million, or 18%, to $89.6 million for the six months ended June 30, 2026. The increase was primarily due to higher cost of sales of BAT®, CNJ-016® (VIGIV) and BioThrax®, reflecting increased sales volumes as well as increased non-recurring manufacturing costs related to production of CYFENDUS®. These increases were partially offset by lower cost of sales for ANTHRASIL® and TEMBEXA® due to lower unit sales volume. MCM Product gross margin increased $40.0 million, or 32%, to $165.4 million for the six months ended June 30, 2026. MCM Product gross margin percentage increased 3 percentage points to 61% for the six months ended June 30, 2026. The increase in gross margin percentage was primarily due to a favorable sales volume and product mix which was weighted more heavily towards higher margin products, the margin improvements were partially offset by non-recurring manufacturing costs mentioned above. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $14.8 million, the portion of stock-based compensation expense recorded as cost of sales of $1.2 million and inventory step-up provision of $0.3 million. 2026 FINANCIAL FORECAST The Company provides the following updated financial forecast for full year 2026, reflecting management's expectations based on the most current information available. Q2 2026 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 Company-wide non-GAAP financial measures to the most closely related GAAP financial measures. Reconciliations of segment non-GAAP financial measures are included within the reportable segment tables. In the first quarter of 2026 we revised our calculations of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. The updated ranges for our 2026 forecast reflect this adjustment. (3) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with GAAP. CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION Company management will host a conference call at 5:00 pm eastern time today, August 5, 2026, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company's website or through the following: By phoneAdvanced registration is required.Visit https://register-conf.media-server.com/register/BI77a0454e68eb4a728e6c2ddddee54766 to register and receive an email with the dial-in number, passcode and registrant ID. By webcastVisit https://edge.media-server.com/mmc/p/fjwb9v5g/ 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 (loss) and net income (loss) per diluted share, respectively, excluding the impact of non-cash amortization charges, impairments, severance and restructuring costs (benefits), inventory step-up provision, acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, changes in fair value of financial instruments, stock-based compensation expense, loss on debt extinguishment, other, net, and tax effects. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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 income (loss) before depreciation and amortization, income taxes, total interest expense, net, impairments, inventory step-up provision, changes in fair value of financial instruments, severance and restructuring costs (benefits), acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, stock-based compensation expense, loss on debt extinguishment, and other, net. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA divided by Total Revenues. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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 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, stock-based compensation expense, severance and restructuring costs (benefits) 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. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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, severance and restructuring costs (benefits), stock-based compensation expense 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. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to segment operating performance. 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, as amended. 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, acquisitions 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,” “can,” “continue,” “could,” “estimate,” “expect,” “confident,” “commit,” “forecast,” “future,” “outlook,” “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 countermeasures (“MCM”) products, including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA) Adjuvanted), previously known as AV7909, ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live), CNJ-016® (Vaccinia Immune Globulin Intravenous (Human) (VIGIV)), BAT® (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)), BioThrax® (Anthrax Vaccine Adsorbed) Ebanga® (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, over-the-counter NARCAN® Nasal Spray and KLOXXADO® 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 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 our litigation settlement agreements, and the potential impact of such agreements, including the funds to resolve related litigation, on our business; our ability to comply with the operating and financial covenants required by (i) our term loan facility under the Credit Agreement, dated April 16, 2026, by and among the Company, the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities V, LP, 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 and debt repurchase programs; 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; 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 attract and retain qualified personnel; our ability to adequately secure and protect our intellectual property rights; 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 materially from our expectations in any forward-looking statement. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. 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 KLOXXADO®, which is a registered trademark of Hikma Pharmaceuticals USA Inc.

Q1 results beat guidance: Revenue was $156 million, adjusted EBITDA was $36 million with a 23% margin, adjusted gross margin 52%, and operating expenses fell by about $10 million year over year while R&D spending declined roughly one-third. Commercial and MCM momentum: Medical countermeasures comprised 37% international MCM revenue and the quarter included wins such as a $140 million Canada agreement, a $54 million VIGIV award and a ~$21.5 million BioThrax DoD order, while the NARCAN franchise expanded with FDA‑approved carrying case and multi‑pack launches supporting continued leadership. Balance sheet actions and guidance: Net debt fell ~$122 million (to a 2.4x leverage), liquidity was $260 million, the company refinanced to lower interest costs and extend maturities to 2031, maintained 2026 revenue guidance of $720–760 million and updated full‑year adjusted EBITDA to $155–175 million after changing the EBITDA definition; a $50.4 million contingent payment tied to Ebanga is expected as a Q2 cash outflow. Interested in Emergent Biosolutions Inc.? Here are five stocks we like better. 3 Small-Cap Stocks to Watch After the Fed’s Rate Cuts Emergent Biosolutions (NYSE:EBS) reported first-quarter 2026 results that management said exceeded the high end of the company’s revenue guidance range, while continuing to emphasize progress on a multi-year transformation plan and balance sheet actions completed in April. Joe Papa, president and CEO, said the company’s “first quarter results are evident in both our top and bottom line performance,” citing revenue of $156 million that “exceeded the high end of our guidance range.” → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Big Rallies Brewing? 3 Analyst Favorites to Watch Closely Rich Lindahl, EVP and CFO, said total revenue of $156 million came in above the prior Q1 guidance range of $135 million to $155 million. Lindahl noted that year-over-year comparisons were influenced by a large international order in the year-ago quarter that the company does not expect to repeat in 2026. He said that 2025’s first-quarter results included “approximately $60 million of revenue and $50 million of Adjusted EBITDA” from that order. Lindahl reported adjusted EBITDA of $36 million and an adjusted EBITDA margin of 23% for the quarter. He also cited an adjusted gross margin of 52% and said operating expenses were $57 million, down $10 million year over year. He added that R&D spending declined “by about a third compared to the first quarter of 2025.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Watch These 4 Overbought Stocks As Market Rotation Continues Papa described Emergent’s portfolio as spanning medical countermeasures for threats including anthrax, smallpox, mpox, Ebola, botulism, and complications from smallpox vaccination, alongside its branded naloxone franchise, NARCAN Nasal Spray. On the medical countermeasures (MCM) business, Papa said performance in the quarter reflected “increased global demand and strategic diversification in our international markets,” adding that international markets represented 37% of total MCM revenue during the quarter. He also said the company “received four contracted product orders in the quarter.” → Is Oracle Undervalued as Cloud Growth Accelerates? Papa highlighted several agreements and orders announced during the quarter, including: A $140 million multi-product agreement with the government of Canada, which he described as a long-standing partner A $54 million VIGIV award with ASPR An approximately $21.5 million delivery order to supply BioThrax to the U.S. Department of Defense In response to a question on MCM margins, Papa said Emergent has a “most favored nation pricing type of arrangement” with the U.S. government, which he said means pricing outside the U.S. will be “slightly higher” depending on the product. Lindahl added that investors “should assume that the international sales are above the average for the MCM segment in total,” pointing to higher international prices as a driver of higher margins. On naloxone, Papa said the company continues to “maintain the share of leadership” and highlighted new product offerings: a NARCAN Nasal Spray carrying case and a multi-pack configuration, which he said were “already performing very well in the first month of launch.” Papa also said the U.S. FDA approved the carrying case and multi-pack options. He pointed to continued public funding and settlement-related spending as supportive to naloxone demand, referencing opioid settlement funds of “over $50 billion” and saying the Purdue settlement “released over $5 billion” for states. Papa also said, “Since 2016, Emergent has delivered more than 100 million doses of NARCAN Nasal Spray” across the U.S. and Canada. Management emphasized cash flow and balance sheet initiatives. Papa said net working capital improved by “over $100 million since Q1 2025,” and that the company improved its cash balance by $11 million year over year to $160 million, with total liquidity of $260 million. Lindahl said the company reduced net debt by $122 million, or approximately 22% versus the first quarter of 2025, and reported a net leverage ratio of 2.4x adjusted EBITDA at Q1 2026 versus 2.7x in the year-ago quarter. In April, Emergent refinanced its prior term loan. Papa said the transaction secured “a more favorable interest rate,” amended the revolver to $50 million, and established a new $75 million delayed draw term loan facility. Lindahl said the refinancing “lower[s] interest costs,” “extend[s] maturities,” and improves covenant terms, and he stated the term loan refinancing extended maturities out to 2031. On shareholder returns, Papa said Emergent bought back $9 million in shares in the first quarter and has repurchased approximately $34 million since launching the program in 2025. Lindahl said the company has a $50 million share repurchase program through March 31, 2027, and that $46.5 million remained available as of the end of the first quarter. Papa said the company is expanding its Canton manufacturing site in Massachusetts and described a strategic partnership with Substipharm Biologics that will allow Emergent to restart manufacturing at the facility to support the Japanese encephalitis vaccine. He said Emergent entered into a U.S. distribution agreement with Substipharm to support a U.S. government opportunity following U.S. FDA approval, and characterized the approach as moving beyond a fee-for-service CDMO model toward one that allows Emergent to “share in the product’s potential success.” Papa also highlighted a second strategic manufacturing partnership with SAB Biotherapeutics, saying the work will be led by Emergent’s Winnipeg team to advance SAB’s type 1 diabetes autoimmune candidate. In response to an analyst question, Papa said the SAB relationship was “more of a technology than it was a therapeutic area approach,” describing it as an alignment between Emergent’s Winnipeg capabilities and SAB’s needs. Addressing the company’s manufacturing footprint, Papa said Emergent has “streamlined our footprint,” while also describing the ability to ramp up the Canton facility as a way to bring “additional drug substance capabilities for very difficult products,” including the ability to work with “live virus or Category B live viruses.” On the pipeline and growth drivers, Papa outlined four levers: internal R&D investments in TEMBEXA, Ebanga, and raxibacumab; NARCAN line extensions; international MCM growth; and business development efforts, including projects “such as KLOXXADO,” alongside the Japanese encephalitis vaccine opportunity. He also said that ACAM2000 received Singapore Health Sciences Authority expanded approval to include mpox. Lindahl said the company is maintaining its full-year 2026 total revenue guidance of $720 million to $760 million. He said commercial revenues are expected to be “flat to slightly up” and that Emergent expects NARCAN to maintain its leading market share, while MCM revenues are expected to be “flat to slightly down,” with a significant contribution from international sales. Emergent expects adjusted gross margin of 45% to 47%. Lindahl said the company is updating adjusted EBITDA guidance to account for adding back non-cash stock compensation beginning in 2026, which he said aligns with peers and with covenant calculations under the new debt agreement. Full-year adjusted EBITDA is now expected to be $155 million to $175 million. For the second quarter, the company expects total revenue of $170 million to $185 million. Lindahl also noted a balance-sheet item tied to the Ebanga program. He said the company previously disclosed $50.4 million of contingent consideration that could be owed to Ridgeback Bio in the second quarter assuming continued progress under a BARDA contract, and that the company now expects those conditions will be met and has recorded the amount as an accrued acquisition obligation under current liabilities. In the Q&A, Lindahl confirmed it will be “a cash outflow in the second quarter.” Emergent BioSolutions is a global specialty biopharmaceutical company focused on developing, manufacturing and commercializing medical countermeasures and specialty products that address public health threats. The company's portfolio includes vaccines, antibody therapies and critical care products designed to protect against biological, chemical and emerging infectious disease threats. Emergent has longstanding partnerships with government agencies, including the U.S. Department of Defense and the Biomedical Advanced Research and Development Authority (BARDA), to support national preparedness programs. Key commercial products in Emergent's lineup include BioThrax (anthrax vaccine adsorbed), ACAM2000 (smallpox vaccine) and Vaxchora (cholera vaccine), alongside therapeutic treatments such as Anthrasil (anthrax immune globulin) and the naloxone-based nasal spray Narcan for opioid overdose reversal. The article "Emergent Biosolutions Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Emergent BioSolutions Inc (NYSE:EBS) reported first-quarter revenue of $156 million, exceeding the high end of their guidance range. The company has successfully reduced its net debt levels by approximately 22% in 2025, with plans for further improvement. Emergent BioSolutions Inc (NYSE:EBS) has a strong cash position, enabling the repayment of $110 million in debt last year. The company has secured a more favorable interest rate through refinancing and established a new delayed draw term loan facility for $75 million. International MCM revenue now represents 37% of total MCM revenues, indicating strong demand and diversification beyond the U.S. Government. The company does not expect to repeat a large international order from 2025, which contributed significantly to revenue and EBITDA. Adjusted gross margin is expected to be between 45% and 47%, reflecting product mix and expected pricing dynamics. Emergent BioSolutions Inc (NYSE:EBS) faces challenges in maintaining competitive pricing for Narcan while holding onto market share. There is a significant focus on debt management and refinancing, indicating ongoing financial restructuring needs. The geopolitical situation and potential bioterrorism threats pose risks that require continuous collaboration with governments, which may impact operational focus and resources. Warning! GuruFocus has detected 7 Warning Signs with EBS. Is EBS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide a longer-term perspective on the Naloxone franchise, considering the business is expected to be flat to slightly up for 2026? A: Joe Popham, CEO: We are excited about launching new innovations with Narcan, such as the carrying case and multi-pack configurations, which are expected to perform well, especially in college campuses. We see significant upside internationally, particularly in Canada. The market is expected to grow due to ongoing opioid overdoses, federal government support, and class action settlements from large pharma companies. We aim to maintain our leading market position and stay competitive on pricing. Q: How should we think about the margin on international MCM sales compared to the U.S. legacy MCM business? A: Joe Popham, CEO: We offer a most favored nation pricing arrangement to the U.S. Government, meaning our international prices are slightly higher, which helps improve gross margins. Rich Lindahl, CFO, added that international sales generally have higher margins than the average for the MCM segment. Q: Regarding the partnership with SAB, is this an indication of interest in the type 1 diabetes space, or is it more of a contractual business arrangement? A: Joe Popham, CEO: The partnership with SAB is more about aligning our technology capabilities in Winnipeg with their needs, rather than a strategic shift into the diabetes space. It's a technology-driven collaboration rather than a focus on a specific therapeutic area. Q: How do you see the evolving geopolitical situation affecting international demand for MCM products? A: Joe Popham, CEO: The world is increasingly dangerous, with bioterrorism posing a significant risk. We believe it's crucial to work with governments globally to prepare for such threats. Bioterrorism can be more devastating and harder to stop than nuclear threats, making preparedness essential. Q: Can you comment on the scope and footprint of Emergent's manufacturing operations and whether they are optimally sized for future needs? A: Joe Popham, CEO: We have streamlined our footprint but retained the ability to source all existing products. We are expanding our Canton facility to enhance drug substance capabilities, particularly for live viruses, which is important for both current and future development needs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management characterizes 2026 as the 'pivotal year' of transformation, moving from stabilization and rightsizing to active investment in high-growth opportunities. Performance in Q1 was driven by strong Medical Countermeasures (MCM) demand and strategic diversification, with international markets now comprising 37% of total MCM revenue. The company is shifting its manufacturing strategy from a fee-for-service CDMO model to strategic partnerships that allow for shared success in product potential. Operational efficiency efforts resulted in a net working capital improvement of over $100 million since Q1 2025, supporting a leaner, customer-centric business model. Management attributes the NARCAN franchise's stability to its trusted brand leadership and a competitive pricing strategy that maintains market share despite new entrants. The restart of the Canton facility represents a strategic move to secure U.S.-based drug substance capabilities for live viruses, addressing a critical gap in national biodefense infrastructure. Full-year 2026 guidance assumes commercial revenues will remain flat to slightly up, with volume growth expected to offset anticipated price adjustments in the naloxone market. Management expects Q2 and Q3 NARCAN sales to benefit from seasonality, specifically noting that 70% of U.S. states have fiscal year-ends in Q2 which typically drives procurement. Strategic growth is predicated on four levers: internal R&D for core assets (TEMBEXA, Ebanga, Raxibacumab), NARCAN line extensions, international MCM expansion, and accretive business development. The company anticipates utilizing its $46.5 million remaining share repurchase capacity through March 2027, viewing current valuation levels as an attractive opportunity for value creation. Guidance for adjusted EBITDA has been updated to $155 million to $175 million to include the add-back of non-cash stock compensation, aligning with peer reporting and debt covenants. A $50.4 million contingent consideration payment to Ridgeback Bio is expected to be a cash outflow in Q2 2026, following progress under the BARDA contract for Ebanga. The April 2026 debt refinancing extended maturities to 2031 and lowered interest costs, providing the balance sheet flexibility required for inorganic growth pursuits. Management highlighted the impact of a non-recurring $60 million international order from Q1 2025, which creates a difficult year-over-year comparison for current results. The company flagged the $50 billion in national opioid settlement funds as a significant tailwind for future naloxone demand at the state and local municipality levels. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management expects the market to continue growing due to high overdose rates and sustained federal funding through SOR and substance use block grants. The strategy focuses on holding market leadership through volume growth and new line extensions (carrying cases/multipacks) while remaining 'competitively priced' to defend share. International MCM sales carry higher margins than U.S. sales because the company provides 'most favored nation' (lowest) pricing to the U.S. government by agreement. The shift toward a higher percentage of international revenue (37% in Q1) is a key driver for overall gross margin improvement. The SAB Biotherapeutics partnership is a technology-driven alignment leveraging the Winnipeg team's specific capabilities rather than a strategic shift into diabetes. The Substipharm agreement for Japanese encephalitis vaccine allows Emergent to share in the product's success while utilizing the Canton facility's unique live virus capabilities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

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 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 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 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 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 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. Cost of MCM product sales decreased $13.4 million, or 27%, to $36.8 million for the quarter ended March 31, 2026. The decrease was primarily due to lower cost of sales for ANTHRASIL®, ACAM2000®, CYFENDUS® and TEMBEXA® reflecting reduced sales volumes and the absence of significant prior-year non-recurring manufacturing related costs, including shutdown and severance expenses. These decreases were partially offset by an increase in cost of sales for CNJ-016® (VIGIV), BAT® and BioThrax® driven by greater sales volumes and increased overhead costs at the Winnipeg facility. MCM Product gross margin decreased $41.7 million, or 42%, to $57.9 million for the quarter ended March 31, 2026. MCM Product gross margin percentage decreased 7 percentage points to 57% for the quarter ended March 31, 2026. The decrease in gross margin percentage was primarily due to an unfavorable sales mix weighted more heavily toward lower margin products as well as product absorption-related variances. These impacts were partially offset by a decrease in shutdown and severance related costs compared with the prior year. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $7.1 million, the portion of stock-based compensation expense recorded as cost of sales of $0.5 million, and inventory step-up provision of $0.1 million. 2026 FINANCIAL FORECAST The Company provides the following updated financial forecast for full year 2026, reflecting management's expectations based on the most current information available. Q2 2026 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 Company-wide non-GAAP financial measures to the most closely related GAAP financial measures. Reconciliations of segment non-GAAP financial measures are included within the reportable segment tables. In the first quarter of 2026 we revised our calculations of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. The updated ranges for our 2026 forecast reflect this adjustment. (3) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with GAAP. CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION Company management will host a conference call at 5:00 pm eastern time today, April 30, 2026, 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-conf.media-server.com/register/BI0e62cf901eb14511aa46f6bcbd70e7fc 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/qw3ajghx/ 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 non-cash amortization charges, severance and restructuring costs (benefits), inventory step-up provision, acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, changes in fair value of financial instruments, stock-based compensation expense, other income, net and tax effects. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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 income before depreciation and amortization, income taxes, total interest expense, net, inventory step-up provision, changes in fair value of financial instruments, severance and restructuring costs (benefits), acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, stock-based compensation expense and other income, net items. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA divided by Total Revenues. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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 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, stock-based compensation expense, severance and restructuring costs (benefits) 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. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. 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 (benefits), stock-based compensation expense 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. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to segment operating performance. 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, as amended. 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, acquisitions 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,” “can,” “continue,” “could,” “estimate,” “expect,” “confident,” “commit,” “forecast,” “future,” “outlook,” “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 countermeasures (“MCM”) products, including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA) Adjuvanted), previously known as AV7909, ACAM2000® (Smallpox (Vaccinia) Vaccine, Live), CNJ-016® (Vaccinia Immune Globulin Intravenous (Human) (VIGIV)), BAT® (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)), BioThrax® (Anthrax Vaccine Adsorbed) Ebanga™ (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, over-the-counter NARCAN® Nasal Spray and KLOXXADO® 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 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 our litigation settlement agreements, and the potential impact of such agreements, including the funds to resolve related litigation, on our business; our ability to comply with the operating and financial covenants required by (i) our term loan facility under the Credit Agreement, dated April 16, 2026, by and among the Company, the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities V, LP, 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 and debt repurchase programs; 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; 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 attract and retain qualified personnel; our ability to adequately secure and protect our intellectual property rights; 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 materially from our expectations in any forward-looking statement. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. 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 KLOXXADO®, which is a registered trademark of Hikma Pharmaceuticals USA Inc.