Emergent Biosolutions (NYSE:EBS) reported fourth-quarter and full-year 2025 results on a Feb. 26, 2026 earnings call, with management highlighting progress on its multi-year transformation plan, improved profitability and cash generation, and a 2026 outlook that reflects the absence of a major one-time international order that benefited 2025.
Management highlights transformation progress and capital actions
Chief Executive Officer Joe Papa said the company has made “substantial progress” executing on its transformation plan over the past few years, citing operating results, strategic divestitures, margin improvements, and deleveraging through debt repayment. He also noted that in 2025 the company returned capital to shareholders through share repurchases and resolved a “legacy historical matter” with the New York Attorney General’s office.
Fourth-quarter performance: revenue headwinds tied to public interest demand
Executive Vice President and CFO Rich Lindahl said fourth-quarter performance was “generally as expected,” though he pointed to impacts on public interest customers that contributed to lower-than-anticipated commercial segment revenues. Total fourth-quarter revenue was $149 million. Lindahl said MCM results tracked to guidance, while NARCAN performance was “temporarily impacted by softer demand amid the prolonged government shutdown and near-term market uncertainty,” which he characterized as transient.
For the quarter, adjusted EBITDA was $11 million (an 8% margin), which Lindahl said landed at the high end of guidance. Adjusted gross margin improved 300 basis points year over year to 43%, driven by product mix and operational efficiency. Operating expenses decreased 10% year over year.
Full-year 2025: higher profitability, lower leverage, stronger cash flow
For full-year 2025, management reported total revenue of $743 million. Lindahl emphasized that 2024 included $150 million of settlement and divested revenue, and said that despite the year-over-year revenue decline, profitability improved materially.
Key full-year metrics discussed on the call included:
- Adjusted EBITDA: $205 million, up $22 million or 12% year over year, and at the high end of guidance.
- Gross margin: expanded by 900 basis points versus 2024.
- Operating expenses: reduced by $140 million versus 2024.
- Adjusted net income per share: improved to $1.53 from an adjusted loss of $0.23 in 2024.
- Operating cash flow: rose 190% to $171 million.
On the balance sheet, Lindahl said the company ended 2025 with $305 million in total liquidity, including $205 million of cash and $100 million of undrawn revolver capacity, after making a $100 million voluntary prepayment on its term loan. Net leverage improved to 1.9x from 3.3x at the end of 2024, according to management.
Lindahl also detailed debt and shareholder return actions during 2025, including $110 million of gross debt paydown (a combination of the term loan prepayment and repurchase of $10 million principal amount of unsecured bonds). He said total debt ended the year at $590 million and net debt at $384 million. The company also repurchased 3.11 million shares under its buyback program. Management said the board approved a new $50 million repurchase authorization through March 31, 2027, and that the company would remain opportunistic based on market conditions.
Business updates: MCM contract activity, naloxone product expansion
Papa highlighted contract activity and international demand in the MCM segment. He said the company secured biodefense contracts in the U.S. and outside the U.S., and that international sales represented 34% of full-year MCM revenue. He also said international deliveries were made to “over 20 countries.”
In addition, Papa said the company executed a series of new multi-year agreements with the government of Canada valued at CAD 140 million to deliver medical countermeasures.
On naloxone, Papa cited CDC data showing a “meaningful decline” in U.S. opioid overdose deaths from the 2022–2023 peak, while arguing that access to naloxone—particularly NARCAN Nasal Spray 4 mg—remains essential. He said the company is investing in access, awareness, and innovation, including a compact carrying case. Papa also referenced a company consumer survey of more than 500 adults, stating that 74% of consumers preferred a carrying case over standard packaging, rising to 81% among college students.
Papa said the company received FDA approval for two multi-use configurations of NARCAN Nasal Spray, including six-count and 24-count multipacks aimed at partners distributing higher volumes. He also cited a peer-reviewed analysis covering 2023 to March 2025 that found naloxone administration saved more than 6,500 lives and over 200,000 years of life in New York State. Papa added that legislation signed by the New York governor requires certain private employers to stock opioid antagonists.
2026 outlook: revenue range, margin expectations, impact of one-time 2025 order
Lindahl provided initial 2026 guidance with total revenue expected in the range of $720 million to $760 million. MCM revenue is expected to be flat to slightly down, with management citing continued strength in international demand but noting that 2025 benefited from an “exceptionally strong” $60 million international customer order that is not currently assumed to repeat in 2026.
Commercial revenues are expected to be flat to slightly up, with volume offsetting anticipated price adjustments, and management said it expects NARCAN to maintain its leading market share. Adjusted gross margin is expected to be 45% to 47%. Adjusted EBITDA is expected to be $135 million to $155 million; Lindahl noted that the one-time international order contributed $50 million of adjusted EBITDA in 2025.
For earnings, net income is expected to range from a loss of $30 million to a loss of $10 million, while adjusted net income is expected to be $25 million to $45 million. The company also guided to first-quarter revenue of $135 million to $155 million, adding that first-half revenue is expected to represent about 40% of full-year revenue.
The call concluded without analyst questions.
About Emergent Biosolutions (NYSE:EBS)
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.
