Kamada Ltd. (KMDA) Earnings

Management highlights

- Core Strategic Growth Framework * Management confirms the company's four-pillar multi-year growth strategy is delivering strong, consistent results, with all key financial metrics expanding. * Current double-digit growth is driven entirely by organic growth of the existing commercial product portfolio; future M&A transactions are expected to accelerate growth further. * The company prioritizes profitable, cash-generating growth, with disciplined expense management and operational synergies supporting margin expansion. - Commercial Product Updates * New positive clinical data for Cytogum from a presentation at the 2026 ISHLT Annual Meeting supports improved clinical outcomes in high-risk lung transplant recipients, which is expected to drive increased utilization. * Enrollment continues for the SHIELD study, a prospective randomized trial investigating Cytogum's benefit for high-risk kidney transplant recipients; data from this trial is expected to support expanded adoption. * Two additional biosimilars are on track to launch in the Israeli market during Q3 2026, with more biosimilars planned for future launch and new in-licensing agreements in progress. - Plasma Collection and Vertical Integration Updates * The recently announced three-year $50 million plasma supply agreement validates the company's plasma collection investment and vertical integration strategy. * The Houston and San Antonio plasma centers have a total annual capacity of $16 million to $20 million, which is fully allocated to the $50 million three-year supply agreement. * The original Beaumont specialty plasma center is dedicated solely to collecting plasma for the company's own internal production needs, supporting future margin improvements. * In-house approval of rabies antibody neutralizing testing enables faster product release to meet growing demand for Kedrob, eliminating reliance on external third-party labs. - Distribution Expansion * New distribution agreements have been signed for MENA region expansion, with product registration processes underway and ongoing discussions with additional international partners for full end-to-end commercialization services. - Business Development and M&A * Securing complementary M&A and business development opportunities remains a core strategic priority to expand the commercial portfolio and accelerate long-term profitable growth.

Guidance

- Management reaffirms its full-year 2026 guidance, maintaining the prior range of $200 million to $205 million in total annual revenues, and $50 million to $53 million in adjusted EBITDA. - The 2026 guidance midpoints represent 12% revenue growth and 23% adjusted EBITDA growth compared to 2025 full-year results. - First-half 2026 revenues and adjusted EBITDA reached approximately 50% of the 2026 annual guidance midpoint, which is aligned with management's expectations for full-year performance. The $50 million plasma supply agreement revenues have already been included in the 2026 guidance. - Management expects the company will deliver another year of double-digit growth in 2027, with formal 2027 guidance to be released in due course.

Segment performance

Segment-level revenue breakdowns by absolute value and percentage contribution were not explicitly provided in the transcript. Aggregated overall company performance is as follows: For the six months ended June 30 2026, total revenues were $100.2 million (13% YoY growth), adjusted EBITDA was $25.7 million (14% YoY growth, 26% margin), and net income was $13.4 million (18% YoY growth). For Q2 2026, total revenues were $54.9 million (23% YoY growth, a company record), adjusted EBITDA was $14.1 million (29% YoY growth, 26% margin), and net income was $9.3 million (26% YoY growth). Key product segments' performance notes: Kedrob (anti-rabies immunoglobulin, lead product): growing end-user utilization in the U.S. via partner Cadrion, exceeding contractual minimum supply commitments, with growing sales in Canada, Latin America, and Israel. Glacia (second leading franchise): growing sales in ex-U.S. markets including Argentina, Russia, Israel, Switzerland and other Latin American markets, plus royalty income from Takeda's U.S. and Canadian sales. Cytogum: ongoing post-marketing research and a prospective investigational trial (SHIELD study) to support expanded utilization in transplant recipients. Varizig (anti-varicella zoster immunoglobulin) and Hepagam (hepatitis B immunoglobulin): strong growing demand driven by U.S. product awareness activities. Distribution segment: two biosimilars launched in Israel, with two more launching in Q3 2026; ongoing expansion to the MENA region with newly signed distribution agreements; projected biosimilar annual sales of $15 million to $20 million within the next few years. Plasma collection segment: a three-year $50 million supply agreement for normal source plasma has been secured; initial sales are expected to begin in Q4 2026; U.S. Texas-based facilities are ramping up collection capacity.

Risks & headwinds

No specific risks or operational failures were discussed during this earnings call. Management did note that forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from projected outcomes, and directed investors to review the company's SEC filings for identified risk factors.

Analyst Q&A

• Q: Given the strong Q2 and first-half 2026 performance that hit 50% of annual guidance, why did management choose not to raise full-year guidance, and why did gross margin decline despite increasing vertical integration? /

  A: Management noted the current guidance already reflects a strong 12% revenue and 23% EBITDA growth target for 2026, and the company is executing exactly to plan, so they remain comfortable with existing second-half expectations. The quarterly gross margin decline is attributable to normal quarterly shifts in product and market mix, and the company maintains a stable 26% adjusted EBITDA margin while growing net income 18% YoY, indicating a strong overall profitability trajectory.

• Q: Why was in-house approval of the rabies antibody neutralizing test important for the business? /

  A: Previously, all testing was outsourced to an external lab. Bringing this capability in-house enables faster testing turnaround, faster product processing, and faster market release, which is critical to supporting the rapidly growing demand for Kedrob in the U.S. and other markets.

• Q: Is the $50 million three-year plasma supply contract the bulk of output for the two new Texas plasma centers, and is there remaining capacity for additional orders? What is the role of the third center? /

  A: The two new centers have a combined annual revenue capacity of $16 million to $20 million, which matches the annual average requirement of the $50 million three-year contract, so this contract fully utilizes the current general plasma capacity of these centers. The third Beaumont center is a specialty-focused facility that only collects plasma for the company's own internal product manufacturing, which will support future gross margin and profitability improvements.

• Q: How sustainable is the company's current organic growth trajectory, given the consistent performance over recent years? /

  A: Management confirmed the current double-digit organic growth is highly sustainable, supported by a proven business model with six FDA-approved products marketed in over 30 countries, a growing distribution and licensing segment, ongoing MENA expansion, the new plasma supply agreement, and future planned M&A transactions. The company consistently delivers growth across all financial metrics, generates strong operating cash flow, pays dividends, and has the framework to continue delivering profitable growth that creates shareholder value long-term.