Emergent BioSolutions Inc. Q1 FY2026 earnings call

• Joe Papa discussed the company's leadership in public health preparedness, business performance, and key highlights. • Rich Lindahl reviewed Q1 2026 financial results, updated full year 2026 guidance. • Since 2024, the company has stabilized and right-sized, investing in high-growth opportunities. • In Q1 2026, reported first order revenue of $156 million, exceeded guidance range. • Network capital improved by over $100 million since Q1 2025. • Refinanced prior term loan, amended revolver, established new delayed draw term loan facility. • Continued share repurchase program, buying back $9 million in shares in Q1. • MCM business had increased global demand and 37% of revenue from international market. • Naloxone business had new product launches and maintained market leadership. • Expanded Canton manufacturing site in Massachusetts with strategic partnerships.

MCM performed well with increased global demand and international market representing 37% of total MCM revenue. Naloxone business maintained shared leadership, with new product offerings like the Narchia Navel Spray Carrying Case and multi-pack configuration performing well. Total revenue for Q1 2026 was $156 million, Adjusted EBITDA was $136 million with a 23% margin. Net debt reduced by approximately 22% in 2025, cash balance improved by $11 million to $160 million, total liquidity increased to $260 million.

• Maintaining full-year total revenue guidance of $720 million to $760 million. • Commercial revenues expected to be flat to slightly up. • NCM revenues consistent with prior guidance, flat to slightly down with significant international sales contribution. • Adjusted gross margin expected to be between 45% and 47%. • Updating adjusted EBITDA guidance to $155 to $175 million due to adding back non-cash stock compensation. • Expecting second quarter total revenue to be between $170 billion and $185 billion.

• Forward-looking statements are based on current intentions, beliefs, and expectations, and Emergent does not undertake to update them. • Investors should consider risk factors identified in periodic reports filed with the SEC when evaluating forward-looking statements. • The company needs to consider market dynamics, competition, and potential changes in government contracts and funding which could impact financial performance.

Q: Question on longer-term perspective on Naloxone franchise.

A: Excited about new innovations, international upside, seasonality, market growth due to opioid overdoses, federal government funding, and class action settlements.

Q: Question on margin of international MCM sales compared to U.S. legacy MCM business.

A: U.S. government has most favored nation pricing, international sales have higher prices and margins.

Q: Question on tie-up with SAB and strategic shift.

A: Alignment of technology capabilities, not a broader therapeutic area shift.

Q: Question on geopolitical situation and international demand for MCM products.

A: Dangerous world with concern for bioterrorism, important to be prepared with U.S. and global governments.

Q: Question on manufacturing footprint.

A: Streamlined footprint, ability to source products, ramping up Canton facility for drug substance capabilities.

Q: Question on international opportunities and backlog.

A: Ongoing discussions on international opportunities, some projects take time, international sales have higher margins.

Q: Question on accrued acquisition obligation.

A: Related to IBANGA program, cash outflow expected in second quarter.