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Jun 30, 2024

Emergent BioSolutions Q2 2024 Earnings Report

Emergent BioSolutions reported second quarter 2024 financial results, with revenue exceeding prior guidance and progress made in stabilizing the financial position.

Key Takeaways

Emergent BioSolutions reported Q2 2024 total revenues of $254.7 million, exceeding prior guidance. The company experienced a net loss of $283.1 million and an adjusted EBITDA of $(10.1) million. They are updating their FY 2024 guidance and expect to exceed $200 million in debt reduction by the end of the year.

Total revenues for Q2 2024 were $254.7 million, surpassing previous guidance.

The company secured $250 million in U.S. government contract award modifications for medical countermeasures.

A definitive agreement was announced to sell the Baltimore-Camden manufacturing site for $30 million, expected to close in Q3 2024.

The company received $50 million in Q3 related to the resolution of a contract dispute with Janssen Pharmaceuticals, Inc.

Total Revenue
$255M
Previous year: $338M
-24.6%
EPS
-$2.32
Previous year: -$1.06
+118.9%
Adjusted EBITDA
-$10.1M
Previous year: $55.9M
-118.1%
Gross Profit
-$57.6M
Previous year: $147
-39157136.0%
Cash and Equivalents
$71M
Previous year: $88.6M
-19.9%
Free Cash Flow
$42.9M
Previous year: -$127M
-133.8%
Total Assets
$1.51B
Previous year: $2.18B
-30.5%

Emergent BioSolutions

Emergent BioSolutions

Forward Guidance

Emergent BioSolutions provided updated financial forecasts for full year 2024 and initial forecasts for Q3 2024.

Positive Outlook

  • Total revenues are projected to be between $1,050 million and $1,125 million.
  • Adjusted EBITDA is expected to be in the range of $140 million to $180 million.
  • Total segment adjusted gross margin is forecasted to be between 42% and 45%.
  • Commercial Products revenue is estimated to be $450 million to $480 million.
  • MCM Products revenue is projected to be $455 million to $490 million.

Challenges Ahead

  • Net loss is projected to be between $(314) million and $(274) million.
  • Adjusted net loss is expected to be in the range of $(115) million to $(75) million.
  • Services revenue is forecasted to be $120 million to $130 million, which includes $50 million related to the Settlement Agreement with Janssen.
  • Interest expense is estimated to be approximately $82 million.
  • Capital expenditures are projected to be approximately $30 million.