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Dec 31, 2024

Emergent BioSolutions Q4 2024 Earnings Report

Emergent BioSolutions reported a decline in revenue and net loss for Q4 2024 compared to the prior year, with a significant drop in product sales, particularly for NARCAN and Anthrax MCM.

Key Takeaways

Emergent BioSolutions reported Q4 2024 revenue of $194.7 million, down 30% year-over-year. The company recorded a net loss of $31.3 million, reflecting a 37% improvement from the prior year. Adjusted EPS was $0.05, a significant rebound from the previous year's loss. Product sales, particularly for NARCAN and Anthrax MCM, declined, while Smallpox MCM saw strong growth.

Total revenue declined 30% YoY to $194.7 million.

Net loss improved by 37% YoY to $31.3 million.

Adjusted EPS turned positive at $0.05 versus a $0.77 loss in Q4 2023.

Smallpox MCM revenue surged 565%, offsetting declines in other product segments.

Total Revenue
$195M
Previous year: $277M
-29.6%
EPS
$0.05
Previous year: -$0.77
-106.5%
Adjusted EBITDA
$21M
Previous year: $3.4M
+517.6%
Cash and Equivalents
$99.5M
Previous year: $112M
-10.9%
Total Assets
$1.39B
Previous year: $1.82B
-23.8%

Emergent BioSolutions

Emergent BioSolutions

Forward Guidance

Emergent BioSolutions expects a turnaround in profitability in 2025, with projected net income of $16M to $66M and Adjusted EBITDA in the range of $150M to $200M. The company aims to enhance gross margins and improve operational efficiency.

Positive Outlook

  • Forecasting net income between $16M and $66M for FY 2025.
  • Expected improvement in gross margins to 48%-51%.
  • Anticipated Adjusted EBITDA in the range of $150M to $200M.
  • Reduced reliance on high-cost manufacturing, optimizing operations.
  • Strong product pipeline and government contracts to drive revenue.

Challenges Ahead

  • Total revenue expected to decline to $750M-$850M, down from $1.04B in 2024.
  • MCM Products segment revenue projected to decline from $509.8M to $435M-$485M.
  • Commercial Products revenue expected to drop to $265M-$315M from $398.9M.
  • Potential headwinds from generic competition for NARCAN.
  • Higher SG&A expenses anticipated as a percentage of revenue.