Emergent BioSolutions Inc. reported fourth‑quarter and full‑year 2025 results that showed a sharp decline in revenue and earnings per share, but also highlighted significant improvements in profitability metrics. Total revenue fell 24% to $148.7 million in Q4, and full‑year revenue dropped 28% to $742.9 million from $1.04 billion in 2024. The company posted an adjusted EBITDA of $205 million for the year, up from $140 million in 2024, and a full‑year adjusted gross margin of 54%, a rise from 45% the previous year. However, the company reported a Q4 EPS loss of $0.43, missing analyst expectations of $0.11.
Segment performance underscored the mixed picture. Naloxone sales declined 41% to $30.5 million, a result of intensified generic competition that eroded pricing power. In contrast, Anthrax MCM revenue surged 64% to $12.3 million, reflecting strong demand from government contracts and international orders. Smallpox MCM revenue fell 54% to $4.8 million, a decline tied to the timing of government procurement cycles.
The revenue decline is driven largely by the loss of the large Naloxone order and a slower pace of new MCM contracts in the fourth quarter. While the company’s MCM mix improved, the overall revenue contraction highlights the vulnerability of its legacy product lines to competitive and contractual headwinds.
Looking ahead, Emergent guided 2026 revenue to a range of $720 million to $760 million and adjusted EBITDA to $135 million to $155 million, both figures below analyst consensus. The guidance reflects management’s caution about the non‑repeat of a significant international order that contributed to last year’s revenue. The company emphasized a focus on cost discipline and strategic acquisitions to support future growth.
Market reaction was negative, driven by the revenue miss, the sharp decline in the Naloxone segment, and the conservative 2026 outlook. Investors weighed the company’s improved margins against the revenue shortfall and the uncertainty surrounding future MCM demand.
"Emergent's 2025 results demonstrate significant progress executing our multi‑year turnaround strategy, delivering improved operating margins, strong adjusted EBITDA of $205 million, increased cash flow and lower leverage," said President and CEO Joe Papa. "We will invest in revenue growth drivers across both the MCM and the naloxone segments by advancing our internal pipeline and pursuing targeted bolt‑on acquisitions and external opportunities that leverage our infrastructure and scale."
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