- The company issues FY26 revenue guidance of $720 million-$760 million and Q1 guidance of $135 million-$155 million, both below consensus estimates.
- Naloxone nasal spray revenues fell 41% due to rising competition, while anthrax biodefense product revenues rose 64% on delivery timing.
- The company also announced new Canadian contracts worth up to C$140 million.
Shares of Emergent BioSolutions, Inc. (EBS) fell over 20% in extended trading on Thursday after the company issued weaker-than-expected financial guidance for both the first quarter and full year 2026, overshadowing contract wins and a new stock buyback program.
EBS stock rose 0.8% in Thursday’s regular session.
Weak Outlook Weighs On Sentiment
The biodefense company forecast full-year 2026 revenue in the range of $720 million to $760 million, below analysts’ consensus estimate of $809.4 million. The company also guided for first-quarter revenue of $135 million to $155 million, significantly below consensus expectations of $275 million.
It also projected adjusted net income between $25 million and $45 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $135 million to $155 million.
"Our team remains focused on long-term sustainable value and achieving our vision of enabling several durable and profitable verticals in the Company over time," said CEO Joe Papa.
Earnings Miss Adds Pressure
The cautious outlook came alongside weaker quarterly performance. Emergent reported a fourth-quarter (Q4) loss of $0.43 per share, compared with earnings of $0.05 per share a year earlier. Revenue came in at $148.7 million, missing expectations of $217.5 million.
Naloxone product revenues from its opioid overdose reversal nasal sprays declined 41% due to increased competition. Anthrax medical countermeasure revenues, which include vaccines and treatments used for biodefense preparedness, rose 64%, driven by the timing of delivery. "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," Papa said.
Positive Developments Fail To Offset Concerns
The company also announced new agreements worth up to C$140 million with the Canadian government agencies to supply medical countermeasures for biological threat preparedness. Emergent expects to receive more than C$35 million in orders from these contracts this year.
Separately, the board authorized a new $50 million share repurchase program running through March 2027.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for EBS was ‘extremely bullish’ amid a 285% surge in 24-hour message volume.
One user said, “Pretty sure they 'sand bagged' the guidance, like they always do, and that order either will repeat, or we'll get it from Canada which can be threatned to lose the Winnipeg site, and move it to the US.”
Another user said, “Up 50 cents/ since the over reaction earlier...We were undervalued going into earnings and the future is still promising”
EBS stock has declined 10% year-to-date.
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