Emergent Biosolutions (EBS)
NYSE:EBS
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Emergent Biosolutions
(NYSE:EBS)
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Rating:51Neutral
Price Target:
$8.50
▲(8.28% Upside)
Action:ReiteratedDate:04/01/26
EBS scores in the low-50s primarily due to improving (but still volatile) financial performance—strong 2025 cash flow and a return to profitability are tempered by multi-year revenue decline and elevated leverage. Technicals are a notable drag with price below key moving averages and a negative MACD. Valuation is reasonable at ~12.6x earnings, while the earnings call balances strong operational progress against softer 2026 profitability guidance and non-recurring 2025 benefits.
Positive Factors
Material free cash flow recovery
A clear FCF turnaround from prior years gives Emergent durable funding for operations, debt paydowns and selective reinvestment. Sustained positive cash generation improves financial flexibility, reduces refinancing risk, and supports execution of strategic CDMO and MCM initiatives over the next several quarters.
Negative Factors
Multi-year revenue contraction
Sustained top-line decline erodes operating leverage and increases reliance on cost cuts or one-off gains to sustain margins. If underlying demand or procurement baselines remain lower, the company faces structural growth headwinds that could pressure margins, FCF and its ability to fund strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Material free cash flow recovery
A clear FCF turnaround from prior years gives Emergent durable funding for operations, debt paydowns and selective reinvestment. Sustained positive cash generation improves financial flexibility, reduces refinancing risk, and supports execution of strategic CDMO and MCM initiatives over the next several quarters.
Read all positive factors
Emergent Biosolutions (EBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$406.40M
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)12.6
Beta (1Y)2.95
Revenue Growth-29.91%
EPS GrowthN/A
CountryUS
Employees900
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.43
Shares Outstanding51,770,860
10 Day Avg. Volume716,609
30 Day Avg. Volume1,095,679
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.27
Price to Sales (P/S)0.89
P/FCF Ratio4.22
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit2.28
Enterprise Value/Ebitda3.97
Forecast
1Y Price Target
$12.00Price Target Upside52.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.45
Revenue Forecast (FY)$952.50M
Emergent Biosolutions Business Overview & Revenue Model
Company Description
Emergent BioSolutions Inc., a life sciences company, focuses on the provision of preparedness and response solutions that address accidental, deliberate, and naturally occurring public health threats (PHTs) in the United States. The company's prod...
How the Company Makes Money
EBS generates revenue primarily through (1) product sales and procurement contracts for its medical countermeasure portfolio and (2) contract manufacturing and related services for other biopharmaceutical companies.
1) Product sales and governmen...
Emergent Biosolutions Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call highlighted substantial operational and financial progress — notable margin expansion, strong adjusted EBITDA growth to $205M (+12% YoY), significant deleveraging (net leverage improved to 1.9x), improved liquidity (cash $205M, total liquidity $305M) and international contract momentum (Canada CAD 140M, 34% of MCM revenue international). Management also emphasized product innovation and real-world impact for NARCAN. However, revenue declined versus 2024 (partly due to the absence of prior one-time items), naloxone demand faced temporary softness from a U.S. government shutdown and regional pricing/county effects, U.S. government orders moderated to a new baseline, and 2026 guidance implies lower adjusted EBITDA and an expected GAAP net loss. On balance, the positive operational execution, margin and cash-flow improvements and deleveraging materially outweigh the near-term topline and guidance headwinds.Positive Updates
Adjusted EBITDA Growth and Profitability Expansion
Adjusted EBITDA of $205 million in 2025, up $22 million or 12% year-over-year; expanded adjusted EBITDA margin and overall profitability, with adjusted EBITDA landing at the high end of guidance for the year.
Negative Updates
Revenue Decline Versus Prior Year
Total 2025 revenues of $743 million represented a decline versus 2024; management noted 2024 included $115 million of settlement and divested revenue which partially explains the year-over-year revenue comparison but overall topline remained lower.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Growth and Profitability Expansion
Adjusted EBITDA of $205 million in 2025, up $22 million or 12% year-over-year; expanded adjusted EBITDA margin and overall profitability, with adjusted EBITDA landing at the high end of guidance for the year.
Read all positive updates
Company Guidance
Emergent's 2026 guidance targets total revenues of $720–760 million, with MCM flat to slightly down (noting 2025 included a one‑time ~$60 million international order that contributed about $50 million of adjusted EBITDA and is not expected to repeat) and Commercial (including NARCAN) flat to slightly up; Q1 revenue is guided at $135–155 million and the first half is expected to represent roughly 40% of full‑year revenue. The company expects adjusted gross margin of 45–47%, adjusted EBITDA of $135–155 million, adjusted net income of $25–45 million, and GAAP net income of a loss between $30 million and $10 million. Emergent enters 2026 with strengthened liquidity and leverage—year‑end 2025 cash of $205 million, total liquidity of $305 million (including $100 million of undrawn revolver) and net leverage of ~1.9x—supporting planned organic and inorganic investments.Emergent Biosolutions Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
50
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 742.90M | 1.04B | 1.05B | 1.12B | 1.77B |
| Gross Profit | 350.60M | 375.40M | 360.00M | 473.00M | 793.20M |
| EBITDA | 208.50M | 53.40M | -47.00M | 15.70M | 504.20M |
| Net Income | 52.60M | -190.60M | -760.50M | -211.60M | 219.50M |
Balance Sheet | |||||
| Total Assets | 1.32B | 1.39B | 1.82B | 3.17B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 205.40M | 99.50M | 111.70M | 642.60M | 576.30M |
| Total Debt | 572.10M | 676.10M | 860.20M | 1.43B | 871.00M |
| Total Liabilities | 796.00M | 906.90M | 1.17B | 1.78B | 1.35B |
| Stockholders Equity | 522.60M | 482.80M | 649.30M | 1.39B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 156.80M | 35.80M | -257.90M | -149.90M | 96.10M |
| Operating Cash Flow | 170.60M | 58.70M | -206.30M | -34.10M | 321.10M |
| Investing Cash Flow | 69.40M | 125.20M | 212.30M | -381.30M | -225.00M |
| Financing Cash Flow | -136.60M | -190.00M | -535.70M | 481.20M | -141.00M |
Emergent Biosolutions Technical Analysis
Negative
7.85
Price Trends
9.60
Negative
10.64
Negative
9.47
Negative
Market Momentum
-0.40
Negative
35.16
Neutral
33.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBS, the sentiment is Negative. The current price of 7.85 is below the 20-day moving average (MA) of 8.13, below the 50-day MA of 9.60, and below the 200-day MA of 9.47, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 35.16 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBS.
Emergent Biosolutions Risk Analysis
Emergent Biosolutions disclosed 59 risk factors in its most recent earnings report. Emergent Biosolutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Emergent Biosolutions Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $912.24M | 163.97 | 0.95% | ― | 3.14% | ― | |
67 Neutral | $1.78B | 14.40 | 15.55% | ― | 48.87% | ― | |
64 Neutral | $324.55M | 18.78 | 11.26% | ― | -0.85% | -13.50% | |
61 Neutral | $933.72M | 12.76 | 12.76% | ― | -0.03% | -27.66% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $406.40M | 12.57 | 9.59% | ― | -29.91% | ― |
* Healthcare Sector Average
EBS
Emergent Biosolutions
7.85
3.16
67.38%
PCRX
Pacira Pharmaceuticals
22.53
-3.31
-12.81%
SIGA
SIGA Technologies
4.53
-0.35
-7.13%
ANIP
ANI Pharmaceuticals
79.47
13.46
20.39%
AMPH
Amphastar Pharmaceuticals
20.58
-4.65
-18.43%
Emergent Biosolutions Corporate Events
Business Operations and StrategyExecutive/Board Changes
Emergent BioSolutions Adds Independent Director Amid Turnaround Efforts
Positive
Mar 3, 2026
Emergent BioSolutions Inc. announced on March 3, 2026, that it had appointed John D. Fowler, Jr. as a Class II independent director to its board effective March 1, 2026, with an initial term running through the 2026 annual shareholder meeting. Fow...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Emergent BioSolutions Reports Profitability Amid Ongoing Turnaround
Positive
Feb 26, 2026
On February 26, 2026, Emergent BioSolutions reported its fourth-quarter and full-year 2025 results, showing a sharp turnaround to full-year net income of $52.6 million from a $190.6 million loss in 2024, despite a 29% drop in revenue to $742.9 mil...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Emergent BioSolutions outlines transformation and financial guidance at conference
Positive
Jan 14, 2026
On January 14, 2026, Emergent BioSolutions president and chief executive officer Joseph C. Papa presented at the 44th Annual J.P. Morgan Healthcare Conference, outlining the company’s role in combating global public health threats and highli...
Business Operations and StrategyFinancial Disclosures
Emergent BioSolutions Advances Turnaround With Major Debt Prepayment
Positive
Jan 12, 2026
Emergent BioSolutions announced on January 12, 2026, that it voluntarily prepaid $100 million of principal on its term loan facility in late December 2025 using cash on hand, a move the company framed as a key milestone in its multi‑year tra...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.