Emergent BioSolutions Inc.EBS
Emergent BioSolutions Inc. Segments Disclosure
Segment information
In the first quarter of 2025, using the guidance provided in ASC 280, Segment Reporting (“ASC 280”), along with the adoption of ASU 2023-07, Segment Reporting (Topic 280), the Company reevaluated its reportable and operating segments. Based on updates to the Company’s internal operating and reporting structure and quantitative tests outlined in ASC 280, the Company manages its business with a focus on two reportable segments; the Commercial Products segment, which includes Naloxone products and the MCM Products segment, which includes the Anthrax - MCM products, Smallpox - MCM products and Other Products. The Company’s Services operating segment no longer meets the quantitative threshold for determining reportable segments and is now included within “All other revenues” along with the Company’s Contracts and grants business.
The Company's Chief Operating Decision Maker (“CODM”) is its President and Chief Executive Officer. The CODM evaluates the performance of the Company's reportable segments based on segment adjusted gross margin. The Company defines segment adjusted gross margin as sales less cost of sales excluding restructuring costs (benefits), changes in fair value of financial instruments, and inventory step-up provision for each reportable segment. The Company does not allocate amortization of intangible assets, research and development expenses, selling, general and administrative costs, interest and other income (expense) or taxes to each reportable segment in the operating results that are regularly reviewed by the CODM. The CODM uses these reported measures to assess segment performance, allocate resources and monitor budget and guidance versus actual results. These metrics are used by the CODM to make key operating decisions, such as decisions about allocating capital and other resources to each segment. The accounting policies for segment reporting are the same as those described in Note 2, “Summary of significant accounting policies”. Intersegment revenue, cost of sales, and profit are eliminated in the segment measures regularly reviewed by the CODM as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance for each segment.
The Company manages its assets on a total company basis, not by segment, as the Company's assets are shared or commingled. Therefore, the Company’s CODM does not regularly review any asset information by segment and, accordingly, the Company does not report asset information by segment. The measure of segment assets is reported on the Consolidated Balance Sheet as “Total assets”.
For all tables presented below, the prior period disclosures have been recast to conform to the current period segment presentation.
The following table presents segment information provided to the CODM, along with a reconciliation of segment adjusted gross margin to loss before income taxes as reported in the Consolidated Statement of Operation for the years ended December 31, 2025, 2024, and 2023:
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||
Commercial Products | $ | 226.1 | $ | 398.9 | $ | 497.3 | |||||||||||
| MCM Products | 456.7 | 509.8 | 447.2 | ||||||||||||||
Reconciliation of revenue: | |||||||||||||||||
All other revenues (1) | 60.1 | 134.9 | 104.8 | ||||||||||||||
| Total revenues | $ | 742.9 | $ | 1,043.6 | $ | 1,049.3 | |||||||||||
| Cost of sales reportable segments: | |||||||||||||||||
Commercial Products (2) | $ | 129.9 | $ | 185.9 | $ | 210.3 | |||||||||||
MCM Product (3) | 158.7 | 205.4 | 295.9 | ||||||||||||||
| Total of reportable segments | 288.6 | 391.3 | 506.2 | ||||||||||||||
| Segment adjusted gross margin reportable segments: | |||||||||||||||||
| Commercial Products | $ | 96.2 | $ | 213.0 | $ | 287.0 | |||||||||||
| MCM Products | 298.0 | 304.4 | 151.3 | ||||||||||||||
| Total of reportable segments | $ | 394.2 | $ | 517.4 | $ | 438.3 | |||||||||||
| Reconciliation to income (loss) before income tax: | |||||||||||||||||
All other revenues less other costs of revenue (1) | $ | 27.1 | $ | (30.7) | $ | (76.3) | |||||||||||
| Amortization of intangible assets | (65.1) | (65.1) | (65.6) | ||||||||||||||
Restructuring benefits (costs) | 0.8 | (7.4) | (14.0) | ||||||||||||||
Inventory step-up provision | (5.4) | (6.2) | (3.9) | ||||||||||||||
Changes in fair value of financial instruments | — | (0.6) | (0.2) | ||||||||||||||
Settlement charge, net | — | (110.2) | — | ||||||||||||||
| Goodwill impairment | — | — | (218.2) | ||||||||||||||
| Impairment of long-lived assets | (12.2) | (27.2) | (306.7) | ||||||||||||||
| Research and development | (53.2) | (70.7) | (111.4) | ||||||||||||||
| Selling, general and administrative | (186.1) | (308.0) | (368.4) | ||||||||||||||
| Interest expense | (59.3) | (71.0) | (87.9) | ||||||||||||||
| Gain on sale of business | — | 24.3 | 74.2 | ||||||||||||||
| Gain (loss) on debt extinguishment | (12.2) | 0.6 | 2.5 | ||||||||||||||
| Other, net | 54.2 | 11.9 | 6.4 | ||||||||||||||
| Income (loss) before income taxes | $ | 82.8 | $ | (142.9) | $ | (731.2) | |||||||||||
(1) "All other revenues" and "All other revenue less other cost of revenue" include Services and Contracts and grants revenue, and Services and Contracts and grants revenue less Cost of services, respectively. | |||||||||||||||||
(2) Excludes $0.2 million restructuring costs for the year ended December 31, 2025. | |||||||||||||||||
(3) Excludes $— million, $0.6 million and $0.2 million of changes in fair value of financial instruments, $(1.0) million, $7.2 million, and $5.6 million restructuring costs (benefits), and $5.4 million, $6.2 million and $3.9 million of inventory step-up provision during the years ended December 31, 2025, 2024, and 2023, respectively. | |||||||||||||||||
The following table includes depreciation expense for each reportable segment:
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
| Depreciation from reportable segments: | |||||||||||||||||
| Commercial Products | $ | — | $ | — | $ | 0.3 | |||||||||||
| MCM Products | 18.1 | 20.3 | 22.8 | ||||||||||||||
| Items not included in depreciation from reportable segments: | |||||||||||||||||
| All other segment | 3.7 | 9.9 | 22.5 | ||||||||||||||
| Other | 8.9 | 13.5 | 13.9 | ||||||||||||||
| Total | $ | 30.7 | $ | 43.7 | $ | 59.5 | |||||||||||
The following table includes revenues by country. Revenues have been attributed based on the location of the customer:
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
| Revenue: | |||||||||||||||||
| United States | $ | 531.1 | $ | 822.6 | $ | 607.2 | |||||||||||
| Canada | 75.0 | 140.4 | 224.2 | ||||||||||||||
| Other | 136.8 | 80.6 | 217.9 | ||||||||||||||
| Total revenues | $ | 742.9 | $ | 1,043.6 | $ | 1,049.3 | |||||||||||
The following table includes long-lived assets, net by country. Long-lived assets, net includes right-of-use assets and property, plant & equipment, net, excluding software, net:
December 31, | |||||||||||
2025 | 2024 | ||||||||||
| Long-lived assets, net: | |||||||||||
| United States | $ | 176.0 | $ | 238.0 | |||||||
| Canada | 32.9 | 34.5 | |||||||||
| Other | 2.5 | 2.7 | |||||||||
| Total Long-lived assets, net | $ | 211.4 | $ | 275.2 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 25, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.