Emergent reports strong progress on its multiyear transformation plan, executing key initiatives and on track with strategic goals for 2025.
The company has exceeded guidance on both revenue and EBITDA, with second quarter revenues of $141 million, $21 million above guidance.
Financial improvements include a reduction in net leverage to 1.9x from 9.9x a year ago, and a significant increase in liquidity by $297 million, now totaling $367 million.
Adjusted diluted EPS grew 9% operationally and 13% on an organic operational basis.
Adjusted gross margins were 73.7%, up 200 basis points reported, with favorable foreign exchange impact of 130 basis points.
Adjusted net income was $783 million, growing 10% on both reported and organic operational bases.
Adjusted operating expenses increased 5% operationally, driven by 6% SG&A growth and 1% R&D growth.
Companion Animal revenue was $1.8 billion, growing 8% operationally, with Simparica franchise contributing $448 million growing 17%, and Key Dermatology $460 million growing 11%.
International segment revenue grew 3% reported and 9% organic operational; Companion Animal grew 8%, Livestock 10% organically internationally.
Livestock business grew 7% on an organic operational basis year-to-date, outperforming low single-digit market growth projections.
U.S. revenue grew 4% reported and 7% organic operational; Companion Animal grew 9%, Livestock declined 2% organically in the U.S.
Zoetis reported $2.5 billion in revenue for Q2 2025, growing 4% on a reported basis and 8% on an organic operational basis, excluding foreign exchange and MFA divestiture impacts.
Dafinchi