Amneal Pharmaceuticals (AMRX) Q1 2026 & M&A announcement earnings summary

Executive summary

• Announced acquisition of Kashiv BioSciences, creating a fully integrated global biosimilars leader with direct access to over $300 billion in global biologic LOEs over the next decade, including $234 billion in the U.S.

• Q1 2026 net revenue reached $723 million, up 4% year-over-year, with strong growth in Specialty and Affordable Medicines segments.

• Adjusted EBITDA rose 19% to $202 million, and adjusted EPS increased 29% to $0.27.

• The acquisition is structured for immediate value creation, with a balanced mix of upfront and milestone-based payments, and a clear path to deleverage below 3x by 2028.

• Combined company will have a robust pipeline of over 20 biosimilars, targeting more than $100 billion in U.S. opportunity and multiple launches annually.

Financial highlights

• Q1 2026 net revenues were $723 million, up 4% year-over-year; adjusted EBITDA was $202 million, up 19%; adjusted EPS was $0.27, up 29%.

• Gross margin improved by 750 basis points year-over-year, with adjusted gross margin up 510 basis points to 48.2%.

• Operating income for Q1 2026 was $141.8 million, up 41.3% year-over-year.

• Net leverage ratio declined to 3.5x adjusted EBITDA in March 2026, with gross leverage at 3.7x.

• Cash and cash equivalents at quarter-end were $197.7 million, with net debt at $2.49 billion.

Outlook and guidance

• Full-year 2026 net revenue guidance: $3.05–$3.15 billion; adjusted EBITDA expected at $740–$770 million; adjusted EPS at $0.95–$1.05.

• By 2030, revenues expected to grow by $1.2 billion (40%) over 2026, with EPS up by $0.70 (70%).

• Combined company expects net revenue of $4.25–$4.5 billion and adjusted EBITDA of $1.15–$1.25 billion by 2030.

• Gross margin expected to reach 45% in 2026, with potential to rise to 47% over the next 3-4 years.

• Operating cash flow projected at $350–$400 million, with capital expenditures around $110 million in 2026.