Amneal Pharmaceuticals(AMRX) - 2025 Q2 - Quarterly Results

Amneal Preliminary Second Quarter 2025 Financial Results This report presents Amneal's strong preliminary Q2 2025 financial results, non-GAAP reconciliations, and associated risk factors Financial and Operational Highlights The company reports strong preliminary Q2 2025 results, driven by revenue growth, operational milestones, and significant deleveraging - Key operational updates include the U.S. FDA approval of Brekiya® autoinjector, strong commercial uptake of CREXONT®, and an expected BLA submission for a XOLAIR® biosimilar in Q4 2025[3] Preliminary Financial Highlights for Q2 2025 | Metric | Q2 2025 Preliminary Range | Change vs. Q2 2024 | | :--- | :--- | :--- | | Net Revenue | $720M - $730M | ~3% Increase | | Income before income taxes | $45M - $56M | Increase from $20M | | Adjusted EBITDA | $180M - $185M | ~13% Increase | | Gross Leverage | 3.8x (as of June 30, 2025) | Decrease from 4.1x (Dec 31, 2024) | | Net Leverage | 3.7x (as of June 30, 2025) | Decrease from 3.9x (Dec 31, 2024) | Non-GAAP Financial Measures and Reconciliations This section defines and reconciles non-GAAP measures like Adjusted EBITDA and leverage ratios to their comparable GAAP figures Definition of Non-GAAP Measures The company defines non-GAAP metrics like Adjusted EBITDA and leverage ratios to assess core operational performance - The company provides non-GAAP financial measures, including EBITDA, adjusted EBITDA, gross leverage, and net leverage, as supplemental performance indicators[11] - EBITDA is defined as income before income taxes, excluding interest expense, depreciation, and amortization; Adjusted EBITDA further excludes items like stock-based compensation and restructuring charges; Gross Leverage is gross debt divided by LTM Adjusted EBITDA; and Net Leverage is net debt divided by LTM Adjusted EBITDA[12][13] Reconciliation of Income Before Income Taxes to Adjusted EBITDA (Quarterly) Preliminary Q2 2025 Adjusted EBITDA is projected at $180M-$185M, a significant increase from Q2 2024 Q2 Adjusted EBITDA Reconciliation (Preliminary 2025 vs. 2024) | (in thousands) | Q2 2025 (Preliminary Range) | Q2 2024 (Actual) | | :--- | :--- | :--- | | Income before income taxes | $45,000 - $56,000 | $20,405 | | EBITDA (Non-GAAP) | $172,000 - $179,000 | $141,696 | | Adjusted EBITDA (Non-GAAP) | $180,000 - $185,000 | $162,211 | Calculation of Net Debt and Net Leverage The company reduced its Gross Leverage to 3.8x and Net Leverage to 3.7x, reflecting improved profitability and debt reduction Leverage Calculation Comparison | Metric | June 30, 2025 (Preliminary) | December 31, 2024 | | :--- | :--- | :--- | | Gross debt | $2,553,460 thousand | $2,584,835 thousand | | Net debt (Non-GAAP) | $2,481,916 thousand | $2,474,283 thousand | | LTM Adjusted EBITDA | $665,358 thousand | $627,442 thousand | | Gross leverage (Non-GAAP) | 3.8x | 4.1x | | Net leverage (Non-GAAP) | 3.7x | 3.9x | Reconciliation of Adjusted EBITDA (Last Twelve Months) Preliminary LTM Adjusted EBITDA reached $665.4 million as of June 30, 2025, used for calculating leverage ratios LTM Adjusted EBITDA Calculation (as of June 30, 2025) | Period | Adjusted EBITDA (Non-GAAP) (in thousands) | | :--- | :--- | | Q3 2024 | $157,623 | | Q4 2024 | $155,257 | | Q1 2025 | $169,978 | | Q2 2025 (Preliminary) | $182,500 | | LTM Total | $665,358 | Full Year 2024 Adjusted EBITDA Reconciliation | (in thousands) | Year Ended Dec 31, 2024 | | :--- | :--- | | Loss before income taxes | $(55,013) | | EBITDA (Non-GAAP) | $439,773 | | Adjusted EBITDA (Non-GAAP) | $627,442 | Cautionary Statements and Risk Factors This section outlines forward-looking statements and key risks that could impact financial results - The preliminary financial results are forward-looking statements and are subject to change pending completion of financial close procedures[4][6] - The company's performance is subject to numerous risks, including competition, customer consolidation, supply chain dependencies, and substantial indebtedness[10]