Amneal Pharmaceuticals — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 net revenue was $863 million, a 10% increase compared to $785 million in Q3 2025.
• GAAP net loss attributable to Amneal was $22 million in Q3 2026, compared to net income of $2 million in Q3 2025.
• Diluted loss per share was $(0.06) in Q3 2026, compared to diluted income per share of $0.01 in Q3 2025.
• Adjusted EBITDA was $207 million in Q3 2026, a 30% increase compared to Q3 2025.
• Adjusted diluted EPS was $0.26 in Q3 2026, a 53% increase compared to $0.17 in Q3 2025.
• Gross profit was $334 million in Q3 2026 compared to $274 million in Q3 2025.
• Operating expenses included acquisition and integration costs of $22.3 million and charges for property losses of $5.4 million in Q3 2026.
• As of September 30, 2026, total assets were $5.27 billion, with total debt (gross) of $3.23 billion and net debt of $3.07 billion.
• Net leverage was 3.9x as of September 30, 2026, compared to 3.5x as of December 31, 2025.

Guidance and Future Outlook:

• Full year 2026 net revenue guidance was increased to $3.15 billion – $3.25 billion (prior: $3.10 billion – $3.20 billion).
• Full year 2026 adjusted EBITDA guidance was increased to $800 million – $815 million (prior: $750 million – $780 million).
• Full year 2026 adjusted diluted EPS guidance was increased to $1.04 – $1.08 (prior: $0.96 – $1.06).
• Full year 2026 operating cash flow guidance was updated to $325 million – $375 million (prior: $350 million – $400 million).
• Full year 2026 operating cash flow, excluding discrete items, guidance was updated to $350 million – $400 million (prior: $375 million – $425 million).
• Full year 2026 capital expenditures guidance remains at approximately $150 million.
• Management cites accelerating financial performance driven by new launches including Women's Health patches, biosimilars, injectables (lanreotide, CREXONT®, BREKIYA® autoinjector), and the Kashiv integration.

Business Segments and Product Lines:

• Affordable Medicines net revenue increased 19% in Q3 2026, driven by biosimilars, women's health patches, and new launches.
• Specialty net revenue increased 20% in Q3 2026, driven by key branded products CREXONT®, BREKIYA® autoinjector, and UNITHROID®.
• AvKARE net revenue decreased 17% in Q3 2026, attributed to a non-recurring cardiovascular product launch in the prior year.
• The Kashiv acquisition integration is proceeding well, with the company noting long-term growth potential in biosimilars.
• The company holds a portfolio of approximately 300 complex generic, specialty, and biosimilar medicines.

Market and Competitive Landscape:

• The company operates in the pharmaceutical industry facing competition from brand and generic drug product companies.
• The company notes risks related to the impact of competition on its ability to set prices and the trend of customer group consolidation.
• The company faces risks regarding legal, regulatory, and legislative efforts by brand competitors to deter competition from generic alternatives.

Risks and Challenges:

• Q3 2026 GAAP results were negatively impacted by non-recurring acquisition and integration costs, higher tax provisions, and asset impairment charges.
• Charges related to legal matters included a $21.2 million charge associated with the Nationwide Opioids Settlement Agreement and $8.0 million related to government investigations.
• Property losses of $5.4 million were recorded in Q3 2026 due to severe rain causing water damage to a facility in India in July 2026.
• The company faces risks related to supply chain disruptions, tariffs, and potential U.S. government shutdowns.
• Significant indebtedness and the ability to service it remain a risk, along with interest rate fluctuations.

Management Commentary and Tone:

• Co-CEOs Chirag and Chintu Patel described the quarter as delivering "strong, broad-based performance" and expressed high confidence in Amneal's "robust growth outlook."
• Management highlighted the breadth and depth of opportunities across the portfolio as a driver for future growth.
• The tone indicates optimism regarding the integration of Kashiv and the pipeline of new product launches.

Other Key Points:

• The company acquired Kashiv BioSciences, LLC, with acquisition and integration costs totaling $35.1 million for the nine months ended September 30, 2026.
• The company recognized a $6.0 million gain in Q3 2026 related to the remeasurement of contingent consideration associated with the Kashiv Acquisition.
• In August 2026, the company borrowed an additional $350.0 million under Amendment No. 4 to its Term Loan Credit Agreement to fund a portion of the Kashiv Acquisition.
• The company assumed the Kashiv Rupee Term Loan Facility, which was repaid in full and terminated on October 1, 2026.
• Inventories increased to $708 million as of September 30, 2026, from $606 million as of December 31, 2025, reflecting higher inventory levels in key growth areas.
• The company hosts a conference call and webcast on November 3, 2026, to discuss results.