Executive Summary

Q2 FY2024 revenue was $1.03B, down 10% YoY (11% cc) on lower COVID-related programs; non-COVID revenue grew 8% YoY ex-COVID effects . Adjusted EBITDA fell 56% YoY to $124M (12.0% margin) as COVID decline and underutilization weighed on profitability .
GAAP diluted EPS was $(1.12) vs $0.44 in Q2 FY2023; Adjusted EPS (ANI) was $(0.24) vs $0.67 a year ago .
Segment mix shifted toward PCH (56% of revenue) with Biologics pressured by COVID normalization; Biologics segment margin dropped to 8.7% (from 31.3%) while PCH margin dipped to 21.6% (from 23.7%) .
Catalent withdrew forward guidance and did not host an earnings call due to the pending acquisition by Novo Holdings for $63.50/share in cash (EV ~$16.5B); liquidity stood at ~$1.3B at quarter-end, total debt $5.01B, net leverage 10.3x (LTM Adj. EBITDA $463M) .

What Went Well and What Went Wrong

What Went Well
- Non-COVID sequential momentum in both Biologics and PCH; management cited “strong non‑COVID sequential revenue growth” and progress on operational improvement initiatives .
- Liquidity bolstered: raised $600M term loan and repaid revolver; total available liquidity ~$1.3B at 12/31/23 .
- Strategic catalyst: Novo Holdings agreed to acquire Catalent (EV ~$16.5B), expected close towards end of calendar 2024, subject to approvals .
What Went Wrong
- COVID revenue normalization: Q2 revenue decreased 10% YoY (11% cc), with steep Adjusted EBITDA decline (56%) vs prior year .
- Biologics profitability compression: segment EBITDA down 79% YoY; margin 8.7% vs 31.3% last year, reflecting volume/mix and underutilization .
- Leverage rose: net leverage ratio increased to 10.3x (from 7.6x in Sep‑23) on lower LTM Adj. EBITDA; total debt reached $5.01B .

Financial Results

Metric	Q2 FY2023	Q1 FY2024	Q2 FY2024
Revenue ($B)	$1.149	$0.982	$1.032
GAAP Diluted EPS ($)	$0.44	$(3.94)	$(1.12)
Adjusted EPS (ANI) ($)	$0.67	$(0.10)	$(0.24)
Adjusted EBITDA ($M)	$283	$115	$124
Adjusted EBITDA Margin (%)	24.6%	11.7%	12.0%

Segment performance

Segment	Metric	Q2 FY2023	Q1 FY2024	Q2 FY2024
Biologics	Net revenue ($M)	$580	$447	$446
	Segment EBITDA ($M)	$181	$52	$39
	Segment EBITDA margin (%)	31.3%	11.6%	8.7%
Pharma & Consumer Health	Net revenue ($M)	$570	$535	$587
	Segment EBITDA ($M)	$135	$101	$126
	Segment EBITDA margin (%)	23.7%	18.9%	21.6%

KPIs and balance sheet

KPI	Sep 30, 2023	Dec 31, 2023
Liquidity (cash + undrawn revolver)	—	~$1.3B
Total Debt ($B)	$4.95	$5.01
Net Debt ($B)	$4.74	$4.78
LTM Adjusted EBITDA ($M)	$642	$463
Net Debt / LTM Adj. EBITDA (x)	7.4x	10.3x
First Lien Debt / LTM Adj. EBITDA (x)	3.4x	4.8x

Non-GAAP adjustments (Q2 FY2024 notable items): one-time inventory charges tied to COVID-19 contract settlement ($24M), fire loss contingency ($9M), VAT penalties/interest (in “Other adjustments”) .

Guidance Changes

Metric	Period	Previous Guidance (as of Q1 FY2024)	Current (Q2 FY2024)	Change
Net Revenue	FY2024	$4.3B – $4.5B	Company will no longer provide forward-looking guidance	Withdrawn
Adjusted EBITDA	FY2024	$680M – $760M	Company will no longer provide forward-looking guidance	Withdrawn
Adjusted Net Income	FY2024	$113M – $175M	Company will no longer provide forward-looking guidance	Withdrawn

Note: Catalent did not host a Q2 call and withdrew guidance due to the pending Novo Holdings merger .

Earnings Call Themes & Trends

Catalent did not host a Q2 FY2024 earnings call due to the pending merger . Trends below reflect Q4 FY2023 and Q1 FY2024 calls; current-period commentary reflects the Q2 press release and merger 8-K.

Topic	Q4 FY2023 (Prior-2)	Q1 FY2024 (Prior-1)	Q2 FY2024 (Current)	Trend
GLP-1/Prefilled syringes	Emphasized growing demand; Bloomington/Anagni network role; shifting sterile capacity toward PFS .	Forecast < $100M GLP‑1 rev in FY24 with >$0.5B run-rate potential as capacity ramps FY24–FY26; strong bookings; attractive returns expected .	Press release silent; focus shifted to merger/withdrawn guidance .	Structural tailwind; execution/mix to drive margins .
Gene therapy/Sarepta dependency	Operational issues in BWI improving; gene therapy down in Q4 FY23 but set to rebound .	Sarepta ~16% revenue in Q1; ~50% pass-through lowers margins; robust late-stage pipeline; sequential margin improvement .	Q2 commentary focuses on non-COVID sequential growth; no call .	Improving execution; concentration risk persists .
Supply chain/operations	Brussels/Bloomington improving; multiple approvals; regulatory outcomes improving (Anagni 0 observations) .	Sequential +1,400 bps Biologics margin improvement Q/Q; working capital/capex discipline .	Continued ops improvement cited; liquidity strengthened .	Incremental progress; utilization still a headwind.
COVID normalization	Major YoY revenue and margin headwinds as COVID winds down .	Q1 COVID ~$100M; back-half negligible; YoY headwind persists .	Q2 YoY revenue down 10% on COVID decline; Adjusted EBITDA down 56% YoY .	Headwind moderating into 2H; YoY compare still tough.
Guidance/Strategic actions	Strategic review launched; cash flow and leverage reduction priorities .	Reaffirmed FY24 guide; 2/3 Adj. EBITDA in 2H; leverage to peak in Q2 then improve .	No guidance; announced Novo Holdings acquisition .	Transition to M&A outcome; near-term guidance removed.

Management Commentary

“I am proud of the progress the Catalent team made in our second quarter and our ongoing momentum, including strong non‑COVID sequential revenue growth in both the Biologics and PCH segments… our recently announced transaction with Novo Holdings is further proof of that.” – Alessandro Maselli, CEO .
Liquidity and leverage: ~$1.3B available liquidity; First Lien Debt / LTM Adj. EBITDA 4.8x; net leverage 10.3x .
Strategic: Novo Holdings to acquire Catalent for $63.50/share; closing aimed towards end of 2024, subject to approvals .

Q&A Highlights

Catalent did not host a Q2 call . Key themes from Q1 FY2024 Q&A that remained relevant:

GLP‑1 opportunity: < $100M in FY24, scaling to “well over” $0.5B as PFS lines come online FY24–FY26; capacity is the constraint; network-wide deployment .
Sarepta concentration and pass‑through: ~50% pass-through in Sarepta program; lowers margin profile; orders booked on rolling 6‑month basis .
Margin trajectory: Aim to exit FY24 near historical margins as underutilization and ops improve; cell therapy footprint rightsized .
COVID trajectory: Back-half impact “negligible” relative to 1H .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY2024 EPS/Revenue was unavailable via our S&P integration at this time due to a mapping issue; we were unable to retrieve estimates and cannot provide a beat/miss assessment. Catalent also withdrew forward guidance and did not host a Q2 call, limiting estimate triangulation .
Note: We attempted to source S&P Global estimates; the request failed due to missing CIQ mapping.

Key Takeaways for Investors

Non‑COVID demand is healthy; sequential growth in both Biologics and PCH indicates core pipeline momentum, but COVID normalization and underutilization continue to cap margins near term .
Profitability remains the swing factor: Adj. EBITDA margin recovered sequentially to 12.0% but is far below prior-year levels; sustained improvement hinges on utilization/throughput gains in Biologics (BWI/Brussels/Bloomington) and GLP‑1 scale-up .
Balance sheet tighter: net leverage rose to 10.3x on lower LTM Adj. EBITDA; liquidity improved (~$1.3B) after the $600M term loan, but deleveraging depends on EBITDA recovery and working capital execution .
Strategic overhang now central: the Novo Holdings acquisition (EV ~$16.5B) reframes the equity story around deal timing/approvals and post-close carve-out of three fill-finish sites to Novo Nordisk; near-term trading likely driven by merger-arbitrage dynamics rather than quarterly variance .
Lack of guidance and no Q2 call reduce visibility; watch regulatory progress on the deal, operational KPIs (segment margins, throughput), and GLP‑1 capacity milestones as primary catalysts .

The company-specific data, segment figures, non-GAAP reconciliations, leverage metrics, and strategic updates were sourced from Catalent’s Q2 FY2024 8-K (including Exhibit 99.1) and related filings, Q1 FY2024 preliminary results release and call, and the Novo Holdings merger 8‑K .

Catalent, Inc. (CTLT)·Q2 2024 Earnings Summary