- Second-quarter 2026 product sales increased 11.5% year over year to approximately $7.2 million.
- Net income reached $1.8 million, or $0.20 per diluted share, compared with $502,000, or $0.06 per share, a year earlier.
- A one-time $2 million legal settlement from a former Re-Tain contract manufacturer contributed to second-quarter net income and adjusted EBITDA.
- Distributor out-the-door volume increased 28% during the quarter, with Tri-Shield remaining the primary growth driver at the producer level.
- ImmuCell plans to invest approximately $8 million in two phases to expand First Defense manufacturing capacity.
- The company expects the expansion program to triple capacity over approximately 18 months.
ImmuCell reported higher second-quarter sales and net income as demand for its calf health products increased, while the company prepares to make approximately $8 million in manufacturing investments to support future growth.
For the three months ended June 30, 2026, ImmuCell generated product sales of $7.2 million, an 11.5% increase from $6.4 million during the same period in 2025.
The Portland, Maine-based animal health biologics company develops and manufactures products aimed at improving calf health and productivity, including its First Defense line of products.
Net income increased to approximately $1.8 million, or $0.20 per diluted share, from $502,000, or $0.06 per share, during the prior-year quarter.
The latest quarter included a one-time $2 million legal settlement payment from a former contract manufacturer associated with the discontinued Re-Tain development program. The payment was recorded as a reduction to operating expenses and contributed to both reported net income and adjusted EBITDA.
Adjusted EBITDA was $2.7 million for the quarter, compared with $1.4 million a year earlier.
Calf health product demand continues to grow
ImmuCell said its distributors’ out-the-door volume increased 28% during the second quarter, accelerating from 21% growth during the first quarter.
Bobbi Brockmann, senior vice president of sales and marketing, said the growth was broad-based, reflecting both higher volumes and price realization across products and sales territories.
Tri-Shield remained the company’s primary growth driver at the producer level. ImmuCell also reported higher sales of Dual-Force to distributors as part of normal stocking activity, while its Functional Feed product line continued to gain traction.
The company estimated that its share of U.S. calves receiving a scour biological increased to 19% during the quarter.
Despite the sales growth, second-quarter gross margin declined to 33.9% from 43.7% a year earlier. ImmuCell attributed the decrease primarily to lower manufacturing volumes, scrap related to a quality issue with a purchased material and the reassignment of costs previously associated with the discontinued Re-Tain program.
The company said it has made manufacturing process changes intended to improve yields in future quarters.
ImmuCell plans $8 million capacity expansion
ImmuCell is moving forward with a two-phase manufacturing expansion designed to increase production capacity for its First Defense product line.
The first phase involves approximately $3.5 million in investments to expand freeze-drying capacity. ImmuCell plans to renovate a former Re-Tain facility and install a new freeze dryer with greater capacity and reliability than its existing equipment. The company expects that phase to be completed during the first half of 2027.
A second phase is expected to involve approximately $4.5 million in additional investment to expand First Defense colostrum liquid processing capacity. The project will repurpose equipment from the discontinued Re-Tain program while adding equipment and automation.
ImmuCell expects the second phase to take approximately six additional months and currently plans to finance both phases using cash on hand and cash generated from operations.
Olivier te Boekhorst, president and CEO, said the company expects the investments to triple manufacturing capacity over the next 18 months while improving its ability to reliably meet customer demand.
Cash position strengthens
ImmuCell ended June with $8.9 million in cash and cash equivalents, up from $3.8 million at the end of 2025. The increase benefited in part from the $2 million settlement payment.
Net working capital increased from approximately $13 million at year-end to $16.6 million as of June 30, while stockholders’ equity increased from $27.1 million to $31.4 million.
For the first six months of 2026, product sales totaled $17.5 million, compared with $14.5 million during the first half of 2025. Six-month net income was $3.8 million, compared with $1.9 million a year earlier.
Additional financial information and company presentations are available through ImmuCell’s investor relations site.
Information sourced from the company’s press release.
