What does Embecta do and what are its main business segments?

What guidance did Embecta's management provide for the next earnings period?

What factors drove the changes in Embecta's revenue and profit?

What were the key takeaways from Embecta's earnings call?

What were the key takeaways from Embecta’s earnings call?

What is the revenue and EPS growth rate for Embecta year over year?

Did Embecta beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Embecta next quarter?

- **Revenue decline**: Fiscal 2025 revenue down 7.7% YoY to $1.07B, driven by U.S. and China challenges.
- **GLP-1 growth opportunity**: 30+ partnerships targeting $100M+ by 2033, with 2026 launches in key markets.
- **Financial discipline**: 2.9x leverage, $182M free cash flow, and $184M debt reduction in 2025.
- **Key risks**: 2% cannula cost increase, China market competition, and U.S. pharmacy closures.
- **2026 outlook**: Flat to -2% revenue growth, 29-30% adjusted operating margin, and $180-200M free cash flow.

**【CEO Summary Section】**
- Fiscal 2025 revenue declined 7.7% YoY to $1.07 billion, driven by U.S. market challenges (15.2% decline) and China headwinds (3.1% constant currency decline). 
- Completed restructuring with $182M free cash flow and $184M debt reduction, lowering leverage to 2.9x.
- Advanced GLP-1 partnerships with 30+ generic drug manufacturers, targeting $100M+ annual revenue by 2033. 
- Pen needle revenue down 7.1% YoY ($784M) due to transitory factors, while syringes (+1.7%) and safety products (+6.3%) showed growth.
- 2026 guidance: Flat to -2% revenue growth (as-reported $1.07-1.09B), adjusted operating margin 29-30%, and $180-200M free cash flow.

**【CFO Financial Commentary】**
- Q4 2025 GAAP net income $26.4M ($0.45 EPS), adjusted net income $29.4M ($0.50 EPS). Full year adjusted EBITDA $415.3M (38.5% margin).
- 2026 financial targets: Adjusted EPS $2.80-3.00, free cash flow $180-200M, and $150M debt repayment.
- Key risks: 2% cannula cost increase, China market competition, and U.S. pharmacy closures.

**【Q&A Key Highlights】**
- **GLP-1 Progress**: 30+ partnerships, $10M+ orders in 2025, targeting 2026 launches in Brazil, India, Canada.
- **China Challenges**: 4% constant currency decline, but stabilizing with price-competitive products.
- **Cannula Costs**: 2% increase in 2026, seeking alternative suppliers to mitigate BD sole-source risk.
- **M&A Strategy**: Open to tuck-in acquisitions as leverage improves below 3x.
- **Patch Pump Sale**: $10M IP sale post-year-end, no impact on 2026 guidance.


Embecta Corp. (EMBC) Q4 2025 Earnings Call Transcript

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