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

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

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

What is Embecta's gross profit margin?

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

What is Embecta's latest dividend and current dividend yield?

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

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

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EMBC

EMBC fundamentals

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