Financial Performance - Revenues decreased by $0.7 million, or 0.3%, to $261.2 million for the three months ended December 31, 2025, compared to $261.9 million for the same period in 2024[115] - Gross profit increased by $4.6 million to $161.7 million, with a gross profit margin of 61.9%, up from 60.0% in the prior year[117] - Operating income surged by $54.6 million to $83.3 million, compared to $28.7 million in the previous year[117] - Net income reached $44.1 million, a significant increase from $0.0 million in the prior year[117] - Cost of products sold decreased by $5.3 million, or 5.1%, to $99.5 million, representing 38.1% of revenues, down from 40.0%[118] - Selling and administrative expenses fell by $3.5 million, or 4.3%, to $77.6 million, primarily due to lower compensation expenses[119] - Research and development expenses dropped by $15.7 million, or 77.3%, to $4.6 million, reflecting the discontinuation of the insulin patch pump program[120] Debt and Liquidity - As of December 31, 2025, Embecta's total principal debt issued amounted to $1,379.3 million, with long-term debt at $1,352.9 million after accounting for current debt obligations and issuance costs[128][130] - Embecta's total debt as of December 31, 2025, was $1,362.4 million, with short-term debt constituting 0.7% of total debt and a weighted average cost of total debt at 6.1%[128] - The company made interest payments of $13.2 million on outstanding debt during the three months ended December 31, 2025, and paid approximately $37.5 million on the Term Loan, of which $35.1 million was discretionary[130] - Cash and equivalents, along with restricted cash, decreased to $204.4 million as of December 31, 2025, down from $228.6 million as of September 30, 2025, primarily due to financing activities[138] - The company maintains sufficient liquidity through cash, cash equivalents, and borrowing capacity to meet operational and growth needs[127] - The effective tax rate decreased to 25.1% from 100.0% in the prior year, due to changes in earnings mix and lower limitations on interest expense deductibility[126] Operational Risks and Challenges - Future cash flows and financial performance are subject to various risks, including competitive factors and the ability to replace services currently provided by BD[147] - Operating costs have increased due to new tariffs imposed by the U.S. and foreign governments, affecting raw materials and energy costs[149] - The company faces risks from the global trade environment, with potential shifts in customer preferences towards local products due to tariffs[149] - Changes in reimbursement practices and foreign currency exchange rates could adversely impact financial performance[149][150] - Interest rate risk is primarily related to the Term Loan, with a potential $6.8 million impact on interest expense from a 100 basis point change in rates[153] - The impact of geopolitical instability and pandemics on operations and supply chains remains a concern for the company[149] Strategic Initiatives - The company is focused on the expected benefits of its Separation from BD and the associated risks of dis-synergy costs[149] - There are risks related to the completion of strategic partnerships and acquisitions that could accelerate growth and access to new technologies[149] - The company is undergoing a Patch Pump Program Restructuring Plan and a 2025 Restructuring Plan, with expectations on costs and profitability[149] - The ability to obtain FDA clearance for new products is critical for the company's future business decisions and market success[149] - The company has entered into foreign currency forward exchange contracts to manage currency exposure, which helps offset gains and losses[151][152] Credit Ratings and Compliance - Embecta's credit ratings were reaffirmed by Moody's at B1 and by Standard & Poor's at B+ in early 2026[136] - The company is in compliance with all financial covenants related to its credit agreements as of December 31, 2025[128]

Embecta (NasdaqGS:EMBC) Q1 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsDevdatt Kurdikar - CEOJake Elguicze - CFOPravesh Khandelwal - VP of Investor RelationsRyan Schiller - Equity Research AssociateConference Call ParticipantsNone - AnalystNone - AnalystOperatorWelcome, ladies and gentlemen, to the Embecta Corp.'s fiscal first quarter 2026 earnings conference call. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being r ...

Embecta (NasdaqGS:EMBC) Q1 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsDevdatt Kurdikar - CEOJake Elguicze - CFOPravesh Khandelwal - VP of Investor RelationsRyan Schiller - Equity Research AssociateConference Call ParticipantsNone - AnalystNone - AnalystOperatorWelcome, ladies and gentlemen, to the Embecta Corp.'s fiscal first quarter 2026 earnings conference call. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being r ...

Embecta (NasdaqGS:EMBC) Q1 2026 Earnings call February 05, 2026 08:00 AM ET Speaker2Welcome, ladies and gentlemen, to the Embecta Corp.'s fiscal first quarter 2026 earnings conference call. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being recorded, and a replay will be available on the company's website following the call. I would now like to hand the conference call over to your host today, Mr. Pravesh Khandelwal, Vice President of Invest ...

Earnings Conference Call Fiscal Q1 2026 February 5, 2026 1 Forward-looking statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, performance, financial condition, goals, strategies, plans and achievemen ...

FOR IMMEDIATE RELEASE Embecta Corp. Reports First Quarter Fiscal 2026 Financial Results PARSIPPANY, N.J., Feb 5, 2026 (GLOBE NEWSWIRE) – Embecta Corp. ("embecta" or the "Company") (Nasdaq: EMBC), a global diabetes care company, today reported financial results for the three month period ended December 31, 2025. "During the first quarter our results were largely consistent with our expectations," said Devdatt (Dev) Kurdikar, President and Chief Executive Officer of embecta. Mr. Kurdikar added, "As we look ah ...

PARSIPPANY, N.J., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Embecta Corp. (“embecta”) (Nasdaq: EMBC), a global company that is advancing its 100-year legacy in insulin delivery to become a broad-based medical supplies company, today reported first quarter fiscal 2026 financial results. Visit the company’s Investor Relations website at http://investors.embecta.com to view the detailed first quarter fiscal 2026 earnings press release and investor presentation. The company will host a conference call and live audio we ...

PARSIPPANY, N.J., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Embecta Corp. (“embecta”) (Nasdaq: EMBC), a global company that is advancing its 100-year legacy in insulin delivery to become a broad-based medical supplies company, will host a conference call to discuss its fiscal first quarter 2026 financial results, provide an operational update, and host a question and answer session, at 8:00 a.m. Eastern Time (ET) on Thursday, February 5, 2026. Those who would like to participate may access the live webcast here, or ...

PresentationHi, everyone. My name is Caroline Borowski, and I'm a Vice President here at the JPMorgan Healthcare Investment Bank. It is my pleasure to introduce the CEO of Embecta, Dev Kurdikar.Devdatt KurdikarPresident, CEO & Director Thank you, Caroline. It's a pleasure to be here. As Caroline said, I am the President and CEO of Embecta. And I'm pleased to be joined here today by Jake Elguicze, our Chief Financial Officer. We have Ginny Blocki, our Head of Strategy; and Pravesh Khandelwal, our Head of Inv ...

Summary of Embecta FY Conference Call Company Overview - **Company**: Embecta (NasdaqGS:EMBC) - **Industry**: Diabetes injection supplies - **Key Facts**: - Leader in diabetes injection supplies with a global presence - Estimated 30 million users worldwide - Produced 8 billion units from three facilities - Revenue of approximately $1 billion in the last fiscal year - Adjusted EBITDA margin of 38%, with $415 million in adjusted EBITDA and over $180 million in free cash flow [3][2][26] Core Business Insights - **Product Categories**: - Pen needles, safety pen needles, safety insulin syringes, and insulin syringes, all ranked number one globally [4] - **Market Dynamics**: - Products are medically necessary and used chronically, ensuring stable demand [4] - Despite external challenges, the company maintained product availability and reliability [5] - **Revenue Stability**: - Revenue remained stable despite external dynamics like COVID-19 and the rise of GLP-1 therapies [7] - Pen needles and safety products grew at nearly 5% CAGR, while syringes declined by approximately 5% due to a shift from vials to pens [8][9] Strategic Initiatives - **Transformation Goals**: - Transitioning to a broader-based medical supplies company, with a focus on expanding the product portfolio [11][12] - Brand transition to replace BD name with Embecta, with 95% of U.S. and Canada revenue already converted [13][14] - **Market-Appropriate Products**: - Development of affordable products tailored to local market needs, targeting regions with significant addressable markets [15][16] - **GLP-1 Opportunities**: - Anticipated revenue of over $100 million by 2033 from GLP-1 related products, with ongoing discussions with generic drug companies [17][19] Financial Performance and Capital Allocation - **Debt Management**: - Paid down $185 million of debt in fiscal 2025, reducing net leverage from nearly 4 to under 3 [25][42] - **Future Financial Goals**: - Aiming for adjusted operating margins of 28%-30% by 2028, factoring in additional costs from onboarding alternate suppliers [41] - **M&A Strategy**: - Focus on opportunistic M&A to expand product portfolio while maintaining a priority on debt reduction [25][42] Market Challenges and Opportunities - **China Market Dynamics**: - Experienced a decline in sales due to increased competition from local brands and price pressures [30][31] - Plans to introduce a low-cost product to compete effectively in the Chinese market [32][33] - **Geographic Diversification**: - The company benefits from a geographically diverse customer base, with significant opportunities in emerging markets [35] Conclusion - **Future Outlook**: - Embecta is positioned for growth with a focus on transforming into a broader medical supplies company, leveraging its manufacturing capabilities and expanding its product offerings [26][44]