Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41186 EMBECTA CORP. (Exact name of registrant as specified in its charter) Delaware 87-1583942 (State or other ...

Embecta (EMBC) Q3 2025 Earnings Call August 08, 2025 08:00 AM ET Speaker0Welcome, ladies and gentlemen, to Invecta Corp. Fiscal Third Quarter twenty twenty five 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 Kandelwal, Vice President of Investor Rel ...

Earnings Conference Call Q3 FY 2025 August 8, 2025 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, achievements, and a ...

FOR IMMEDIATE RELEASE Embecta Corp. Reports Third Quarter Fiscal 2025 Financial Results PARSIPPANY, N.J., Aug 8, 2025 (GLOBE NEWSWIRE) – Embecta Corp. ("embecta" or the "Company") (Nasdaq: EMBC), a global diabetes care company, today reported financial results for the three and nine month periods ended June 30, 2025. "Q3 was a strong quarter for embecta, reflecting solid commercial execution, aided in part by the timing of customer orders. Despite an increasingly complex and dynamic geopolitical environment ...

Core Insights - Embecta Corp. reported strong financial results for Q3 2025, with an increase in revenues and improved profitability metrics despite a challenging geopolitical environment [2][3][8] Financial Highlights - Q3 2025 revenues reached $295.5 million, an increase of 8.4% year-over-year, with U.S. revenues up 11.6% and international revenues up 5.0% [8][10] - Gross profit for Q3 was $197.1 million, with a gross margin of 66.7%, compared to $190.1 million and 69.8% in the prior year [8][20] - Operating income for Q3 was $94.0 million, with an operating margin of 31.8%, significantly higher than $55.9 million and 20.5% in the prior year [8][20] - Net income for Q3 was $45.5 million, or $0.78 per diluted share, compared to $14.7 million and $0.25 in the prior year [8][20] Nine-Month Performance - For the nine months ended June 30, 2025, revenues totaled $816.4 million, a decrease of 2.5% compared to $837.0 million in the prior year [13][20] - Gross profit for the nine-month period was $518.3 million, with a gross margin of 63.5%, down from 67.1% in the prior year [13][20] - Net income for the nine months was $69.0 million, or $1.18 per diluted share, compared to $63.7 million and $1.10 in the prior year [13][20] Strategic Developments - The company successfully implemented its ERP system and operationalized distribution centers in India, concluding a multi-year separation program [3][5] - Embecta is focused on diversifying its product offerings, including contracts with pharmaceutical companies for co-packaging pen needles with generic GLP-1 drugs [5][8] - The company has made significant progress in its brand transition program in the U.S. and Canada, expected to be largely complete by the end of fiscal year 2025 [5][8] Financial Guidance - The updated fiscal year 2025 guidance includes expected reported revenues of $1,078 - $1,085 million, with adjusted earnings per diluted share projected at $2.90 - $2.95 [14][19] - The company anticipates adjusted gross margins of 63.25% - 63.50% and adjusted operating margins of 30.75% - 31.00% for the fiscal year [14][19] Balance Sheet and Liquidity - As of June 30, 2025, the company had approximately $233.6 million in cash and equivalents, with total debt principal outstanding at $1.489 billion [15][21] - The company reduced its debt by approximately $52.4 million during Q3 2025, achieving its fiscal year 2025 debt reduction target with one quarter remaining [8][15]

PARSIPPANY, N.J., July 24, 2025 (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 third quarter 2025 financial results, provide an operational update, and host a question and answer session, at 8:00 a.m. Eastern Time (ET) on Friday, August 8, 2025. Those who would like to participate may access the live webcast here, or acc ...

Summary of Embecta (EMBC) FY Conference Call - June 10, 2025 Company Overview - **Company**: Embecta (formerly part of Becton Dickinson's diabetes care business) - **Revenue**: Approximately $1.1 billion - **Product Categories**: - Pen needles - Conventional syringes - Safety products for injections - **Geographic Revenue Distribution**: - 50% from the US - ~30% from Europe, Middle East, and Africa - ~20% from Asia Pacific (including China) - ~5% from Latin America - **Business Model**: Focused on single-use disposable products for diabetes management, with a stable and recurring revenue base [4][5][6] Financial Performance and Projections - **Historical Performance**: - Revenue growth from 2022 to 2024 was around 1.3% CAGR, exceeding initial expectations of flat growth [11] - Adjusted EBITDA margins improved to 31.4%, surpassing the target of 30% despite facing inflationary pressures [13] - **Future Projections (2025-2028)**: - Expected constant currency revenue CAGR remains flattish, with a target of low single-digit growth [15] - Projected cumulative free cash flow of at least $600 million from 2026 to 2028, with plans to reduce debt by $450 million to $500 million during this period [15][49] - **Challenges**: - Decline in conventional syringe business in the US, projected to drop from $90 million in 2019 to around $35 million by 2025 [18] - Impact of pharmacy closures affecting inventory purchases and revenue [38] Growth Opportunities - **GLP-1 Market**: - Identified as the single biggest growth opportunity, with expectations for multi-dose pen injectors to replace single-use auto injectors [30][31] - Anticipated market opportunity of at least $100 million by 2033, with potential revenue contributions starting as early as 2026 [32][33] - **New Product Revenue Streams**: - Entering distribution agreements for products like blood glucose monitors and insulin pumps to diversify offerings [35] Operational Insights - **Manufacturing and Supply Chain**: - Transitioning to a new ERP system and establishing independent distribution networks post-spin from Becton Dickinson [8][9] - Current gross margins around 63%, with expectations for slight declines due to tariffs and increased R&D expenses [40][41] - **Debt Management**: - Current net leverage at 3.7 times, with a goal to reduce it to around 2 times by 2028 [48][49] Market Dynamics - **Geographic Growth**: - Emerging markets expected to grow at mid-single digits, while US business projected to see low single-digit declines [26][27] - **Impact of Formulary Changes**: - Generally viewed as beneficial if they make insulin more affordable for patients [25] Conclusion - **Investor Sentiment**: - Positive reception post-Analyst Day, with a focus on cautious and achievable financial projections [54][55] - **Future Outlook**: - The company aims to leverage its free cash flow capabilities to enhance its product portfolio and maintain stable growth despite market challenges [10][55]

Summary of the Conference Call Company Overview - **Company Name**: Inbecta - **Background**: Inbecta was spun out from Becton Dickinson's diabetes business on April 1, 2022, and has been a public company for over three years. The company generates approximately $1 billion in revenue and operates in around 140 countries with three main product categories: pen needles, safety products, and syringes [3][4]. Financial Performance and Growth Drivers - **Revenue Composition**: About 85% of Inbecta's revenue comes from pen needles and safety products, which have been growing at a rate of 2% to 2.5% over the past few years [4]. - **Financial Goals**: The company set a revenue CAGR target from 2022 to 2024 that was expected to be flat, with an adjusted EBITDA margin of around 30%. Inbecta exceeded both metrics during this period despite facing significant inflationary impacts [5][6]. - **Future Projections**: The core injection business is projected to experience a 1% to 2% CAGR decline over the long-range planning (LRP) period, primarily due to pressures in the US syringe business and a transition to other technologies [7][9]. Market Dynamics - **Syringe Business Challenges**: The US syringe business is under pressure, with expectations that revenue from this segment could decline significantly by 2028 [10]. - **Emerging Markets Growth**: Emerging markets, which represent about 20% of the business, are expected to grow at mid-single digits, while developed markets may see slight declines [12]. New Revenue Streams and Product Development - **New Product Opportunities**: Inbecta is focusing on leveraging its manufacturing capabilities and distribution agreements to introduce new products, including blood glucose monitors (BGMs), insulin pumps, and ultrasound products [15][17][27]. - **GLP-1 Market Potential**: The company is exploring partnerships with generic pharmaceutical companies for GLP-1 products, which could represent a $100 million annual market opportunity by 2033 [20][21]. Financial Strategy and Cash Flow - **Free Cash Flow Generation**: Inbecta anticipates generating approximately $600 million in cumulative free cash flow over the LRP period, with plans to pay down at least $110 million in debt in 2025 [35][36]. - **Debt Management**: The company aims to reduce its net leverage to around three times by the end of 2025, with potential for further reductions by 2028 [39][40]. Margin and Cost Considerations - **Operating Margin Decline**: The adjusted operating margin is expected to decline by approximately 125 basis points due to incremental tariffs and increased R&D expenses related to sourcing cannulas from multiple suppliers [28][29][31]. - **Tariff Impact**: Incremental tariffs are estimated to impact the business by $9 million to $10 million annually, but most products are largely exempt from tariffs due to medical necessity [43]. Key Takeaways - **Underappreciated Aspects**: The free cash flow capabilities of Inbecta have been masked by the complexities of separation from Becton Dickinson. The company is poised for growth through new product introductions and strategic partnerships [45][46].

Summary of Embecta (EMBC) 2025 Investor Day Company Overview - **Company**: Embecta (EMBC) - **Event**: 2025 Investor Day held on May 22, 2025 - **Background**: Embecta is the world's leading producer of pen needles and insulin syringes, having spun off from BD in 2022, with a focus on diabetes care products [8][9][10] Industry Insights - **Diabetes Prevalence**: Approximately 589 million adults aged 20-79 are living with diabetes, projected to rise to 853 million by 2050. The global prevalence rate is expected to increase from 10% in 2021 to 13% by 2050 [27][28] - **Emerging Markets**: The majority of new diabetes cases are expected to occur in emerging markets, with significant growth in insulin therapy adoption [29][30] Key Financial Metrics - **Revenue Composition**: Over 80% of Embecta's revenue comes from seven key markets, with the US accounting for 54% of total revenue. The company holds significant market shares in pen needles (50%), safety pen needles (60%), and insulin syringes (40%) [15][11][12] - **Production Capacity**: Embecta produces over 8 billion units annually across three highly automated plants, with room for expansion [13][12] Strategic Priorities 1. **Strengthening Core Business**: Focus on seamless brand transition and maintaining leadership in insulin injection devices [23] 2. **Expanding Product Portfolio**: Introduction of market-appropriate products leveraging manufacturing expertise [24] 3. **Increasing Financial Flexibility**: Plans to pay down approximately $110 million in debt during 2025 and enhance financial agility [25] Market Dynamics - **Product Demand**: Pen needles and safety pen needles account for approximately 84% of total revenue, with a stable outlook despite a decline in syringe usage due to a shift towards insulin pens [17][18] - **Commercial Strategy**: A comprehensive approach in the US market, focusing on retail pharmacies, mail, long-term care, and government customers [54][55] International Strategy - **Global Presence**: Embecta operates in key international markets, including LATAM, EMEA, and Asia, with a strong infrastructure to support local needs [85][86] - **Market Engagement**: Strong relationships with healthcare providers and direct engagement with patients to reinforce education and adherence [88][90] Product Differentiation - **Pen Needles**: Unique features include contoured needle bases and ultra-thin wall technology, enhancing user experience and confidence in insulin delivery [42][44] - **Safety Products**: Safety pen needles and syringes designed to reduce the risk of needle stick injuries, with a strong reputation for quality and reliability [48][49] Future Outlook - **Growth Opportunities**: Anticipated growth in emerging markets, particularly in China, where a significant number of people remain undiagnosed [94][95] - **Long-term Vision**: Transitioning from a focused insulin delivery company to a diversified medical supplies company by 2028 and beyond [22][21] Conclusion - **Sustainable Success**: Embecta is well-positioned for future growth through strategic initiatives, strong market presence, and a commitment to improving diabetes care globally [25][49]

Analyst & Investor Day May 22, 2025 New York, New York 1 Welcome to Analyst & Investor Day Pravesh Khandelwal Vice President, Investor Relations 2 2 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 ...