Embecta (US:EMBC) Globenewswireยท2025-11-25 11:30Core Insights - The company reported a decrease in revenue for the fourth quarter and the full fiscal year 2025, primarily due to advanced distributor ordering and ongoing business dynamics in China [2][10][11] - Despite the revenue decline, the company achieved higher profitability metrics, including increased GAAP operating margin and net income year over year [3][10] - The company completed the first phase of its strategic roadmap and initiated the second phase focused on growth, operational efficiency, and debt reduction [3][9] Fourth Quarter Fiscal Year 2025 Financial Highlights - Reported revenues were $264.0 million, down 7.7% from $286.1 million in the prior year [6][10] - U.S. revenues decreased by 15.2%, while international revenues increased by 2.8% on a reported basis [6][8] - Gross profit was $158.5 million with a margin of 60.0%, compared to $173.8 million and 60.7% in the prior year [6][19] - Net income was $26.4 million, with diluted earnings per share of $0.45, compared to $14.6 million and $0.25 in the prior year [6][19] Twelve Months Ended September 30 Fiscal Year 2025 Financial Highlights - Reported revenues totaled $1,080.4 million, down 3.8% from $1,123.1 million in the previous year [11][19] - U.S. revenues decreased by 4.6%, while international revenues decreased by 2.8% on a reported basis [11][19] - Gross profit was $676.8 million with a margin of 62.6%, compared to $735.2 million and 65.5% in the prior year [11][19] - Net income was $95.4 million, with diluted earnings per share of $1.62, compared to $78.3 million and $1.34 in the prior year [11][19] Strategic Initiatives and Future Outlook - The company aims to strengthen its core business and expand its product portfolio, particularly in the GLP-1 strategy [9][12] - Fiscal year 2026 guidance anticipates reported revenues between $1,071 million and $1,093 million, with an expected revenue growth of -0.9% to 1.1% [12][13] - The company plans to maintain a strong adjusted operating margin of 29.0% to 30.0% in fiscal year 2026 [12][13] Balance Sheet and Liquidity - As of September 30, 2025, the company had $228.6 million in cash and equivalents and $1.417 billion in debt principal outstanding [15][19] - The company repaid approximately $72.4 million of outstanding principal under its term loan B facility during the fourth quarter [9][15] - A quarterly cash dividend of $0.15 per share was declared, payable on December 18, 2025 [16]