Financial Data and Key Metrics Changes - In the first quarter of fiscal year 2026, the company generated approximately $261 million in revenue, reflecting a 0.3% decline year-over-year on an as-reported basis, or a 2% decline on an adjusted constant currency basis [15] - GAAP gross profit and margin for the first quarter totaled $161.7 million and 61.9%, compared to $151.7 million and 60% in the prior year period [19] - GAAP net income and earnings per diluted share were $44.1 million and $0.74 during the first quarter, compared to 0 in the prior year period [22] Business Line Data and Key Metrics Changes - Adjusted constant currency pen needle revenue declined approximately 4.4%, while syringe revenue grew by approximately 5.3% and safety product revenue grew approximately 7.3% [17] - Contract manufacturing revenue declined approximately 16.7% due to the continued insourcing of these products by Becton Dickinson [18] Market Data and Key Metrics Changes - U.S. revenue for the quarter totaled approximately $131 million, reflecting a year-over-year decline of 7.6% on an adjusted constant currency basis [15] - International revenue for the first quarter totaled approximately $130 million, representing an increase of 8.4% on a reported basis and an increase of 4.6% on an adjusted constant currency basis, driven by strength across EMEA and Latin America [16] Company Strategy and Development Direction - The company is focused on transitioning to a broader medical supplies company and drug delivery partner, building on its foundation as a leader in global insulin delivery [8] - The brand transition initiative aims to establish Embecta as an independent company, with over 95% of U.S. and Canadian revenue transitioned to the Embecta brand [9] - The company is advancing its GLP-1 strategy, collaborating with over 30 pharmaceutical partners, and expects initial generic GLP-1 launches in markets such as Canada, Brazil, China, and India beginning in calendar year 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management expects to be closer to the lower end of the financial guidance ranges due to incremental U.S. pricing headwinds, while the international business outlook has improved [18][25] - The company anticipates a recovery in China in the second half of the year, with ongoing market dynamics and geopolitical factors impacting performance [32] Other Important Information - The company generated approximately $17 million in free cash flow during the first quarter and repaid approximately $38 million of outstanding debt, reducing net leverage to approximately 2.8 times [24] - The company reaffirmed its financial guidance for fiscal year 2026, expecting revenue to be flat to down 2% compared to 2025 levels [25] Q&A Session Summary Question: Can you provide insights on U.S. business dynamics, pricing impacts, and the expected recovery in China? - Management noted a year-over-year decline in U.S. revenue driven by lower pricing and volume, with channel dynamics impacting results. They expect a recovery in China in the second half of the year [30][32] Question: What factors contributed to the strength in international markets? - Management attributed the growth in international markets to superior execution, particularly in Latin America, where a new large customer has driven growth [42][43] Question: Can you elaborate on the GLP-1 opportunity and the impact of new oral therapies? - Management remains confident in the GLP-1 opportunity, noting that injectables have better weight loss profiles and that the market for orals is expanding rather than pulling patients away from injectables [36][39]