Embecta Corp. Reports Third Quarter Fiscal 2025 Financial Results
Embecta (NASDAQ:EMBC) reported strong Q3 fiscal 2025 results with revenues of $295.5 million, up 8.4% year-over-year. The company achieved notable growth in both U.S. (11.6%) and International (5.0%) markets. Key financial metrics include adjusted operating income of $109.1 million with a 36.9% margin, and adjusted earnings per share of $1.12, up from $0.74 in the prior year.
The company completed several strategic initiatives, including implementing their ERP system and operationalizing distribution centers in India. Embecta also made progress in co-packaging agreements for GLP-1 drugs and reduced debt by $52.4 million during Q3, bringing year-to-date debt reduction to $112 million. The company declared a quarterly dividend of $0.15 per share and raised its fiscal 2025 guidance.
Embecta (NASDAQ:EMBC) ha riportato risultati solidi nel terzo trimestre fiscale 2025 con ricavi pari a 295,5 milioni di dollari, in crescita dell'8,4% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa sia nel mercato statunitense (11,6%) che in quello internazionale (5,0%). I principali indicatori finanziari includono un utile operativo rettificato di 109,1 milioni di dollari con un margine del 36,9% e un utile rettificato per azione di 1,12 dollari, in aumento rispetto a 0,74 dollari dell'anno precedente.
La società ha completato diverse iniziative strategiche, tra cui l'implementazione del sistema ERP e l'avvio operativo dei centri di distribuzione in India. Embecta ha inoltre fatto progressi negli accordi di co-packaging per farmaci GLP-1 e ha ridotto il debito di 52,4 milioni di dollari nel terzo trimestre, portando la riduzione del debito da inizio anno a 112 milioni di dollari. La società ha dichiarato un dividendo trimestrale di 0,15 dollari per azione e ha rivisto al rialzo le previsioni per il 2025 fiscale.
Embecta (NASDAQ:EMBC) reportó sólidos resultados en el tercer trimestre fiscal 2025 con ingresos de 295,5 millones de dólares, un aumento del 8,4% interanual. La compañía logró un crecimiento destacado tanto en el mercado estadounidense (11,6%) como en el internacional (5,0%). Las métricas financieras clave incluyen un ingreso operativo ajustado de 109,1 millones de dólares con un margen del 36,9%, y un beneficio ajustado por acción de 1,12 dólares, superior a los 0,74 dólares del año anterior.
La empresa completó varias iniciativas estratégicas, incluyendo la implementación de su sistema ERP y la puesta en marcha de centros de distribución en India. Embecta también avanzó en acuerdos de coempaque para medicamentos GLP-1 y redujo su deuda en 52,4 millones de dólares durante el tercer trimestre, alcanzando una reducción acumulada de deuda de 112 millones de dólares en lo que va del año. La compañía declaró un dividendo trimestral de 0,15 dólares por acción y elevó su guía para el año fiscal 2025.
Embecta (NASDAQ:EMBC)는 2025 회계연도 3분기 실적을 발표하며 매출액 2억 9,550만 달러로 전년 대비 8.4% 증가했습니다. 미국 시장에서 11.6%, 해외 시장에서 5.0%의 두드러진 성장을 기록했습니다. 주요 재무 지표로는 조정 영업이익 1억 910만 달러와 36.9%의 마진, 그리고 조정 주당순이익 1.12달러로 전년 0.74달러에서 상승했습니다.
회사는 ERP 시스템 도입과 인도 내 유통 센터 운영 개시 등 여러 전략적 이니셔티브를 완료했습니다. 또한 GLP-1 약물의 공동 포장 계약에서 진전을 이루었으며, 3분기 동안 부채를 5,240만 달러 감축하여 연초 이후 부채 감축액을 1억 1,200만 달러로 늘렸습니다. 분기별 배당금으로 주당 0.15달러를 선언했으며 2025 회계연도 가이던스를 상향 조정했습니다.
Embecta (NASDAQ:EMBC) a publié de solides résultats pour le troisième trimestre fiscal 2025 avec un chiffre d'affaires de 295,5 millions de dollars, en hausse de 8,4 % par rapport à l'année précédente. L'entreprise a enregistré une croissance notable tant sur le marché américain (11,6 %) qu'à l'international (5,0 %). Les principaux indicateurs financiers comprennent un résultat opérationnel ajusté de 109,1 millions de dollars avec une marge de 36,9 %, ainsi qu'un bénéfice ajusté par action de 1,12 dollar, en hausse par rapport à 0,74 dollar l'année précédente.
La société a mené à bien plusieurs initiatives stratégiques, notamment la mise en place de son système ERP et la mise en service de centres de distribution en Inde. Embecta a également progressé dans les accords de co-emballage pour les médicaments GLP-1 et a réduit sa dette de 52,4 millions de dollars au cours du troisième trimestre, portant la réduction de dette depuis le début de l'année à 112 millions de dollars. L'entreprise a déclaré un dividende trimestriel de 0,15 dollar par action et relevé ses prévisions pour l'exercice 2025.
Embecta (NASDAQ:EMBC) meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit Einnahmen von 295,5 Millionen US-Dollar, was einem Anstieg von 8,4 % im Jahresvergleich entspricht. Das Unternehmen erzielte bemerkenswertes Wachstum sowohl auf dem US-Markt (11,6 %) als auch international (5,0 %). Wichtige Finanzkennzahlen sind ein bereinigtes Betriebsergebnis von 109,1 Millionen US-Dollar mit einer Marge von 36,9 % sowie ein bereinigtes Ergebnis je Aktie von 1,12 US-Dollar, gegenüber 0,74 US-Dollar im Vorjahr.
Das Unternehmen hat mehrere strategische Initiativen abgeschlossen, darunter die Implementierung ihres ERP-Systems und die Inbetriebnahme von Vertriebszentren in Indien. Embecta machte auch Fortschritte bei Co-Packaging-Vereinbarungen für GLP-1-Medikamente und reduzierte die Schulden im dritten Quartal um 52,4 Millionen US-Dollar, womit die Schuldenreduzierung seit Jahresbeginn auf 112 Millionen US-Dollar steigt. Das Unternehmen erklärte eine Quartalsdividende von 0,15 US-Dollar pro Aktie und hob seine Prognose für das Geschäftsjahr 2025 an.
- Q3 revenue increased 8.4% to $295.5 million year-over-year
- Strong U.S. revenue growth of 11.6%
- Adjusted EPS grew 51.4% to $1.12 from $0.74 year-over-year
- Successful debt reduction of $112 million year-to-date
- Raised fiscal 2025 guidance for key financial metrics
- Secured contracts for co-packaging with potential generic GLP-1 drugs
- Expected cost savings of $7-8 million in H2 2025 from restructuring
- Nine-month revenues declined 2.5% to $816.4 million
- Gross margin decreased to 66.7% from 69.8% year-over-year
- U.S. revenues decreased 0.6% for the nine-month period
- International revenues fell 4.5% for the nine-month period
- Significant debt load of $1.489 billion still outstanding
Insights
Embecta reports strong Q3 with 8.4% revenue growth and higher margins, leading to raised FY2025 guidance despite YTD revenue decline.
Embecta delivered exceptionally strong Q3 results with revenues of
The U.S. segment showed particularly robust performance with
Profitability metrics showed substantial improvement. Q3 adjusted operating margin expanded to
Management has successfully completed several strategic initiatives, including the global ERP transition and implementation of distribution infrastructure in India, marking the conclusion of their separation program from BD. The company is also advancing their brand transition program in North America and expanding their participation in the GLP-1 market through co-packaging partnerships.
Embecta has strengthened its financial position by paying down approximately
Based on this strong performance, management has raised guidance for fiscal 2025, now expecting:
- Revenue of
$1,078-$1,085 million (narrowed range) - Adjusted gross margin of
63.25-63.50% (improved) - Adjusted operating margin of
30.75-31.00% (improved) - Adjusted EPS of
$2.90-$2.95 (raised from$2.70-$2.90 ) - Adjusted EBITDA margin of
37.25-37.50% (improved)
The increased guidance reflects management's confidence in continued strong performance despite acknowledging an "increasingly complex and dynamic geopolitical environment." The quarter shows Embecta executing well on both operational efficiency and strategic initiatives, positioning the company to achieve its long-term goal of becoming a diversified medical supplies company.
PARSIPPANY, N.J., Aug. 08, 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, given the year-to-date performance and our outlook for the remainder of the year, we are tightening and raising our fiscal 2025 outlook for key financial metrics," said Devdatt (Dev) Kurdikar, President and Chief Executive Officer of embecta.
Mr. Kurdikar added, "This quarter, we implemented our ERP system and operationalized our own distribution centers and shared services in India, marking the successful conclusion of a multi-year, complex separation program. We remain focused on executing on the value creation drivers we highlighted at our recent Analyst and Investor Day, including our long-term goal of transforming embecta into a diversified medical supplies company."
Third Quarter Fiscal Year 2025 Financial Highlights:
- Revenues of
$295.5 million , up8.4% on a reported basis; up8.0% on an adjusted constant currency basis- U.S. revenues increased
11.6% on both a reported and adjusted constant currency basis - International revenues increased
5.0% on a reported basis, and4.2% on an adjusted constant currency basis
- U.S. revenues increased
- Gross profit and margin of
$197.1 million and66.7% , compared to$190.1 million and69.8% in the prior year period - Adjusted gross profit and margin of
$198.6 million and67.2% , compared to$190.3 million and69.8% in the prior year period - Operating income and margin of
$94.0 million and31.8% , compared to$55.9 million and20.5% in the prior year period - Adjusted operating income and margin of
$109.1 million and36.9% , compared to$83.3 million and30.6% in the prior year period - Net income and earnings per diluted share of
$45.5 million and$0.78 , compared to$14.7 million and$0.25 in the prior year period - Adjusted net income and adjusted earnings per diluted share of
$65.5 million and$1.12 , compared to$43.0 million and$0.74 in the prior year period - Adjusted EBITDA and margin of
$131.0 million and44.3% , compared to$99.2 million and36.4% in the prior year period - Announced a dividend of
$0.15 per share
Nine Months Ended June 30 2025 Financial Highlights:
- Revenues of
$816.4 million , down2.5% on a reported basis; down1.7% on an adjusted constant currency basis- U.S. revenues decreased
0.6% on both a reported and adjusted constant currency basis - International revenues decreased
4.5% on a reported basis, and2.7% on an adjusted constant currency basis
- U.S. revenues decreased
- Gross profit and margin of
$518.3 million and63.5% , compared to$561.4 million and67.1% in the prior year period - Adjusted gross profit and margin of
$527.8 million and64.6% , compared to$562.4 million and67.2% in the prior year period - Operating income and margin of
$185.6 million and22.7% , compared to$140.6 million and16.8% in the prior year period - Adjusted operating income and margin of
$271.0 million and33.2% , compared to$235.7 million and28.2% in the prior year period - Net income and earnings per diluted share of
$69.0 million and$1.18 , compared to$63.7 million and$1.10 in the prior year period - Adjusted net income and adjusted earnings per diluted share of
$144.5 million and$2.46 , compared to$117.2 million and$2.02 in the prior year period - Adjusted EBITDA and margin of
$325.4 million and39.9% , compared to$280.4 million and33.5% in the prior year period
Strategic Highlights:
- Strengthen core business
- Completed the global transition to our ERP system, shared service capabilities, and distribution infrastructure in India, which had been the only remaining market operating on Becton, Dickinson and Company (“BD”) systems
- Significantly advanced the brand transition program in the U.S. and Canada, which is expected to be substantially complete by the end of fiscal year 2025
- Expand product portfolio
- Signed multiple contracts and received several purchase orders from pharmaceutical companies to co-package embecta pen needles with potential generic GLP-1 drugs
- Continued to make progress on expanding availability of appropriately sized GLP-1 retail packaging for use with weekly injection therapies
- Increase financial flexibility
- Substantially completed the restructuring plan announced last quarter to streamline the organization and optimize resources. Continue to expect to generate pre-tax cost savings of between
$7 million and$8 million during the second half of fiscal year 2025 - Reduced debt during the fiscal year 2025 third quarter by paying down approximately
$52.4 million of outstanding principal under the term loan B facility that had an interest rate of 300 basis points over the secured overnight financing rate (“SOFR”), with a0.50% SOFR floor, bringing total year-to-date debt reduction to approximately$112 million , thereby achieving the Company's fiscal year 2025 debt reduction target with one quarter remaining
- Substantially completed the restructuring plan announced last quarter to streamline the organization and optimize resources. Continue to expect to generate pre-tax cost savings of between
Adjusted Constant Currency Revenue Growth is based upon Reported Revenues, adjusted to exclude, depending on the period presented, the items described in Adjusted Revenues and to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on an Adjusted constant currency revenue basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.
Third Quarter Fiscal Year 2025 Results:
Revenues by geographic region are as follows:
| Three months ended June 30, | |||||||||||||||||||||||||||||
| Dollars in millions | % Increase/(decrease) | ||||||||||||||||||||||||||||
| 2025 | 2024 | Reported Revenue Growth | Currency Impact | Adjustment Impact | Adjusted Constant Currency Revenue Growth | ||||||||||||||||||||||||
| Reported Revenues | Adjustment | Adjusted Revenues | Reported Revenues | Adjustment | Adjusted Revenues | % | |||||||||||||||||||||||
| United States | $ | 160.2 | $ | — | $ | 160.2 | $ | 143.6 | $ | — | $ | 143.6 | 11.6 | % | — | % | — | % | 11.6 | % | |||||||||
| International | 135.3 | — | 135.3 | 128.9 | — | 128.9 | 5.0 | 0.8 | — | 4.2 | |||||||||||||||||||
| Total | $ | 295.5 | $ | — | $ | 295.5 | $ | 272.5 | $ | — | $ | 272.5 | 8.4 | % | 0.4 | % | — | % | 8.0 | % | |||||||||
Revenues by product family are as follows:
| Three months ended June 30, | |||||||||||||||||||||||||||||
| Dollars in millions | % Increase/(decrease) | ||||||||||||||||||||||||||||
| 2025 | 2024 | Reported Revenue Growth | Currency Impact | Adjustment Impact | Adjusted Constant Currency Revenue Growth | ||||||||||||||||||||||||
| Reported Revenues | Adjustment | Adjusted Revenues | Reported Revenues | Adjustment | Adjusted Revenues | % | |||||||||||||||||||||||
| Pen Needles | $ | 216.9 | $ | — | $ | 216.9 | $ | 201.3 | $ | — | $ | 201.3 | 7.7 | % | 0.9 | % | — | % | 6.8 | % | |||||||||
| Syringes | 35.1 | — | 35.1 | 31.7 | — | 31.7 | 10.7 | (3.8 | ) | — | 14.5 | ||||||||||||||||||
| Safety | 34.8 | — | 34.8 | 32.4 | — | 32.4 | 7.4 | 0.9 | — | 6.5 | |||||||||||||||||||
| Other1 | 3.2 | — | 3.2 | 3.5 | — | 3.5 | (8.6 | ) | (2.9 | ) | — | (5.7 | ) | ||||||||||||||||
| Contract Manufacturing | 5.5 | — | 5.5 | 3.6 | — | 3.6 | 52.8 | 5.6 | — | 47.2 | |||||||||||||||||||
| Total | $ | 295.5 | $ | — | $ | 295.5 | $ | 272.5 | $ | — | $ | 272.5 | 8.4 | % | 0.4 | % | — | % | 8.0 | % | |||||||||
1Other includes product sales for swabs and other accessories.
The Company's revenues increased by
Revenues by geographic regions are as follows:
| Nine months ended June 30, | |||||||||||||||||||||||||||||
| Dollars in millions | % Increase/(decrease) | ||||||||||||||||||||||||||||
| 2025 | 2024 | Reported Revenue Growth | Currency Impact | Adjustment Impact | Adjusted Constant Currency Revenue Growth | ||||||||||||||||||||||||
| Reported Revenues | Adjustment | Adjusted Revenues | Reported Revenues | Adjustment | Adjusted Revenues | % | |||||||||||||||||||||||
| United States | $ | 437.1 | $ | — | $ | 437.1 | $ | 439.8 | $ | — | $ | 439.8 | (0.6 | )% | — | % | — | % | (0.6 | )% | |||||||||
| International | 379.3 | — | 379.3 | 397.2 | — | 397.2 | (4.5 | ) | (1.8 | ) | — | (2.7 | ) | ||||||||||||||||
| Total | $ | 816.4 | $ | — | $ | 816.4 | $ | 837.0 | $ | — | $ | 837.0 | (2.5 | )% | (0.8 | )% | — | % | (1.7 | )% | |||||||||
Revenues by product family are as follows:
| Nine months ended June 30, | |||||||||||||||||||||||||||||
| Dollars in millions | % Increase/(decrease) | ||||||||||||||||||||||||||||
| 2025 | 2024 | Reported Revenue Growth | Currency Impact | Adjustment Impact | Adjusted Constant Currency Revenue Growth | ||||||||||||||||||||||||
| Reported Revenues | Adjustment | Adjusted Revenues | Reported Revenues | Adjustment | Adjusted Revenues | % | |||||||||||||||||||||||
| Pen Needles | $ | 596.3 | $ | — | $ | 596.3 | $ | 629.3 | $ | — | $ | 629.3 | (5.2 | )% | (0.4 | )% | — | % | (4.8 | )% | |||||||||
| Syringes | 92.3 | — | 92.3 | 92.5 | — | 92.5 | (0.2 | ) | (4.3 | ) | — | 4.1 | |||||||||||||||||
| Safety | 103.2 | — | 103.2 | 96.5 | — | 96.5 | 6.9 | (0.3 | ) | — | 7.2 | ||||||||||||||||||
| Other2 | 9.9 | — | 9.9 | 10.6 | — | 10.6 | (6.6 | ) | (2.8 | ) | — | (3.8 | ) | ||||||||||||||||
| Contract Manufacturing | 14.7 | — | 14.7 | 8.1 | — | 8.1 | 81.5 | 1.2 | — | 80.3 | |||||||||||||||||||
| Total | $ | 816.4 | $ | — | $ | 816.4 | $ | 837.0 | $ | — | $ | 837.0 | (2.5 | )% | (0.8 | )% | — | % | (1.7 | )% | |||||||||
2Other includes product sales for swabs and other accessories.
The Company's revenues decreased by
Fiscal Year 2025 Updated Financial Guidance:
For fiscal year 2025, the Company now expects:
| Dollars in millions, except percentages and per share data | Current | Previous(1) | ||
| Reported Revenues | ||||
| Reported Revenue Growth (%) | (4.0)% - (3.4)% | (4.4)% - (2.9)% | ||
| Impact of F/X (%) | (0.8)% | (0.8)% | ||
| Impact of Italian Payback Measure(2)(%) | 0.4% | 0.4% | ||
| Adjusted Constant Currency Revenue Growth (%) | (3.6)% - (3.0)% | (4.0)% - (2.5)% | ||
| Adjusted Gross Margin (%) | ||||
| Adjusted Operating Margin (%) | ||||
| Adjusted Earnings per Diluted Share | ||||
| Adjusted EBITDA Margin (%) |
| (1) | Previous guidance was issued on May 9, 2025 and reaffirmed on May 22, 2025. | |
| (2) | Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015 recorded in Revenues. | |
We are unable to present a quantitative reconciliation of our expected adjusted gross margin, expected adjusted operating margin, expected adjusted earnings per diluted share, expected adjusted EBITDA and our expected adjusted EBITDA margin as we are unable to predict with reasonable certainty, and without unreasonable effort the impact and timing of any one-time items. The financial impact of these one-time items is uncertain and is dependent on various factors, including timing, and could be material to our Condensed Consolidated Statements of Income.
Balance Sheet, Liquidity and Other Updates
As of June 30, 2025, the Company had approximately
The Company’s Board of Directors declared a quarterly cash dividend of
Third Quarter Fiscal Year 2025 Earnings Conference Call:
Management will host a conference call at 8:00 a.m. Eastern Time (ET) on August 8, 2025 to discuss the results of the quarter, provide an update on its business, and host a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company’s website at investors.embecta.com.
A webcast replay of the call will be available beginning at 11:00 a.m. ET on August 8, 2025, via the embecta investor relations website and archived on the website for one year.
| Condensed Consolidated Statements of Income Embecta Corp. (Unaudited, in millions, except per share data) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues | $ | 295.5 | $ | 272.5 | $ | 816.4 | $ | 837.0 | |||||||
| Cost of products sold | 98.4 | 82.4 | 298.1 | 275.6 | |||||||||||
| Gross Profit | $ | 197.1 | $ | 190.1 | $ | 518.3 | $ | 561.4 | |||||||
| Operating expenses: | |||||||||||||||
| Selling and administrative expense | 84.4 | 85.7 | 245.1 | 268.3 | |||||||||||
| Research and development expense | 4.4 | 20.4 | 32.7 | 59.0 | |||||||||||
| Other operating expenses | 14.3 | 28.1 | 54.9 | 93.5 | |||||||||||
| Total Operating Expenses | $ | 103.1 | $ | 134.2 | $ | 332.7 | $ | 420.8 | |||||||
| Operating Income | $ | 94.0 | $ | 55.9 | $ | 185.6 | $ | 140.6 | |||||||
| Interest expense, net | (26.6 | ) | (27.8 | ) | (81.2 | ) | (83.3 | ) | |||||||
| Other income (expense), net | 4.8 | (1.1 | ) | 2.9 | (6.1 | ) | |||||||||
| Income Before Income Taxes | $ | 72.2 | $ | 27.0 | $ | 107.3 | $ | 51.2 | |||||||
| Income tax provision (benefit) | 26.7 | 12.3 | 38.3 | (12.5 | ) | ||||||||||
| Net Income | $ | 45.5 | $ | 14.7 | $ | 69.0 | $ | 63.7 | |||||||
| Net Income per common share: | |||||||||||||||
| Basic | $ | 0.78 | $ | 0.25 | $ | 1.18 | $ | 1.11 | |||||||
| Diluted | $ | 0.78 | $ | 0.25 | $ | 1.18 | $ | 1.10 | |||||||
| Condensed Consolidated Balance Sheets Embecta Corp. (in millions, except share and per share data) | |||||||
| June 30, 2025 | September 30, 2024 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and equivalents | $ | 230.6 | $ | 267.5 | |||
| Restricted cash | 3.0 | 6.7 | |||||
| Trade receivables, net (net of allowance for doubtful accounts of | 182.8 | 193.0 | |||||
| Inventories: | |||||||
| Materials | 47.6 | 40.4 | |||||
| Work in process | 13.2 | 4.8 | |||||
| Finished products | 129.1 | 126.3 | |||||
| Total Inventories | $ | 189.9 | $ | 171.5 | |||
| Amounts due from Becton, Dickinson and Company | 10.1 | 53.8 | |||||
| Prepaid expenses and other | 65.1 | 68.5 | |||||
| Total Current Assets | $ | 681.5 | $ | 761.0 | |||
| Property, Plant and Equipment, Net | 262.7 | 290.4 | |||||
| Goodwill and Intangible Assets | 22.7 | 23.7 | |||||
| Deferred Income Taxes and Other Assets | 190.4 | 210.2 | |||||
| Total Assets | $ | 1,157.3 | $ | 1,285.3 | |||
| Liabilities and Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 61.9 | $ | 91.0 | |||
| Accrued expenses | 129.1 | 134.2 | |||||
| Amounts due to Becton, Dickinson and Company | 19.5 | 42.5 | |||||
| Salaries, wages and related items | 45.0 | 66.7 | |||||
| Current debt obligations | 9.5 | 9.5 | |||||
| Current finance lease liabilities | 3.4 | 3.4 | |||||
| Income taxes | 7.1 | 26.7 | |||||
| Total Current Liabilities | $ | 275.5 | $ | 374.0 | |||
| Deferred Income Taxes and Other Liabilities | 63.5 | 54.1 | |||||
| Long-Term Debt | 1,458.8 | 1,565.3 | |||||
| Non Current Finance Lease Liabilities | 29.1 | 30.2 | |||||
| Contingencies | |||||||
| Embecta Corp. Equity | |||||||
| Common stock, Authorized - 250,000,000 Issued and outstanding - 58,473,127 as of June 30, 2025 and 57,707,285 as of September 30, 2024 | $ | 0.6 | $ | 0.6 | |||
| Additional paid-in capital | 70.2 | 52.5 | |||||
| Accumulated deficit | (457.1 | ) | (498.6 | ) | |||
| Accumulated other comprehensive loss | (283.3 | ) | (292.8 | ) | |||
| Total Equity | (669.6 | ) | (738.3 | ) | |||
| Total Liabilities and Equity | $ | 1,157.3 | $ | 1,285.3 | |||
| Condensed Consolidated Statements of Cash Flows Embecta Corp. (Unaudited, in millions) | |||||||
| Nine Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Operating Activities | |||||||
| Net Income | $ | 69.0 | $ | 63.7 | |||
| Adjustments to net income to derive net cash provided by operating activities: | |||||||
| Depreciation and amortization | 27.6 | 26.7 | |||||
| Amortization of debt issuance costs | 6.5 | 4.8 | |||||
| Impairment of property, plant and equipment | 10.6 | — | |||||
| Amortization of cloud computing arrangements | 7.8 | 3.8 | |||||
| Stock-based compensation | 22.1 | 20.1 | |||||
| Deferred income taxes | 11.9 | (42.9 | ) | ||||
| Change in operating assets and liabilities: | |||||||
| Trade receivables, net | 11.7 | (156.2 | ) | ||||
| Inventories | (11.3 | ) | (32.8 | ) | |||
| Due from/due to Becton, Dickinson and Company | 19.8 | 49.2 | |||||
| Prepaid expenses and other | 2.6 | 53.7 | |||||
| Accounts payable, accrued expenses and other current liabilities | (57.2 | ) | 34.5 | ||||
| Income and other net taxes payable | (16.9 | ) | 7.2 | ||||
| Other assets and liabilities, net | 3.5 | (22.7 | ) | ||||
| Net cash provided by operating activities | $ | 107.7 | $ | 9.1 | |||
| Investing Activities | |||||||
| Capital expenditures | $ | (2.0 | ) | $ | (15.8 | ) | |
| Net cash used for investing activities | $ | (2.0 | ) | $ | (15.8 | ) | |
| Financing Activities | |||||||
| Payments on long-term debt | $ | (112.2 | ) | $ | (7.2 | ) | |
| Payments related to tax withholding for stock-based compensation | (5.7 | ) | (2.8 | ) | |||
| Payments on finance lease | (1.0 | ) | (1.0 | ) | |||
| Dividend payments | (26.2 | ) | (25.8 | ) | |||
| Net cash used for financing activities | $ | (145.1 | ) | $ | (36.8 | ) | |
| Effect of exchange rate changes on cash and equivalents and restricted cash | (1.2 | ) | (1.2 | ) | |||
| Net Change in Cash and equivalents and restricted cash | $ | (40.6 | ) | $ | (44.7 | ) | |
| Opening Cash and equivalents and restricted cash | 274.2 | 326.5 | |||||
| Closing Cash and equivalents and restricted cash | $ | 233.6 | $ | 281.8 | |||
About Non-GAAP financial measures
In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted Revenues, (ii) earnings before interest, taxes, depreciation, and amortization (“EBITDA”), (iii) Adjusted EBITDA and Adjusted EBITDA Margin, (iv) Adjusted Gross Profit and Adjusted Gross Profit Margin, (v) Adjusted Constant Currency Revenue Growth, (vi) Adjusted Operating Income and Adjusted Operating Income Margin, and (vii) Adjusted Net Income and Adjusted Earnings Per Diluted Share. These non-GAAP financial measures are indicators of our performance that are not required by, or presented in accordance with, GAAP. They are presented with the intent of providing greater transparency to financial information used by us in our financial analysis and operational decision-making. We believe that these non-GAAP measures provide meaningful information to assist investors, stockholders and other readers of our consolidated financial statements in making comparisons to our historical operating results and analyzing the underlying performance of our results of operations. However, the presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the company’s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these non-GAAP measures may not be comparable to other similarly titled measures of other companies. The Company uses non-GAAP financial measures in its operational and financial decision making, and believes that it is useful to exclude certain items in order to focus on what it regards to be a meaningful alternative representation of the underlying operating performance of the business.
For the three and nine month periods ended June 30, 2025 and 2024, the reconciliation of (1) GAAP Revenues ("Reported Revenues") to Adjusted Revenues, and (2) GAAP Net income to EBITDA and Adjusted EBITDA was as follows (unaudited, in millions):
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Reported Revenues | $ | 295.5 | $ | 272.5 | $ | 816.4 | $ | 837.0 | |||||||
| Italian payback measure | — | — | — | — | |||||||||||
| Adjusted Revenues | $ | 295.5 | $ | 272.5 | $ | 816.4 | $ | 837.0 | |||||||
| GAAP Net Income | $ | 45.5 | $ | 14.7 | $ | 69.0 | $ | 63.7 | |||||||
| Interest expense, net | 26.6 | 27.8 | 81.2 | 83.3 | |||||||||||
| Income tax benefit | 26.7 | 12.3 | 38.3 | (12.5 | ) | ||||||||||
| Depreciation and amortization | 9.2 | 8.9 | 27.6 | 26.7 | |||||||||||
| EBITDA | $ | 108.0 | $ | 63.7 | $ | 216.1 | $ | 161.2 | |||||||
| Stock-based compensation expense(1) | 5.9 | 6.5 | 22.2 | 20.4 | |||||||||||
| One-time stand up costs(2) | 11.0 | 23.1 | 29.0 | 85.0 | |||||||||||
| European regulatory initiative-related costs ("EU MDR")(3) | 0.3 | 0.1 | 0.7 | 0.3 | |||||||||||
| Business optimization and severance related costs(4) | 0.9 | 2.8 | 4.2 | 5.7 | |||||||||||
| Deferred jurisdiction adjustments in Other income (expense), net for taxes(5) | — | 0.8 | — | 4.0 | |||||||||||
| Amortization of cloud computing arrangements(6) | 2.6 | 2.2 | 7.8 | 3.8 | |||||||||||
| Costs associated with the discontinued patch pump program(7) | 2.3 | — | 45.4 | — | |||||||||||
| Adjusted EBITDA | $ | 131.0 | $ | 99.2 | $ | 325.4 | $ | 280.4 | |||||||
| Adjusted EBITDA Margin | 44.3 | % | 36.4 | % | 39.9 | % | 33.5 | % | |||||||
| (1) | Represents stock-based compensation expense incurred during the three and nine months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, | |
| (2) | One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up costs; (iii) legal costs associated with patents and trademark work; (iv) temporary headcount resources within accounting, tax, finance, human resources, regulatory and IT; and (v) one-time business integration and IT related costs primarily associated with our global ERP implementation. For the three months ended June 30, 2025, approximately | |
| (3) | Represents costs required to develop processes and systems to comply with regulations such as the EU MDR and General Data Protection Regulation ("GDPR") which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. For the three months ended June 30, 2025, | |
| (4) | Represents restructuring, business optimization, and severance related costs associated with standing up and optimizing the organization recorded in Other operating expenses excluding costs classified above within Stock-based compensation expense. | |
| (5) | Represents amounts due to BD for tax liabilities incurred in deferred closing jurisdictions where BD is considered the primary obligor. | |
| (6) | Represents amortization of implementation costs associated with cloud computing arrangements recognized in Other operating expenses. | |
| (7) | Represents costs incurred during the three and nine months ended June 30, 2025 associated with the discontinued patch pump program, excluding those program costs classified above within Depreciation and amortization and Stock-based compensation expense. The discontinued patch pump program costs are primarily one-time in nature and represent expenses that we do not view as normal operating expenses necessary to operate our core business. The costs primarily consist of severance-related costs, asset impairments, contract termination costs, and other operating costs. For the three months ended June 30, 2025, | |
For the three and nine month periods ended June 30, 2025 and 2024, the reconciliations of (1) GAAP Revenues ("Reported Revenues") to Adjusted Revenues (2) GAAP Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin, (3) GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Income Margin and (4) GAAP Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share are as follows (unaudited in millions, except per share amounts):
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Reported Revenues | $ | 295.5 | $ | 272.5 | $ | 816.4 | $ | 837.0 | |||||||
| Italian payback measure | — | — | — | — | |||||||||||
| Adjusted Revenues | $ | 295.5 | $ | 272.5 | $ | 816.4 | $ | 837.0 | |||||||
| GAAP Gross Profit | $ | 197.1 | $ | 190.1 | $ | 518.3 | $ | 561.4 | |||||||
| GAAP Gross Profit Margin | 66.7 | % | 69.8 | % | 63.5 | % | 67.1 | % | |||||||
| Stock-based compensation expense | — | — | — | 0.2 | |||||||||||
| Amortization of intangible assets(1) | 0.2 | 0.2 | 0.8 | 0.8 | |||||||||||
| One-time stand up costs(2) | 0.9 | — | 1.5 | — | |||||||||||
| EU MDR(3) | 0.1 | — | 0.3 | — | |||||||||||
| Costs associated with the discontinued patch pump program(4) | 0.3 | — | 6.9 | — | |||||||||||
| Adjusted Gross Profit | $ | 198.6 | $ | 190.3 | $ | 527.8 | $ | 562.4 | |||||||
| Adjusted Gross Profit Margin | 67.2 | % | 69.8 | % | 64.6 | % | 67.2 | % | |||||||
| (1) | Amortization of intangible assets is recorded in Cost of products sold. | |
| (2) | One-time stand-up costs incurred are primarily attributed to brand transition. | |
| (3) | Represents costs required to develop processes and systems to comply with regulations such as the EU MDR and GDPR which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. | |
| (4) | Representscosts incurred for the three and nine months ended June 30, 2025 associated with the discontinued patch pump program. These costs are primarily one-time in nature and represent expenses that we do not view as normal operating expenses necessary to operate our core business. The costs primarily consist of asset impairments and other operating costs. | |
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| GAAP Operating Income | $ | 94.0 | $ | 55.9 | $ | 185.6 | $ | 140.6 | |||||||
| GAAP Operating Income Margin | 31.8 | % | 20.5 | % | 22.7 | % | 16.8 | % | |||||||
| Amortization of intangible assets(1) | 0.2 | 0.2 | 0.8 | 0.8 | |||||||||||
| One-time stand up costs(2) | 11.0 | 23.1 | 29.0 | 85.0 | |||||||||||
| EU MDR(3) | 0.3 | 0.1 | 0.7 | 0.3 | |||||||||||
| Stock-based compensation expense(4) | 0.2 | 1.2 | 2.0 | 3.3 | |||||||||||
| Business optimization and severance related costs(5) | 1.0 | 2.8 | 4.6 | 5.7 | |||||||||||
| Costs associated with the discontinued patch pump program(7) | 2.4 | — | 48.3 | — | |||||||||||
| Adjusted Operating Income | $ | 109.1 | $ | 83.3 | $ | 271.0 | $ | 235.7 | |||||||
| Adjusted Operating Income Margin | 36.9 | % | 30.6 | % | 33.2 | % | 28.2 | % | |||||||
| GAAP Net Income | $ | 45.5 | $ | 14.7 | $ | 69.0 | $ | 63.7 | |||||||
| Adjustments: | |||||||||||||||
| GAAP Income tax benefit | 26.7 | 12.3 | 38.3 | (12.5 | ) | ||||||||||
| Amortization of intangible assets(1) | 0.2 | 0.2 | 0.8 | 0.8 | |||||||||||
| One-time stand up costs(2) | 11.0 | 23.1 | 29.0 | 85.0 | |||||||||||
| EU MDR(3) | 0.3 | 0.1 | 0.7 | 0.3 | |||||||||||
| Stock-based compensation expense(4) | 0.2 | 1.2 | 2.0 | 3.3 | |||||||||||
| Business optimization and severance related costs(5) | 1.0 | 2.8 | 4.6 | 5.7 | |||||||||||
| Deferred jurisdiction adjustments in Other income (expense), net for taxes(6) | — | 0.8 | — | 4.0 | |||||||||||
| Costs associated with the discontinued patch pump program(7) | 2.4 | — | 48.3 | — | |||||||||||
| Non-GAAP Income tax provision(8) | (21.8 | ) | (12.2 | ) | (48.2 | ) | (33.1 | ) | |||||||
| Adjusted Net Income | $ | 65.5 | $ | 43.0 | $ | 144.5 | $ | 117.2 | |||||||
| GAAP Net Income per Diluted share | $ | 0.78 | $ | 0.25 | $ | 1.18 | $ | 1.10 | |||||||
| Adjusted Net Income per Diluted share | $ | 1.12 | $ | 0.74 | $ | 2.46 | $ | 2.02 | |||||||
| Basic weighted average number of shares outstanding (in thousands) | 58,490 | 57,768 | 58,239 | 57,641 | |||||||||||
| Effect of dilutive securities: | |||||||||||||||
| Stock awards and equity units (share equivalent) | 5 | 74 | 482 | 502 | |||||||||||
| Diluted weighted average shares outstanding (in thousands) | 58,495 | 57,842 | 58,721 | 58,143 | |||||||||||
| (1) | Amortization of intangible assets is recorded in Cost of products sold. | |
| (2) | One-timestand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up costs; (iii) legal costs associated with patents and trademark work; (iv) temporary headcount resources within accounting, tax, finance, human resources, regulatory and IT; and (v) one-time business integration and IT related costs primarily associated with our global ERP implementation. For the three months ended June 30, 2025, approximately | |
| (3) | Represents costs required to develop processes and systems to comply with regulations such as the EU MDR and GDPR which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. For the three months ended June 30, 2025, | |
| (4) | Represents stock-based compensation expense recognized during the period associated with the incremental value of converted legacy BD share-based awards and one-time sign-on equity awards granted to certain members of the embecta leadership team in connection with the Company's separation from BD. For the three months ended June 30, 2025, | |
| (5) | Represents restructuring, business optimization, and severance related costs associated with standing up and optimizing the organization recorded in Other operating expenses. | |
| (6) | Represents amounts due to BD for tax liabilities incurred in deferred jurisdictions where BD is considered the primary obligor. | |
| (7) | Representscosts incurred during the three and nine months ended June 30, 2025 associated with the discontinued patch pump program. These costs are primarily one-time in nature and represent expenses that we do not view as normal operating expenses necessary to operate our core business. The costs primarily consist of severance-related costs, asset impairments, contract termination costs, and other operating costs. During the three months ended June 30, 2025, | |
| (8) | Representsthe amount of tax expense that the Company estimates that it would record if it used non-GAAP results instead of GAAP results in the calculation of its tax provision. The non-GAAP effective tax rate for both the three and nine months ended June 30, 2025 was | |
About Embecta
embecta is a global company that is advancing its 100-year legacy in insulin delivery to become a broad-based medical supplies company, helping to improve lives through innovative solutions, partnerships, and the passion of approximately 2,000 employees around the globe. For more information, visit embecta.com or follow our social channels on LinkedIn, Facebook, and Instagram.
Safe Harbor Statement Regarding Forward-Looking Statements
This press release 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 anticipated product clearances, approvals and launches. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “pursue,” “will,” “goal” or similar expressions, we are making forward-looking statements. For example, embecta is using forward-looking statements when it discusses its fiscal 2025 financial guidance, executing on value creation drivers, transforming embecta into a diversified medical supplies company, expected savings from, and the timing for completion of, the restructuring plan associated with respect to streamlining the organization and optimizing resources, expectations related to the impact of incremental tariffs, brand transition plan timing, our ability to expand in other markets strengthening our core business, expanding our product portfolio and increasing our financial flexibility. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) competitive factors that could adversely affect embecta’s operations; (ii) any inability to replace the services provided by BD under the transaction documents; (iii) any failure by BD to perform its obligations under the various separation agreements entered into in connection with the separation and distribution; (iv) any events that adversely affect the sale or profitability of embecta’s products or the revenues delivered from sales to its customers; (v) increases in operating costs, including costs incurred from newly instituted tariffs by the U.S. government and certain foreign governments on raw materials and products, fluctuations in the cost and availability of raw materials or components used in its products, the ability to maintain favorable supplier arrangements and relationships, and the potential adverse effects of any disruption in the availability of such items; (vi) the impact of the global trade environment resulting from newly instituted tariffs causing certain foreign governments, private purchasers and others to consider transitioning away from products originating from certain countries (including the U.S.) in favor of buying “local” products; (vii) changes in reimbursement practices of governments or private payers or other cost containment measures; (viii) the adverse financial impact resulting from unfavorable changes in foreign currency exchange rates, as well as regional, national and foreign economic factors, including inflation, deflation, and fluctuations in interest rates; (ix) the impact of changes in U.S. federal laws and policy that could affect fiscal and tax policies, healthcare and international trade, including import and export regulation and international trade agreements; (x) any new pandemic, or any geopolitical instability, including disruptions in its operations and supply chains; (xi) new or changing laws and regulations, or changes in enforcement practices, including laws relating to healthcare, environmental protection, trade, monetary and fiscal policies, taxation and licensing and regulatory requirements for products; (xii) the expected benefits of the separation from BD; (xiii) risks associated with embecta’s indebtedness; (xiv) the risk that ongoing dis-synergy costs, costs of restructuring and other costs incurred in connection with the separation from BD will exceed our estimates of these costs; (xv) the risk that it will be more difficult than expected to effect embecta’s full separation from BD; (xvi) the risks related to timely and successfully completing the brand transition, including any resulting regulatory registration and license delays and interruptions in the transition of the rebranded products into commercial operations, networks, operations and end-to-end product flow and end-user access; (xvii) expectations related to the costs, profitability, timing and the estimated financial impact of, and charges and savings associated with, the restructuring plans we announced; (xviii) risks associated with not completing strategic collaborative partnerships and acquisitions for innovative technologies, complementary product lines, and new markets; and (xix) the other risks described in our periodic reports filed with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, as further updated by our Quarterly Reports on Form 10-Q we have filed or will file hereafter. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this release.
CONTACTS
Investors:
Pravesh Khandelwal
VP, Head of Investor Relations
551-264-6547
Contact IR
Media:
Christian Glazar
Sr. Director, Corporate Communications
908-821-6922
Contact Media Relations
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