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Mar 31
Embecta Q2 2025 Earnings Report
Embecta reported its Q2 2025 earnings with revenue and GAAP net income down year-over-year, but saw margin improvements and stronger adjusted profitability.
Key Takeaways
Embecta experienced a decline in revenue and net income in Q2 2025 compared to the prior year, but improved operating and adjusted EBITDA margins and delivered higher adjusted EPS.
Revenue declined 9.8% YoY to $259 million, driven by volume declines and FX headwinds.
GAAP Net Income decreased to $23.5 million from $28.9 million in Q2 2024.
Adjusted EPS rose to $0.70, up from $0.67 in the prior year quarter.
Operating margin improved significantly to 24.3% from 13.6% YoY.
Embecta
Embecta
Embecta Revenue by Segment
Embecta Revenue by Geographic Location
Revenue by Segment
Pen Needles Revenue
CapyFin.comSyringes Revenue
CapyFin.comSafety Revenue
CapyFin.comOther Revenue
CapyFin.comContract Manufacturing Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Embecta maintained its adjusted EPS guidance but slightly lowered its constant currency revenue expectations for FY25, citing FX benefits and cost controls.
Positive Outlook
- Adjusted EPS guidance maintained at $2.70–$2.90
- Adjusted operating margin forecast raised slightly to 29.75–30.75%
- Improved adjusted EBITDA margin guidance to 36.25–37.25%
- FX tailwinds allowing reported revenue guidance to remain nearly unchanged
- Continued debt reduction enhancing financial flexibility
Challenges Ahead
- Lowered adjusted constant currency revenue growth guidance to -4.0% to -2.5%
- Reported revenue expected to decline YoY by 4.4% to 2.9%
- Restructuring charges from insulin patch pump program
- Tariff impacts from global trade headwinds
- Continued international sales pressure from FX and volume decline
Revenue & Expenses
Visualization of income flow from segment revenue to net income