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Jun 30
Embecta Q3 2025 Earnings Report
Embecta reported strong financial results for the third quarter of fiscal year 2025, driven by solid commercial execution and favorable timing of customer orders.
Key Takeaways
Embecta delivered a strong Q3 2025, with revenues up 8.4% to $295.5 million and net income significantly increasing to $45.5 million from $14.7 million in the prior year. Adjusted EPS also saw a substantial rise to $1.12. The company successfully completed its ERP system implementation and operationalized new distribution centers, while also tightening and raising its fiscal 2025 outlook.
Revenues increased by 8.4% to $295.5 million, demonstrating strong commercial execution.
Net income surged to $45.5 million, a significant improvement from $14.7 million in the prior year.
Adjusted diluted EPS rose to $1.12, compared to $0.74 in the prior year period.
Successfully completed the global transition to its ERP system and operationalized new distribution centers, marking the conclusion of a multi-year separation program.
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 has tightened and raised its fiscal year 2025 outlook for key financial metrics, reflecting strong year-to-date performance and a positive outlook for the remainder of the year.
Positive Outlook
- Adjusted Gross Margin guidance raised to 63.25% - 63.50% (from 62.75% - 63.75%).
- Adjusted Operating Margin guidance raised to 30.75% - 31.00% (from 29.75% - 30.75%).
- Adjusted Earnings per Diluted Share guidance raised to $2.90 - $2.95 (from $2.70 - $2.90).
- Adjusted EBITDA Margin guidance raised to 37.25% - 37.50% (from 36.25% - 37.25%).
- Reported Revenues guidance tightened to $1,078 - $1,085 million.
Challenges Ahead
- Reported Revenue Growth (%) guidance tightened to (4.0)% - (3.4)% (from (4.4)% - (2.9)%).
- Impact of F/X (%) remains negative at (0.8)%.
- Adjusted Constant Currency Revenue Growth (%) guidance tightened to (3.6)% - (3.0)% (from (4.0)% - (2.5)%).
- The company is unable to present a quantitative reconciliation of expected non-GAAP measures due to the unpredictable nature of one-time items.
- Geopolitical instability and global trade environment continue to pose risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income