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Sep 30, 2025
Embecta Q4 2025 Earnings Report
Embecta posted a year-over-year decline in Q4 revenue but grew operating income and net income, beating profit expectations.
Key Takeaways
Embecta's Q4 2025 revenue declined 7.7% YoY to $264 million, primarily driven by U.S. sales weakness. However, net income rose to $26.4 million, and adjusted EPS hit the top end of guidance at $0.50.
Q4 revenue fell 7.7% to $264 million, with U.S. sales down 15.2%
GAAP net income rose to $26.4 million, up from $14.6 million in Q4 2024
Adjusted EBITDA margin improved to 34.1%, from 25.2% last year
Free cash flow in Q4 surged to $76.7 million, compared to $26.6 million in prior year
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Embecta expects flat to slightly declining revenue growth for FY26, with strong adjusted operating margins and continued investment in growth.
Positive Outlook
- Adjusted EPS guidance of $2.80–$3.00
- Adjusted operating margin expected between 29.0% and 30.0%
- GLP-1 strategy progressing with new contracts and purchase orders
- Continued global brand transition efforts
- Debt reduced by $184.5 million in FY25
Challenges Ahead
- Adjusted constant currency revenue growth projected at −2.0% to 0.0%
- U.S. revenues saw double-digit decline in Q4 FY25
- Ongoing business dynamics in China
- Price erosion continued to impact revenue
- Macro geopolitical and trade risks remain elevated
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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