Embecta (EMBC) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue was $271.7 million, down 8.1% year-over-year but up $50 million sequentially, driven by improved U.S. and international performance and the initial $13.8 million contribution from the Owen Mumford acquisition.

• The Owen Mumford acquisition, completed in May 2026, expanded the product portfolio beyond insulin injection devices, adding pharmaceutical services, auto-injectors, and manufacturing sites in the U.K. and Malaysia.

• Leadership changes included the appointment of Jeff Mann to lead pharma services and Nimish Muzumdar as SVP and President, North America, to enhance commercial execution.

• Strategic priorities advanced with regulatory progress, brand transition nearing completion, and new product launches in key markets, including GLP-1 therapies co-packaged with pen needles in Canada and Brazil.

• The nine-month period saw revenue of $754.7 million, down 7.6% year-over-year, and net income of $61.1 million, down 11.4%.

Financial highlights

• Q3 gross profit was $153.3 million (56.4% margin), adjusted gross profit $158.0 million (58.2% margin), both down year-over-year; Q3 operating income was $48.7 million (17.9% margin), adjusted $69.4 million (25.5% margin).

• Q3 net income was $21.1 million (EPS $0.36), adjusted net income $32.6 million (EPS $0.56); adjusted EBITDA was $85.7 million (31.5% margin).

• For the nine months, revenue was $754.7 million, gross profit $442.8 million (58.7% margin), operating income $167.0 million (22.1% margin), net income $61.1 million (EPS $1.03), and adjusted EBITDA $247.5 million (32.8% margin).

• Free cash flow for Q3 was $40.7 million; for nine months, $87.9 million; $53 million in debt repaid during Q3.

• Cash and equivalents at quarter-end were $214.7 million; total debt was $1,455.1 million with a weighted average interest rate of 6.1%.

Outlook and guidance

• FY2026 revenue guidance reaffirmed at $1,015–$1,035 million, a 4.2%–6.1% year-over-year decline; adjusted operating margin guidance raised to 23.5%–24.0%; adjusted EPS guidance raised to $1.80–$1.90.

• Adjusted organic constant currency revenue expected to decline 10.2% to 8.8%.

• Guidance includes the impact of the Owen Mumford acquisition and related M&A contributions.

• Lower adjusted tax rate (27%) and interest expense ($95 million) expected; share count reduced to 58.6 million.

• At least $150 million in debt repayment targeted for 2026; free cash flow guidance unchanged at ~$100 million.