Insulin syringe maker Embecta's Q4 revenue just misses estimates

Embecta

25/11/2025 11:43

Overview

Embecta Q4 revenue misses analyst expectations, down 7.7% yr/yr

Adjusted EBITDA for Q4 beats analyst estimates, indicating strong operational performance

Company announces quarterly dividend of $0.15 per share

Outlook

Embecta expects fiscal 2026 revenue between $1,071 mln and $1,093 mln

Company anticipates fiscal 2026 EPS of $2.80 to $3.00

Embecta sees fiscal 2026 adjusted operating margin of 29% to 30%

Result Drivers

ADVANCED ORDERING IMPACT - Revenue decline attributed to advanced distributor ordering in previous quarters and ongoing business dynamics in China

PROFITABILITY IMPROVEMENT - Higher GAAP operating margin and net income year over year, exceeding adjusted operating and EBITDA margin ranges

DEBT REDUCTION - Focus on operational efficiency and restructuring led to accelerated debt reduction and increased financial flexibility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$264 mln
$265.69 mln (4 Analysts)
Q4 Adjusted EPS
Miss
$0.50
$0.54 (3 Analysts)
Q4 Net Income
$26.40 mln
Q4 Adjusted EBITDA
Beat
$89.90 mln
$79.50 mln (3 Analysts)
Q4 Adjusted Operating Income
Beat
$66.70 mln
$63.75 mln (3 Analysts)
Q4 Adjusted Gross Profit
$159.50 mln
Q4 Dividend
$0.15
Q4 Gross Profit
$158.50 mln
Q4 Operating Income
$56.50 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

Wall Street's median 12-month price target for Embecta Corp is $14.00, about 4.6% below its November 24 closing price of $14.64

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNXbrZwx5

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)