On this page of StockholderLetter.com we present the latest annual shareholder letter from Embecta Corp. — ticker symbol EMBC. Reading current and past EMBC letters to shareholders can bring important insights into the investment thesis.
Annual Report 2025
embecta is a global company that is advancing its 100-year legacy in insulin delivery to become a broad-based medical supplies company, helping to improve lives through innovative solutions, partnerships, and the passion of approximately 2,000 employees around the globe. For more information, visit embecta.com or follow our social channels on LinkedIn, Facebook, and Instagram. Twelve Months Fiscal Year 2025 Results Revenues by geographic region are as follows: Twelve months ended September 30 Dollars in millions % Increase/(Decrease) 2025 Reported Revenue Growth 2024 Currency Impact Adjustment Impact Adjusted Constant Currency Revenue Growth Reported Revenues Adjustment Adjusted Revenues Reported Revenues Adjustment Adjusted Revenues United States $579.1 $579.1 $607.2 $607.2 (4.6)% (4.6)% International* 501.3 0.7 500.6 515.9 (4.1) 520.0 (2.8) (0.7) 1.0 (3.1) $1.1 billion revenue 46 54 US vs international revenue split In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted Revenues, (ii) earnings before interest, taxes, depreciation, and amortization ( EBITDA ), (iii) Adjusted EBITDA and Adjusted EBITDA Margin, (iv) Adjusted Gross Profit and Adjusted Gross Profit Margin, (v) Adjusted Constant Currency Revenue Growth, (vi) Adjusted Operating Income and Adjusted Operating Income Margin, (vii) Adjusted Net Income and Adjusted Earnings Per Diluted Share, and (viii) Free cash flow. These non-GAAP financial measures are indicators of our performance that are not required by, or presented in accordance with, GAAP. They are presented with the intent of providing greater transparency to financial information used by us in our financial analysis and operational decision-making. We believe that these non-GAAP measures provide meaningful information to assist investors, stockholders and other readers of our consolidated financial statements in making comparisons to our historical operating results and analyzing the underlying performance of our results of operations. However, the presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the company s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these non-GAAP measures may not be comparable to other similarly titled measures of other companies. The Company uses non-GAAP financial measures in its operational and financial decision making, and believes that it is useful to exclude certain items in order to focus on what it regards to be a meaningful alternative representation of the underlying operating performance of the business. Adjusted Constant Currency Revenue Growth is based upon Reported Revenues, adjusted to exclude, depending on the period presented, the items described in Adjusted Revenues and to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on an Adjusted Constant Currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP. *International includes the recognition of changes in estimates associated with the Italian payback measure relating to certain prior years since 2015 recorded in Revenues. Adjusted Revenues exclude the impact of these changes in estimates.
To our stockholders, customers, and employees, During fiscal year 2025, we built upon our legacy of strong execution as we finished our global ERP implementation and delivered GAAP operating margin that was higher year over year, and adjusted operating margin that exceeded our initial expectations. The past year also signified an important transition from the three-year phase of standing up a new company toward our next phase, where we are beginning to work towards our goals of seeding growth and ultimately transforming embecta from an insulin delivery company into a broad-based medical supplies company. Although we have faced a dynamic geopolitical and global trade environment from the very beginning of our journey as an independent company, our global scale, resilient supply chain, and experienced teams continue to put us in a position to build value for all stakeholders, including the patients, healthcare providers, pharmacists, caregivers, educators, and channel partners in over 100 countries who depend upon our products every day. Fiscal 2025 highlights Early in fiscal year 2025, we made the decision to discontinue our patch pump program, and we executed restructuring plans aimed at enhancing our profitability and free cash flow that also enabled us to accelerate paying down our debt so we can invest in growth. Our total fiscal year 2025 debt reduction was approximately $185 million, exceeding our original fiscal year 2025 debt reduction target of approximately $110 million. We also generated strong free cash flow of approximately $182 million for fiscal year 2025, compared to approximately $20 million for fiscal year 2024. Fiscal year 2025 also included our inaugural Analyst and Investor Day, where we showcased our phased approach to value creation. At the event, we reiterated our commitment to maintaining our leadership in insulin injection while outlining our long-term vision to transition embecta to growth in an evolving healthcare landscape. One of the most promising growth areas for embecta is in the GLP-1 space, where we are working to leverage a leadership position in the manufacturing and distribution of pen needles. We have signed a number of contracts and received purchase orders from a number of pharmaceutical partners to co-package embecta pen needles with potential generic GLP-1 therapies. embecta pen needles have also been included in multiple GLP-1 partner-managed regulatory submissions and several generic GLP-1 nearly commercial launches are anticipated in select countries beginning as early as calendar year 2026. On top of this, we expanded availability of smaller pack configurations for GLP-1 administration in select European markets and received approval to offer people using our products smaller packs in Canada. 30 million in more than 100 countries Please see below for GAAP to non-GAAP Free Cash Flow reconciliation accompanying this letter.
We successfully launched and largely completed our brand transition program in the U.S. and Canada. Recently, embecta-branded packaging bound for other markets has begun to flow out of our manufacturing facilities, and this process will remain a major focus for us in the year ahead. We also continued to strengthen partnerships in key markets, leveraging our local commercial organizations to provide customers with a broader suite of products that address critical needs for people with diabetes. This includes expanding our collaboration with Capteur Protect to distribute their patches, which are medical devices intended to protect and maintain glucose sensors and insulin pumps, along with providing discretion for the user s diabetes management devices. While our team has been promoting the product in France since 2023, the new distribution agreement enables us to expand into other EMEA markets and beyond. In Canada, we partnered with NanoTess, a novel biotech company, to distribute NanoSALV Catalytic to retail pharmacies across Canada. This product offers a novel approach to wound and skin care designed to employ catalysts to kickstart and support the body s natural healing. We are proud to have earned the Great Place to Work certification in eight countries, which are Brazil, Canada, China, Germany, India, Mexico, Switzerland, and the United Kingdom. This recognition, awarded by a globally respected authority on workplace culture, reflects our commitment to creating an exceptional employee experience. We are driving targeted actions to continue enhancing employee engagement and foster an even stronger global culture guided by the feedback from the Great Place to Work survey results. Our commitment to the global diabetes community In the past year, embecta donated approximately 15 million units of pen needles and insulin syringes to Direct Relief, the leading humanitarian aid organization and largest charitable insulin provider in the United States. Through 2026, we plan to continue this partnership to provide pen needle and insulin syringe access to those in most need across the globe. The partnership builds on our July 2025 grant of $25,000 to Direct Relief for storm and flood relief in Texas, ensuring that people with diabetes receive uninterrupted care even during natural disasters and humanitarian crises. Our products also support Direct Relief s partnership with Life for a Child, which provides life-sustaining diabetes care to children and young people with Type 1 diabetes in resource-limited countries. And through Direct Relief s Global Diabetes Partnership with the International Diabetes Federation, our donated pen needles and insulin syringes support people living with diabetes in more than 30 countries experiencing crises or facing significant gaps in healthcare access including a donation of 2.7 million pen needles and insulin syringes to support a Direct Relief upcoming humanitarian response campaign in Sudan organized by the Sudanese Diabetes Federation. ~8 billion injection devices manufactured annually
Looking ahead to Fiscal 2026 As we move from our Stand Up phase into the Seed Growth phase, embecta is entering a transformative stage of value creation. In fiscal year 2026, we plan to accelerate investments to drive growth while sustaining leadership in our core portfolio anchored by our three strategic priorities that will shape our future: ~2,000 employees worldwide Strengthen our core business: Our global brand transition will continue throughout 2026, reinforcing embecta s identity worldwide. Expand our product portfolio: We are seeking to deliver affordable pen needles and syringes in key regions while prioritizing organic product innovation. At the same time, we will actively explore M&A opportunities that position embecta for long-term, sustainable growth. Increase financial flexibility: We will drive operational excellence with the plan to reduce net leverage and debt unlocking capacity for future potential strategic investments. For over a century, we ve been transforming lives starting in 1924 with a singular focus on improving care for people living with diabetes. Today, as embecta evolves into a broader medical supplies leader, we plan to execute on our strategic priorities to reach far beyond the 30 million individuals we currently serve. Together with our 2,000 dedicated colleagues worldwide, we are driven by an ambitious mission: to empower people with diabetes today while paving the way for a life unlimited for all. Thank you for supporting us on this journey to our next phase. Devdatt (Dev) Kurdikar President and Chief Executive Officer LTG (Ret.) David F. Melcher Non-executive Chairman of the Board Changes to the Board of Directors Dev and I would like to acknowledge the many contributions of David J. Albritton, who stepped down from the Board of Directors for personal reasons late in 2025 after serving as a Director from the very beginning of our organization. David helped shape the company s corporate identity and communications efforts as we worked to establish embecta, providing an unflinching focus on care for people living with diabetes. We thank him for his service and wish him well. In addition, I have informed the company that I do not plan to stand for re-election at embecta s 2026 annual stockholder meeting and will retire at that time as Non-Executive Chairman of the Board. It has been a privilege to serve as Chairman of such a distinguished and collegial Board of Directors, and I m confident that the ongoing stewardship of Dev and the rest of the Board will enable embecta to continue to prioritize the needs of our customers, employees and stockholders. Thank you for supporting our efforts from Day One. LTG (Ret.) David F. Melcher
 • shareholder letter icon 12/18/2025 Letter Continued (Full PDF)
 • stockholder letter icon 12/19/2023 EMBC Stockholder Letter
 • stockholder letter icon 12/19/2024 EMBC Stockholder Letter
 • stockholder letter icon More "Medical Instruments & Supplies" Category Stockholder Letters
 • Benford's Law Stocks icon EMBC Benford's Law Stock Score = 91


EMBC Shareholder/Stockholder Letter Transcript:

Annual Report
2025

embecta is a global company that is advancing its 100-year legacy in insulin delivery to become a broad-based
medical supplies company, helping to improve lives through innovative solutions, partnerships, and the passion of
approximately 2,000 employees around the globe. For more information, visit embecta.com or follow our social
channels on LinkedIn, Facebook, and Instagram.
Twelve Months Fiscal Year 2025 Results
Revenues by geographic region are as follows:
Twelve months ended September 30
Dollars in
millions
% Increase/(Decrease)
2025
Reported
Revenue
Growth
2024
Currency
Impact
Adjustment
Impact
Adjusted
Constant
Currency
Revenue
Growth
Reported
Revenues
Adjustment
Adjusted
Revenues
Reported
Revenues
Adjustment
Adjusted
Revenues
United States
$579.1

$579.1
$607.2

$607.2
(4.6)%


(4.6)%
International*
501.3
0.7
500.6
515.9
(4.1)
520.0
(2.8)
(0.7)
1.0
(3.1)
$1.1
billion

revenue


46
54
US vs international
revenue split
In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted
Revenues, (ii) earnings before interest, taxes, depreciation, and amortization (   EBITDA   ), (iii) Adjusted EBITDA and Adjusted EBITDA Margin, (iv) Adjusted Gross Profit and Adjusted Gross Profit
Margin, (v) Adjusted Constant Currency Revenue Growth, (vi) Adjusted Operating Income and Adjusted Operating Income Margin, (vii) Adjusted Net Income and Adjusted Earnings Per Diluted
Share, and (viii) Free cash flow. These non-GAAP financial measures are indicators of our performance that are not required by, or presented in accordance with, GAAP. They are presented with the
intent of providing greater transparency to financial information used by us in our financial analysis and operational decision-making. We believe that these non-GAAP measures provide
meaningful information to assist investors, stockholders and other readers of our consolidated financial statements in making comparisons to our historical operating results and analyzing the
underlying performance of our results of operations. However, the presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute
for the company   s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these non-GAAP measures may not be comparable to other similarly
titled measures of other companies. The Company uses non-GAAP financial measures in its operational and financial decision making, and believes that it is useful to exclude certain items in order
to focus on what it regards to be a meaningful alternative representation of the underlying operating performance of the business.
Adjusted Constant Currency Revenue Growth is based upon Reported Revenues, adjusted to exclude, depending on the period presented, the items described in Adjusted Revenues and to
eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary
significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance
exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends. These results should be considered in addition to, not as a substitute for, results
reported in accordance with GAAP. Results on an Adjusted Constant Currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not
measures of performance presented in accordance with GAAP.
*International includes the recognition of changes in estimates associated with the Italian payback measure relating to certain prior years since 2015 recorded in Revenues. Adjusted Revenues
exclude the impact of these changes in estimates.

To our stockholders, customers, and employees,
During fiscal year 2025, we built upon our legacy of strong execution as we finished our global ERP implementation
and delivered GAAP operating margin that was higher year over year, and adjusted operating margin that exceeded
our initial expectations. The past year also signified an important transition from the three-year phase of standing up
a new company toward our next phase, where we are beginning to work towards our goals of seeding growth and
ultimately transforming embecta from an insulin delivery company into a broad-based medical supplies company.
Although we have faced a dynamic geopolitical and global trade environment from the very beginning of our journey
as an independent company, our global scale, resilient supply chain, and experienced teams continue to put us in a
position to build value for all stakeholders, including the patients, healthcare providers, pharmacists, caregivers,
educators, and channel partners in over 100 countries who depend upon our products every day.
Fiscal 2025 highlights
Early in fiscal year 2025, we made the decision to discontinue our patch pump program, and we executed restructuring
plans aimed at enhancing our profitability and free cash flow that also enabled us to accelerate paying down our debt
so we can invest in growth. Our total fiscal year 2025 debt reduction was approximately $185 million, exceeding our
original fiscal year 2025 debt reduction target of approximately $110 million. We also generated strong free cash flow of
approximately $182 million for fiscal year 2025, compared to approximately $20 million for fiscal year 2024.   
Fiscal year 2025 also included our inaugural Analyst and Investor Day, where we showcased our phased approach to
value creation. At the event, we reiterated our commitment to maintaining our leadership in insulin injection while
outlining our long-term vision to transition embecta to growth in an evolving healthcare landscape.
One of the most promising growth areas for embecta is in the GLP-1 space, where
we are working to leverage a leadership position in the manufacturing and
distribution of pen needles. We have signed a number of contracts and
received purchase orders from a number of pharmaceutical
partners to co-package embecta pen needles with potential
generic GLP-1 therapies. embecta pen needles have also
been included in multiple GLP-1 partner-managed
regulatory submissions and several generic GLP-1
nearly
commercial launches are anticipated in select countries
beginning as early as calendar year 2026. On top of
this, we expanded availability of smaller pack
configurations for GLP-1 administration in select
European markets and received approval to offer
people using our products
smaller packs in Canada.
30
million
in more than
100
countries

Please see below for GAAP to non-GAAP Free Cash Flow reconciliation accompanying this letter.

We successfully launched and largely completed our brand transition program in the U.S. and Canada. Recently,
embecta-branded packaging bound for other markets has begun to flow out of our manufacturing facilities, and
this process will remain a major focus for us in the year ahead.
We also continued to strengthen partnerships in key markets, leveraging our local commercial organizations to
provide customers with a broader suite of products that address critical needs for people with diabetes. This
includes expanding our collaboration with Capteur Protect to distribute their patches, which are medical devices
intended to protect and maintain glucose sensors and insulin pumps, along with providing discretion for the
user   s diabetes management devices. While our team has been promoting the product in France since 2023, the
new distribution agreement enables us to expand into other EMEA markets and beyond.
In Canada, we partnered with NanoTess, a novel biotech company, to distribute NanoSALV Catalytic to retail
pharmacies across Canada. This product offers a novel approach to wound and skin care designed to employ
catalysts to kickstart and support the body   s natural healing.
We are proud to have earned the Great Place to Work   certification in eight countries, which are Brazil, Canada,
China, Germany, India, Mexico, Switzerland, and the United Kingdom. This recognition, awarded by a globally
respected authority on workplace culture, reflects our commitment to creating an exceptional employee
experience. We are driving targeted actions to continue enhancing employee engagement and foster an even
stronger global culture guided by the feedback from the Great Place to Work   survey results.
Our commitment to the global diabetes community
In the past year, embecta donated approximately 15 million units of pen needles and insulin syringes to Direct
Relief, the leading humanitarian aid organization and largest charitable insulin provider in the United States.
Through 2026, we plan to continue this partnership to provide pen needle and insulin syringe access to those in
most need across the globe. The partnership builds on our July 2025 grant of $25,000 to Direct Relief for storm and
flood relief in Texas, ensuring that people with diabetes receive uninterrupted care even during natural disasters
and humanitarian crises.
Our products also support Direct Relief   s partnership with Life for a Child, which provides life-sustaining
diabetes care to children and young people with Type 1 diabetes in resource-limited
countries. And through Direct Relief   s Global Diabetes Partnership with the
International Diabetes Federation, our donated pen needles and insulin syringes
support people living with diabetes in more than 30 countries experiencing
crises or facing significant gaps in healthcare access   including a donation
of 2.7 million pen needles and insulin syringes to support a Direct Relief
upcoming humanitarian response campaign in Sudan organized by the
Sudanese Diabetes Federation.
~8 billion
injection devices
manufactured annually

Looking ahead to Fiscal 2026
As we move from our    Stand Up    phase into the    Seed
Growth    phase, embecta is entering a transformative stage
of value creation. In fiscal year 2026, we plan to accelerate
investments to drive growth while sustaining leadership in
our core portfolio   anchored by our three strategic priorities
that will shape our future:
~2,000
employees
worldwide
Strengthen our core business: Our global brand transition will
continue throughout 2026, reinforcing embecta   s identity worldwide.
Expand our product portfolio: We are seeking to deliver affordable pen
needles and syringes in key regions while prioritizing organic product
innovation. At the same time, we will actively explore M&A opportunities that
position embecta for long-term, sustainable growth.
Increase financial flexibility: We will drive operational excellence with the plan to reduce net leverage and
debt   unlocking capacity for future potential strategic investments.
For over a century, we   ve been transforming lives   starting in 1924 with a singular focus on improving care for
people living with diabetes. Today, as embecta evolves into a broader medical supplies leader, we plan to execute
on our strategic priorities to reach far beyond the 30 million individuals we currently serve. Together with our
2,000 dedicated colleagues worldwide, we are driven by an ambitious mission: to empower people with diabetes
today while paving the way for a life unlimited for all.
Thank you for supporting us on this journey to our next phase.
Devdatt (Dev) Kurdikar
President and Chief Executive Officer
LTG (Ret.) David F. Melcher
Non-executive Chairman of the Board
Changes to the Board of Directors
Dev and I would like to acknowledge the many contributions of
David J. Albritton, who stepped down from the Board of
Directors for personal reasons late in 2025 after serving as a
Director from the very beginning of our organization. David
helped shape the company   s corporate identity and
communications efforts as we worked to establish embecta,
providing an unflinching focus on care for people living with
diabetes. We thank him for his service and wish him well.
In addition, I have informed the company that I do not plan to
stand for re-election at embecta   s 2026 annual stockholder
meeting and will retire at that time as Non-Executive Chairman
of the Board. It has been a privilege to serve as Chairman of
such a distinguished and collegial Board of Directors, and I   m
confident that the ongoing stewardship of Dev and the rest of
the Board will enable embecta to continue to prioritize the
needs of our customers, employees and stockholders.
Thank you for supporting our efforts from Day One.
LTG (Ret.) David F. Melcher



shareholder letter icon 12/18/2025 Letter Continued (Full PDF)
 

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