A maker of insulin pen needles, syringes, and safety injection devices for people living with diabetes, serving them in more than 100 countries. Its roots trace to 1924, when Becton, Dickinson made the world's first specialized insulin syringe; the business was spun off as its own company in 2022. The name blends "em" for empathy with "bect" from Becton, Dickinson, keeping its century-old heritage while striking out on its own.
Embecta gross margin fell 10.3 points to 56.4% as the Owen Mumford acquisition added costs and revenue declined 8.1%.
The Owen Mumford acquisition reshaped the quarter, adding but compressing margins. Revenue fell 8.1% to $271.7 million and contracted 10.3 percentage points to 56.4%, as acquisition-related costs and outweighed the $13.8 million in acquired revenue. The company is now a different business — more leveraged, with a slashed , an active , and a margin profile that has yet to find its floor.
Key takeaways
fell 8.1% to $271.7 million, driven by $20.1 million in unfavorable price and $19.9 million in unfavorable volume, partially offset by $13.8 million from the Owen Mumford acquisition.
contracted 10.3 percentage points to 56.4%, as cost of products sold rose 22.5% against the decline; management attributed the pressure to added Owen Mumford costs and .
fell 48.2% to $48.7 million, with $11.3 million in acquisition-related costs and other operating expenses more than offsetting lower selling and administrative costs.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue fell 8.1% to $271.7M on price and volume declines; gross margin contracted sharply to 56.4%.
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decreased 8.1% to $271.7M in Q3, driven by $20.1M in unfavorable price and $19.9M in unfavorable volume, partially offset by $13.8M from the Owen Mumford acquisition.
dropped 22.2% to $153.3M, with falling from 66.7% to 56.4%, primarily due to added Owen Mumford costs and profit-in- adjustments.
The company drew $180 million on its to fund the Owen Mumford acquisition, while also making $77.4 million in discretionary term loan prepayments.
The Board cut the quarterly from $0.15 to $0.01 per share and authorized a $100 million program; 2.7 million shares were bought back for $8.7 million during the quarter.
What changed
The pending £150 million Owen Mumford acquisition flagged in Q1 FY2026 closed during the quarter, adding $13.8 million in but also contributing to the 10.3-point contraction through added costs.
volume declined $19.9 million, reversing the stabilization seen in Q4 FY2025 and extending the $39.3 million volume drop from Q1 FY2026, suggesting the core injection business continues to contract.
The cut from $0.15 to $0.01 per share, previewed in Q1 FY2026, was executed this quarter alongside the first share repurchases under the new $100 million authorization.
The company drew $180 million on its , a shift from the prior pattern of funding debt paydowns from operations; total liquidity now depends on both cash and availability.
What to watch
Whether stabilizes above 56% or continues to decline as Owen Mumford costs are fully absorbed and run their course.
The trajectory of organic volume excluding the Owen Mumford contribution, to determine whether the core injection business is still contracting.
The pace of share repurchases under the $100 million authorization and whether the company sustains buybacks while managing the $180 million draw and remaining term loan.
Any update on the U.S. national security investigation into medical device imports and its specific impact on Embecta's U.S.-manufactured products and cost structure.
nearly halved to $48.7M, as lower selling and administrative costs were more than offset by $11.3M in acquisition-related costs and other operating expenses.
Net declined to $23.9M due to lower debt levels and short-term rates; the company drew $180M on its and made $77.4M in discretionary term loan payments.
The Board cut the quarterly from $0.15 to $0.01 per share and authorized a $100M stock program, buying back 2.7M shares for $8.7M in the quarter.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in information reported since the filing of the 2025 Form 10-K except as follows: Foreign Currency Exchange and Other Rate Risks We operate on a global basis and are exposed to the risk that changes in foreign currency exchange rates could adv…
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There have been no material changes in information reported since the filing of the 2025 Form 10-K except as follows:
Foreign Currency Exchange and Other Rate Risks
We operate on a global basis and are exposed to the risk that changes in foreign currency exchange rates could adversely affect our financial condition, results of operations and cash flows.
From time to time, we enter into foreign currency forward exchange contracts with major financial institutions to manage currency exposures for transactions denominated in a currency other than an entity’s functional currency. As a result, the impact of foreign currency gains/losses recognized in earnings are partially offset by gains/losses on the related foreign currency forward exchange contracts in the same reporting period. Refer to Note 18, Financial Instruments and Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for further information.
Consequently, foreign currency exchange contracts would not subject us to material risk due to exchange rate movements, because gains and losses on these contracts offset gains and losses on the assets, liabilities or transactions being hedged.
Interest Rate Risk
Debt - Our interest rate risk relates primarily to our Term Loan and Revolving Credit Facility. The interest rate is set at 300 basis points over SOFR, with a 0.50% SOFR floor. Based on our outstanding borrowings at June 30, 2026, a 100 basis points change in interest rates would have impacted interest expense on the Term Loan and Revolving Credit Facility by $7.7 million on an annualized basis.
Dollar amounts are in millions except per share amounts or as otherwise specified.
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There have been no material changes to Embecta’s risk factors from those described in “Risk Factors” included within the 2025 Form 10-K and Embecta's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the Securities and Exchange Commission on May 5, 20…
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There have been no material changes to Embecta’s risk factors from those described in “Risk Factors” included within the 2025 Form 10-K and Embecta's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the Securities and Exchange Commission on May 5, 2026.