embc-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-41186

EMBECTA CORP.

(Exact name of registrant as specified in its charter)


Delaware						87-1583942
(State or other jurisdiction of incorporation or organization)						(I.R.S. employer identification no.)

300 Kimball Drive, Suite 300, Parsippany, New Jersey						07054
(Address of principal executive offices)						(Zip code)

(862) 401-0000

(Registrant’s telephone number, including area code)

Table of Contents

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

symbol(s)

Name of each exchange

on which registered

Common Stock, par value $0.01 per share

EMBC

The Nasdaq Stock Market LLC (Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Emerging growth company

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of Embecta Corp. common stock outstanding as of April 28, 2026 was 59,327,677 shares, par value $0.01 per share.

Table of Contents

Embecta Corp.

Form 10-Q

For the Quarterly Period ended March 31, 2026

Table of Contents


		Page
Part I. Financial Information		1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of (Loss) Income	1
	Condensed Consolidated Statements of Comprehensive (Loss) Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
Part II. Other Information		35

Item 1A.	Risk Factors	35




Item 6.	Exhibits	36
Signatures		37

-i-

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Condensed Consolidated Statements of (Loss) Income

Embecta Corp.

(Unaudited)


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025

Revenues	$	221.8	$	259.0	$	483.0	$	520.9
Cost of products sold	94.0		94.9		193.5		199.7
Gross Profit	$	127.8	$	164.1	$	289.5	$	321.2
Operating expenses:
Selling and administrative expense	76.2		79.6		153.8		160.7
Research and development expense	5.4		8.0		10.0		28.3

Other operating expense, net	11.2		13.6		7.4		40.6
Total Operating Expenses	$	92.8	$	101.2	$	171.2	$	229.6
Operating Income	$	35.0	$	62.9	$	118.3	$	91.6
Interest expense, net	(22.6)		(26.7)		(46.7)		(54.6)
Other income (expense), net	(2.9)		(0.4)		(3.2)		(1.9)
Income Before Income Taxes	$	9.5	$	35.8	$	68.4	$	35.1
Income tax provision	13.6		12.3		28.4		11.6
Net (Loss) Income	$	(4.1)	$	23.5	$	40.0	$	23.5

Net (Loss) Income per common share:
Basic	$	(0.07)	$	0.40	$	0.68	$	0.40
Diluted	$	(0.07)	$	0.40	$	0.67	$	0.40

See notes to the Unaudited Condensed Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.

Table of Contents

Condensed Consolidated Statements of Comprehensive (Loss) Income

Embecta Corp.

(Unaudited)


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025

Net (Loss) Income	$	(4.1)	$	23.5	$	40.0	$	23.5
Other Comprehensive (Loss) Income, net of tax
Benefit plan net gain and prior service credit, net of amortization	—		—		0.3		—
Foreign currency translation adjustments	(5.6)		11.4		(4.7)		(15.5)
Other Comprehensive (Loss) Income, net of tax	$	(5.6)	$	11.4	$	(4.4)	$	(15.5)
Comprehensive (Loss) Income	$	(9.7)	$	34.9	$	35.6	$	8.0

See notes to the Unaudited Condensed Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.

Table of Contents

Condensed Consolidated Balance Sheets

Embecta Corp.


	March 31, 2026		September 30, 2025
	(Unaudited)
Assets
Current Assets
Cash and equivalents	$	184.9	$	225.5
Restricted cash	8.5		3.1
Trade receivables, net (net of allowance for doubtful accounts of $2.2 million and $1.8 million as of March 31, 2026 and September 30, 2025, respectively)	147.1		145.6
Inventories:
Materials	52.5		50.0
Work in process	13.3		11.7
Finished products	126.8		116.9
Total Inventories	$	192.6	$	178.6
Amounts due from Becton, Dickinson and Company	—		3.3
Prepaid expenses and other	75.0		75.3
Total Current Assets	$	608.1	$	631.4
Property, Plant and Equipment, Net	237.5		257.2
Goodwill and Intangible Assets	21.9		22.4
Deferred Income Taxes and Other Assets	161.8		179.9
Total Assets	$	1,029.3	$	1,090.9
Liabilities and Equity
Current Liabilities
Accounts payable	$	79.7	$	74.2
Accrued expenses	113.8		98.9
Amounts due to Becton, Dickinson and Company	—		16.3
Salaries, wages and related items	34.6		49.4
Current debt obligations	9.5		9.5
Current finance lease liabilities	3.5		3.4
Income taxes	6.2		9.8
Total Current Liabilities	$	247.3	$	261.5
Deferred Income Taxes and Other Liabilities	63.4		62.6
Long-Term Debt	1,316.9		1,388.7
Non Current Finance Lease Liabilities	27.8		28.7
Contingencies (Note 6)
Embecta Corp. Equity
Common stock, $0.01 par value Authorized - 250,000,000 Issued and outstanding - 59,327,677 as of March 31, 2026 and 58,496,113 as of September 30, 2025	$	0.6	$	0.6
Additional paid-in capital	88.0		80.0
Accumulated deficit	(424.7)		(445.6)

Accumulated other comprehensive loss	(290.0)		(285.6)
Total Equity	$	(626.1)	$	(650.6)
Total Liabilities and Equity	$	1,029.3	$	1,090.9

See notes to the Unaudited Condensed Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.

Table of Contents

Condensed Consolidated Statements of Equity

Embecta Corp.

(Unaudited)


	Common Stock
	Shares	Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total
Balance at January 1, 2025	58,131,759	$	0.6	$	58.2	$	(507.9)	$	(319.7)	$	(768.8)


Net Income	—	—		—		23.5		—		23.5
Other comprehensive income, net of taxes	—	—		—		—		11.4		11.4
Stock-based compensation plans	—	—		7.3		—		—		7.3
Dividends and dividend equivalents declared ($0.15 per share)	—	—		0.4		(9.1)		—		(8.7)
Issuance of shares related to stock-based compensation plans	195,256	—		(0.9)		—		—		(0.9)
Balance at March 31, 2025	58,327,015	$	0.6	$	65.0	$	(493.5)	$	(308.3)	$	(736.2)

Balance at January 1, 2026	59,211,992	$	0.6	$	81.8	$	(411.1)	$	(284.4)	$	(613.1)


Net Loss	—	—		—		(4.1)		—		(4.1)
Other comprehensive (loss), net of taxes	—	—		—		—		(5.6)		(5.6)
Stock-based compensation plans	—	—		5.7		—		—		5.7
Dividends and dividend equivalents declared ($0.15 per share)	—	—		0.6		(9.5)		—		(8.9)
Issuance of shares related to stock-based compensation plans	115,685	—		(0.1)		—		—		(0.1)
Balance at March 31, 2026	59,327,677	$	0.6	$	88.0	$	(424.7)	$	(290.0)	$	(626.1)

See notes to the Unaudited Condensed Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.

Table of Contents

Common Stock

Par Value

SEC Form 10-Q filed by Embecta Corp.