Embecta Corp. (NASDAQ:EMBC) posted on Friday the second-quarter 2025 adjusted earnings of 70 cents per share, up from 67 cents a year ago, beating the consensus of 53 cents.

The diabetes care company reported sales of $259 million, beating the consensus of $253.94 million.

Revenues were down 9.8% on a reported basis, down 7.7% on an adjusted constant currency basis. U.S. revenues decreased 8.4% on both a reported and adjusted constant currency basis.

International revenues decreased 11.3% on a reported basis, and 7.0% on an adjusted constant currency basis.

Also Read: Trump Tariffs Spare Drugmakers But Threaten Diabetes Device Industry

Gross profit and margin were $164.1 million and 63.4%, compared to $185.4 million and 64.6% in the prior year. Adjusted gross profit and margin were $165.0 million and 63.7%, compared to $185.8 million and 64.7% a year ago.

Operating income and margin reached $62.9 million and 24.3%, compared to $39.2 million and 13.6% a year ago. Adjusted operating income and margin came in at $81.4 million and 31.4%, compared to $74.9 million and 26.1% a year ago.

The company reported adjusted EBITDA and margin of $97.1 million and 37.5%, compared to $90.8 million and 31.6% in the prior year period.

“This quarter’s financial results were once again slightly ahead of our prior expectations, as our teams executed well, which included driving an acceleration in our free-cash flow generation, thereby allowing us to continue to repay debt and create additional balance sheet flexibility,” said Devdatt (Dev) Kurdikar, President and CEO.

Mr. Kurdikar added, “In this challenging operating environment, we are raising key profitability metrics while maintaining our prior adjusted earnings per share guidance despite a lowered fiscal year 2025 adjusted constant current revenue guidance range and the impact of incremental tariffs. This reflects favorable projected foreign exchange rates, which are allowing us to keep our as-reported revenue guidance range largely unchanged, as well as disciplined operating expense controls and the benefit of our recently announced restructuring program.

Guidance: Embecta reaffirms fiscal 2025 adjusted earnings per share guidance of $2.70 to $2.90 compared to the consensus of $2.80.

The company lowered sales guidance from $1.075 billion to $1.092 billion to $1.073 billion to $1.09 billion versus the consensus of $1.09 billion.

Price Action: EMBC stock is up 8.16% to $12.22 during the last check on Friday.

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