Slides
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embecta ™ Earnings Conference Call Fiscal Q3 2026 Aug 7 , 2026
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2 Forward-looking statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, performance, financial condition, goals, strategies, plans, achievements, and anticipated product clearances, approvals and launches. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “pursue,” “will,” “goal” or similar expressions, we are making forward-looking statements. For example, embecta is using forward-looking statements when it discusses its fiscal 2026 financial guidance, the expected benefits and impact from the Owen Mumford acquisition and integration thereof, the timing and amount of potential repurchases and dividends on our common stock, its ability to expand in other markets, strengthening its core business, including through product launches and brand transition, expanding its product portfolio, including building on momentum, and increasing its financial flexibility. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) competitive factors that could adversely affect embecta’s operations; (ii) any inability to replace the services provided by Becton, Dickinson and Company (“BD”) under the transaction documents; (iii) any failure by BD to perform its obligations under the various separation agreements entered into in connection with the separation and distribution; (iv) any events that adversely affect the sale or profitability of embecta’s products or the revenues delivered from sales to its customers; (v) increases in operating costs, including costs incurred from tariffs instituted by the U.S. government and certain foreign governments on raw materials and products, fluctuations in the cost and availability of raw materials or components used in its products, the ability to maintain favorable supplier arrangements and relationships, and the potential adverse effects of any disruption in the availability of such items; (vi) the impact of the global trade environment resulting from tariffs causing certain foreign governments, private purchasers and others to consider transitioning away from products originating from certain countries (including the U.S.) in favor of buying “local” products and local manufacturers and competitors to attempt to capitalize on these sentiments and engage in aggressive competitive pricing or other strategies to divert customers away from embecta; (vii) changes in reimbursement practices of governments or private payers or other cost containment measures; (viii) the adverse financial impact resulting from unfavorable changes in foreign currency exchange rates, as well as regional, national and foreign economic factors, including inflation, deflation, and fluctuations in interest rates; (ix) the impact of changes in U.S. federal laws and policy that could affect fiscal and tax policies, healthcare and international trade, including import and export regulation and international trade agreements; (x) any new pandemic, or any geopolitical instability, including disruptions in its operations and supply chains; (xi) new or changing laws and regulations, or changes in enforcement practices, including laws relating to healthcare, environmental protection, trade, monetary and fiscal policies, taxation and licensing and regulatory requirements for products; (xii) the expected benefits of the separation from BD; (xiii) risks associated with embecta’s indebtedness; (xiv) the risk that ongoing dis-synergy costs, costs of restructuring and other costs incurred in connection with the separation from BD will exceed our estimates of these costs; (xv) the risk that it will be more difficult than expected to effect embecta’s full separation from BD; (xvi) the risks related to timely and successfully completing the brand transition, including any resulting regulatory registration and license delays and interruptions in the transition of the rebranded products into commercial operations, networks, operations and end-to-end product flow and end-user access; (xvii) expectations related to the costs, profitability, timing and the estimated financial impact of, and charges and savings associated with, the restructuring plans we announced; (xviii) risks associated with not completing strategic collaborative partnerships and acquisitions, in the expected time frames and in a way that enables us to accelerate our growth and strategic collaborative opportunities that give us access to innovative technologies, complementary product lines, and new markets; and (xix) the other risks described in our periodic reports filed with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, as further updated by our Quarterly Reports on Form 10-Q we have filed or will file hereafter. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this presentation.
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3 Agenda and Presenters Today’s topics: Q3 FY 2026 Results Owen Mumford Acquisition Progress on Strategic Priorities Earnings Review Guidance Capital Allocation Priorities Q&A Pravesh Khandelwal Vice President, Investor Relations Jake Elguicze Chief Financial Officer Dev Kurdikar Chief Executive Officer
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4 Owen Mumford broadens product portfolio to reach new patient populations Medical Devices Established portfolio including point-of-care testing and self-injection devices Pharmaceutical Services Pen injectors, Autoinjectors, High-growth B2B platform anchored by Aidaptus Syringes #1 brand globally in insulin syringe category Pen Needles #1 brand globally in pen needle category Safety Products #1 brand globally in safety pen needles and safety insulin syringes Source: Internal estimates, Market research, Company filings Contract Manufacturing Contribution from contract manufacturing of non- diabetes BD legacy products Acquired from Owen Mumford Diversifies and expands Total Addressable Market outside of diabetes Legacy portfolio Owen Mumford portfolio
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5 Owen Mumford strategically adds to world-class manufacturing footprint World’s largest manufacturer of pen needles World’s largest manufacturer of insulin syringes (Leased from BD) Global pen needle production Dún Laoghaire, Ireland Holdrege, USASuzhou, China Autoinjector, pen needle and syringe production Medical device production Autoinjector and pen needle production & warehousing Witney, UK MalaysiaChipping Norton, UK Sales & warehousing Atlanta, USA Acquired from Owen Mumford
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6 • Borrowed ~$180 million under our $500 million revolving credit facility to fund the Owen Mumford acquisition • Subsequently repaid ~$53 million of debt (~$3 million mandatory Term Loan B payment and ~$50 million towards the revolving credit facility) • After quarter end, amended and extended our revolving credit facility through December 30, 2028 Progress on Strategic Priorities Strengthen Core Business Expand Product Portfolio Increase Financial Flexibility • Market-appropriate pen needles progressing through regulatory review with the U.S. FDA and BSI for CE Mark certification • Market-appropriate syringe launches in certain geographies expected in the coming months • Completed brand transition in key European, Asian and Latin American markets; remains on track to be substantially complete by end of calendar year 2026 • Completed the acquisition of Owen Mumford; integration is progressing as planned • Continued to build on commercial momentum with the expansion of our B2B co-packaging opportunity as generic GLP-1 therapies launched in Canada and Brazil included embecta pen needles • Expect launch of pen needles in small pack format in the U.S. in fiscal fourth quarter
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7 Q3 FY 2026 vs. Q3 FY 2025 Adjusted Revenue Note: Adjusted Constant Currency Revenue Growth is a non-GAAP measure. Please see Appendix for the definition of Adjusted Constant Currency Revenue Growth. (1) 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. (2) Other includes product sales for Owen Mumford products, swabs and other accessories. Dollars in Millions Three Months Ended June 30, % Increase / Decrease 2026 2025 Reported Revenue Growth Currency Impact Adjustment Impact Adj. Constant Currency Revenue Growth Reported Revenue Adjustment Adjusted Revenue Reported Revenue Adjustment Adjusted Revenue % U.S. $120.8 — $120.8 $160.2 — $160.2 (24.6)% — — (24.6)% International (1) $150.9 — $150.9 $135.3 — $135.3 11.5% 1.8% — 9.7% Total $271.7 — $271.7 $295.5 — $295.5 (8.1)% 0.8% — (8.9)% Dollars in Millions Three Months Ended June 30, % Increase / Decrease 2026 2025 Reported Revenue Growth Currency Impact Adjustment Impact Adj. Constant Currency Revenue Growth Reported Revenue Adjustment Adjusted Revenue Reported Revenue Adjustment Adjusted Revenue % Pen Needles $177.5 — $177.5 $216.9 — $216.9 (18.2)% 0.4% — (18.6)% Syringes $36.6 — $36.6 $35.1 — $35.1 4.3% 3.7% — 0.6% Safety $36.7 — $36.7 $34.8 — $34.8 5.5% 0.9% — 4.6% Other (2) $15.6 — $15.6 $3.2 — $3.2 387.5% — — 387.5% Contract Mfr. $5.3 — $5.3 $5.5 — $5.5 (3.6)% — — (3.6)% Total $271.7 — $271.7 $295.5 — $295.5 (8.1)% 0.8% — (8.9)%
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8 Q3 FY 2026 Financial Highlights Revenue • Q3 FY26 revenue of $271.7 million, down 8.1% on a reported basis compared to the prior year period; down 8.9% on an adjusted constant currency basis compared to the prior year period Gross Profit • Q3 FY26 GAAP gross profit and margin of $153.3 million and 56.4%, compared to $197.1 million and 66.7% in the prior year period • Q3 FY26 adjusted gross profit and margin of $158.0 million and 58.2%, compared to $198.6 million and 67.2% in the prior year period Operating Income • Q3 FY26 GAAP operating income and margin of $48.7 million and 17.9%, compared to $94.0 million and 31.8% in the prior year period • Q3 FY26 adjusted operating income and margin of $69.4 million and 25.5%, compared to $109.1 million and 36.9% in the prior year period Net Income & Earnings per diluted share • Q3 FY26 GAAP net income and income per diluted share of 21.1 million and $0.36, compared to net income and earnings per diluted share of $45.5 million and $0.78 in the prior year period • Q3 FY26 adjusted net income and adjusted earnings per diluted share of $32.6 million and $0.56, compared to $65.5 million and $1.12 in the prior year period Note: Adjusted Constant Currency Revenue Growth, Adjusted Gross Profit and Adjusted Gross Profit Margin, Adjusted Operating Income and Adjusted Operating Income Margin, Adjusted Net Income, and Adjusted Earnings per Diluted Share are non-GAAP measures. Please see Appendix for the definitions of these terms.
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9 Note: We are unable to present a quantitative reconciliation of its expected adjusted earnings per diluted share and expected adjusted operating margin as it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of any one-time items. The financial impact of these one-time items is uncertain and is dependent on various factors, including timing, and could be material to the Company's Condensed Consolidated Statements of Income. (1) Reflects the recognition of changes in estimates associated with the Italian payback measure relating to certain prior years since 2015 recorded in Revenues (2) Previous guidance was issued on May 5, 2026 (3) Reflects the recognition of four and half months of contribution from Owen Mumford acquisition. (4) Previous guidance issued on May 5, 2026 assumed four months of contribution from Owen Mumford acquisition. FY 2026 Financial Guidance (including Owen Mumford) Dollars in Millions, except per share and percentages Current Previous(2) Low High Low High Reported Revenue $1,015 $1,035 $1,015 $1,035 Reported Revenue Growth (%) (6.1)% (4.2)% (6.1)% (4.2)% Impact of F/X (%) 1.3% 1.5% Impact of Italian payback measure (1) (%) (0.1)% (0.1)% M&A (%) 2.9% - 3.4% (3) 2.7% (4) Adjusted Organic Constant Currency Revenue Growth (%) (10.2)% (8.8)% (10.2)% (8.3)% Adjusted Operating Margin 23.50% - 24.00% 22.25% - 23.25% Adjusted Earnings per Diluted Share $1.80 $1.90 $1.55 $1.75
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10 Q&A
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11 Appendix
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12 Non-GAAP Financial Measures 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, (viii) Adjusted Earnings Per Diluted Share and (ix) 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.
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13 Nine Months Ended Fiscal Year 2026 vs. Nine Months Ended Fiscal Year 2025 Adjusted Revenue Dollars in Millions Nine Months Ended June 30, % Increase / Decrease 2026 2025 Reported Revenue Growth Currency Impact Adjustment Impact Adjusted Constant Currency Revenue Growth Reported Revenue Adjustment Adjusted Revenue Reported Revenue Adjustment Adjusted Revenue % U.S. $347.1 — $347.1 $437.1 — $437.1 (20.6)% — — (20.6)% International $407.6 — $407.6 $379.3 — $379.3 7.5% 3.9% — 3.6% Total $754.7 — $754.7 $816.4 — $816.4 (7.6)% 1.8% — (9.4)% Note: Adjusted Constant Currency Revenue Growth is a non-GAAP measure. Please see Appendix for the definition of Adjusted Constant Currency Revenue Growth. (1) Other includes product sales for Owen Mumford products, swabs and other accessories. Dollars in Millions Nine Months Ended June 30, % Increase / Decrease 2026 2025 Reported Revenue Growth Currency Impact Adjustment Impact Adjusted Constant Currency Revenue Growth Reported Revenue Adjustment Adjusted Revenue Reported Revenue Adjustment Adjusted Revenue % Pen Needles $517.6 — $517.6 $596.3 — $596.3 (13.2)% 1.4% — (14.6)% Syringes $93.7 — $93.7 $92.3 — $92.3 1.5% 4.1% — (2.6)% Safety $108.3 — $108.3 $103.2 — $103.2 4.9% 1.7% — 3.2% Other (1) $23.2 — $23.2 $9.9 — $9.9 134.3% 3.0% — 131.3% Contract Mfr. $11.9 — $11.9 $14.7 — $14.7 (19.0)% 0.7% — (19.7)% Total $754.7 — $754.7 $816.4 — $816.4 (7.6)% 1.8% — (9.4)%
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14 Adjusted Revenue and Adjusted Gross Profit and Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP Gross Profit $153.3 $197.1 $442.8 $518.3 GAAP Gross Profit Margin 56.4% 66.7% 58.7% 63.5% Amortization of intangible assets (1) 0.3 0.2 0.9 0.8 One-time stand up costs (2) 0.9 0.9 4.6 1.5 Expense associated with the discontinued patch pump program (3) — 0.3 0.3 6.9 Acquisition-related costs (4) 1.9 — 1.9 — Other (5) 1.6 0.1 2.9 0.3 Adjusted Gross Profit $158.0 $198.6 $453.4 $527.8 Adjusted Gross Profit Margin 58.2% 67.2% 60.1% 64.6% Dollars in Millions Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Reported Revenue $271.7 $295.5 $754.7 $816.4 Italian payback measure — — — — Adjusted Revenue $271.7 $295.5 $754.7 $816.4
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15 Adjusted Revenue and Adjusted Gross Profit and Margin Reconciliation (cont.) (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred are primarily attributed to brand transition. (3) Represents expenses incurred for the three and nine months ended June 30, 2026 and June 30, 2025 associated with the discontinued patch pump program. These items are primarily one-time in nature that we do not view as fundamental to operate our core business. The costs primarily consist of asset impairments and other o perating costs. (4) Represents acquisition-related costs incurred associated with the acquisition of Owen Mumford which include purchase price accounting adjustments. (5) Represents various charges such as costs required to develop processes and systems to comply with regulations such as the EU Medical Device Regulation ("EU MDR") and General Data Protection Regulation (“GDPR”) which represent a significant, unusual change to the existing regulatory framework as well as charges associ ated with the discontinuation of alcohol swab products.
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16 Adjusted Operating Income and Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP Operating Income $48.7 $94.0 $167.0 $185.6 GAAP Operating Income Margin 17.9% 31.8% 22.1% 22.7% Amortization of intangible assets (1) 0.3 0.2 0.9 0.8 One-time stand up costs (2) 5.5 11.0 15.0 29.0 Stock-based compensation expense (3) — 0.2 0.3 2.0 Business optimization and severance related costs (4) — 1.0 — 4.6 (Income) expense associated with the discontinued patch pump program (5) — 2.4 (7.9) 48.3 Acquisition-related costs (6) 13.3 — 18.9 — Other (7) 1.6 0.3 3.1 0.7 Adjusted Operating Income $69.4 $109.1 $197.3 $271.0 Adjusted Operating Income Margin 25.5% 36.9% 26.1% 33.2%
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17 (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up costs; (iii) legal costs associated with patents and trademark work; (iv) temporary headcount resources within accounting, tax, finance, human resources, regulatory and IT; and (v) one-time business integration and IT related costs primarily associated with our global ERP implementation. For the three months ended June 30, 2026, approximately $4.3 million is recorded in Other operating expense, net, $1.0 million is recorded in Cost of products sold, and $0.2 million is recorded in Research and development expense. For the three months ended June 30, 2025, approximately $9.7 million is recorded in Other operating expense, net, $0.9 million is recorded in Cost of products sold and $0.4 million is recorded in Research and development expense. For the nine months ended June 30, 2026, approximately $9.6 million is recorded in Other operating expense, net, $4.6 million is recorded in Cost of products sold, and $0.8 million is recorded in Research and development expense. For the nine months ended June 30, 2025, approximately $26.3 million is recorded in Other operating expense, net, $1.5 million is recorded in Cost of products sold and $1.2 million is recorded in Research and development expense. (3) Represents stock-based compensation expense recognized during the period associated with the incremental value of converted legacy BD share-based awards and one-time sign-on equity awards granted to certain members of the embecta leadership team in connection with the Company's separation from BD. For the three months ended June 30, 2026, no charges were incurred. For the three months ended June 30, 2025, $0.2 million is recorded in Selling and administrative expense. For the nine months ended June 30, 2026, $0.3 million is recorded in Selling and administrative expense. For the nine months ended June 30, 2025, $2.0 million is recorded in Selling and administrative expense. (4) Represents restructuring, business optimization, and severance related costs associated with standing up and optimizing the organization recorded in Other operating expenses excluding costs classified above within Stock-based compensation expense. (5) Represents income and expenses incurred during the three and nine months ended June 30, 2026 and 2025 associated with the discontinued patch pump program. For the three months ended June 30, 2026, no charges were incurred. For the three months ended June 30, 2025, $1.2 million is recorded in Research and development expense, $0.9 million is recorded in Other operating expenses, and $0.3 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, a $10.0 million gain is recorded in Other operating expense, net, a $1.8 million charge is recorded in Research and development expense, and a $0.3 million charge is recorded in Cost of products sold. For the nine months ended June 30, 2025, $24.4 million is recorded in Research and development expense, $16.2 million is recorded in Other operating expenses, $6.9 million is recorded in Cost of products sold, and $0.8 million is recorded in Selling and administrative expense. Represents acquisition-related costs incurred associated with the acquisition of Owen Mumford which include purchase price accounting adjustments. For the three months ended June 30, 2026, $11.3 million is recorded in Other operating expense, net, $2.0 million is recorded in Cost of products sold, $0.7 million is recorded in interest expense, offset by a $3.2 million gain recorded in Other (income) expense, net. For the nine months ended June 30, 2026, $16.9 million is recorded in Other operating expense, net, $2.0 million is recorded in Cost of products sold, $0.7 million is recorded in interest expense, offset by a $2.3 million gain recorded in Other (income) expense, net. (6) Represents various charges such as costs required to develop processes and systems to comply with regulations such as the EU MDR and GDPR which represent a significant, unusual change to the existing regulatory framework as well as charges associated with the discontinuation of alcohol swab products. For the three months ended June 30, 2026, $1.6 million is recorded in Cost of products sold. For the three months ended June 30, 2025, $0.2 million is recorded in Research and development expense and $0.1 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, $1.6 million is recorded in Cost of products sold and $0.2 million is recorded in Research and development expense. For the nine months ended June 30, 2025, $0.5 million is recorded in Research and development expense and $0.2 million is recorded in Cost of products sold. Adjusted Operating Income and Margin Reconciliation (cont.)
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18 Adjusted Net Income & Adjusted Net Income per Diluted Share Reconciliation Dollars in Millions, except per share amounts Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP Net (Loss) Income $21.1 $45.5 $61.1 $69.0 Adjustments: GAAP Income tax provision 6.5 26.7 34.9 38.3 Amortization of intangible assets (1) 0.3 0.2 0.9 0.8 One-time stand up costs (2) 5.5 11.0 15.0 29.0 Stock-based compensation expense (3) — 0.2 0.3 2.0 Business optimization and severance related costs (4) — 1.0 — 4.6 (Income) expense associated with the discontinued patch pump program (5) — 2.4 (7.9) 48.3 Acquisition-related costs (6) 10.8 — 17.3 — Other (7) 1.6 0.3 3.1 0.7 Non-GAAP income tax provision (8) (13.2) (21.8) (33.7) (48.2) Adjusted Net Income $32.6 $65.5 $91.0 $144.5 GAAP Net (Loss) Income per Diluted share $0.36 $0.78 $1.03 $1.18 Adjusted Net Income per Diluted share $0.56 $1.12 $1.53 $2.46 Diluted weighted-average shares outstanding (in thousands) 58,512 58,495 59,580 58,721
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19 Adj. Net Income & Adj. Net Income per Diluted Share Reconciliation (cont.) (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up costs; (iii) legal costs associated with patents and trademark work; (iv) temporary headcount resources within accounting, tax, finance, human resources, regulatory and IT; and (v) one-time business integration and IT related costs primarily associated with our global ERP implementation. For the three months ended June 30, 2026, approximately $4.3 million is recorded in Other operating expense, net, $1.0 million is recorded in Cost of products sold, and $0.2 million is recorded in Research and development expense. For the three months ended June 30, 2025, approximately $9.7 million is recorded in Other operating expense, net, $0.9 million is recorded in Cost of products sold and $0.4 million is recorded in Research and development expense. For the nine months ended June 30, 2026, approximately $9.6 million is recorded in Other operating expense, net, $4.6 million is recorded in Cost of products sold, and $0.8 million is recorded in Research and development expense. For the nine months ended June 30, 2025, approximately $26.3 million is recorded in Other operating expense, net, $1.5 million is recorded in Cost of products sold and $1.2 million is recorded in Research and development expense. (3) Represents stock-based compensation expense recognized during the period associated with the incremental value of converted legacy BD share-based awards and one-time sign-on equity awards granted to certain members of the embecta leadership team in connection with the Company's separation from BD. For the three months ended June 30, 2026, no charges were incurred. For the three months ended June 30, 2025, $0.2 million is recorded in Selling and administrative expense. For the nine months ended June 30, 2026, $0.3 million is recorded in Selling and administrative expense. For the nine months ended June 30, 2025, $2.0 million is recorded in Selling and administrative expense. (4) Represents restructuring, business optimization, and severance related costs associated with standing up and optimizing the organization recorded in Other operating expenses excluding costs classified above within Stock-based compensation expense. (5) Represents income and expenses incurred during the three and nine months ended June 30, 2026 and 2025 associated with the discontinued patch pump program. For the three months ended June 30, 2026, no charges were incurred. For the three months ended June 30, 2025, $1.2 million is recorded in Research and development expense, $0.9 million is recorded in Other operating expenses, and $0.3 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, a $10.0 million gain is recorded in Other operating expense, net, a $1.8 million charge is recorded in Research and development expense, and a $0.3 million charge is recorded in Cost of products sold. For the nine months ended June 30, 2025, $24.4 million is recorded in Research and development expense, $16.2 million is recorded in Other operating expenses, $6.9 million is recorded in Cost of products sold, and $0.8 million is recorded in Selling and administrative expense. (6) Represents acquisition-related costs incurred associated with the acquisition of Owen Mumford which include purchase price accounting adjustments. For the three months ended June 30, 2026, $11.3 million is recorded in Other operating expense, net, $2.0 million is recorded in Cost of products sold, $0.7 million is recorded in interest expense, offset by a $3.2 million gain recorded in Other (income) expense, net. For the nine months ended June 30, 2026, $16.9 million is recorded in Other operating expense, net, $2.0 million is recorded in Cost of products sold, $0.7 million is recorded in interest expense, offset by a $2.3 million gain recorded in Other (income) expense, net. (7) Represents various charges such as costs required to develop processes and systems to comply with regulations such as the EU MDR and GDPR which represent a significant, unusual change to the existing regulatory framework as well as charges associated with the discontinuation of alcohol swab products. For the three months ended June 30, 2026, $1.6 million is recorded in Cost of products sold. For the three months ended June 30, 2025, $0.2 million is recorded in Research and development expense and $0.1 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, $1.6 million is recorded in Cost of products sold and $0.2 million is recorded in Research and development expense. For the nine months ended June 30, 2025, $0.5 million is recorded in Research and development expense and $0.2 million is recorded in Cost of products sold. (8) Represents the amount of tax expense that the Company estimates that it would record if it used non-GAAP results instead of GAAP results in the calculation of its tax provision. The non-GAAP effective tax rate for the three and nine months ended June 30, 2026 was 28.8% and 27.0%, respectively. The non-GAAP effective tax rate for both the three and nine months ended June 30, 2025 was 25.0%.
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20 Adjusted EBITDA Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP Net (Loss) Income $21.1 $45.5 $61.1 $69.0 Interest expense, net 23.9 26.6 70.6 81.2 Income taxes benefit 6.5 26.7 34.9 38.3 Depreciation and amortization 10.5 9.2 31.0 27.6 EBITDA $62.0 $108.0 $197.6 $216.1 Stock-based compensation expense (1) 4.1 5.9 15.7 22.2 One-time stand up costs (2) 5.5 11.0 15.0 29.0 Business optimization and severance related costs (3) — 0.9 — 4.2 Acquisition-related costs (4) 9.8 — 16.3 — Amortization of cloud computing arrangements (5) 2.7 2.6 7.9 7.8 (Income) expense associated with the discontinued patch pump program (6) — 2.3 (8.1) 45.4 Other (7) 1.6 0.3 3.1 0.7 Adjusted EBITDA $85.7 $131.0 $247.5 $325.4 Adjusted EBITDA Margin 31.5% 44.3% 32.8% 39.9% Dollars in Millions Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Reported Revenue $271.7 $295.5 $754.7 $816.4 Italian payback measure — — — — Adjusted Revenue $271.7 $295.5 $754.7 $816.4
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21 (1) Represents stock-based compensation expense incurred during the three and nine months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, $3.2 million is recorded in Selling and administrative expense, $0.8 million is recorded in Cost of products sold, and $0.1 million is recorded in Research and development expense. For the three months ended, June 30, 2025, $5.1 million is recorded in Selling and administrative expense, $0.7 million is recorded in Cost of products sold, and $0.1 million is recorded in Research and development expense. For the nine months ended June 30, 2026, $12.9 million is recorded in Selling and administrative expense, $2.5 million is recorded in Cost of products sold and $0.3 million is recorded in Research and development expense. For the nine months ended June 30, 2025, $17.2 million is recorded in Selling and administrative expense, $2.8 million is recorded in Other operating expense, net, $1.9 million is recorded in Cost of products sold, and $0.3 million is recorded in Research and development expense. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up costs; (iii) legal costs associated with patents and trademark work; (iv) temporary headcount resources within accounting, tax, finance, human resources, regulatory and IT; and (v) one-time business integration and IT related costs primarily associated with our global ERP implementation. For the three months ended June 30, 2026, approximately $4.3 million is recorded in Other operating expense, net, $1.0 million is recorded in Cost of products sold, and $0.2 million is recorded in Research and development expense. For the three months ended June 30, 2025, approximately $9.7 million is recorded in Other operating expense, net, $0.9 million is recorded in Cost of products sold and $0.4 million is recorded in Research and development expense. For the nine months ended June 30, 2026, approximately $9.6 million is recorded in Other operating expense, net, $4.6 million is recorded in Cost of products sold, and $0.8 million is recorded in Research and development expense. For the nine months ended June 30, 2025, approximately $26.3 million is recorded in Other operating expense, net, $1.5 million is recorded in Cost of products sold and $1.2 million is recorded in Research and development expense. (3) Represents restructuring, business optimization, and severance related costs associated with standing up and optimizing the organization recorded in Other operating expense, net excluding costs classified above within Stock-based compensation expense. (4) Represents acquisition-related costs incurred associated with the acquisition of Owen Mumford which include purchase price accounting adjustments. For the three months ended June 30, 2026, $11.1 million is recorded in Other operating expense, net, $1.9 million is recorded in Cost of products sold offset by a $3.2 million gain recorded in Other (income) expense, net. For the nine months ended June 30, 2026, $16.7 million is recorded in Other operating expense, net, $1.9 million is recorded in Cost of products sold offset by a $2.3 million gain recorded in Other (income) expense, net. (5) Represents amortization of implementation costs associated with cloud computing arrangements recognized in Other operating expense, net. (6) Represents income and expenses incurred during the three and nine months ended June 30, 2026 and 2025 associated with the discontinued patch pump program, excluding those program costs classified above within Depreciation and amortization and Stock-based compensation expense. These items are primarily one-time in nature that we do not view as fundamental to operate our core business. The items primarily consist of severance-related costs, asset impairments, contract termination costs, a gain on sale of certain assets, and other operating costs. For the three months ended June 30, 2026, no charges were incurred. For the three months ended June 30, 2025, $1.1 million is recorded in Research and development expense, $0.9 million recorded in Other operating expense, net, and $0.3 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, a $10.0 million gain is recorded in Other operating expense, net offset by a $1.6 million charge is recorded in Research and development expense, and a $0.3 million charge is recorded in Cost of products sold. For the nine months ended June 30, 2025, $23.9 million is recorded in Research and development expense, $13.8 million is recorded in Other operating expense, net, $6.9 million is recorded in Cost of products sold, and $0.8 million is recorded in Selling and administrative expense. (7) Represents various charges such as costs required to develop processes and systems to comply with regulations such as the EU MDR and GDPR which represent a significant, unusual change to the existing regulatory framework as well as charges associated with the discontinuation of alcohol swab products. For the three months ended June 30, 2026, $1.6 million is recorded in Cost of products sold. For the three months ended June 30, 2025, $0.2 million is recorded in Research and development expense and $0.1 million is recorded in Cost of products sold. For the nine months ended June 30, 2026, $2.9 million is recorded in Cost of products sold and $0.2 million is recorded in Research and development expense. For the nine months ended June 30, 2025, $0.5 million is recorded in Research and development expense and $0.2 million is recorded in Cost of products sold. Adjusted EBITDA Reconciliation (cont.)
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22 Q3 FY 2026 Supplemental Reconciliation Dollars in Millions Q3 FY 2026 GAAP (Income) Costs associated with the discontinued patch pump program (1) Other Non-GAAP adjustments Q3 FY 2026 Adjusted Gross Profit 153.3 — 4.7 (2) 158.0 Research and development expense 5.6 — 0.2 (3) 5.4 Selling and administrative expense 78.6 — — 78.6 Other operating expense, net 20.4 — 15.8 (4) 4.6 Operating Income 48.7 — 20.7 69.4 (1) No costs were incurred during the three months ended June 30, 2026, associated with the discontinued patch pump program. (2) Represents costs incurred during the three months ended June 30, 2026, associated with one-time costs related to brand transition, acquisition-related costs, amortization of intangible assets, EU MDR costs, and product discontinuation costs. (3) Represents costs incurred during the three months ended June 30, 2026, associated with one-time costs related to brand transition. (4) Represents one-time costs incurred during the three months ended June 30, 2026, primarily associated with brand transition and acquisition-related costs.
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23 Q3 Year to Date Fiscal Year 2026 Supplemental Reconciliation Dollars in Millions Q3 YTD FY 2026 GAAP (Income) Costs associated with the discontinued patch pump program (1) Other Non-GAAP adjustments Q3 YTD FY 2026 Adjusted Gross Profit 442.8 0.3 10.3 (2) 453.4 Research and development expense 15.6 1.8 1.0 (3) 12.8 Selling and administrative expense 232.4 — 0.3 (4) 232.1 Other operating expense, net 27.8 (10.0) 26.6 (5) 11.2 Operating Income 167.0 (7.9) 38.2 197.3 (1) Represents income and expenses incurred during the nine months ended June 30, 2026, associated with the discontinued patch pump program. These items are primarily one-time in nature that we do not view as fundamental to operate our core business. The items primarily consist of a gain on sale of certain assets and other operating costs. (2) Represents costs incurred during the nine months ended June 30, 2026, associated with one-time costs related to brand transition, acquisition-related costs, amortization of intangible assets, EU MDR costs, and product discontinuation costs. (3) Represents costs incurred during the nine months ended June 30, 2026, associated with one-time costs related to brand transition and EU MDR costs. (4) Represents stock-based compensation expense recognized during the period associated with the incremental value of converted legacy BD share-based awards and one-time sign-on equity awards granted to certain members of the embecta leadership team in connection with the Company's separation from BD. (5) Represents one-time costs incurred during the nine months ended June 30, 2026, primarily associated with brand transition and acquisition-related costs.
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24 Non-GAAP Free Cash Flow Reconciliation Dollars in Millions Three Months Ended Nine Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net Cash Provided by Operating Activities $41.8 $81.2 $90.1 $107.7 Less: Capital Expenditures (1.1) (0.4) (2.2) (2.0) Non-GAAP Free Cash Flow $40.7 $80.8 $87.9 $105.7
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25 Net Leverage Reconciliation June 30, 2026 June 30, 2025 Total Debt $1,469.3 $1.489.1 Less: Cash and Equivalents and Restricted Cash $(218.2) $(233.6) Net Debt $1,251.1 $1,255.5 Trailing 12-months Adjusted EBITDA $337.4 $398.4 Net Debt/Trailing 12-months Adjusted EBITDA 3.7x 3.2x Net leverage ratio = Net Debt/Adjusted EBITDA
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26 Dollars in Millions, except percentages Current Previous Interest Expense, Net ~ $95 ~ $97 Adjusted Tax Rate ~ 27% ~ 28% Weighted Average Shares (in millions) 58.6 59.4 Foreign Exchange EUR/USD ~ 1.16 ~ 1.17 USD/YEN ~ 158 ~ 157 USD/CNY ~ 6.90 ~ 6.91 FY 2026 Financial Guidance Assumptions