Embecta Downgraded to B as Revenue Falls 14%

S&P cut Embecta’s rating to ‘B’ from ‘B+’, citing a 14% Q2 FY2026 revenue drop.
Pen‑needle sales fell ~20% constant‑currency, with share loss to a lower‑cost provider at a major U.S. retailer.
S&P forecasts FY2026 revenue down ~6% and adjusted margin down 800 bps to 29%, with leverage rising to 4.5‑5x.
Company plans to fund $30 million Owen Mumford acquisition via revolving credit and cut dividend to prioritize debt repayment.