Embla Medical Hf S/Adr Q2 2025 Earnings | 07/22/2025

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Embla Medical Hf S/Adr reported solid second quarter 2025 results, delivering both top-line growth and improved profitability amid a mixed operating environment. Sales for the period reached $232 million, reflecting 7% reported growth and 5% organic growth year-over-year. The expansion was powered by strong momentum in the Prosthetics & Neuro Orthotics segment, which achieved 9% organic growth, primarily benefiting from ongoing strength in EMEA and positive contributions from newly launched products. In contrast, the Bracing & Supports segment experienced a 2% organic decline, while Patient Care segment sales were flat due to lower procedure volumes and increased price competition. The company’s EBITDA margin improved to 21% in Q2 2025, up from 19% in the first half of 2024, with EBITDA totaling $49 million for the quarter. This was supported by robust sales in key segments, ongoing manufacturing efficiency initiatives, and disciplined control of SG&A expenses. Net profit grew 5% to $21 million, maintaining a net profit margin of 9%, unchanged from the same quarter last year. Earnings per share rose to $0.05, up from $0.047 in Q2 2024. Gross profit margin, though strong at 62%, decreased from 64% in the prior-year quarter, primarily impacted by softer demand in certain segments, production scale effects, and US tariff headwinds. Free cash flow for the quarter was $12 million, equating to 5% of sales, yet this was lower than the $18 million (8% of sales) a year ago, mainly reflecting temporary working capital commitments and higher capital expenditures. The company’s leverage remained well within its target range at 2.6x net interest-bearing debt to EBITDA before special items. Strategic developments during the quarter included signing an agreement to acquire a 51% majority stake in Streifeneder ortho.production, expected to further strengthen Embla’s product portfolio and market reach, though with slightly dilutive short-term margin effects. The company also secured a €50 million loan from the Nordic Investment Bank to support ongoing growth and innovation. Management narrowed full-year guidance for organic sales growth to 5–6% (from prior 5–8%), reiterating expectations for an EBITDA margin of 20–21% for the year. Embla Medical’s leadership emphasized its commitment to cost discipline, innovation, and sustainability, highlighted by recent accolades such as recognition by TIME Magazine for sustainable growth. While macro uncertainties—including US tariffs and evolving reimbursement in healthcare markets—present some headwinds, the company remains optimistic in its ability to deliver long-term value through continued expansion and operational excellence. #EmblaMedical #OSSUY #Q22025 #Earnings #FinancialResults #Prosthetics #NeuroOrthotics #SalesGrowth #EBITDA #Profitability #Healthcare #OrganicGrowth #Sustainability #Acquisition #Innovation #MarketUpdate #MedTech #InvestorUpdate #FreeCashFlow #OperationalExcellence #InsideTicker