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ConvaTec Group (CTEC) investor relations material
ConvaTec Group H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved fifth consecutive year of organic revenue growth within target range, supported by eight new product launches and broad-based gains across all categories and geographies.
Fourth consecutive year of margin expansion and second year of double-digit EPS growth.
Strong cash generation enabled increased investment in CapEx, R&D, and significant shareholder returns, including a $300 million share repurchase in 2025.
Upgraded medium-term organic revenue growth target to 6%-8% from 2027, reflecting confidence in pipeline and execution.
Growth was broad-based across all four chronic care categories, with high recurring revenues and strong market positions.
Financial highlights
Organic revenue growth (excluding InnovaMatrix) was 6.4% year-over-year, with all four categories contributing.
Operating margin expanded by 110 basis points to 22.3%, totaling 460 basis points over four years.
Adjusted diluted EPS grew 16% year-over-year to 17.6c; net profit increased 15%.
Free cash flow to equity conversion reached 101% under new definition; free cash flow to equity was $362 million.
Dividend per share increased by 13% to 7.244c, maintaining a 40% payout ratio.
Outlook and guidance
2026 guidance: 5%-7% organic group revenue growth (excluding InnovaMatrix), with revenue second-half weighted and mid-single digit growth in most segments.
Operating margin expected to reach at least 23% in 2026, with further improvements anticipated.
Double-digit EPS growth expected in 2026; strong cash generation targeted.
From 2027, targeting 6%-8% organic growth per annum, mid-twenties operating margin, and double-digit EPS and free cash flow growth.
Growth to be weighted towards H2 as new product launches ramp up.
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