Zimmer Biomet (ZBH) investor relations material

Financial performance and guidance

• Earnings per share guidance was raised, supported by lower tariff estimates, reduced interest expenses, and strong cash flow generation.

• Operating margins are expected to be at the favorable end of previous guidance, with operational improvements and FX tailwinds contributing.

• Guidance for 2025 is 3.5% to 4.5% growth, with high confidence in achieving targets due to internal and external factors.

• Q3 2025 is expected to approach 6% growth, with Q4 being seasonally softer.

• International markets show healthy growth, with pricing as a tailwind for several years.

Product innovation and pipeline

• New product launches, especially the "Magnificent Seven," are driving sequential improvements in key categories like hips and knees.

• Major launches include Oxford Partial Cement, Z1 Triple Tapered Stem, and Persona Revision in Europe.

• The impact of new products typically materializes 18–24 months post-launch, with further acceleration expected in 2026.

• Upcoming innovations include iodine-coated devices and ROSA Optimize, with multiple new indications planned.

• The Monogram acquisition aims to introduce fully autonomous robotics by 2027, offering a broad navigation and robotics portfolio.

Market dynamics and growth drivers

• Demographic trends, increased activity among older adults, and the adoption of GLP-1s are boosting procedure volumes.

• Ambulatory Surgery Centers (ASCs) now account for over 20% of U.S. sales, with dedicated strategies and partnerships enhancing performance.

• Productivity and margins are higher in ASCs, with dedicated sales teams and efficient inventory allocation.

• Pricing remains stable due to innovation and high contribution margins from orthopedic procedures.

• The extremities business, including sports medicine and foot and ankle, is growing faster than large joint segments.