Zimmer Biomet (ZBH) investor relations material

Executive summary

• Q2 net sales reached $2.177 billion, up 4.8% reported and 4% organic constant currency, driven by acquisitions, new products, and favorable FX.

• Net earnings for Q2 were $198.3 million, with diluted EPS up 33.8% to $1.03; adjusted EPS was $2.07, flat year-over-year.

• Operating cash flow for Q2 was $448 million, free cash flow $308 million; six-month cash from operations totaled $807.2 million.

• Raised full-year organic revenue growth guidance to 2.25%-3.25% and adjusted EPS to $8.47-$8.59.

• Major acquisitions (Paragon 28, Monogram Technologies) and innovation in robotics and product launches supported growth.

Financial highlights

• Quarterly net sales: $2,177.0M (+4.8% YoY); six months: $4,263.7M (+7.0% YoY).

• Adjusted gross margin was 71.1% (down 120 bps YoY); reported gross margin was 63.3%.

• Adjusted operating margin was 25.7% (down 210 bps YoY); adjusted operating profit for Q2 was $559.7 million.

• Operating profit for Q2 was $326.1 million (+8.7% YoY); net earnings for Q2 were $198.3 million.

• Free cash flow for the first six months totaled $554.1 million.

Outlook and guidance

• Full-year 2026 reported revenue growth guidance raised to 3.9%-4.9%; organic constant currency growth expected at 2.25%-3.25%.

• Adjusted EPS guidance increased to $8.47-$8.59.

• Paragon 28 to contribute 1.1% to reported sales growth until April 2026.

• FX expected to have a 0.5% positive impact on full-year sales.

• Free cash flow growth expected at 9%-11%.