CONMED (CNMD) investor relations material

Executive summary

• Q2 2025 sales reached $342.3M, up 3.1% year-over-year as reported and 2.9% in constant currency, driven by single-use product growth and strong general surgery performance.

• Adjusted EPS for Q2 was $1.15, up 17.3% year-over-year; GAAP EPS was $0.69, down from $0.96, reflecting higher operating and consulting costs.

• Operating income declined to $38.2M from $47.1M year-over-year; net income was $21.4M, down from $30.0M.

• Management highlighted operational improvements, especially in supply chain, and confidence in long-term growth drivers.

• Four key growth drivers: AirSeal, Buffalo Filter, BioBrace, and Foot & Ankle.

Financial highlights

• Adjusted gross margin for Q2 was 56.5%, up 120 basis points year-over-year; reported gross margin was 55.0%, down 30 bps.

• Adjusted SG&A expenses were 37.1% of sales, 20 basis points higher year-over-year.

• Operating cash flow for six months was $70.7M, slightly down from $72.4M year-over-year.

• Single-use products accounted for 87% of Q2 revenue, growing 6.6% year-over-year; capital products declined 15.5%.

• Capital expenditures were $5.7M, up from $3.6M a year ago.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.356B–$1.378B; adjusted EPS guidance increased to $4.40–$4.55, reflecting FX, tariffs, and operational performance.

• Q3 revenue expected between $330M–$337M; Q3 adjusted EPS expected between $1.03–$1.08.

• 2025 gross margins expected to be similar to 2024, despite tariff and FX headwinds.

• Tariffs and FX expected to negatively impact EPS by $0.19 in H2 2025.

• Inflationary and supply chain pressures expected to persist, with ongoing operational optimization.