Carl Zeiss Meditec (AFX) Q1 2026 earnings summary

Executive summary

• Revenue declined 4.8% year-over-year to EUR 467 million, mainly due to currency headwinds and unfavorable product mix, especially in China and the US.

• EBITA dropped 77% year-over-year to EUR 8.1 million, with margin falling to 1.7% from 7.2%, driven by negative operating leverage and product mix.

• Order intake decreased 9.7% year-over-year to EUR 471 million, but order backlog increased to EUR 404.7 million.

• Weak start attributed to strong prior-year equipment sales, bifocal IOL withdrawal in China, and delayed refractive treatment pack sales.

• Guidance for the fiscal year was suspended due to regulatory uncertainty in China, increased competition, and weaker equipment demand in the US.

Financial highlights

• Revenue: EUR 467 million, down 4.8% year-over-year; FX-adjusted revenue down 2.1%.

• EBITA: EUR 8.1 million, down 77% year-over-year; EBITA margin at 1.7% (previous year: 7.2%).

• Adjusted EBITA margin: 2.2%, down from 6.7% year-over-year.

• Gross profit: EUR 227 million; gross margin decreased to 48.6% from 51.4% last year.

• EPS: -0.06 EUR; adjusted EPS: 0.03 EUR.

• Net financial debt decreased to EUR 281.7 million by end of Q1; equity ratio at 63.8%.

Outlook and guidance

• Guidance suspended due to regulatory uncertainty in China, intensified competition, and softer US demand.

• New guidance and further cost-reduction measures to be provided by May 2026.

• Key swing factors: timing of bifocal IOL registration, VBP tender outcome, and refractive demand in China.

• EUR 8 million one-off impact expected in Q2 from scrapping bifocal IOL inventory.