Carl Zeiss Meditec (AFX) Q1 2026 earnings summary

Executive summary

• Revenue declined 4.8% year-over-year to EUR 467 million, with significant currency headwinds and unfavorable product mix; EBITA dropped 77% to EUR 8.1 million, mainly due to FX effects and weak sales in China and the US.

• Order intake fell 9.7% year-over-year, while order backlog increased slightly 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, intensified competition, and softer equipment demand in the US.

Financial highlights

• Revenue: EUR 467 million, down 4.8% year-over-year; constant currency decline of 2.1%.

• EBITA: EUR 8.1 million, down 77% year-over-year; EBITA margin at 1.7% vs. 7.2% prior year.

• 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%.

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

• Net financial debt decreased to EUR 281.7 million.

Outlook and guidance

• Guidance suspended due to regulatory and competitive uncertainties, especially in China IOLs and US equipment 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.

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