Carl Zeiss Meditec (AFX) Q2 2025 earnings summary

Executive summary

• Revenue for the first six months reached €1,050.5m–1.051 billion, up 10.9% year-over-year, driven by strong Ophthalmology performance and the DORC acquisition.

• Recurring revenue now constitutes 50% of total revenue, supported by DORC acquisition and strong consumables in China.

• CEO transition announced: Markus Weber to step down, Maximilian Foerst to take over as CEO from June 1st, 2025.

• Consolidated profit declined 27.2% to €60.5m, with EPS down to €0.70 from €0.94, mainly due to lower gross margin and absence of prior year's one-off settlement income.

• Americas and EMEA regions posted double-digit revenue growth; APAC was stable year-over-year.

Financial highlights

• Orders totaled €1.095 billion, a 33.4% increase year-over-year; FX and acquisition-adjusted order growth at 20.8%.

• EBITDA/EBITA was €113.6m–€114m, with a margin of 10.8% (down from 12%); adjusted margin rose to 10.7%.

• Net income declined to €60.5m–€61m, and EPS dropped 26% to €0.70; adjusted EPS was €0.81, down 12% year-over-year.

• Operating cash flow fell to €8.5m–€9m from €60m, mainly due to higher receivables and working capital changes.

• Net financial debt increased to €-414.1m, refinanced by shareholder loan.

Outlook and guidance

• Guidance for FY 2024/25 remains unchanged, with moderate revenue growth expected, driven by order stabilization and DORC consolidation.

• EBITDA/EBITA and margin expected to be stable to slightly higher; long-term margin target is at least 16%-20%.

• Macroeconomic uncertainty, US tariffs, and currency risks remain key headwinds.