Carl Zeiss Meditec (AFX) Q2 2026 earnings summary

Executive summary

• Revenue and profitability declined sharply year-over-year, mainly due to currency headwinds, unfavorable product mix, weaker intraocular lens (IOL) sales in China, and significant one-off items including R&D write-offs and legal expenses.

• The company launched the Profit Up/ProfitUp Program targeting over EUR 200 million in annual profit improvements by 2028/2029, focusing on cost restructuring, portfolio optimization, and operational efficiency, with up to 1,000 positions affected.

• Midterm targets reaffirmed: aiming for adjusted EBITDA/EBITA margin above 15% by 2028/2029, with long-term ambition of 16%-20%.

• Order entry showed solid growth in EMEA, while Americas and APAC remained weak; order backlog increased slightly.

• Net income attributable to shareholders decreased by 76% to EUR 14.7 million, with EPS at EUR 0.17.

Financial highlights

• Revenue for the first six months was EUR 991 million, down 5.7% year-over-year (2.8% decline currency-adjusted).

• Adjusted EBITDA/EBITA was EUR 60.5 million (margin 6.1%), down from 10.7% prior year; reported EBITDA/EBITA EUR 39 million (margin 3.9%).

• Earnings per share fell to EUR 0.17; adjusted EPS was EUR 0.48.

• Net financial debt decreased to EUR 274 million by end of Q2.

• Operating cash flow improved significantly, driven by reduced receivables and lower tax payments.

Outlook and guidance

• FY 2025/2026 revenue expected at EUR 2.15–2.2 billion; adjusted EBITDA/EBITA margin projected at 8%-10% in H2 after special effects.

• Special items and further impairments (EUR 10–20 million) expected in H2; potential goodwill write-down in ophthalmology may exceed EUR 100 million.

• Midterm organic revenue growth targeted at mid-single-digit percentage; adjusted EBITDA/EBITA margin >15% by 2028/2029.

• Long-term EBITA margin ambition of 16%-20%.

• Guidance incorporates caution for Chinese market competition, pricing, and infrastructure cost increases.