Carl Zeiss Meditec (AFX) Q3 2025 earnings summary

Executive summary

• Order entry rose 23.3% to EUR 1.7 billion, with revenue up 7.6% year-over-year to EUR 1.6 billion, driven by D.O.R.C. acquisition and strong product deliveries in China.

• Recurring revenue reached a record 51.4% of total revenue, reflecting a shift toward stable income streams, mainly due to D.O.R.C. integration.

• EBITDA/EBITA grew to EUR 175.4 million, with adjusted EBITDA/EBITA margin improving to 11.1% from 10.2% year-over-year.

• Net income declined to EUR 89 million, EPS dropped to EUR 1.02, and adjusted EPS was EUR 1.24, down 8%.

• Strong product launches (VISUMAX 800, SMILE Pro 2, KINEVO 900 S) and D.O.R.C. integration contributed to growth.

Financial highlights

• Order backlog increased to EUR 431 million.

• Gross margin declined to 52.7% from 53.7% due to product mix and price cuts in IOLs and China.

• Operating cash flow rose to EUR 66 million, mainly due to lower tax payments.

• Net financial debt at EUR 384 million, mainly refinanced through a shareholder loan.

• CapEx at 3.6% of revenue.

Outlook and guidance

• Guidance for FY 2024-2025 unchanged: moderate revenue growth expected, driven by order intake stabilization and D.O.R.C. consolidation.

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

• U.S. tariffs and FX volatility remain key risks; pricing adjustments planned to offset tariffs.