Carl Zeiss Meditec (AFX) Q4 2025 earnings summary

Executive summary

• Fiscal year 2024-2025 delivered solid revenue growth of 7.8% year-over-year to EUR 2.23 billion, with strong order entry up 18.2% year-over-year and a robust order backlog of EUR 380 million.

• EBITDA/EBITA increased 3.5% to EUR 258 million, with margin at 11.6%, despite headwinds from U.S. tariffs, negative FX effects, and the absence of a prior year one-off gain.

• Recurring revenue reached a record 50% of total revenue, driven by consumables and service.

• Leadership transition underway with the CEO stepping down; interim CEO appointed and strategic continuity emphasized.

• Strategic realignment underway to improve customer centricity, focus, and operational efficiency.

Financial highlights

• Order entry: EUR 2.29 billion (+18.2% year-over-year); order backlog at EUR 380 million (+16% year-over-year).

• Revenue: EUR 2.23 billion (+7.8% year-over-year; +8.6% FX adjusted).

• EBITDA/EBITA: EUR 258 million (+3.5% year-over-year); margin 11.6% (adjusted margin up from 11.2%).

• Gross profit: EUR 1.175 billion; margin 52.8%, stable year-over-year.

• EPS: EUR 1.61 (adjusted EUR 1.90), down 3.9% year-over-year due to negative currency hedging and lower interest income.

• Operating cash flow: EUR 210 million, slightly below last year due to higher working capital and interest payments.

• Net financial debt: EUR 277 million, below prior year.

Outlook and guidance

• Fiscal 2025-2026: Organic revenue expected to grow mid-single digits to ~EUR 2.3 billion; EBITDA/EBITA margin targeted at ~12.5%.

• Midterm (3-5 years): Organic revenue CAGR mid to high single digits; EBITDA/EBITA margin ambition 16%-20%.

• Guidance excludes potential non-recurring effects from geopolitical, regulatory, or restructuring events.