CONMED (CNMD) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic vision and portfolio focus

• Focuses on empowering healthcare providers globally with innovative clinical solutions and a balanced portfolio between general surgery and orthopedics.

• Prioritizes high-growth, high-margin platforms such as AirSeal, Buffalo Filter, and BioBrace, with ongoing portfolio optimization and realignment toward minimally invasive and orthopedic markets.

• Exited the GI business to concentrate on high-return categories, expecting more additions than subtractions in the future.

• Committed to ethical operations, engaged talent, and delivering exceptional results.

• Portfolio optimization and supply chain transformation are ongoing to support growth and shareholder returns.

Growth drivers and market opportunities

• AirSeal targets both robotic and laparoscopic surgery, with 60% of sales from robotics and 40% from laparoscopy; laparoscopy is growing faster.

• Buffalo Filter benefits from global smoke evacuation legislation and new product launches, with the market expected to grow from $350M to $1B.

• BioBrace is the only FDA-cleared implant for both mechanical reinforcement and bioinductivity in soft tissue repair, with strong clinical validation and expanding indications.

• High-growth categories include sports medicine, AirSeal, smoke evacuation, and foot & ankle, with expected mid-term revenue growth of 4% to 11% across segments.

• Direct smoke evacuation and sports medicine are expected to deliver high single-digit to double-digit growth.

Financial performance and guidance

• Revenue has grown from $955M in 2019 to $1,372M in 2024; 2025 guidance is $1.365B–$1.372B, and 2026 guidance ranges from $1.345B–$1.450B after GI divestiture.

• Adjusted EPS guidance for 2025 is $4.48–$4.53; 2026 adjusted EPS is $4.25–$4.45, reflecting headwinds from divestitures and tariffs but supported by strong organic growth.

• $150M share buyback program announced, with at least $25M allocated for buybacks in 2026; dividend suspended in favor of repurchases.

• Strong free cash flow conversion, exceeding 100% in recent years.

• Capital allocation focuses on organic innovation, supply chain, and opportunistic M&A, with strict acquisition criteria and potential for additional buybacks if M&A does not occur.