CONMED (CNMD) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales reached $345.9M, up 5.8% year-over-year as reported and 6% in constant currency, with domestic revenue up 6.8% and international up 4.4%.

• Full-year 2024 sales totaled $1.307B, growing 5% as reported and 5.3% in constant currency.

• Adjusted net income for Q4 was $41.8M (+26.2% YoY); adjusted EPS was $1.34 (+26.4% YoY).

• Adjusted net income for 2024 was $129.9M (+20% YoY); adjusted EPS was $4.17 (+21% YoY).

• Management highlighted improved profitability in Q4 despite ongoing supply challenges and remains focused on resolving supply chain issues and leveraging growth drivers like AirSeal, Buffalo Filter, BioBrace, and foot & ankle.

Financial highlights

• Q4 GAAP net income: $33.8M (+2.1% YoY); GAAP EPS: $1.08 vs. $1.05 prior year.

• Full-year GAAP net income: $132.4M vs. $64.5M in 2023; GAAP EPS: $4.25 vs. $2.04.

• Adjusted gross margin Q4: 57.6% (+120 bps YoY); full-year: 56.3% (+110 bps YoY).

• Adjusted operating margin Q4: 18.6% (+280 bps YoY); full-year: 15.5% (+150 bps YoY).

• Operating cash flow for 2024: $167M (+33.2% YoY); capital expenditures: $13.1M.

Outlook and guidance

• 2025 constant currency revenue growth expected between 4–6%, with reported revenue guidance of $1.344B–$1.372B.

• Currency headwind of 100–120 bps on revenue and $0.15–$0.20 on adjusted EPS and 50 bps on gross margin anticipated.

• Adjusted EPS guidance for 2025: $4.25–$4.40; adjusted EBITDA: $270M–$280M.

• Operating cash flow projected at $130M–$140M; capital expenditures $20M–$30M.

• Guidance excludes potential tariff impacts from U.S. trade policy changes.