ConvaTec Group (CTEC) CMD 2026 summary

Strategic evolution and future growth

• Transitioned from FISBE to the Accelerate strategy, focusing on scaling innovation, execution, and culture across four global categories: Advanced Wound Care, Ostomy Care, Continence Care, and Infusion Care.

• Accelerate targets 6%-8% organic revenue growth and 24-26% operating margin from 2027, with sustainable double-digit EPS and free cash flow growth, underpinned by customer-focused growth, technology, and execution excellence.

• Each category has tailored growth drivers, including multiple new product launches, geographic expansion, and differentiated platforms.

• R&D investment has doubled since 2019, supporting a robust innovation pipeline with eight product launches from 2022-25 and another eight planned by 2027.

• The business is more resilient, with diversified growth across geographies and products, and improved ability to manage reimbursement and pricing dynamics.

Financial guidance and capital allocation

• Upgraded group organic revenue growth target to 6%-8% from 2027, with mid-20s operating margin and double-digit EPS growth.

• Margin expansion achieved through manufacturing network simplification, automation, and G&A reduction from 13% to below 7%.

• Growth CapEx for 2025-26 set at 8-9% of revenue ($135M-$165M in 2026), mainly for capacity expansion and scaling new product launches.

• Capital allocation prioritizes organic growth, dividends, selective M&A, and share buybacks, maintaining a leverage target of 2x net debt/EBITDA.

• Inflation risk is mitigated by hedging and stock levels, with limited near-term P&L impact expected.

Innovation and product pipeline

• Launched 8 new products from 2022-25, with 8 more on track for 2026-27, accelerating launch cadence by 30%.

• Three waves of innovation underpin growth: Wave 1 (scaling), Wave 2 (launching), and Wave 3 (higher-value, differentiated products and new therapy areas).

• Clinical evidence and user-centered design drive product development, with over 30 active studies and 35 patents filed.

• Proprietary technologies and next-generation products target unmet needs and premium market segments.

• Innovation cycle time reduced by 30% versus previous waves, supporting faster market entry.