Embla Medical (EMBLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached USD 232 million, up 15% reported and 4% organic year-over-year, with strong performance in Prosthetics & Neuro Orthotics and moderate growth in Bracing & Supports; Patient Care was softer due to timing effects in Europe.

• EBITDA margin was 17%, down from 18% in Q1 2025, mainly due to FX headwinds and tariffs; net profit rose 21% to USD 15 million, with a net profit margin of 6%.

• ForMotion brand rollout in Patient Care is over 90% complete, expected to finish in Q2 2026.

• Patient Care initiatives are positively impacting sales and profitability, especially in the Americas.

• Free cash flow was lower year-over-year, mainly due to net working capital timing and seasonal effects.

Financial highlights

• Gross profit margin was 62% (vs. 63% in Q1 2025), impacted by FX and tariffs.

• Operating expenses were 52% of sales, with organic OPEX growth below organic sales growth.

• CapEx was USD 5 million (2% of sales), below the normalized 3%-4% due to timing.

• Net interest-bearing debt/EBITDA was 2.4x, within the 2x-3x target range.

• Diluted EPS was 3.4 US cents, up from 2.8 US cents in Q1 2025.

Outlook and guidance

• Full-year 2026 guidance reiterated: 5%-8% organic sales growth and 20%-22% EBITDA margin.

• Margin improvement expected as Patient Care returns to market growth and integration initiatives take effect.

• Effective tax rate expected at 23-24% for FY 2026.

• CapEx expected at 3-4% of sales for the full year.

• FX and US tariffs remain key uncertainties; some absorption of tariffs assumed in guidance.