Embla Medical (EMBLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $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 declined due to timing effects in Europe.

• EBITDA margin was 17%, down from 18% in Q1 2025, mainly due to FX and tariffs; net profit grew 21% to $15 million, driven by operating results and favorable net financial expenses.

• Share buyback program ongoing, with $2.6 million repurchased in Q1 and share capital reduction completed.

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

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

Financial highlights

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

• Operating expenses were 52% of sales, up 3% organically, reflecting cost control.

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

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

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

Outlook and guidance

• 2026 guidance reiterated: 5%-8% organic sales growth and 20%-22% EBITDA margin before special items.

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

• CapEx expected at 3%-4% of sales; effective tax rate projected at 23%-24%.

• Growth expected to be driven by Prosthetics & Neuro Orthotics, especially bionic products and new launches.

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