Embla Medical (EMBLA) Q1 2026 earnings summary

Executive summary

• Achieved 15% reported sales growth in Q1 2026, with 4% organic growth and 8% local currency growth including M&A impact, despite FX headwinds and tariffs.

• Net profit increased by 21% year-over-year to USD 15 million, driven by strong operating results and favorable net financial expenses.

• EBITDA margin was 17%, down from 18% in Q1 2025, mainly due to FX and tariffs; gross profit margin at 62%, down 1 percentage point year-over-year.

• Patient Care business is nearing completion of an 18-month global rebranding initiative, expected to finalize in Q2 2026.

• Share buyback program ongoing, with 2.6M shares repurchased and share capital reduction completed.

Financial highlights

• Gross profit margin at 62% (down from 63% in Q1 2025), EBITDA margin at 17% (down from 18%), and net profit margin at 6%.

• Operating expenses were 52% of sales, with 3% organic growth, below organic sales growth.

• Free cash flow was USD 4 million (2% of sales), seasonally low due to working capital changes.

• Tariffs and FX reduced margins by 1.5 percentage points; tariffs cost $2 million in Q1.

• 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 before special items.

• High end of guidance depends on continued strong organic growth in Prosthetics & Neuro Orthotics, successful new product launches in Bracing, and recovery in Patient Care.

• CAPEX expected at 3-4% of sales, effective tax rate at 23-24%.

• Q1 is typically the slowest quarter due to reimbursement dynamics and capacity utilization.

• FX and US tariffs remain key uncertainties for margin guidance.