Embla Medical (EMBLA) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached USD 259 million, up 11% reported and 6% organic year-over-year, driven by strong Prosthetics & Neuro Orthotics growth, moderate Bracing & Supports growth, and a decline in Patient Care.

• Net profit rose 39% year-over-year to USD 29 million, with a net profit margin of 11%, supported by organic growth, cost control, and favorable net financial expenses.

• Completed ForMotion brand rollout across all clinics, advancing global patient care ambitions.

• Six new product launches in Q2 2026, with innovation now contributing over 25% of sales and a new K2 knee prototype for less active patients.

• Guidance for top-line growth narrowed to 5%-7%, with EBITDA margin guidance reiterated at 20-22%.

Financial highlights

• Gross profit margin reached 63% in Q2 2026, up from 62% in Q2 2025, aided by a $3M U.S. tariff refund.

• EBITDA margin improved to 22% from 21% year-over-year, with EBITDA at USD 58 million in Q2 2026.

• Free cash flow was USD 31 million (12% of sales) in Q2 2026, supported by lower net working capital investment and moderate CAPEX.

• Net $3M tariff refund received YTD, with a potential additional $1M expected in H2.

• Diluted EPS: 6.8 US cents in Q2 2026 (Q2 2025: 5.0 US cents).

Outlook and guidance

• Full-year 2026 organic sales growth guidance narrowed to 5-7% (previously 5-8%), with EBITDA margin guidance maintained at 20-22%.

• Effective tax rate expected at 23-24%.

• Management expects continued strong Prosthetics growth, improving Patient Care, and Bracing & Supports to grow in line with the market.

• New $10M share buyback program initiated after completion of the previous program.

• Optimism for a stronger second half, especially in Bracing & Supports and Patient Care.