Embla Medical (EMBLA) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong organic growth of 6% and reported sales growth of 11%, with sales reaching $259 million, driven by double-digit gains in Prosthetics & Neuro Orthotics and solid performance in EMEA and APAC, while Patient Care declined but showed operational progress.

• EBITDA margin improved to 22% from 21% year-over-year, supported by robust sales mix, cost discipline, and US tariff refunds.

• Net profit increased by 39% year-over-year to $29 million, with a net margin of 11%, driven by higher operating results and favorable net financial expenses.

• Six new products were launched in Q2 2026, with innovation now contributing over 25% of sales.

• ForMotion brand rollout completed across all Patient Care facilities, supporting ongoing transformation.

Financial highlights

• Gross profit margin rose to 63% from 62% in Q2 2025, aided by strong Prosthetics & Neuro Orthotics sales and a $3 million U.S. tariff refund.

• EBITDA margin reached 22% for the quarter, up one percentage point year-over-year.

• Net profit for Q2 was $29 million, up from $21 million in Q2 2025.

• Free cash flow was $31 million (12% of sales), up from $12 million (5%) in Q2 2025, benefiting from strong operations and lower CapEx.

• CapEx was $6 million (2% of sales), below the guided range due to timing, but expected to normalize to 3%-4% of sales for the year.

Outlook and guidance

• Full-year 2026 organic sales growth guidance narrowed to 5%-7% (from 5%-8%), reflecting a softer Patient Care performance in H1.

• EBITDA margin guidance reiterated at 20%-22%.

• Effective tax rate expected at 23%-24%.

• Expect stronger growth and higher margins in H2 due to seasonality and operating leverage, especially in Patient Care.

• Additional $1 million in tariff refunds anticipated in H2, but not a material margin driver.