Embla Medical (EMBLA) Q4 2025 earnings summary

Executive summary

• Achieved strong organic and acquisition-driven growth in 2025, with notable progress in sustainability, innovation, and expansion into Ukraine.

• Rebranded Patient Care facilities to ForMotion in multiple regions, with global completion expected in Q1 2026.

• Named to Forbes Accessibility 100 and recognized among the world's top 500 companies for sustainable growth for the second consecutive year.

• Navigated significant changes in the operating environment, including tariffs, FX volatility, and geopolitical uncertainty, demonstrating resilience.

Financial highlights

• FY 2025 reported sales growth of 9% (6% organic), with Q4 organic growth at 7% and reported growth at 14%.

• EBITDA margin was 20% for FY 2025 and 19% in Q4, slightly down year-over-year due to tariffs, FX, and Patient Care initiatives.

• Net profit grew 33% in Q4 year-over-year and 21% for FY 2025, reaching USD 84 million.

• Gross profit margin was 62% in Q4 and FY 2025, down from 63% in 2024.

• Free cash flow reached USD 100 million for FY 2025, the strongest annual cash flow to date.

Outlook and guidance

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

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

• Margin guidance range is wider due to ongoing FX volatility, tariffs, and input cost pressures; tariff costs expected to rise to $8M in 2026.

• New share buyback program initiated in January 2026 for up to 2 million shares.

• Continued focus on increasing margins and efficiency to offset external pressures.