LeMaitre Vascular (LMAT) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales grew 14% year-over-year to $55.7M, with operating income up 26% to $12.9M and EPS up 30% to $0.49 per share.

• Sales growth was led by grafts (+23%), shunts (+14%), and catheters (+12%), with APAC, EMEA, and Americas regions up 21%, 18%, and 12%, respectively.

• The sales force expanded to 152 reps (+12% YoY), targeting 165 by end of 2025, with direct selling in 29 countries representing 95% of total sales.

• New Shanghai and Swiss offices established to support growth and reduce logistics complexity.

• LeMaitre holds #1 or #2 share in 9 of 12 niche markets, serving over 5,000 hospital accounts worldwide.

Financial highlights

• Q4 gross margin rose to 69.3% (+120 bps YoY), driven by higher ASPs and manufacturing efficiencies.

• Q4 operating expenses were $25.7M (+12% YoY), mainly due to sales team investments.

• EBITDA for 2024 was $61.7M, up 34% year-over-year.

• Ended Q4 with $299.7M in cash and equivalents, up $175.8M, mainly from a $168M convertible offering.

• Board authorized a $75M share repurchase program and raised the quarterly dividend by 25% to $0.20/share.

Outlook and guidance

• 2025 guidance: 10% organic sales growth, midpoint sales $239.1M, 69.7% gross margin, $59.8M operating income (+15%), 25% operating margin, and $2.24 EPS (+16%).

• Q1 2025 sales guidance: $56.7M–$58.7M; EPS: $0.48–$0.53.

• Pricing actions: 8% U.S. list price increase in January 2025; actual global price increase expected around 6%.

• Operating margin expected to build through the year, with Q1 lower due to annual sales meetings.

• Dividend per share has increased for 14 consecutive years.