Medartis (MED) H2 2025 earnings summary

Executive summary

• 2025 marked a transformational year with two major acquisitions (NeoOrtho and full KeriMedical), significant leadership changes, and a strategic shift, especially in the U.S. market, forming a multi-brand group and expanding the addressable market by over CHF 800 million.

• Achieved 15.7% organic sales growth at constant exchange rates (CER) to CHF 266.1 million, with double-digit growth across all regions and segments.

• Core EBITDA margin reached 18.4% despite significant FX and tariff headwinds, with profitability maintained and OPEX leverage supporting results.

• US distribution channel restructured, supporting future growth despite headwinds from tariffs and FX, and TOUCH thumb prosthesis launched in the U.S. with strong surgeon interest and phased rollout.

• The company now operates under three brands: Medartis, KeriMedical, and NeoOrtho, maintaining their entrepreneurial and innovative cultures.

Financial highlights

• Group revenues reached CHF 269.3 million, with core sales at CHF 266.1 million and organic revenue growth of 15.7% at CER year-over-year.

• Core EBITDA margin improved by 60 basis points to 18.4%, with core EBITDA at CHF 48.8 million; core EBIT margin at 9.2%.

• Core gross margin was 81.0%, with a 90 basis point negative impact from U.S. tariffs and 60 basis points from FX.

• Net result decreased by CHF 5–5.6 million due to unrealized FX losses and higher financing costs, despite a CHF 4 million increase in core EBIT.

• Free cash flow for the year was CHF 9.3 million, with a year-end cash balance of CHF 33 million.

Outlook and guidance

• Organic growth for 2026 is expected at 16–18% on core sales at CER, with core EBITDA margin projected to remain in the high teens.

• U.S. TOUCH launch is expected to gradually accelerate, with 1,200 cases planned for 2026 and 300 surgeons to be trained annually.

• Portfolio expansion planned with five key product launches, including Fibula Nail and custom-made plates.

• CapEx will remain elevated due to ongoing investments in production expansion and new facilities.

• Focus remains on expanding market share in hand and wrist, further KeriMedical internationalization, and scaling NeoOrtho in value markets.