Embla Medical hf

Latest Results (10.10.2025):

Embla Medical hf reported its interim financial results for Q2 2025, achieving USD 232 million in sales, marking a 7% overall growth with 5% organic growth. The Prosthetics & Neuro Orthotics segment led the expansion, supported by strong regional performance in EMEA, Americas, and APAC. The company maintained a robust EBITDA margin of 21% and reported a net profit of USD 21 million, while refining its full-year outlook to reflect continued growth expectations.

Sales Performance

Embla Medical hf recorded sales of USD 232 million in Q2 2025, representing a 7% increase compared to the same period last year. Organic growth stood at 5%, slightly below the 6% achieved in Q2 2024.

Segment Highlights

The Prosthetics & Neuro Orthotics segment saw a 9% organic growth, driven by momentum in EMEA and strong contributions from new innovations. Conversely, the Bracing & Supports segment experienced a 2% organic decline, and Patient Care sales remained flat.

Profit Margins

The gross profit margin for Q2 2025 was 62%, a decrease from 64% in Q2 2024. However, for the first half of the year, the margin improved to 63% compared to 62% in 1H 2024. The EBITDA margin increased to 21% in the quarter and 20% for the first half, up from 19% in the previous year.

Net Profit and Cash Flow

Net profit for Q2 2025 grew by 5% to USD 21 million, maintaining a net profit margin of 9%. Free cash flow was USD 12 million, representing 5% of sales, down from 8% in Q2 2024 due to increased working capital investments and higher CAPEX.

Debt and Share Buyback

Embla Medical hf maintained a leverage ratio of NIBD/EBITDA before special items at 2.6x, within the target range. The company continued its share buyback program, repurchasing 627,624 shares for approximately USD 3 million during the quarter.

Strategic Investments and Developments

The company signed an agreement to acquire a 51% stake in Streifeneder ortho.production GmbH, enhancing its orthopaedic mobility solutions portfolio. Additionally, Fior & Gentz secured a new reimbursement code in the U.S. for its NEURO HiTRONIC MPKAFO product, advancing its market presence in Neuro Orthotics.

Outlook for 2025

Embla Medical hf narrowed its full-year organic sales growth guidance to 5-6% from the previous 5-8%, while maintaining its EBITDA margin forecast of 20-21%. The company anticipates continued growth in the second half of the year, despite uncertainties related to U.S. trade tariffs.