Strong Second-Half Performance#
Swiss medical device maker Medacta Group SA recently announced its second-half results, revealing that its adjusted earnings before interest and taxes (EBIT) surpassed analyst expectations by 1%. The company reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of EUR 92 million, which is 3% higher than what analysts had anticipated. This positive performance was attributed to effective management of operating expenses, although gross profit margins were slightly lower than expected.
Revenue Growth and Cash Flow#
Medacta's group sales increased by 17% in constant currency during the second half of the year. However, the company reported a negative free cash flow to equity of EUR 3 million for this period, which is an improvement from the negative EUR 8 million recorded in 2024. This indicates that while the company is still facing cash flow challenges, it is moving in a positive direction.
2026 Guidance Maintained#
Looking ahead, Medacta's management has provided guidance for 2026, projecting revenue growth of 10-14% in constant currency. They also expect a slight expansion in their EBITDA margin by 50 basis points. Analysts at UBS believe this guidance aligns with current consensus expectations, especially when considering potential foreign exchange challenges.
Updated Mid-Term Projections#
In addition to its 2026 outlook, Medacta has revised its mid-term guidance for constant currency revenue growth for the 2024-2027 period to 12-15%, up from the previous estimate of 10-14%. The company anticipates gradual improvement in margins, adjusting their earlier forecast of around 28% to account for foreign exchange impacts.