ConvaTec Group H2 Earnings Call Highlights

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MarketBeat

Tue, February 24, 2026 astatine 6:48 AM CST 7 min read

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ConvaTec reported a beardown 2025 with its 5th consecutive twelvemonth of integrated gross growth, operating borderline up 110 bps to 22.3% and EPS +16%, and reiterated guidance for 2026 integrated maturation of 5%–7% (ex-InnovaMatrix) and an operating borderline of at slightest 23%, portion raising its longer-term integrated maturation people to 6%–8% from 2027.
The institution faces a worldly headwind from InnovaMatrix aft CMS acceptable a caller terms of $127/cm² (about an ~80% cut), prompting a ~2% radical gross headwind successful 2026 and a $72 cardinal non‑cash impairment; absorption expects astir $20 million of InnovaMatrix income successful 2026 and betterment into 2027 assuming pricing and sum stabilize.
Cash and superior allocation were strong: escaped currency travel to equity of $362 million (101% conversion nether the caller definition), a completed $300 million buyback, a 13% dividend increase, doubled maturation CapEx to $121 million, and nett indebtedness astatine the people ~2x EBITDA with disciplined bolt‑on M&A prioritized.
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ConvaTec Group (LON:CTEC) executives told investors the institution delivered “strong” 2025 results and expects different twelvemonth of nett maturation successful 2026, portion preparing to update its longer-term maturation ambitions astatine a Capital Markets Day successful aboriginal April.

Management said 2025 marked the 5th consecutive twelvemonth of integrated gross maturation wrong the company’s people range, supported by 8 caller merchandise launches. The radical besides posted its 4th consecutive twelvemonth of operating borderline enlargement and a 2nd twelvemonth of double-digit earnings-per-share growth, driven by higher operating profit, little concern costs, and a reduced stock number pursuing a $300 cardinal buyback.

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New CFO Fiona Ryder said integrated gross maturation successful 2025 was “broad-based crossed each 4 categories.” Excluding InnovaMatrix, gross maturation was 6.4%. Operating borderline expanded by 110 ground points to 22.3%, and EPS accrued 16%.

Category show discussed connected the telephone included:

Advanced Wound Care: Sales roseate 4.1% excluding InnovaMatrix (flat including it). Ryder cited bully maturation successful North America and Latin America, with improved show successful Europe during the 2nd half. AQUACEL Ag+ Extra posted different coagulated year, and ConvaFoam was described arsenic “gaining share.”
Ostomy Care: Organic maturation was 4.5%. Management highlighted stronger-than-expected show from Esteem Body and maturation from an updated Esenta accessories range. Executives besides noted a archetypal U.S. radical purchasing enactment (GPO) triumph successful 5 years, followed by different triumph aft year-end.
Continence Care: Organic maturation was 6.6%, driven by higher U.S. volumes and a increasing premix of ConvaTec-branded products. Hydrophilic products were again much than 60% of the category’s revenue, and planetary markets contributed much than 1 percent constituent to growth.
Infusion Care: Organic maturation was 12.5%. Ryder said request successful diabetes remained beardown arsenic automated insulin transportation penetration increased, portion non-diabetes maturation was led by infusion sets for AbbVie’s Parkinson’s illness therapy. Other therapies roseate to 15% of infusion attraction revenue, up from astir 10% successful 2024.