ZBH
Zimmer Biomet Holdings, Inc.90.91
-1.52-1.64%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Salesforce transition risks detailed
Q&A unpacked the US salesforce overhaul from non-dedicated 1099 reps to fully dedicated W2 specialists—currently just 25% specialized—with productivity half peers' and low ASC/SCT penetration demanding action now that portfolio gaps are filled. Management embedded transition disruptions into the conservative 1-3% 2026 organic growth guide, citing intl fragility and new product adoption risks, while affirming consistent quarterly pacing. They paused M&A for up to $1.5B buybacks after $250M last quarter, prioritizing returns amid integrations. Pricing erosion hits up to 100bps from EMEA/Asia shifts; Paragon trails slightly but targets double-digits. Disruptions front-load, benefits exit '27. Watch execution closely.
Key Stats
Market Cap
18.02BP/E (TTM)
22.56Basic EPS (TTM)
4.03Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Zimmer Biomet drove FY2025 net sales to $8.2B, up 7.2% y/y, fueled by the Paragon 28 acquisition (2.5% impact) and 6.4% volume/mix growth across knees (+4.7%), hips (+4.7%), and S.E.T. (+15.2%, led by Paragon). Q4 accelerated with opportunistic U.S. customer purchases and capital sales above historic levels, boosting Americas sales 7.3% y/y despite $170M inventory/instrument charges on discontinued lines. Gross margins dipped to 61.6% from inventory step-up, tariffs, and charges, yet operating profit held at 13.3% amid restructuring savings. Debt swelled to $7.5B post-acquisitions, with $592M cash and $2.5B revolver capacity. $487M buybacks executed. Q4 margins expanded sequentially. Sales transformation risks U.S. momentum.
8-K
Q4 sales beat, 2026 guide cautious
Zimmer Biomet posted Q4 net sales of $2.244B, up 10.9% reported and 5.4% organic constant currency, driven by S.E.T. growth while knees lagged. Full-year sales hit $8.232B, up 7.2% reported; adjusted EPS rose 2.5% to $8.20 despite charges. Board approved $1.5B share repurchase. 2026 guides modest 1.0-3.0% organic growth amid U.S. sales transition.
10-Q
Q3 FY2025 results
Zimmer Biomet posted Q3 net sales of $2,001.4M, up 9.7% y/y from $1,824.2M, with U.S. (58% of sales) surging 10.6% on Paragon 28 tuck-in and S.E.T. strength (+19.2% y/y), while operating profit climbed 25.7% y/y to $351.3M (17.6% margin, +230bps) despite higher amortization. YTD sales rose 5.9% y/y to $5,987.7M, but net earnings dipped to $565.8M from tax tailwinds last year; diluted EPS of $2.84 reconciles to 199.0M shares. Cash swelled to $1,292.7M on $1,179.7M operating cash flow, funding Paragon 28 ($1,226.3M net, $635.6M goodwill, $459.5M intangibles over 5-15 years) and $8.1B debt (various senior notes); revolvers fully available, covenants met. Restructuring charges fell to $21.4M. Pricing pressures persist.
8-K
Q3 sales up 9.7% to $2.001B
Zimmer Biomet posted Q3 net sales of $2.001B, up 9.7% reported, 5.0% organically, fueled by 5.6% U.S. growth from 'Magnificent Seven' products. Strong U.S. masked emerging-market softness. Sales beat yet earnings dipped; full-year organic guidance narrowed to 3.5-4.0%. Monogram acquisition bolsters robotics.
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