Overview
Convatec Group PLC reported that operating margin for the second half of 2026 will be materially higher than in the first half, pointing to stronger demand for its infusion care products as a key driver. The company said it expects growth to pick up in the second half of 2026 and projected organic revenue growth of 6% to 8% excluding InnovaMatrix, attributing the improvement to the infusion care division.
Revenue and growth guidance
For the six months ended June 30, Convatec recorded revenue of $1.23 billion, a 1.8% increase at constant currency. On an organic basis excluding InnovaMatrix, revenue grew 5% over the period. Separately, the company adjusted its full-year organic revenue growth forecast excluding InnovaMatrix to a range of 5.5% to 6.5%, revised from a prior 5% to 7% range. Convatec also confirmed its expectation for double-digit earnings growth for the year.
Infusion care unit
The infusion care division accounts for roughly 19% of total group revenue. That unit supplies disposable infusion sets for insulin pumps used in diabetes treatment and devices for continuous infusion therapies for conditions such as Parkinson's disease. Convatec identified stronger performance in this division as the principal catalyst for the anticipated second-half revenue pickup and margin expansion.
Product pipeline and capital returns
Convatec said it remains on schedule to launch eight new chronic-care products across 2026 and 2027, with six of those launches planned for 2026. In addition, the company unveiled a $200 million share buyback program that it intends to complete by the end of 2026.
Implications and near-term focus
The company is emphasizing execution across product rollouts and expansion of the infusion care business as it aims for higher margins and sustained earnings growth. The updated organic revenue guidance excluding InnovaMatrix and the announced share repurchase underline management's view of improved operational momentum in the latter half of 2026.
Data points
- H1 revenue: $1.23 billion (+1.8% at constant currency)
- H1 organic revenue excluding InnovaMatrix: +5%
- Infusion care share of group revenue: ~19%
- Second-half operating margin: expected to be materially higher than H1
- Projected organic revenue growth excluding InnovaMatrix: 6% to 8% (second-half pickup cited)
- Revised full-year organic revenue growth excluding InnovaMatrix: 5.5% to 6.5% (previously 5% to 7%)
- Share buyback: $200 million to be completed by end of 2026
- Planned new chronic-care products: eight in 2026-2027, six in 2026