Medacta Group SA reported second-half operating results that modestly exceeded market expectations, with management reiterating guidance for 2026 that sits in line with analysts' forecasts at the midpoint.
The company disclosed adjusted EBITDA for the second half of EUR92 million, about 3% above the consensus estimate, a performance the company linked to tighter control of operating expenses. Despite the operating-leverage improvement, gross margins were noted to be softer than analysts had modeled.
Adjusted EBIT for the period came in at EUR52 million, slightly above consensus. The company had previously reported group sales, which increased by 17% in constant currency during the second half.
On a cash basis, free cashflow to equity was negative EUR3 million for the period, an improvement from the negative EUR8 million recorded in 2024, according to UBS commentary shared alongside the results.
For 2026, management reiterated a revenue growth target of 10-14% in constant currency, paired with an expected expansion of the constant currency EBITDA margin by 50 basis points. UBS assessed that, when accounting for foreign exchange-related margin headwinds, the company's 2026 targets are consistent with consensus at the midpoint.
Medacta also updated its mid-term outlook, increasing the constant currency revenue growth target for the 2024-27 period to 12-15%, up from the prior 10-14% range. Management signaled gradual margin improvement on a constant currency basis, contrasted with earlier guidance that pointed to margins around 28% before taking foreign exchange impacts into account.
The results present a picture of modest operational progress: top-line growth remained robust in constant currency, expense discipline supported outperformance versus consensus, and cash generation showed year-on-year improvement, albeit remaining negative for the period reported. The company’s updated medium-term revenue ambition and the tempered margin trajectory reflect management’s view of growth potential alongside continued currency-related headwinds.
Sector implications: The results and guidance are material for investors in medtech, healthcare equipment manufacturing, and European-listed medical device stocks, where currency movements and margin recovery are common monitoring points.