Stock Markets March 17, 2026

Medartis posts solid growth in 2H25 but flags constrained near-term outlook

Company delivers double-digit organic expansion and a higher margin, while cash flow and guidance reflect investment and FX headwinds

By Ajmal Hussain
Medartis posts solid growth in 2H25 but flags constrained near-term outlook

Medartis reported 2H25 group sales of CHF146.3m, essentially matching consensus. The company delivered full-year organic growth of 15.7% and reported growth of 12.0%, implying roughly 16% organic growth in the second half. Core 2H EBITDA missed consensus modestly, and operating free cash flow fell as the company increased investments in production capacity. Management announced the acquisition of CADskills and provided 2026 targets that incorporate FX and M&A impacts.

Key Points

  • Medartis reported 2H25 group sales of CHF146.3m, matching consensus of CHF146.1m, with full-year organic growth of 15.7% and reported growth of 12.0%.
  • Core 2H EBITDA was CHF26.8m, slightly below consensus, while the full-year margin improved to 18.4%; operating free cash flow declined to CHF9.3m due to increased capex on production machinery in the US, Brazil and Basel.
  • Regional and product drivers included strong EMEA performance (18.0% organic growth, with Keri Medical responsible for about one-quarter of that growth), slower North America growth due to distributor changes, and double-digit expansion across Upper Extremities, Lower Extremities and CMF/other.

Medartis released its second-half 2025 results showing continued revenue momentum but a cautious near-term financial picture. Group sales for 2H25 amounted to CHF146.3m, nearly identical to the consensus estimate of CHF146.1m.

On a full-year basis the firm recorded organic growth of 15.7% and reported growth of 12.0%. Those figures indicate the second half delivered approximately 16% organic expansion.

Core operating profitability for the half, as measured by Core EBITDA, reached CHF26.8m, coming in slightly below the consensus forecast of CHF27.3m. The full-year Core EBITDA margin rose to 18.4%, an improvement of 60 basis points versus the prior year.

Capital expenditure represented 9.6% of sales, while operating free cash flow for the period was CHF9.3m, down from CHF32.1m in 2024. Management said the decline in operating free cash flow reflected incremental investments into production machinery located in the US, Brazil and Basel.


Regional performance in 2H25 was led by EMEA, which posted 18.0% organic growth. Management attributed roughly one-quarter of this EMEA growth to Keri Medical. North America expanded more slowly, with organic growth of 13.4%. The slowdown in North America reflected distributor optimisation and the replacement of the companys largest distributor in Florida, which had accounted for about 10% of US sales. Five distributors have since been appointed to fill that coverage gap, with integration expected to take up to 12 months. APAC and LATAM grew 13.3% and 10.4% respectively.

By product area, Upper Extremities grew 15.7% on a constant currency basis, supported by the companys wrist implant and the Keri Touch prosthesis. Lower Extremities increased 15.1% on a constant currency basis, and the CMF/other segment rose 16.8%.


Strategic activity included the announced acquisition of CADskills, a Belgium-based specialist in personalised implants and titanium printing. The CADskills business also adds an upper extremity offering for carpal bone arthroplasties. The transaction structure comprises an upfront payment together with sales-based earnouts.

Looking to 2026, Medartis expects organic core sales growth of 16-18% and a core EBITDA margin in the high-teens at constant exchange rates. Taking into account a negative 2.5% foreign exchange impact and roughly a 6% merger and acquisition impact, management indicated this implies 2026 sales of approximately CHF322-328m and core EBITDA of roughly CHF52-59m.

Risks

  • Foreign exchange drag - Management cites a negative 2.5% FX impact factored into 2026 guidance, which could weigh on reported sales and margins.
  • Distributor transition in the US - Replacement of the largest Florida distributor, which represented about 10% of US sales, created near-term headwinds; integration of five new distributors may take up to 12 months.
  • Cash flow pressure from investments - Operating free cash flow declined to CHF9.3m from CHF32.1m in 2024 as the company invested in production machinery across multiple sites, potentially constraining liquidity in the short term.

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