Ottobock SE & Co. KGaA on Tuesday published preliminary results for the fourth quarter of 2025, recording stronger profitability than analysts expected while posting core sales slightly below consensus.
The company said core sales in Q4 increased 6.9% year-over-year to €441.9 million, with organic growth of 7.6%. That top-line figure fell a touch short of the analyst consensus of €446.6 million.
Despite the revenue miss, Ottobock delivered a material earnings outperformance. Underlying core EBITDA climbed 29.7% to €134.2 million, roughly 5% above consensus estimates, according to the company. That improvement translated into a Q4 EBITDA margin of 30.3%, up from 25.0% in the same quarter a year earlier, driven by higher operating leverage and growth in the underlying business.
For the full year 2025, the company reported differing momentum across its channels. The B2C business expanded by 8.3%, with organic B2C growth of 4.9%. The B2B segment grew more strongly, rising 14.5% year-over-year, with organic B2B growth of 15.2%.
Cash generation strengthened in 2025, with free cash flow increasing 23.7% to €228 million from €184 million in 2024. Management highlighted that the stronger cash flow contributed to a lower leverage ratio, which fell to 2.3x in 2025 from 3.5x a year earlier.
Looking ahead, Ottobock confirmed its guidance for 2026. The company expects core business growth in a range of 5.0% to 8.0% and an underlying core EBITDA margin above 26.5%. Management described the guidance as conservative and explicitly noted that it does not include the potential impact of merger and acquisition activity.
Ottobock also reiterated its medium-term objectives through 2029. The firm reaffirmed targets of organic growth between 7.0% and 9.0% and an underlying core EBITDA margin in the range of 29.0% to 30.0% for that horizon.
Context and implications
The preliminary results point to a quarter in which operating leverage and margin expansion offset a small revenue shortfall, while free cash flow gains supported a meaningful reduction in leverage. Management's guidance for 2026 is positioned conservatively and excludes possible merger and acquisition effects, while medium-term 2029 targets remain unchanged.