Embla Medical posted its financial results for the second quarter (2Q).
Highlights included:
- Sales amounted to $259 million, growing 11 percent reported, 6 percent organically, and 9 percent in local currencies.
- Organic sales growth by segment: prosthetics and neuro orthotics plus-12 percent, bracing and supports plus-1 percent, patient care minus-2 percent.
- Gross profit margin was 63 percent, compared to 62 percent in 2Q 2025. The gross profit margin in the quarter was positively impacted by strong sales in prosthetics and neuro orthotics and net US tariff refunds of $3 million.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $58 million, corresponding to a margin of 22 percent of sales, up from 21 percent in 2Q 2025.
- Net profit was $29 million and increased by 39 percent compared to 2Q 2025 with a net profit margin of 11 percent.
- Free cash flow totaled $31 million or 12 percent of sales, compared to 5 percent of sales in 2Q 2025.
- Net-bearing interest debt/EBITDA before special items was 2.2x at the end of 2Q 2026, which is within the company’s target range of 2-3x EBITDA.
“In patient care, we continue to see encouraging progress, with most of our clinics delivering increased productivity and profitability. However, 2Q sales remained below expectations due to timing effects and challenging market dynamics in selected key European markets. As these factors continue to normalize, management remains confident that performance will improve over the coming periods and gradually return to growth broadly in line with the structural growth of the O&P industry. Based on our first half performance and expectations for stronger growth in [the second half of the year], we are narrowing our full-year organic sales growth guidance to 5-7 percent. We reiterate our EBITDA margin guidance of 20-22 percent,” said Sveinn Sölvason, Embla president and CEO.
