Embla Medical posted financial results for its second quarter (2Q) financials during a conference call on July 22.
Highlights included:
- Sales amounted to $232 million and organic growth was 5 percent, compared to 6 percent in 2Q 2024.
- Prosthetics and neuro orthotics sales grew by 9 percent organic, bracing and supports sales declined by 2 percent organic, and patient care sales were flat, compared to 6 percent, 2 percent and 9 percent, respectively in 2024.
- Gross profit margin was 62 percent, compared to 64 percent in 2Q 2024. For the first half of 2025, the gross profit margin increased to 63 percent compared to 62 percent during the same period 2024.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) was $9 million, and EBITDA margin was 21 percent of sales, compared to 22 percent in 2Q 2024. EBITDA margin in the first half of 2025 was 20 percent, compared to 19 percent before special items in the same period in 2024.
- Net profit grew by 5 percent and was $21 million, and the net profit margin was 9 percent of sales, the same as in 2Q 2024. Net profit growth was 1 percent in the first half of 2025.
- Free cash flow amounted to $12 million or 5 percent of sales, compared to 8 percent of sales in 2024.
- Net interest-bearing debt/EBITDA before special items was 2.6x at the end of 2Q 2025. The leverage ratio is within the target range of 2-3x, and the share buyback program is ongoing. The company bought back 627,624 shares for about $3 million in the quarter.
Other highlights:
- Embla Medical signed an agreement in July to invest in a majority share in privately owned Streifeneder ortho.production, an international developer and supplier of orthopedic mobility solutions, employing around 100 people, with sales of EUR 25 million in 2024 ($29 million). Closing of the transaction is subject to regulatory approval.
- Fior & Gentz has been awarded a new reimbursement code in the United States (L-2006) for the Neuro HiTroniuc MPKAFO, a bionic knee joint.
