Embla Medical posted financial results for its third quarter (3Q) during a conference call on October 20.
Highlights included:
- Sales amounted to $237 million for the quarter, organic growth was 7 percent, with 11 percent reported growth (USD growth).
- Prosthetics and neuro orthotics sales grew by 13 percent organic, bracing and supports sales were flat, and patient care grew 1 percent.
- Gross profit margin was 63 percent for the quarter, on par with the same quarter a year ago. For the first nine months, the gross profit margin increased to 63 percent compared to 62 percent in the same period in 2024.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $53 million, and EBITDA margin was 22 percent of sales, on par with 3Q 2024. EBITDA margin for the first nine months was 21 percent compared to 20 percent before special items in 2024.
- Net profit was $26 million and grew by 17 percent, corresponding to 11 percent of sales in 3Q 2025, compared to 10 percent one year ago.
- Free cash flow amounted to $38 million or 16 percent of sales, compared to 15 percent of sales in 3Q 2024.
- Net interest-bearing debt/EBITDA before special items was 2.5x at the end of the third quarter. The leverage ratio is within the target range of 2.0-3.0x and the share buyback program is ongoing. Embla Medical bought back 525,733 shares for approximately $2.7 million in 3Q.
- On August 29, the company announced the closing of the majority share investment (51 percent of the shares) in privately owned Streifeneder ortho.production GmbH, an international developer and supplier of orthopedic mobility solutions, employing around 100 people, with sales of EUR 25 million in 2024 (USD $29 million).
- In connection with the investment in Streifeneder ortho.production, Embla Medical issued 2,805,135 new shares on September 5. The total value of the issued shares amounted to DKK 93 million (USD $14.5 million), which the sellers subscribed to.
- The company launched Odyssey iQ, a new microprocessor foot by College Park.
