Embla Medical's Profitable Growth Journey Unveiled in Q2 Report
Embla Medical Reports Impressive Performance in Q2 2025
Embla Medical hf has announced its interim report for the second quarter of 2025. In this report, important financial statistics and insights about the company's segments have been detailed, showcasing significant growth and strategies moving forward.
Sales and Growth Performance
Sveinn Sölvason, President and CEO of Embla Medical, reported that the sales for the second quarter of 2025 reached USD 232 million, marking a 7% increase compared to previous periods. This includes a solid 5% organic growth driven largely by success in the Prosthetics and Neuro Orthotics segments, especially in Europe, the Middle East, and Africa (EMEA), along with contributions from innovative products recently launched by the company.
In addition, the Americas and Asia-Pacific regions (APAC) displayed positive trends, with robust growth in sales for the Prosthetics and Neuro Orthotics segment. However, sales within the Patient Care segment remained stable, while the Bracing and Supports segment saw a slight decrease.
Strong Financial Margins
The company's EBITDA margin has shown strength with 21% achieved in Q2 2025 and 20% for the first half of the year, a notable improvement from the 19% observed in the same timeframe last year. This increase has been attributed to successful sales in the Prosthetics and Neuro Orthotics area, manufacturing efficiencies, and stringent cost control in selling, general, and administrative areas.
In light of these performances, Embla Medical has revised its full-year guidance for organic sales growth to a range of 5-6%, slightly tightening their previous estimate while maintaining an EBITDA margin projection of 20-21%.
Q2 Highlights
- Sales totaled USD 232 million with organic growth of 5%, down from 6% in the previous year's second quarter.
- Prosthetics and Neuro Orthotics sales grew organically by 9%, while Bracing and Supports saw a 2% decline, and Patient Care remained flat.
- The gross profit margin was 62%, a decrease from 64% year-over-year, although it improved to 63% for the first half compared to last year's 62%.
- EBITDA stood at USD 49 million with a margin of 21%, down slightly from 22% in Q2 2024.
- The net profit increased by 5% to USD 21 million, keeping the net profit margin steady at 9% as in the previous period.
- Free cash flow reached USD 12 million, representing 5% of sales.
- The net indebtedness to EBITDA ratio was 2.6x at Q2 2025, aligning well within the targeted range.
Additional Strategic Developments
- The company entered into an agreement to acquire a majority stake (51%) in Streifeneder ortho.production GmbH, a notable player in orthopedic mobility solutions with reported sales of EUR 25 million in the previous year.
- Fior & Gentz, a subsidiary of Embla Medical, secured a new reimbursement code in the United States for an innovative neuro orthotics product.
- Embla Medical finalized a EUR 50 million loan agreement with Nordic Investment Bank, which will support ongoing initiatives.
- The rebranding of Patient Care facilities under the ForMotion brand continues, with facilities in several countries already transitioned.
Outlook and Guidance for 2025
- Embla Medical has tightened its organic sales growth forecast to between 5-6%, down from a previous range of 5-8%.
- The company maintained its EBITDA margin guidance before special items at 20-21%.
The uncertainties surrounding US trade tariffs remain a factor for the company, which has made it difficult to quantify their potential impact on financial outcomes. Despite this uncertainty, the company is prepared to manage costs effectively and ensure continuous growth.
Frequently Asked Questions
What were the key financial results for Embla Medical Q2 2025?
Embla Medical reported sales of USD 232 million, with a 7% increase year-over-year and an EBITDA margin of 21%.
What segments drove the growth in Q2?
The Prosthetics and Neuro Orthotics segments experienced strong growth, particularly in the EMEA region.
How did Embla Medical perform compared to Q2 2024?
Sales growth was slightly lower than the previous year, dropping from 6% to 5% organic growth.
What is the outlook for the remainder of 2025?
Embla Medical has narrowed its organic sales growth guidance to 5-6% for the year while maintaining its EBITDA margin forecast.
What major agreements were announced recently?
The company has signed an agreement to acquire a majority interest in Streifeneder ortho.production GmbH and secured a new reimbursement code for innovative products.
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