Announcement no. 19/2025

Interim report Q1 2025

29 April 2025

Sveinn Sölvason, President and CEO, comments:

“Sales in Q1 2025 amounted to USD 203 million and organic growth came in at 4% driven by a strong finish to the quarter. Growth was strong in our Prosthetics & Neuro Orthotics segment supported by continued momentum and solid volume growth in EMEA and APAC regions, while the year started out softer in Americas following a strong end to 2024.

Our Navii® and Icon® bionic knees advanced into full launch during the quarter following successful pre-launch activities and promising user feedback. Both Navii® and Icon® are great innovations that will help us reach more users across different lower limb functional levels, including some of the active functional level K2 patients from the US Medicare coverage expansion, which took effect last fall.

EBITDA margin was 18% in Q1 2025; up 1%-point from Q1 2024. The stronger margin was driven by the positive effects from the cost reduction initiatives implemented in manufacturing during Q1 2024 as well as positive contributions from product mix and continued cost control in SG&A.

We iterate our guidance for the full year of 5-8% organic sales growth and 20-21% EBITDA margin before special items.”

Highlights Q1 2025

Sales amounted to USD 203 million and organic growth was 4%, compared to 7% in Q1 2024.
Prosthetics & Neuro Orthotics sales grew by 9% organic, while our Bracing & Supports and Patient Care sales ended flat in the first quarter of 2025, compared to 10%, 1% and 6% respectively in Q1 2024.
Gross profit margin was 63%, compared to 62% before special items in Q1 2024 (60% reported). The increase is supported by the manufacturing cost reduction initiatives implemented in Q1 2024 as well as favorable product mix and efficiency.
EBITDA was USD 36 million, and EBITDA margin was 18% of sales, compared to 17% before special items in Q1 2024. The EBITDA margin expansion was driven by an increasing gross profit margin following cost reduction initiatives implemented in Q1 2024 and continued cost control in SG&A.
Net profit grew by 45% and was USD 12 million with a net profit margin of 6%, compared to 4% in Q1 2024.
Free cash flow amounted to USD 8 million or 4% of sales, compared to negative free cash flow of USD 7 million or negative 4% of sales in Q1 2024. Free cash flow was solid, benefiting from strong operating results, but it should be noted that cash flow is seasonally low in the first quarter of the year.
NIBD/EBITDA was 2.5x at the end of Q1 2025, which is within our target range of 2-3x EBITDA. In line with our capital structure and capital allocation policy a share buyback program was reinitiated in early February. During Q1 2025, Embla Medical bought back 295,653 shares at a market value of approximately USD 1.3 million.

Other highlights

André Rocha has been appointed as Executive Vice President of R&D at Embla Medical. André Rocha previously served as Partner at McKinsey & Co and brings 25 years of experience and a proven track record across all organizational levels.
Conal Harte has been appointed Executive Vice President of Patient Care, having served as Vice President Patient Care Europe since 2023, and prior to that, held various roles at Össur and Touch Bionics.

2025 Outlook

Organic sales growth guidance is unchanged at 5-8%.*
EBITDA margin before special items guidance is unchanged at 20-21%.*

*Impact is expected due to the US trade tariffs but significant uncertainty and frequent changes in the global tariff environment, makes it too speculative to quantify an exact impact on Embla Medical’s financial results as of today.

Conference call details

Embla Medical will host a conference call on April 29, 2025, at 9:00 CET / 7:00 GMT / 3:00 ET.

To actively participate in the telephone conference, please use the dial-in details provided below:

DK: +45 78 76 84 90

UK: +44 20 3769 6819

US: +1 646 787 0157

Participant access code: 274982

The webcast will be available through following link: Embla Medical Q1 2025 webcast

Latest Investor Road Show presentation can be found on our IR web: Q1 2025 Road Show Presentation

Further information

Klaus Sindahl, Head of Investor Relations, KSindahl@emblamedical.com, +45 5363 0134

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About Embla Medical

Embla Medical (Nasdaq Copenhagen: EMBLA) was founded in Reykjavik in 1971 with the mission to improve people's mobility. Embla Medical is home to several brands renowned for positively impacting people's health and well-being. They include Össur, a leading global provider of prosthetics and bracing and supports solutions; FIOR & GENTZ, an innovative developer of neuro orthotics; and College Park Industries, creators of custom-built prosthetic solutions. Embla Medical also provides patients with world-class care through a global network of Orthotic and Prosthetic (O&P) facilities. Embla Medical is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women’s Empowerment Principles, and contributes to the UN Sustainable Development Goals. The company's climate targets have been verified by the Science Based Targets initiative. Embla Medical operates globally and has more than 4,000 employees. www.emblamedical.com

Embla Medical was formerly listed as Össur (OSSR) on Nasdaq Copenhagen until 8 April 2024.

Embla Medical hf: Interim Report Q1 2025