Embla Medical hf: Interim Report Q3 2025

Rhea-AI Summary

Embla Medical (EMBLA) reported Q3 2025 sales of USD 237 million, +11% reported and +7% organic. Growth was led by Prosthetics & Neuro Orthotics (+13% organic) while Bracing & Supports was flat and Patient Care grew 1%.

Key margins: gross profit 63% in Q3 and EBITDA margin 22% for Q3 (21% for 9M). Net profit was USD 26 million (+17%) and free cash flow USD 38 million (16% of sales). Leverage NIBD/EBITDA was 2.5x, within the 2.0–3.0x target. Guidance for 2025 was reiterated: organic sales growth 5–6% and EBITDA margin 20–21%.

Other items: majority 51% investment in Streifeneder (2024 sales EUR 25m / USD 29m); 2,805,135 new shares issued in connection with the transaction (value DKK 93m / USD 14.5m); ongoing share buyback (525,733 shares, ~USD 2.7m). Management notes uncertainty from potential US trade tariffs.

Positive

• Sales USD 237m (+11% reported, +7% organic)
• P&NO organic +13% in Q3 2025
• Gross margin 63% in Q3 2025
• EBITDA margin 22% in Q3 2025
• Free cash flow USD 38m (16% of sales)
• NIBD/EBITDA 2.5x—within target range 2.0–3.0x

Negative

• Bracing & Supports sales flat; Patient Care +1% (soft demand)
• FX effects reduced EBITDA by about 50 bps in Q3
• Potential US trade tariffs remain an uncertain downside
• 2,805,135 new shares issued (DKK 93m / USD 14.5m) in connection with Streifeneder investment

Insights

Senior Corporate Finance Analyst

Q3 shows solid top-line growth, margin resilience, stronger cash generation and strategic M&A, supporting reiterated 2025 guidance.

Embla Medical reported USD 237 million in Q3 sales, 11% reported growth and 7% organic growth, driven by a 13% organic increase in Prosthetics & Neuro Orthotics; gross profit margin held at 63% for the quarter and EBITDA margin was 22%, matching Q3 2024. Net profit rose to USD 26 million or 11% of sales, free cash flow was USD 38 million or 16% of sales, and leverage (NIBD/EBITDA) stood at 2.5x within the stated 2.0-3.0x target range.

The business mechanics point to demand concentration in P&NO and manufacturing efficiency gains lifting margins, while Bracing & Supports and Patient Care compression and US tariffs exert pressure. The majority investment (51%) in Streifeneder ortho.production and a share issuance of 2,805,135 new shares for DKK 93 million (USD 14.5 million) expand product breadth and Emerging Markets reach but dilute equity. Key items to monitor over the next 3–12 months include organic growth against unchanged full-year guidance of 5-6%, EBITDA margin guidance of 20-21%, the integration progress and sales contribution from Streifeneder, and any quantifiable effects from evolving US trade tariffs.

COPENHAGEN, Denmark, Oct. 21, 2025 /PRNewswire/ -- 

Announcement no. 49/2025

Interim report Q3 2025

21 October 2025

Sveinn Sölvason, President and CEO, comments:

"Sales in Q3 2025 amounted to USD 237 million, representing 11% reported growth, of which 7% was organic. Growth picked up in the third quarter as expected, driven by double-digit growth in Prosthetics & Neuro Orthotics. The solid momentum in EMEA continues and growth in Americas was strong following a soft start to the year, supported by our recently launched innovations such as Navii, Icon, and Pro-Flex Terra.

Sales in our Bracing & Supports and Patient Care segments remained soft with flat sales in Bracing & Supports and modest growth in Patient Care. At the end of August, we closed the majority investment in Streifeneder ortho.production, which positions us as a full-range provider with opportunities to strengthen our presence in our key O&P markets and expand our offerings and reach in Emerging Markets.

The EBITDA margin was strong at 22% in Q3 2025 and 21% for the first nine months of the year compared to 20% in the comparable period. In line with our performance recorded in the first nine months of 2025, our guidance for the full-year 2025 has been reiterated."

Highlights Q3 2025

• Sales amounted to USD 237 million for the quarter and organic growth was 7 and 11% reported growth (USD growth).
• Prosthetics & Neuro Orthotics (P&NO) sales grew by 13% organic, Bracing & Supports sales were flat, and Patient Care grew 1%.
• Gross profit margin was 63% for the quarter, on par with Q3 2024. For 9M 2025 the gross profit margin increased to 63% compared to 62% in the same period 2024 (63% of sales excl. special items). The gross profit margin in the quarter was positively impacted by strong performance in P&NO coupled with solid efficiency gains in manufacturing. Adversely, the margin was negatively impacted by softer sales in Bracing & Supports and Patient Care and some impact from US tariffs.
• EBITDA was USD 53 million, and EBITDA margin was 22% of sales, on par with Q3 2024. EBITDA margin for 9M 2025 was 21% compared to 20% before special items in 9M 2024. The EBITDA margin in the quarter was positively impacted from strong sales in P&NO combined with solid manufacturing efficiency and continued cost discipline in SG&A. FX negatively impacted EBITDA margin by around 50 basis points in Q3.
• Net profit was USD 26 million and grew by 17%, corresponding to 11% of sales in Q3 2025, compared to 10% in Q3 2024.
• Free cash flow amounted to USD 38 million or 16% of sales, compared to 15% of sales in Q3 2024. Free cash flow was strong and positively impacted by solid operating results, positive impact from net working capital and CAPEX in line with normalized levels.
• NIBD/EBITDA before special items was 2.5x at the end of Q3 2025. 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 USD 2.7 million in Q3.

Other highlights

• On August 29, 2025, Embla Medical announced the closing of the majority share investment (51% 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, 2025. The total value of the issued shares amounted to DKK 93 million (USD 14.5 million), which the sellers subscribed to.
• Launch of Odyssey® iQ, a new microprocessor foot by College Park. Odyssey® iQ is a new hydraulically dampened, lightweight, and low-profile foot solution suitable for various environments and activities offering long-lasting battery, and fast responses.

2025 Outlook

• Organic sales growth guidance is unchanged at 5-6%.
• EBITDA margin before special items guidance is unchanged at 20-21%.

* Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical's financial results, but some absorption of tariffs is assumed in the guidance.

Conference call details
Embla Medical will host a conference call on October 21, 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 Q3 2025 webcast

Investor presentation
Our updated Q3 2025 investor road show presentation can be downloaded from our IR website Link

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

Embla Medical press releases by e-mail
If you wish to receive Embla Medical press releases by e-mail, please register at http://www.emblamedical.com/investors

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.

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Company Announcement Q3 2025 incl. Financial Statement FINAL2

 

View original content:https://www.prnewswire.com/news-releases/embla-medical-hf-interim-report-q3-2025-302589816.html

SOURCE Embla Medical hf.

FAQ

What were Embla Medical (EMBLA) Q3 2025 sales and growth rates?

Q3 2025 sales were USD 237 million, representing 11% reported growth and 7% organic growth.

How did Embla Medical's margins perform in Q3 2025 for EMBLA?

Gross margin was 63% and EBITDA margin was 22% in Q3 2025; 9M EBITDA margin was 21%.

What guidance did Embla Medical (EMBLA) give for full-year 2025?

Guidance was reiterated: organic sales growth 5–6% and EBITDA margin before special items 20–21% for 2025.

What was the financial impact of the Streifeneder transaction on EMBLA in 2025?

Embla closed a 51% investment in Streifeneder; 2,805,135 new shares were issued (value DKK 93m / USD 14.5m) related to the deal.

How strong was Embla Medical's cash generation in Q3 2025 for EMBLA shareholders?

Free cash flow was USD 38 million, equal to 16% of sales in Q3 2025.

Did Embla Medical (EMBLA) repurchase shares in Q3 2025?

Yes — Embla bought back 525,733 shares for approximately USD 2.7 million in Q3 2025.