Embla Medical hf: Interim Report Q4 and Full Year 2025

Rhea-AI Summary

Embla Medical (EMBLA) reported Q4 sales of USD 257 million with 7% organic growth and 14% reported USD growth. FY 2025 organic sales growth was 6%. Gross profit margin was 62% for Q4 and FY 2025. Q4 EBITDA was USD 48 million (19% margin); FY EBITDA margin was 20%. Free cash flow was USD 42 million in Q4 and USD 100 million for FY 2025. Net profit grew 33% in Q4 to USD 25 million. Management issues 2026 guidance of 5–8% organic sales growth and an EBITDA margin of 20–22%, while noting ongoing tariff and FX uncertainty.

Positive

• Q4 sales of USD 257 million
• FY 2025 free cash flow USD 100 million (11% of sales)
• Gross profit margin maintained at 62% for Q4 and FY 2025
• NIBD/EBITDA of 2.4x remains within target range (2–3x)

Negative

• Gross profit margin down from 63% to 62% versus prior year
• Q4 EBITDA margin fell to 19% from 21% in Q4 2024
• Bracing & Supports sales declined 1% for FY 2025
• Unquantified exposure to US trade tariffs and FX pressures on margins

Key Figures

Q4 2025 Sales: USD 257 million Q4 Organic Growth: 7% Q4 EBITDA Margin: 19% +5 more

8 metrics

Q4 2025 Sales USD 257 million Q4 2025 revenue level

Q4 Organic Growth 7% Q4 2025 vs 5% in Q4 2024

Q4 EBITDA Margin 19% Q4 2025 vs 21% in Q4 2024

Gross Margin 62% Q4 2025 and FY 2025 vs 63% in 2024

Q4 Net Profit USD 25 million (10% margin) Q4 2025 vs 8% margin in Q4 2024

FY 2025 Free Cash Flow USD 100 million (11% of sales) FY 2025 vs 9% of sales in FY 2024

NIBD/EBITDA 2.4x End of Q4 2025, within 2-3x target

2026 Growth Guidance 5-8% organic sales growth Company guidance for 2026

Market Reality Check

normal vol

Market Pulse Summary

This announcement highlights steady top-line growth with Q4 2025 sales of USD 257 million and organi...

Analysis

This announcement highlights steady top-line growth with Q4 2025 sales of USD 257 million and organic growth of 7%, alongside a gross margin of 62%. Profitability mixed, with EBITDA margin at 19% but net profit up 33% and FY free cash flow of USD 100 million. The 2026 guidance of 5–8% organic growth and 20–22% EBITDA margin underscores a focus on efficiency, while FX, tariffs, and Patient Care initiatives remain key risk factors to monitor.

Key Terms

organic sales growth, EBITDA margin, free cash flow (FCF), NIBD/EBITDA, +1 more

5 terms

organic sales growth financial

"Organic sales growth was 7% and 10% in local currency..."

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

EBITDA margin financial

"The EBITDA margin came in at 19% compared to 21% in Q4 2024."

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

free cash flow (FCF) financial

"Free cash flow (FCF) amounted to USD 42 million, or 16% of sales..."

Free cash flow (FCF) is the cash a company generates from its regular business after paying for necessary investments like equipment, buildings, or repairs—think of it as the money left in your wallet after paying bills and fixing the car. Investors watch FCF because it shows how much real, spendable cash a company has to pay dividends, pay down debt, buy back shares, or fund growth, making it a key measure of financial health and flexibility.

NIBD/EBITDA financial

"NIBD/EBITDA before special items was 2.4x at the end of Q4 2025..."

NIBD/EBITDA is a leverage ratio that compares a company’s net interest-bearing debt (total debt minus cash) to its annual operating cash profit (EBITDA). It tells investors how many years of that operating profit would be needed to pay off the company’s interest-bearing debt, so a lower number usually means lower financial risk. Think of it like the number of paychecks required to clear a mortgage: fewer paychecks indicate a healthier balance between debt and earnings.

CAPEX financial

"FCF... benefiting from strong operating results and lower CAPEX."

Capex, short for capital expenditures, refers to the money a company spends to buy, upgrade, or maintain physical assets such as buildings, equipment, or technology. It matters to investors because these investments can help a company grow and improve its long-term performance, but they also represent significant costs that can impact profitability and cash flow.

AI-generated analysis. Not financial advice.

COPENHAGEN, Denmark, Feb. 3, 2026 /PRNewswire/ -- Announcement no. 5/2026

Interim Report Q4 and Full Year 2025

Sveinn Sölvason, President and CEO, comments:

"We delivered solid sales in the fourth quarter amounting to USD 257 million. Organic sales growth was 7% and 10% in local currency including contribution from the majority investment in Streifeneder ortho.production, which was completed in September 2025.

Growth in the quarter was driven by Prosthetics & Neuro Orthotics, supported by continued strong growth momentum in EMEA and recently launched innovation. Sales in Patient Care picked up in Q4 with a strong finish to the year, meanwhile sales in Bracing & Supports ended flat.

The EBITDA margin came in at 19% compared to 21% in Q4 2024. The margin was positively impacted by strong sales growth and manufacturing efficiency but negatively impacted by FX, tariffs, and initiatives to enhance long-term growth and profitability in our Patient Care segment.

Across markets, geographies, and patient care settings, 2025 was a year of meaningful progress for Embla Medical. The fundamental need for our solutions remains as strong as ever despite an increasingly uncertain geopolitical environment. For 2026 we are issuing new guidance of 5-8% organic sales growth and an EBITDA margin of 20-22%"

Highlights Q4 2025          

• Sales amounted to USD 257 million and organic growth was 7%, compared to 5% in Q4 2024. Local currency sales growth was 10% including acquisitions and 14% reported growth in USD. For FY 2025 organic sales growth was 6%.           
• Prosthetics & Neuro Orthotics (P&NO) sales grew by 9% organic, Bracing & Supports (B&S) sales ended flat, while Patient Care delivered 5% organic sales growth in Q4 2025. For FY 2025, Prosthetics & Neuro Orthotics sales grew 10% organic, Bracing & Supports sales declined by 1% while Patient Care sales grew by 1% organic. Growth in 2025 was driven by Prosthetics & Neuro Orthotics, mainly with a strong performance in EMEA and supported by recently launched innovation.          
• Gross Profit was USD 158 million and gross profit margin was 62% for both Q4 2025 and FY 2025, compared to 63% in Q4 2024 and FY 2024. The gross profit margin was positively impacted by strong sales in P&NO and efficiency gains in manufacturing but was offset by negative impact from FX, tariffs, and initiatives in Patient Care.         
• EBITDA amounted to USD 48 million and EBITDA margin was 19% of sales. In FY 2025, EBITDA margin was 20% on par with FY 2024. The EBITDA margin was negatively impacted by a lower gross profit margin, FX, and initiatives in Patient Care to strengthen growth and profitability.          
• Net profit grew by 33% and was USD 25 million and net profit margin was 10% of sales in Q4, compared to 8% of sales in Q4 2024. The FY 2025 net profit growth was 21%.           
• Free cash flow (FCF) amounted to USD 42 million, or 16% of sales compared to 15% of sales in Q4 2024. In FY 2025, FCF amounted to USD 100 million or 11% of sales compared to 9% of sales in FY 2024, benefiting from strong operating results and lower CAPEX.          
• NIBD/EBITDA before special items was 2.4x at the end of Q4 2025 on par with Q4 2024 and within the target ratio of 2-3x EBITDA.

Other highlights          

• Embla Medical earned a place among the world's top 500 companies, pairing strong growth with environmental responsibility. This was the 2^nd consecutive year Embla Medical was highlighted as one of the World's Best Companies in Sustainable Growth.        
• In November 2025 announced the opening of its new prosthetic clinic in Kyiv alongside a landmark partnership with the Government of Iceland to launch the "Iceland Supports Mobility in Ukraine" initiative, a three-year program designed to deliver high-quality prosthetic care and rehabilitation to up to 1,000 Ukrainian amputees.

2026 Outlook         

• Organic sales growth guidance of 5-8%, driven by strong volume growth in the core business with moderate price increases.           
• EBITDA margin guidance of 20-22%*, driven by scale and efficiency coupled with continued focus on cost control in SG&A.

*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.

Q4 and Full Year 2025 Report 
The Interim Report for Q4 and full year 2025 is available on following link: Q4 and FY 2025 Report

Conference call details
Embla Medical will host a conference call on February 3, 2026, 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 Q4/FY 2025 webcast

Slides from the Q4/FY 2025 Conference Call is available here: Embla Medical Q4/FY 2025 Conf Call

Updated investor road show presentation
Our updated Q4/FY 2025 investor road show presentation can be downloaded on following link: Embla Medical Roadshow presentation Q4/FY 2025

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) is a leading global provider of innovative mobility solutions that help people live a Life Without Limitations®. Embla Medical is home to several leading brands renowned for positively impacting people's health and well-being. They include Össur, a leading global provider of prosthetics and bracing solutions; Fior & Gentz, an innovative developer of neuro orthotics; College Park, a provider of lower limb prosthetics; and ForMotion, a global network of Orthotic and Prosthetic (O&P) patient care facilities. Embla Medical is committed to sustainable business practices, is a signatory to the UN Global Compact and 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 around 4,500 employees. www.emblamedical.com 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/embla-medical-hf-/r/embla-medical-hf--interim-report-q4-and-full-year-2025,c4301524

The following files are available for download:

https://mb.cision.com/Main/18404/4301524/3912536.pdf

Company Announcement Q4 2025 combined FINAL

 

 

View original content:https://www.prnewswire.com/news-releases/embla-medical-hf-interim-report-q4-and-full-year-2025-302677226.html

SOURCE Embla Medical hf.

FAQ

What were Embla Medical (EMBLA) Q4 2025 sales and organic growth?

Embla Medical reported Q4 sales of USD 257 million with 7% organic growth. According to the company, local currency growth was 10% including acquisitions and reported USD growth reached 14% driven by Prosthetics & Neuro Orthotics.

How did Embla Medical (EMBLA) perform on profitability in Q4 and FY 2025?

Q4 EBITDA was USD 48 million (19% margin) and FY EBITDA margin was 20%. According to the company, margins benefited from sales and manufacturing efficiency but were offset by FX, tariffs, and Patient Care initiatives.

What is Embla Medical's (EMBLA) free cash flow and net profit trend in 2025?

Free cash flow was USD 42 million in Q4 and USD 100 million for FY 2025; net profit grew 33% in Q4 to USD 25 million. According to the company, stronger operating results and lower CAPEX supported cash generation.

What guidance did Embla Medical (EMBLA) give for 2026 organic growth and EBITDA margin?

Management guided for 5–8% organic sales growth and an EBITDA margin of 20–22% for 2026. According to the company, guidance assumes scale and efficiency gains while acknowledging tariff uncertainty that is hard to quantify.

Which business segments drove Embla Medical's (EMBLA) 2025 growth?

Growth in 2025 was driven primarily by Prosthetics & Neuro Orthotics, with strong EMEA performance and new product launches. According to the company, Patient Care grew modestly while Bracing & Supports was flat to slightly down.

How exposed is Embla Medical (EMBLA) to debt leverage after Q4 2025?

Net interest-bearing debt to EBITDA before special items was 2.4x at Q4 2025, within the company target of 2–3x. According to the company, this ratio is unchanged year-over-year and considered within strategic leverage goals.