ConvaTec Group plc published a transcript of its 2025 Annual Results onsite video broadcast, featuring presentations and Q&A led by CEO Jonny Mason and CFO Fiona Ryder, with questions from analysts including Barclays, Panmure Liberum, Deutsche Bank, RBC Capital Markets, UBS, Berenberg, Citi and JP Morgan. Management reported strong 2025 performance, with broad-based organic revenue growth across all four categories and ongoing margin expansion. Excluding InnovaMatrix, organic revenue growth was 6.4%, operating margin rose 110 basis points to 22.3%, and EPS increased 16%, supported by strong cash generation and a $300 million share buyback. “2025 was a year of strong delivery,” the CEO said, adding that “the flywheel is turning, and we are well set for the future.” A key topic was the impact of U.S. reimbursement changes on InnovaMatrix, where CMS introduced a new price rate from 1 January 2026 that management said represented “about an 80% reduction.” The CFO guided to InnovaMatrix sales of around $20 million in 2026 and noted the group recorded a $72 million non-cash impairment. Despite the headwind, the CFO said ConvaTec expects further profitability improvement in 2026, guiding to “at least 23%” operating margin and “another year of double-digit EPS growth.” The company reiterated 2026 guidance for 5% to 7% organic growth excluding InnovaMatrix, with growth expected to be second-half-weighted as launches build. Management also raised its longer-term growth ambition, with the CEO stating ConvaTec is “increasing our target growth rate to 6% to 8% per annum from 2027,” supported by pipeline and capacity investment. The call also addressed an FDA warning letter related to complaints handling and CAPA processes; the CEO said the issue is “now top priority” and that the company is “determined to become best-in-class in this area as quickly as possible.” The full transcript can be accessed through the link below.

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