Overview

• Medical products firm's 2025 revenue slightly beat analyst expectations, growing 6.5% yr/yr

• 2025 EBIT missed analyst estimates, declining compared to previous year

• Company announced $300 mln share buyback and increased dividend by 13%

Outlook

• ConvaTec expects FY26 organic revenue growth excluding InnovaMatrix of 5-7%

• Company anticipates FY26 adjusted operating margin of ≥23.0%

• ConvaTec upgrades medium-term organic growth target to 6-8% from 2027

Result Drivers

• BROAD-BASED GROWTH - ConvaTec achieved broad-based organic revenue growth across all categories, supported by new product launches and operational efficiencies

• INFUSION CARE - Infusion Care segment saw a 15.1% revenue increase, driven by strong demand for infusion sets in diabetes and non-diabetes therapies

• MARGIN EXPANSION - Adjusted operating margin improved by 110 bps to 22.3%, aided by automation and productivity initiatives

Company press release: ID:nRSX0838Ua

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
FY Revenue	Slight Beat*	$2.44 bln	$2.43 bln (18 Analysts)
FY EBIT	Miss	$316 mln	$525.26 mln (18 Analysts)
FY Adjusted EBIT		$544 mln
FY Adjusted EBIT Margin		22.30%
FY Dividend		$0.07
FY EBIT Margin		13.00%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for ConvaTec Group PLC is GBp315.00, about 38.8% above its February 23 closing price of GBp227.00

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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