Q1 2025 Zimmer Biomet Holdings Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) reported a 2.3% growth in first-quarter sales on a constant currency basis, with standout performance in US Hips and mid-single digit growth in S.E.T.
- The company is maintaining its full-year organic constant currency revenue growth expectations of 3% to 5%, excluding the Paragon 28 acquisition.
- Zimmer Biomet Holdings Inc (ZBH) successfully integrated the Paragon 28 acquisition, with the entire US sales channel and senior leadership team joining the company.
- The company is focusing on innovation and diversification, with new product launches such as the Oxford Partial Cementless Knee and the Iodine-Surface-Treated Hip Stem.
- Zimmer Biomet Holdings Inc (ZBH) is committed to operational excellence, optimizing its US sales channel, and expanding its ASC offerings and robotic platforms.
- Zimmer Biomet Holdings Inc (ZBH) updated its 2025 adjusted EPS guidance to $7.90 to $8.10, down from the previous $8.15 to $8.35, due to tariffs and modest dilution from the Paragon 28 acquisition.
- The company faces a $60 million to $80 million headwind from tariffs in 2025, with the majority of the impact expected in the second half of the year.
- Zimmer Biomet Holdings Inc (ZBH) reported a decline in Technology & Data, Bone Cement, and Surgical segments by 3.5% due to tough comps and a mix shift towards ROSA volume-based placements.
- The company's adjusted gross margin and operating margin were lower than the prior year, impacted by higher COGS capitalization, upfront investments, and higher interest expenses.
- Zimmer Biomet Holdings Inc (ZBH) anticipates a reduction in 2025 free cash flow to $750 million to $850 million, down from $1.1 billion to $1.2 billion, due to tariff-related headwinds and one-time costs from the Paragon 28 acquisition.
Good morning, ladies and gentlemen and welcome to the Zimmer Biomet first quarter 2025 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded today, May 05, 2025. Following today's presentation, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the conference over to David DeMartino, Senior Vice President, Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone. Welcome to Zoomer Biomet's first quarter of 2025 earnings conference call.
Joining me on today's call are Ivan Tornos, our President and CEO, and Suketu Upadhyay, our CFO and EVP, Finance Operations and Supply Chain.
Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. For
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