Q2 2025 Zimmer Biomet Holdings Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) delivered a solid quarter with a 2.8% sales growth on an organic constant currency basis despite an 80-basis point headwind.
- The company raised its 2025 adjusted earnings per share guidance to $8.10 to $8.30, up from the previous range of $7.90 to $8.10.
- Zimmer Biomet Holdings Inc (ZBH) announced a definitive agreement to acquire Monogram Technologies, enhancing its robotic capabilities with first-to-world technology.
- The US Hips business showed strong performance, growing 5.2% over the prior year, driven by the Z1 triple taper hip stem.
- The company is seeing strong early adoption of new products, such as the Persona OsseoTI cementless total knee and Oxford Partial cementless knee, which are expected to drive growth in the second half of 2025.
- Zimmer Biomet Holdings Inc (ZBH) faced significant delays in international orders, impacting the quarter's performance.
- The company reported a decline in adjusted operating margin to 27.8%, attributed to increased commercial investments and the addition of Paragon 28.
- Technology and data segment declined by 2.2% due to difficult comps from the prior year and a mix shift towards ROSA volume-based placements.
- The acquisition of Paragon 28 resulted in dilution to adjusted earnings per share, impacting financial performance.
- Despite improvements, the company still anticipates a $40 million tariff headwind to operating profit in 2025.
Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, August 7, 2025. (Operator Instructions)
I would now like to turn the conference over to David DeMartino, Senior Vice President of Investor Relations. Please go ahead.
Thank you, operator. And good morning, everyone. Welcome to Zimmer Biomet's second-quarter 2025 earnings conference call. Joining me on today's call are Ivan Tornos, our Chairman, President, and CEO; and Suketu Upadhyay, our CFO and EVP Finance, Operations, and Supply Chain.
Before I 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 a detailed discussion of all these risks and uncertainties, in
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