Q4 2025 Zimmer Biomet Holdings Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) achieved a 5.4% sales growth on an organic constant currency basis in Q4 2025, marking the fifth consecutive year of mid-single-digit growth.
- The US Knee segment grew by 6% in Q4, driven by increased penetration of the Persona OsseoTi cementless knee, which reached around 35% penetration.
- The company's robotics and navigation strategy resulted in a 10% increase in US technology and data, bone cement, and surgical sales, marking the strongest robotic capital sales quarter in over two years.
- Zimmer Biomet Holdings Inc (ZBH) plans to accelerate the transition to a dedicated and specialized US sales channel, aiming for more durable and consistent growth by the end of 2027.
- The company expects to achieve full-year organic constant currency revenue growth of 1% to 3% in 2026, with an adjusted EPS of $8.30 to $8.45, supported by a robust innovation cycle and strategic priorities.
- The transition to a dedicated US sales force may create short-term disruption across the organization, impacting growth in 2026.
- Zimmer Biomet Holdings Inc (ZBH) anticipates up to 100 basis points of pricing erosion in 2026, reflecting a moderation in price increases across EMEA and expected decreases in Asia Pacific.
- The company's operating margins are expected to be down about 50 basis points from 2025, due to lower gross margins, dilution from the Paragon 28 acquisition, and increased investments in the US commercial channel.
- The international business remains fragile, with inconsistent performance across quarters, necessitating attention to go-to-market models and growth areas.
- The US sales force transition is expected to take two years, potentially delaying the realization of productivity improvements and growth acceleration until 2027.
Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet fourth quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, February 10, 2026. (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, and good morning, everyone. Welcome to Zimmer Biomet's fourth quarter 2025 earnings conference call. Joining me on today's call are Ivan Tornos, our Chairman, President and CEO; and Suky 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 a detailed discussion of all these risks and uncertainties, in addition
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