In This Article:
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Revenue: $1.909 billion, an increase of 1.1% on a reported basis and 2.3% excluding the impact of foreign currency.
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Adjusted Earnings Per Share (EPS): $1.81, compared to $1.94 in the prior year.
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Free Cash Flow: $279 million.
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US Sales Growth: 1.3%, driven by nearly 4% growth in both Hips and S.E.T.
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International Sales Growth: 3.7%, driven by mid-single digit growth in Knees and high-single digit growth in S.E.T.
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Adjusted Gross Margin: 71.5%.
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Adjusted Operating Margin: 26.2%.
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Adjusted Tax Rate: 18.2%.
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Days on Hand (DOH): Reduced by almost 47 days compared to Q1 2024, ending at approximately 370 days.
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2025 Revenue Growth Guidance: 5.7% to 8.2% reported sales growth.
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2025 EPS Guidance: $7.90 to $8.10.
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2025 Free Cash Flow Guidance: $750 million to $850 million.
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Impact of Paragon 28 Acquisition: Expected to contribute 270 basis points to sales growth in 2025.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Zimmer Biomet Holdings Inc (NYSE: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.
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The company is maintaining its full-year organic constant currency revenue growth expectations of 3% to 5%, excluding the Paragon 28 acquisition.
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Zimmer Biomet Holdings Inc (NYSE:ZBH) successfully integrated the Paragon 28 acquisition, with the entire US sales channel and senior leadership team joining the company.
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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.
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Zimmer Biomet Holdings Inc (NYSE:ZBH) is committed to operational excellence, optimizing its US sales channel, and expanding its ASC offerings and robotic platforms.
Negative Points
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Zimmer Biomet Holdings Inc (NYSE: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.
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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.
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Zimmer Biomet Holdings Inc (NYSE: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.
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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.
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Zimmer Biomet Holdings Inc (NYSE: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.