Core Insights - CONMED aims to empower healthcare providers globally to deliver exceptional patient outcomes, emphasizing a commitment to innovative clinical solutions [1][2] - The company is focused on maintaining profitability for shareholders while balancing its business portfolio [2] Business Portfolio - CONMED's portfolio consists of approximately 58% general surgery and 42% orthopedics, indicating a balanced approach to its product offerings [2] - Geographically, 57% of CONMED's business is derived from international markets, showcasing its global reach [2]

CONMED (NYSE:CNMD) FY Conference Summary Company Overview - **Company**: CONMED Corporation - **Industry**: Medical Technology (MedTech) - **CEO**: Pat Beyer - **Conference Date**: January 12, 2026 Key Points Company Vision and Strategy - CONMED aims to empower healthcare providers globally to deliver exceptional patient outcomes, focusing on innovative clinical solutions [1] - The company emphasizes profitability for shareholders and maintains a balanced portfolio: 58% general surgery and 42% orthopedics [2] Financial Performance and Growth Outlook - Revenue for FY 2025 is projected between $1.365 billion and $1.372 billion, with an expected midterm growth rate of 4%-9% [3][4] - Specific growth expectations include: - General surgery: 5%-11% - Orthopedics: 4%-8% - AirSeal and direct smoke evacuation: high single-digit to double-digit growth - Sports medicine: mid-single digits to high single digits [3] Growth Drivers - **AirSeal Portfolio**: Reduces hospital stay and pain, with a market share of 6%-7% in laparoscopy procedures [5][7] - **Buffalo Filter**: Advanced smoke evacuation system projected to grow from $300-$350 million to $1 billion, driven by global legislation and clinical validation [8][9] - **BioBrace**: FDA-approved technology for sports medicine tissue repair, with a focus on mechanical strength and biologic integration [10][11] Strategic Decisions - CONMED exited the GI business to focus on high-margin growth areas, which is expected to impact revenue by $78-$82 million [13][14] - The company is committed to reducing leverage, achieving a target below three ahead of schedule [13] Preliminary Guidance for 2026 - Revenue guidance for 2026 is set at $1.345-$1.375 billion, with adjusted EPS guidance of $4.25-$4.45 [14][15] - The guidance reflects the impact of the GI divestiture and tariffs, which are expected to be headwinds [18][19] Capital Allocation and Share Repurchase - CONMED has suspended its dividend to redirect funds towards share repurchase, with an initial impact of $0.07 on EPS [15][39] - The company remains open to both organic and inorganic growth opportunities, focusing on high-margin, durable assets [36][37] Supply Chain and Operational Challenges - The company has made progress in addressing supply chain issues, particularly in the orthopedic segment, which is expected to improve in 2026 [24] Market Position and Competitive Landscape - CONMED's AirSeal product is a significant growth asset, with a strong attachment rate to surgical robotics [29] - The company is focusing on expanding its presence in the laparoscopic market, which has shown faster growth compared to robotic sales [31] ESG Commitment - CONMED is committed to sustainability and will publish its fourth sustainability report, highlighting its focus on responsible practices [16] Conclusion - CONMED is strategically positioning itself for growth by focusing on high-margin products, optimizing its portfolio, and addressing operational challenges. The exit from the GI business allows for a concentrated effort on its core growth drivers, with a strong emphasis on shareholder returns through share repurchase initiatives.

J.P. Morgan 44th Annual Healthcare Conference Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer January 12th, 2026 Forward-Looking Information This presentation may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous dis ...

Core Viewpoint - CONMED Corporation announced the departure of Todd Garner as Chief Financial Officer effective March 15, 2026, with an advisory role until November 2, 2026 [1] Company Transition - The company has initiated a comprehensive search process for a new Chief Financial Officer, supported by a leading executive search firm [1]

Core Insights - CONMED Corporation (CNMD) is positioned for growth due to the rising adoption of its high-margin platforms like AirSeal, Buffalo Filter, and BioBrace, alongside increasing robotic procedure volumes and the expansion of Ambulatory Surgery Centers (ASCs) [1][4][10] - The company is facing challenges from tariffs impacting gross margins and the launch of Intuitive Surgical's da Vinci 5, which delays AirSeal demand [2][15] Company Performance - CONMED has a market capitalization of $1.28 billion and projects a 3.4% earnings growth over the next five years, with earnings surpassing estimates in the last four quarters, averaging an 8.40% surprise [3][17] - The company reported significant progress in stabilizing its orthopedic supply chain, achieving record manufacturing volumes and reducing critical SKU shortages [11][12] Growth Drivers - Adoption of BioBrace has expanded to over 70 procedures, indicating strong surgeon uptake and versatility in soft-tissue repair applications [4] - AirSeal utilization is increasing due to its clinical benefits, while Buffalo Filter growth is supported by expanding smoke-evacuation mandates [5][10] - The expansion of robotic surgery and ASC penetration presents a meaningful growth opportunity, with incremental AirSeal utilization driven by the redeployment of Intuitive Surgical's Xi systems [6][9] Challenges - Tariffs are reducing gross margins by approximately 20 basis points in Q3, with expectations of a 150 basis point impact in Q4 [13] - The supply-chain recovery is ongoing and is expected to take one to two quarters for normalization, which may temper revenue recovery [14] - The integration of the da Vinci 5 is constraining near-term AirSeal adoption, as hospitals may not need to purchase AirSeal immediately due to the integrated insufflation system [15][16]

Group 1 - The last three months have been challenging for CONMED as management is undergoing restructuring efforts to address significant supply challenges and reposition the company over time [1]

Core Insights - Core & Main, Inc. (CNM) is a leading distributor in the water, wastewater, storm drainage, and fire protection products sector in the United States, serving municipalities, private water companies, and professional contractors [1] - CNM reported earnings per share of $0.89, exceeding the estimated $0.73, and revenue of approximately $2.06 billion, slightly above the estimated $2.05 billion [6] Financial Performance - The company's price-to-earnings (P/E) ratio is around 22.57, indicating that investors are willing to pay $22.57 for every $1 of earnings [2] - CNM's price-to-sales ratio stands at about 1.26, showing that investors are paying $1.26 for every dollar of sales [3] - The enterprise value to sales ratio is around 1.57, reflecting the company's total valuation compared to its sales [3] - The enterprise value to operating cash flow ratio is approximately 19.71, indicating the relationship between the company's valuation and its cash flow from operations [4] - The earnings yield is about 4.43%, providing insight into the return on investment for shareholders [4] Financial Health - The company's debt-to-equity ratio is approximately 1.23, highlighting its financial leverage [5] - The current ratio of about 2.26 suggests that CNM has more than twice the current assets compared to its current liabilities, indicating good short-term financial health [5]

Core Insights - CONMED (CNMD) has announced its intention to exit its gastroenterology product lines, including an early conclusion of its distribution agreement with W. L. Gore & Associates, Inc. for the VIABIL biliary stent, as part of a broader portfolio reshaping effort [1][4][5] - The company aims to sharpen its focus on core growth areas such as minimally invasive and orthopedic soft tissue surgery, which is expected to enhance resource allocation and improve long-term margin profiles [1][3][4] Financial Impact - Following the announcement, CNMD's shares fell over 9%, with a year-to-date decline of 41.5%, contrasting with the industry's 11% growth and the S&P 500's 19.2% increase [2] - The gastroenterology product lines are projected to generate $90–$95 million in revenues in 2025, with gross margins around 45%. However, the exit is expected to result in an earnings per share (EPS) dilution of 45–55 cents in 2026 [6] - Once the exit is fully completed, CNMD anticipates an improvement in its consolidated gross margin profile by approximately 80 basis points [6] Strategic Focus - The decision to exit the gastroenterology portfolio is part of a broader strategy to optimize the company's offerings, allowing for a more concentrated investment in areas with higher innovation potential and competitive positioning [4][5] - Management believes that this strategic shift will enhance operating efficiency and support more durable, margin-accretive growth over time [3][7] - By shedding a lower-margin segment, CNMD aims to build a more scalable and resilient operating model [7]

Core Viewpoint - CONMED Corporation reported mixed financial results for Q3 2025, with adjusted earnings per share beating estimates but a significant decline in GAAP earnings per share. Revenue growth was driven by strong performance in General Surgery and Orthopedic Surgery product lines, although margins contracted significantly [2][3][4][5][7][8]. Financial Performance - Adjusted earnings per share for Q3 2025 were $1.08, a 2.9% increase year over year, surpassing the Zacks Consensus Estimate by 2.9% [2]. - GAAP earnings per share fell to 9 cents, down 94.3% from $1.57 in the same quarter last year [2]. - Total revenues reached $337.9 million, reflecting a 6.7% year-over-year increase and exceeding estimates by 0.4% [3]. Revenue Breakdown - Orthopedic Surgery revenues were $138.2 million, up 5.9% year over year [4]. - General Surgery revenues totaled $199.7 million, a 7.3% increase year over year [5]. - Domestic revenues were $194 million, up 5.9%, while international revenues were $143.9 million, up 7.8% [6]. Margin Analysis - Gross profit decreased by 7.2% year over year to $166.1 million, with gross margin contracting by 736 basis points to 49.2% [7]. - Selling and administrative expenses rose 40.7% to $140.3 million, while total operating expenses increased 36.1% to $154.2 million [8]. Financial Position - CONMED ended Q3 2025 with a cash balance of $38.9 million, up from $33.9 million at the end of Q2 [9]. - Long-term debt decreased to $853 million from $881.1 million in the previous quarter [9]. - Cumulative net cash from operating activities was $53.7 million, compared to $51.2 million a year ago [9]. Guidance - For 2025, total revenues are now expected to be between $1.365 billion and $1.372 billion, and adjusted earnings per share are projected to be in the range of $4.48 to $4.53 [10]. Market Outlook - Recent estimates for CONMED have shown an upward trend, contributing to a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [11][13].

Core Insights - CONMED Corporation (CNMD) is positioned for growth due to the rising adoption of its high-margin platforms like AirSeal, Buffalo Filter, and BioBrace, alongside increasing robotic procedure volumes and the expansion of Ambulatory Surgery Centers (ASCs) [1][4][5] - The company faces challenges from tariff impacts on gross margins and the launch of Intuitive Surgical's da Vinci 5, which delays AirSeal demand [2][11][13] - CONMED has a market capitalization of $1.38 billion and projects a 6.3% earnings growth for 2026, with a history of surpassing earnings estimates [3] Growth Drivers - The adoption of high-margin platforms is strong, with BioBrace expanding to over 70 procedures, AirSeal gaining traction for its clinical benefits, and Buffalo Filter benefiting from smoke-evacuation mandates [4][7] - The expansion of robotic surgery and ASC penetration is expected to provide structural long-term growth opportunities [5][8] - Supply chain improvements are unlocking lost revenue and margin, with significant progress reported in orthopedic supply chain recovery [9] Strategic Focus - A comprehensive portfolio review is ongoing, focusing on high-return segments such as minimally invasive surgery, robotic platforms, and orthopedic soft-tissue repair [10] - Management aims to concentrate resources on these areas to improve margins and enhance shareholder value [10] Challenges - Tariffs are compressing gross margins, with an expected impact of 150 basis points in the fourth quarter [11] - The supply chain recovery is taking longer than anticipated, which may delay revenue recovery and affect market share [12] - The integration of the dV5 system limits the immediate opportunity for AirSeal adoption [13] Financial Outlook - There is a rising estimate revision trend for 2025, with the Zacks Consensus Estimate for earnings moving up to $4.49 per share [14]