Summary of the Conference Call for Zimmer Biomet Company Overview - **Company**: Zimmer Biomet - **Event**: Mawlitthami Healthcare Conference Key Points Industry Dynamics - The orthopedic market is experiencing a healthy environment with global growth projected at over 4% [4][19] - The U.S. market is seeing significant changes, particularly with the rise of Ambulatory Surgery Centers (ASCs), which have increased from 1-2% of sales to over 20% [18][20] - Demographic trends are favorable, with 10,000 to 12,000 people turning 65 daily in the U.S., driving demand for orthopedic procedures [17] Financial Guidance and Performance - Zimmer Biomet expects to achieve a revenue growth of 3.5% to 4.5% for the year 2025, with Q3 anticipated to reach around 6% growth [3][5] - The company has reduced its tariff estimates from $60 million-$80 million to about $40 million, contributing to increased earnings per share guidance [13][14] - Cash flow generation has exceeded expectations, leading to a lower debt load and improved operating margins [14] Product Innovations - The "Magnificent Seven" new products are driving growth, including the Oxford Partial Cement and Z1 Triple Tapered Stem, which are gaining market share [9][10] - The company is launching new products in 2026, including ROSA D15, which will enhance surgical accuracy and efficiency [12] - The integration of Paragon 28 is progressing well, contributing at least 270 basis points of revenue growth this year [37] Market Segmentation and Strategy - Zimmer Biomet is focusing on specialization within its sales force, particularly in the ASC market, to enhance productivity and efficiency [48][49] - The company is committed to maintaining pricing discipline, with a pricing group reporting directly to the CFO [28][32] - The extremities business is growing faster than traditional hip and knee segments, driven by younger demographics and high reimbursement rates [40] Competitive Landscape - Zimmer Biomet is positioned as a leader in the orthopedic market, with a strong focus on innovation and operational execution [69] - The company is committed to maintaining its leadership in robotic surgery with ongoing investments in the ROSA platform and the upcoming Monogram Technologies for autonomous robotics [64][43] International Markets - The international markets are healthy, with growth in regions like Japan and Australia, although challenges remain in China [53][59] - Pricing dynamics in international markets are improving, contrary to previous expectations [61] Cultural and Operational Changes - The company has undergone significant cultural and operational changes since 2019, with improved engagement scores and a stronger balance sheet [68][69] - Zimmer Biomet is focused on accountability and performance within its sales teams, ensuring that growth is tied to compensation [49] Future Outlook - The company is optimistic about its future, with a strong pipeline of innovations and a commitment to enhancing its market position through strategic investments and partnerships [44][69] Additional Insights - The company is exploring various modalities of navigation and robotics, aiming to offer comprehensive solutions in orthopedic surgery [45][66] - There is a strong emphasis on maintaining quality and innovation as key drivers for market selection by healthcare providers [41] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Zimmer Biomet's focus on innovation, market dynamics, and financial performance.

Core Insights - Zimmer Biomet (ZBH) is focusing on expanding its ROSA Robotic Platform and cementless knee implants to drive growth and market penetration, targeting a 5% weighted average market growth (WAMG) rate by 2027 [1][6] - The company has a market capitalization of $21.30 billion and has shown an earnings yield of 7.5%, outperforming the industry average of -0.3% [2] - Despite a 6.8% decline in stock value over the past year, ZBH has surpassed earnings estimates in three of the last four quarters, with an average earnings surprise of 1.81% [2] Growth Drivers - The knee business is expected to see significant growth, with a sequential increase of 150 basis points and a year-over-year growth of 1.7% projected for 2025 [4] - Adoption rates for the Oxford Partial Cementless Knee are promising, with nearly 50% of trained surgeons incorporating it into practice, and 10% converting from competitors [5] - The Persona OsseoTi Cementless Knee is also gaining traction, particularly in Europe, where over 100 accounts are implanting the system [5] Strategic Initiatives - Zimmer Biomet's four-pillar expansion strategy includes increasing patient awareness, enhancing safety and precision through robotics, improving efficiency with smart implants, and elevating surgical outcomes [6][9] - The company is implementing a direct-to-patient campaign to boost awareness of knee solutions and encourage earlier treatment seeking [6] - The focus on robotics and navigation platforms aims to enhance efficiency and accuracy in orthopedic surgeries [6] Market Conditions - The global musculoskeletal market is gradually stabilizing, with better-than-expected sales growth in certain regions, supported by improved procedural volumes [10] - In Q2 2025, Zimmer Biomet reported year-over-year growth in large joints, with the overall global business for knees, hips, and S.E.T. growing by 1.8%, 4%, and 4.9% respectively [11] Financial Position - As of Q2 2025, Zimmer Biomet had cash and cash equivalents of $557 million against total debt of $7.57 billion, indicating a challenging solvency position [12] - The company anticipates a $40 million impact on 2025 operating profit due to tariffs, a reduction from the earlier estimate of $60-$80 million [13] - The Zacks Consensus Estimate for Zimmer Biomet's 2025 earnings per share has increased by 2% to $8.11, with revenues expected to rise by 7% to $8.21 billion [14]

Group 1 - Zimmer Biomet Holdings, Inc. will present at the Annual Morgan Stanley Healthcare Conference on September 8, 2025, at 8:30 a.m. ET [1] - A live webcast of the presentation will be available on Zimmer Biomet's Investor Relations website and will be archived for replay [1] Group 2 - Zimmer Biomet is a global leader in medical technology, focusing on maximizing mobility and improving health through innovative products and integrated digital and robotic technologies [2] - The company leverages data, data analytics, and artificial intelligence to enhance the patient experience [2] Group 3 - With over 90 years of experience, Zimmer Biomet is committed to delivering high-quality solutions to patients and providers [3] - The company emphasizes a culture of evolution and innovation in its operations [3] Group 4 - Zimmer Biomet operates in over 25 countries and has sales in more than 100 countries [4]

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Core Viewpoint - Zimmer Biomet demonstrates robust growth and improved profitability in its Q2 2025 financial results, with a net sales increase of 7.0% year-over-year, reaching $2.077 billion, and a Non-GAAP EPS of $2.07, exceeding market expectations [2][4]. Financial Performance - The company reported net sales of $2.077 billion in Q2 2025, up from $1.942 billion in Q2 2024, reflecting a 7.0% increase [3]. - Operating profit decreased to $300 million from $351.3 million year-over-year, while net earnings fell to $152.8 million from $242.8 million [3][4]. - The adjusted EPS guidance for the full year was raised from $7.90–8.10 to $8.10–8.30, indicating management's confidence in the second half of 2025 [2]. Growth Drivers - The S.E.T. (Sports Medicine, Extremities, Trauma) segment showed significant growth, with revenues reaching $550.6 million, a 17.3% increase year-over-year, driven by rapid integration and product iteration in the ankle business [5][7]. - The company launched new products in the hip joint sector, such as the Z1 Hip Stem, which have gained initial success in the North American market [7]. Digital Transformation - Zimmer Biomet is accelerating its digital transformation with the ZBEdge platform, which integrates hardware, software, and data [8]. - The ROSA surgical robot system has been updated to enhance intraoperative verification and imaging fusion capabilities [10]. - The acquisition of Monogram Technologies aims to improve personalized preoperative planning and intraoperative execution capabilities [12]. Management Outlook - The CEO emphasized a shift from being a "device giant" to a "technology platform company," focusing on digital orthopedics, surgical robotics, and remote rehabilitation management [13]. - The management anticipates that orthopedic business revenue will decline to below 50% of total revenue by 2025, with digital and high-value consumables becoming new growth engines [13]. Challenges and Strategic Transition - Despite strong performance, the company faces short-term integration costs and external variables such as tariffs and logistics costs [14]. - The transition from "procedure replacement" to "full-process empowerment" is underway, with new product cycles and multi-platform interactions laying the foundation for the next decade of growth [14]. Company Overview - Zimmer Biomet is a leading medical technology company focused on innovative products and digital solutions in orthopedics, neuroscience, spine, and cranio-maxillofacial reconstruction [15]. - The company is headquartered in Warsaw, Indiana, and operates in over 100 countries, aiming to enhance the quality of life for patients through technology and surgical advancements [15].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2025 Commission File Number 001-16407 ZIMMER BIOMET HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 13-4151777 (IRS Employer Identification No.) 345 East Main Street, Warsaw, IN 46580 (Address of principal ex ...

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.07, exceeding the Zacks Consensus Estimate by 4.5% and reflecting a 3% year-over-year increase [1][9] - The company's second-quarter net sales reached $2.08 billion, marking a 7% increase year over year, and surpassing the Zacks Consensus Estimate by 1.6% [3][9] - ZBH raised its 2025 EPS guidance to a range of $8.10-$8.30, indicating strength in high-growth, non-core segments [9][12] Revenue Performance - Second-quarter net sales of $2.08 billion increased by 7% year over year, with a 5.4% increase at constant exchange rates (CER) [3][9] - U.S. sales totaled $1.17 billion, up 6.1% year over year, while international sales reached $903.5 million, reflecting an 8.1% year-over-year increase and 4.6% at CER [4][9] Segment Analysis - Sales in the Knees unit improved by 1.8% year over year at CER to $826 million, while Hips sales grew by 4% year over year at CER to $536.1 million [5][6] - The S.E.T. unit saw a significant revenue increase of 16% year over year at CER to $550.6 million, outperforming estimates [6] - Revenues from Technology & Data, Bone Cement and Surgical decreased by 2.2% to $164.6 million at CER [6] Margin and Expense Overview - Adjusted gross margin remained flat year over year at 71.5%, while selling, general and administrative expenses rose by 10.5% to $814.8 million [7] - Research and development expenses increased by 3.6% to $113.3 million, and adjusted operating margin contracted by 109 basis points to 26.8% [7] Cash Position - At the end of the second quarter, ZBH had cash and cash equivalents of $556.9 million, down from $1.38 billion at the end of the first quarter of 2025 [10] - Cumulative net cash provided by operating activities was $761 billion, compared to $597.4 billion in the year-ago period [10] Updated Financial Outlook - ZBH updated its revenue growth expectation for 2025 to a range of 6.7-7.7%, with foreign exchange anticipated to negatively impact revenues by 0.5% [11] - The adjusted EPS for the full year is now expected to be in the range of $8.10-$8.30, up from the previous estimate of $7.90-$8.10 [12] Strategic Developments - The company completed the acquisition of Paragon 28 in the second quarter, which is expected to enhance innovation and diversification in the S.E.T. business [14]

Zimmer Biomet (ZBH) Q2 2025 Earnings Call August 07, 2025 08:30 AM ET Company ParticipantsDavid DeMartino - SVP - IRIvan Tornos - Chairman, President & CEOSuketu Upadhyay - CFO & EVP - Finance, Operations & Supply ChainDavid Roman - Managing DirectorTravis Steed - MD - Equity ResearchVijay Kumar - Senior MDChris Pasquale - Partner - Medical Devices & SuppliesPatrick Wood - Managing DirectorRichard Newitter - Managing DirectorCaitlin Cronin - DirectorConference Call ParticipantsRobert Marcus - Senior Analyst ...

Company Performance - Zimmer Biomet reported quarterly earnings of $2.07 per share, exceeding the Zacks Consensus Estimate of $1.98 per share, and showing an increase from $2.01 per share a year ago, resulting in an earnings surprise of +4.55% [1] - The company posted revenues of $2.08 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.59%, and an increase from $1.94 billion year-over-year [2] - Over the last four quarters, Zimmer has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Zimmer shares have declined approximately 13.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.81 on revenues of $2 billion, and for the current fiscal year, it is $7.95 on revenues of $8.19 billion [7] Industry Context - The Medical - Products industry, to which Zimmer belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]