Financial Data and Key Metrics Changes - In Q1 2025, Zimmer Biomet reported net sales of $1.909 billion, reflecting a 1.1% increase on a reported basis and a 2.3% increase excluding foreign currency impact [27] - Adjusted earnings per share (EPS) for the quarter was $1.81, down from $1.94 in the prior year, attributed to higher costs and investments [32] - The company generated $279 million in free cash flow, demonstrating robust growth compared to the previous year [26] Business Line Data and Key Metrics Changes - U.S. hips sales grew nearly 4%, while U.S. knees saw a modest growth of 0.2% [29] - The S.E.T. segment grew by 4.9%, with notable growth in CMFT and Sports categories [30] - International sales grew by 3.7%, driven by mid-single digit growth in knees and high-single digit growth in S.E.T. [28] Market Data and Key Metrics Changes - The U.S. market showed a 1.3% growth overall, with hips and S.E.T. driving performance [27] - Internationally, hips grew by 2.4%, with U.S. hips growing at 3.7% and international hips at 1% [29] - The company anticipates a full-year organic constant currency revenue growth of 3% to 5% for 2025 [10] Company Strategy and Development Direction - Zimmer Biomet is focusing on three strategic priorities: people and culture, operational excellence, and innovation and diversification [12] - The company aims to enhance its U.S. market performance through leadership changes and optimizing sales channels [14] - The recent acquisition of Paragon 28 is expected to contribute approximately 270 basis points to sales growth in 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance despite challenges such as tariffs and foreign exchange impacts [34] - The company is optimistic about new product launches and expects second-half growth to be higher than the first half due to favorable comparisons and new product uptake [35] - Management acknowledged the need for improved performance in the U.S. knee segment and is implementing strategies to enhance competitiveness [81] Other Important Information - The company reported a reduction in days on hand inventory from over 400 days in early 2024 to approximately 370 days [15] - The Paragon 28 acquisition was successfully integrated with minimal disruption, retaining key leadership and sales teams [110] Q&A Session Summary Question: Impact of tariffs on EPS and mitigation efforts - Management detailed steps taken to mitigate tariff impacts, including optimizing country of origin and sourcing adjustments, expecting a $60 million to $80 million headwind for 2025 [45][46] Question: Growth expectations and new product impacts - Management indicated confidence in achieving mid-single digit growth in the second half of 2025, driven by new product launches and improved execution [56][57] Question: Performance in ASC versus hospital channels - The company noted that over 20% of U.S. sales now come from the ASC environment, with expectations for continued growth in this area [94] Question: Pricing trends and future expectations - Management expects pricing to remain flat for 2025, with a stable environment compared to historical norms, despite previous fluctuations [68][69] Question: Clarification on the Paragon acquisition integration - The integration of Paragon 28 is progressing well, with all key personnel retained and ongoing product innovations maintained [110]

Financial Performance - First quarter net sales were $1.909 billion, representing a 1.1% increase year-over-year and a 2.3% increase on a constant currency basis[2]. - Net earnings for the first quarter were $182.0 million, with adjusted net earnings of $361.1 million[2]. - Diluted earnings per share were $0.91, while adjusted diluted earnings per share were $1.81[3]. - Total sales in the United States were $1.113 billion, a 1.3% increase, while international sales were $795.5 million, a 0.7% increase[10]. - Operating profit for Q1 2025 was $292.3 million, up from $265.9 million in Q1 2024, reflecting a growth of 9.5%[34]. - Net earnings attributable to Zimmer Biomet Holdings, Inc. for Q1 2025 were $182.0 million, compared to $172.4 million in Q1 2024, representing a 4.1% increase[34]. - Free cash flow for Q1 2025 was $278.5 million, significantly higher than $90.9 million in Q1 2024, marking an increase of 206.6%[49]. - Net cash provided by operating activities increased to $382.8 million in Q1 2025 from $228.0 million in Q1 2024, a growth of 77.9%[49]. - Operating profit margin improved to 15.3% in Q1 2025 from 14.1% in Q1 2024[52]. - Adjusted operating profit for Q1 2025 was $500.5 million, down from $539.4 million in Q1 2024, reflecting a decrease of 7.2%[52]. Revenue Guidance and Projections - The company updated its full-year 2025 reported revenue guidance to a range of 5.7% to 8.2% growth, reflecting the impact of the Paragon 28 acquisition[12]. - The company reported a projected full-year 2025 revenue change of 5.7% to 8.2%, with an organic constant currency revenue change of 3.0% to 5.0%[42]. - The company’s projected revenue growth is impacted by a foreign currency exchange effect of 0.0% to 0.5% for the full year 2025[42]. Acquisitions and Market Position - The acquisition of Paragon 28, focused on the foot and ankle orthopedic segment, strengthens the company's position in a high-growth market[7]. - U.S. hips sales showed momentum, driven by new products like the Z1™ Triple-Taper Femoral Hip System and the HAMMR® Automated Hip Surgical Impactor System[5]. - The company received FDA clearance for the Persona® Revision SoluTion™ Femur, expected to be commercially available in Q3 2025[7]. Cost and Expenses - Research and development expenses for Q1 2025 were $110.6 million, slightly up from $107.9 million in Q1 2024[34]. - The cost of products sold, excluding intangible asset amortization, was $549.8 million for Q1 2025, compared to $512.3 million in Q1 2024, reflecting an increase of 7.3%[51]. - Adjusted gross profit for Q1 2025 was $1,365.5 million, down from $1,378.0 million in Q1 2024, indicating a decrease of 0.9%[51]. - The gross margin for Q1 2025 was 63.3%, compared to 65.4% in Q1 2024, showing a decline of 2.1 percentage points[51]. - The company incurred $36.0 million in restructuring and other cost reduction initiatives in Q1 2025, down from $124.4 million in Q1 2024[34]. - The interest expense for Q1 2025 was $66.2 million, compared to $50.7 million in Q1 2024, indicating an increase in financing costs[34]. - The company incurred $151.0 million in intangible asset amortization for Q1 2025, compared to $142.1 million in Q1 2024, reflecting an increase of 6.3%[51]. Assets and Debt - Cash and cash equivalents increased significantly to $1,384.5 million as of March 31, 2025, from $525.5 million at the end of 2024[37]. - The company’s total assets increased to $22,183.9 million as of March 31, 2025, compared to $21,365.3 million at the end of 2024[37]. - Total debt as of March 31, 2025, was $7,176.3 million, an increase from $6,204.6 million as of December 31, 2024[55]. - Net debt increased to $5,791.8 million as of March 31, 2025, compared to $5,679.1 million as of December 31, 2024[55]. Corporate Recognition - The company was named one of the 2025 World's Most Ethical Companies by Ethisphere[11].

Wall Street analysts forecast that Zimmer Biomet (ZBH) will report quarterly earnings of $1.77 per share in its upcoming release, pointing to a year-over-year decline of 8.8%. It is anticipated that revenues will amount to $1.89 billion, exhibiting an increase of 0.2% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before ...

Zimmer Biomet Holdings, Inc. (ZBH) is scheduled to report first-quarter 2025 results on May 5, before market open.In the last reported quarter, the company’s earnings of $2.31 surpassed the Zacks Consensus Estimate by 0.4%. ZBH beat on earnings in three of the trailing four quarters and missed on one occasion, the average earnings surprise being 1.28%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).Q1 Estimates for ZBHThe Zacks Consensus Estimate for revenues is pegged at $1.89 bil ...

Core Viewpoint - Zimmer Biomet has completed the acquisition of Paragon 28, enhancing its position in the rapidly growing foot and ankle orthopedic market [1][5]. Group 1: Acquisition Details - The acquisition was finalized on April 21, 2025, under a merger agreement dated January 28, 2025 [5]. - Each outstanding common share of Paragon 28 was converted into $13.00 in cash and a contingent value right (CVR) worth up to $1.00 per share based on revenue milestones [6]. - Following the acquisition, Paragon 28 became a wholly-owned subsidiary of Zimmer Biomet, and its shares were delisted from the New York Stock Exchange [6][7]. Group 2: Strategic Benefits - The transaction strengthens Zimmer Biomet's offerings in the foot and ankle segment, leveraging Paragon 28's technology and sales organization [3]. - It complements Zimmer Biomet's existing fracture, trauma, and joint replacement portfolios, creating a dedicated sales channel for foot and ankle products [3]. - The acquisition is expected to drive growth in a ~$5 billion foot and ankle industry, which is projected to grow at high-single digits [4]. Group 3: Market Positioning - The acquisition enhances Zimmer Biomet's global footprint and infrastructure, facilitating adoption and growth in both U.S. and international markets [4]. - It accelerates penetration into the fast-growing Ambulatory Surgery Center (ASC) space, aligning with industry trends [4].

WARSAW, Ind., April 10, 2025 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today announced its first quarter earnings conference call will be webcast on Monday, May 5, 2025, at 8:30 a.m. ET. A news release detailing the quarterly results will be made available that day at 6:30 a.m. ET. The live audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the conference call. Individuals in the ...

Zimmer Biomet’s (ZBH) strategic priorities, new product launches and focus on international expansion bolster our confidence in this stock. Yet, the difficult macroeconomic situation and leveraged capital structure are concerning. The stock carries a Zacks Rank #3 (Hold).Favorable Factors For ZBHDespite challenging market conditions in the form of pricing pressure, the last few quarters witnessed gradual stability in the global musculoskeletal market with better-than-expected sales growth in certain geograp ...

Expanding Thoracic Portfolio With the CE Mark, Zimmer Biomet will make the RibFix Advantage Fixation System available in the European Economic Area (EEA) and other markets that recognize the CE Mark. RibFix Advantage Fixation System For more information on the RibFix Advantage Fixation System watch the animation. About Zimmer Biomet With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues t ...

Zimmer Biomet Holdings, Inc. (ZBH) is participating in the ongoing American Academy of Orthopaedic Surgeons (AAOS) 2025 Annual Meeting in San Diego, from March 10-14. Here, the company is highlighting advancements in hip, knee, and upper extremity reconstruction, as well as its latest ambulatory surgery center (ASC) solutions.Expanding Hip Reconstruction PortfolioAt AAOS 2025, Zimmer Biomet is presenting its comprehensive hip portfolio, with the primary focus being on the Z1 Triple-Taper Femoral Hip System, ...

Core Viewpoint - Zimmer Biomet (ZBH) is experiencing growth driven by strong procedural performance, effective execution, and innovation momentum, although the stock is facing challenges from a tough macroeconomic environment that has increased expenses [1] Group 1: Growth Factors - The company is focusing on strengthening its presence in both developed and emerging international markets, which are expected to provide long-term growth opportunities [2] - Strong revenue growth in the Asia Pacific market has been noted, supported by product launches and customer adoption [3] - The global musculoskeletal market has shown gradual stability, with improved sales growth in certain regions due to favorable demographics and increased healthcare utilization [4] Group 2: Financial Performance - In Q4 2024, Zimmer Biomet reported growth in large joints, with global sales for Knees, Hips, and S.E.T. increasing by 5.6%, 4%, and 8.4% respectively at constant exchange rates [5] - Over the past three months, ZBH shares have increased by 0.7%, while the industry has grown by 4.6% [6] Group 3: Challenges - Industry-wide staffing shortages and supply chain issues are negatively impacting growth [7] - High policy rates and geopolitical complications are affecting raw material and labor costs, as well as freight charges [8] - The company is facing reimbursement challenges in the Restorative Therapies business and acute supply challenges in Sports and Trauma, which are pressuring revenues and operating profits [8] Group 4: Cost and Margin Analysis - In Q4, the cost of products sold increased by 5.1%, and selling, general, and administrative expenses rose by 3.4%, leading to a contraction in adjusted gross margin by 123 basis points and adjusted operating margin by 43 basis points [9] - Projections indicate a 5.7% increase in the cost of products sold and a 4.2% rise in selling, general, and administrative expenses for 2025 [9] Group 5: Foreign Exchange Impact - A significant portion of Zimmer Biomet's revenues comes from Europe and Japan, where the strengthening U.S. dollar has adversely affected operations [10] - In 2024, net sales were impacted by a 1% decline due to foreign exchange rate changes, with expectations of a 1.5%-2% adverse impact on 2025 revenues [11]