CONMED (US:CNMD)2026-01-28 21:13Revenue Performance - Fourth quarter 2025 sales reached $373.2 million, a 7.9% increase year-over-year, with a 7.1% increase in constant currency[5] - Full-year 2025 sales totaled $1,374.7 million, reflecting a 5.2% year-over-year increase as reported and a 5.1% increase in constant currency[5] - Domestic revenue for Q4 2025 increased by 1.4% year-over-year, while international revenue rose by 17.0% as reported and 15.4% in constant currency[5] - The company expects full-year 2026 revenue to be between $1.345 billion and $1.375 billion, indicating organic constant currency growth of approximately 4.5% to 6% over 2025[4] Earnings and Profitability - Adjusted diluted net earnings per share for Q4 2025 were $1.43, compared to $1.34 in Q4 2024, while GAAP diluted net earnings per share were $0.54, down from $1.08 in Q4 2024[5] - For full-year 2026, the company anticipates adjusted diluted net earnings per share in the range of $4.30 to $4.45, including a currency tailwind of approximately $0.10[5] - The company reported a net income of $16.7 million for Q4 2025, down from $33.8 million in Q4 2024[9] - Adjusted net income for the year ended December 31, 2025, was $143.081 million, with diluted EPS of $4.59, up from $41.840 million and $1.34 in 2024[19] - The company reported a net income of $47.055 million for the year ended December 31, 2025, compared to $33.754 million in 2024[19] - The company reported a net income of $47,055,000 for the year ended December 31, 2025, down from $132,423,000 in 2024[28] Cost and Expenses - Gross profit margin for Q4 2025 was 58.5%, up from 57.3% in Q4 2024, while the full-year gross profit margin was 54.6%, compared to 56.1% in 2024[9] - Selling and administrative expenses for Q4 2025 were $166.764 million, or 44.7% of sales, compared to $132.669 million and 38.3% in Q4 2024[13] - The company incurred operational optimization costs of $12.450 million in 2025, impacting overall profitability[19] - The effective tax rate for Q4 2025 was 42.8%, compared to 22.7% in Q4 2024, indicating a significant increase in tax obligations[13] - The company faced legal matters costs of $2.609 million in 2025, impacting overall financial performance[19] - Costs related to operational optimization and compliance with EU Medical Device Regulations were incurred, impacting selling and administrative expenses[23][25] Research and Development - Research and development expenses for Q4 2025 were $14.9 million, compared to $13.2 million in Q4 2024, indicating a focus on innovation[9] - Research and development expenses for the year ended December 31, 2025, totaled $55.884 million, reflecting ongoing investment in innovation[19] - The company incurred $54,426,000 in research and development expenses, which accounted for 4.2% of sales[20] Strategic Focus - The company remains focused on key growth drivers in minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair as part of its strategic initiatives[4] - The company is focused on improving manufacturing operations and optimizing its operational processes through consulting engagements[21] Other Financial Adjustments - The company recorded a contingent consideration fair value adjustment of $(19.446) million in Q4 2025, affecting net income[13] - The company recognized a gain on the sale of a product line in 2025, contributing positively to its financial performance[24] - The company wrote off inventory and equipment related to the cancellation of planned new product lines, affecting cost of goods sold[22]