Zimmer Biomet(US:ZBH)2026-02-10 11:30Financial Performance - Fourth quarter net sales reached $2.244 billion, a 10.9% increase year-over-year, with a 5.4% increase on an organic constant currency basis [2]. - Full-year net sales totaled $8.232 billion, reflecting a 7.2% increase compared to the previous year, with a 3.9% increase on an organic constant currency basis [3]. - Fourth quarter diluted earnings per share were $0.70, a decrease of 41.7%, while adjusted diluted earnings per share increased by 4.8% to $2.42 [4]. - Full-year net earnings were $705.1 million, with adjusted net earnings of $1.629 billion, marking a 2.5% increase in adjusted diluted earnings per share to $8.20 [3]. - Operating profit for the year 2025 was $1,098.1 million, down from $1,285.7 million in 2024, indicating a decrease of about 14.6% [40]. - Net earnings for 2025 were $705.1 million, compared to $903.8 million in 2024, reflecting a decline of approximately 22% [40]. - Basic earnings per share for 2025 were $3.56, down from $4.45 in 2024, a decrease of about 20% [40]. - Reported net earnings for the year ended December 31, 2025, were $705.1 million, with diluted earnings per share at $3.55 [52]. - Total revenue for the year ended December 31, 2025, was $3,257.2 million, reflecting a significant increase compared to the previous year [52]. Cash Flow and Investments - The company generated $1.697 billion in operating cash flow and $1.172 billion in free cash flow for the year [4]. - Net cash provided by operating activities increased to $1,697.1 million in 2025, compared to $1,499.4 million in 2024, representing a growth of about 13.3% [44]. - The company reported a net cash used in investing activities of $1,975.7 million in 2025, compared to $888.1 million in 2024, indicating a substantial increase in investment activities [44]. - Free cash flow for the three months ended December 31, 2025, was $368.3 million, down from $402.8 million in the same period of 2024 [58]. Stock and Debt Management - A new stock repurchase authorization of up to $1.5 billion was approved, effective February 9, 2026 [5]. - Zimmer Biomet completed $250 million in share repurchases during the fourth quarter of fiscal 2025 [8]. - The company’s long-term debt increased to $6,932.0 million in 2025 from $5,341.6 million in 2024, reflecting a rise of approximately 30% [42]. - Total debt increased to $7,519.1 million in December 2025 from $6,204.6 million in December 2024, reflecting a significant rise [63]. - Net debt rose to $6,927.2 million in December 2025, up from $5,679.1 million in December 2024, indicating increased leverage [63]. Research and Development - Research and development expenses increased to $458.5 million in 2025 from $437.4 million in 2024, showing a growth of approximately 4.8% [40]. Future Projections - Projected revenue change for 2026 is estimated at 2.5% - 4.5%, with adjusted diluted EPS guidance of $8.30 - $8.45 [17]. - The company anticipates organic constant currency revenue change for the year ending December 31, 2026, but specific figures were not provided due to the nature of forward-looking statements [32]. - The company is transitioning to a predominantly direct and specialized sales organization in the U.S., which may temper 2026 sales guidance but is expected to drive long-term growth [6]. Operational Highlights - The company received FDA clearance for the ROSA® Knee with OptimiZe™, enhancing its robotic knee system [8]. - The S.E.T. product category saw a significant increase of 15.2% in net sales for the year, with a constant currency growth of 14.6% [46]. - In the United States, net sales grew by 7.3%, while international sales increased by 7.0% for the year ended December 31, 2025 [46]. Asset Management - Total assets as of December 31, 2025, were $23,091.7 million, up from $21,365.3 million in 2024, an increase of about 8.1% [42]. - Cash and cash equivalents rose to $591.9 million in 2025, compared to $525.5 million in 2024, representing an increase of approximately 12.6% [42]. - Cash and cash equivalents at the end of the period rose to $591.9 million, up from $525.5 million at the beginning of the year [44].