Edwards(US:EW)2026-02-10 21:22Sales Performance - Q4 2025 sales increased by 13.3% to $1.57 billion, with constant currency sales growth of 11.6%[5] - Q4 TAVR sales rose by 12.0% to $1.16 billion, with constant currency sales growth of 10.6%[5] - Q4 TMTT sales grew over 40% to $156 million, driven by repair and replacement therapies[5] - FY 2025 sales grew by 11.5%, with constant currency growth of 10.7%[5] - For the three months ended December 31, 2025, Edwards Lifesciences reported net sales of $1,569.6 million, representing a 13.2% increase from $1,385.8 million in the same period of 2024[43] - Year-to-date sales for 2025 totaled $6,067.6 million, an 11.5% increase from $5,439.5 million in 2024[45] - The United States market contributed $3,543.1 million in sales for 2025, representing a 10.5% growth from $3,206.0 million in 2024[45] - Sales in Europe increased by 14.8%, reaching $1,517.5 million in 2025 compared to $1,321.7 million in 2024[45] - The Rest of World segment reported a 14.0% growth, with sales of $652.3 million in 2025, up from $572.0 million in 2024[45] - The Transcatheter Aortic Valve Replacement segment's year-to-date sales for 2025 were $4,487.7 million, a 9.3% increase from $4,106.1 million in 2024[45] Financial Metrics - Gross profit margin for Q4 was 78.1%, with an adjusted margin of 78.3%[16] - Operating profit margin for Q4 was 9.6%, with an adjusted margin of 23.7%[18] - Gross profit for the year ended December 31, 2025, was $4,733.4 million, up from $4,322.0 million in 2024, reflecting a gross margin of 78.0%[28] - The adjusted operating income margin for the twelve months ended December 31, 2025, was 27.1%, compared to 25.3% in 2024[44] - The effective tax rate for the year was 17.0%, compared to 9.8% in 2024[28] - The effective tax rate for the twelve months ended December 31, 2025, was 17.0%, an increase from 9.8% in the previous year[44] Income and Expenses - Operating income for Q4 2025 was $151.1 million, down from $312.6 million in Q4 2024, with an operating margin of 9.6%[28] - Net income from continuing operations for the year was $1,056.0 million, a decrease from $1,396.0 million in 2024[28] - Basic earnings per share for the year was $1.84, down from $6.98 in 2024[28] - Selling, general and administrative expenses in Q4 were $603 million, representing 38.4% of sales[17] - Research and development expenses for the year totaled $1,079.2 million, compared to $1,053.0 million in 2024, representing 17.8% of net sales[28] - The company incurred litigation expenses of $208.6 million in Q4 2025, significantly higher than $12.6 million in Q4 2024[33] - The company incurred certain litigation expenses totaling $325.4 million for the twelve months ended December 31, 2025, impacting the net income[44] Impairment and Adjustments - The company recorded a loss on impairment of $99.8 million in Q4 2025 related to its investment in JenaValve Technologies[37] - Edwards Lifesciences reported a loss on impairment charges of $112.5 million for the twelve months ended December 31, 2025[44] - Non-GAAP adjustments for the twelve months ended December 31, 2025, included $1,643.5 million in adjusted operating income, reflecting the company's strategic financial management[44] Future Outlook - FY 2026 revenue outlook anticipates TMTT growth of 35% to 45%, reaching $740 million to $780 million[5] - Increased confidence in FY 2026 adjusted EPS guidance of $2.90 to $3.05[5] - The company plans to provide guidance for sales and growth rates on a "constant currency basis" to enhance comparability with historical results[32] - The company plans to continue focusing on market expansion and new product development to drive future growth[43]