Carl Zeiss Meditec Q1 Earnings Call Highlights

Core Insights - Carl Zeiss Meditec reported a weaker-than-expected start to fiscal 2025/26, with management citing currency headwinds, an unfavorable product mix, and challenges in China and the U.S. as key drivers of lower revenue and sharply reduced profitability in the first quarter [4] Order Intake and Backlog - Order intake was EUR 471 million, down 9.7% year over year (down 6.9% currency-adjusted), with management linking this decline to a strong year-end close in September 2025. The order backlog increased to EUR 405 million, slightly above the level at the end of the prior fiscal year [1] Revenue Performance - Revenue totaled EUR 467 million for the quarter, down 4.8% year over year. On a constant currency basis, revenue fell 2.1%, with management attributing the largest currency impact to the U.S. dollar and Chinese yuan, quantifying total FX headwinds at about EUR 20 million for the period [3][7] Segment Analysis - In the Ophthalmology segment, revenue was EUR 357 million, down 5.1% year over year (down 2.4% currency-adjusted). The segment faced challenges due to lost bifocal intraocular lens (IOL) sales in China and timing effects [9] - Microsurgery revenue was just under EUR 110 million, down 3.7% year over year (down 0.9% currency-adjusted), attributed to a pull-forward from strong deliveries into the prior fiscal year-end and slower deliveries of neurosurgical microscopes [12] Profitability Metrics - EBITDA plunged to EUR 68.8 million, with an EBITDA margin collapsing to 1.7% from 7.2% a year earlier, attributed to adverse product mix, FX impacts, and negative operating leverage [7][8] Regional Performance - Revenue in the Americas fell approximately 13% year over year, attributed to a softer investment climate and tariff-related price increases. EMEA revenue was described as largely stable, while APAC revenue was down 3% year over year, with mixed performance across the region [5][14] Guidance and Future Outlook - Management suspended full-year guidance due to uncertainties related to the China bifocal IOL VBP impact, inventory uncertainty, and weaker U.S. equipment demand. A successor IOL registration is expected around March, with a tender due in April/May [6][15] - New guidance will be provided no later than the half-year results, with management acknowledging elevated near-term volatility but expecting continued momentum for certain product rollouts [17]