Summary of Zimmer Biomet FY Conference Call (January 13, 2026) Company Overview - **Company**: Zimmer Biomet (NYSE: ZBH) - **Industry**: Medical Technology (MedTech), specifically Orthopedics Key Points and Arguments Company Transformation and Growth - Zimmer Biomet has undergone significant transformation over the past five years, shifting from a product-focused to a solutions-oriented approach, with an emphasis on cultural change [4][5] - The company reported a Compound Annual Growth Rate (CAGR) of 6.5% over the last five years, with revenue growth of 10% in 2021, 6.5% in 2022, and 7.5% in 2023 [5][6] - Adjusted earnings per share (EPS) for 2023 was $9.50, with a leverage of 200 basis points [5] U.S. Market Focus - The U.S. market accounts for 63% of Zimmer Biomet's revenue and over 51% of its debt [7] - The company aims to accelerate the transformation of its sales model in the U.S. to improve accountability and ownership [6][7] - A significant change in the U.S. sales model is planned, with a focus on specialization and direct sales [22] Innovation and Product Development - The company has shifted from launching eight products in 2018 to over 50 new products in the last three years, with 22 launched in 2025 alone [10][11] - Key innovations include the introduction of the first iodine-coated device aimed at preventing infections, set to launch in Japan in late 2025 [17][18] - The company is focusing on customer-centric innovation, addressing issues such as infection, efficiency, and patient outcomes [20][31] Market Dynamics - The orthopedic market is projected to grow at a rate of 4% to 4.25%, with Zimmer Biomet's performance tied to maintaining growth above this benchmark [13] - The company has seen consistent price positivity over the last seven quarters, indicating a favorable pricing environment [42] Financial Outlook - The company expects free cash flow to grow by 70% over the next five to six years, with 2026 anticipated to see free cash flow growth outpacing EPS growth [27][56] - Guidance for 2026 is tempered, aligning with the level of transformation expected, with projected organic growth of 3.5% to 4% [35][36] Strategic Investments - Zimmer Biomet has made three acquisitions in the past 14 months, including OrthoGrid and Paragon 28, to enhance its product offerings and market position [27][28] - The company plans to significantly increase its workforce dedicated to robotic solutions and ASCs (Ambulatory Surgery Centers) [24][25] Challenges and Execution - The company acknowledges the need for improved execution to ensure steady growth, addressing past inconsistencies in quarterly performance [20][21] - The transition to a specialized sales force is expected to create short-term disruptions but aims for mid- to long-term growth acceleration [46] Future Vision - By 2030, Zimmer Biomet aims to innovate beyond traditional implants, focusing on cartilage repair and leveraging data for predictive analytics in orthopedic care [32][33][34] Additional Important Insights - The company has improved employee engagement, making it to Forbes' World's Best Employers list for the first time [11] - Zimmer Biomet is committed to building a best-in-class company, focusing on operational excellence, innovation, and a strong company culture [30][34] This summary encapsulates the key points discussed during the conference call, highlighting Zimmer Biomet's strategic direction, market dynamics, and future aspirations in the orthopedic industry.

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) is set to report its third-quarter 2025 results on November 5, with earnings expected to show growth compared to the previous year [1][9] Q3 Estimates for ZBH - The Zacks Consensus Estimate for revenues is $2.01 billion, reflecting a 10.2% increase year-over-year [2] - The earnings estimate is $1.88 per share, indicating an 8.1% rise from the prior year [2] - The bottom-line estimate has decreased by 0.5% over the last 30 days [2] Factors Influencing Q3 Earnings - The Hips business is projected to grow due to a comprehensive suite of solutions, including the new Z1 triple-taper hip system and the HAMMR automated surgical impactor [3][4] - Robotics and navigation platforms like OrthoGrid are expected to have gained market share, enhancing the hips product portfolio [4] - Approval from Japan's PMDA for the iTaperloc Complete and iG7 Hip System may positively impact top-line performance, with a projected 6.4% growth in the Hips business [5] Knee and S.E.T Business Performance - The Knees business is anticipated to benefit from the Persona portfolio and the ROSA system, with expected growth of 10.1% year-over-year [6] - The S.E.T business is likely to continue its growth trajectory, driven by areas like CMFT and Sports Medicine, maintaining mid-single-digit growth for the seventh consecutive quarter [7] Recent Developments - The acquisition of Paragon 28, Inc. has expanded Zimmer Biomet's offerings in foot and ankle deformities, which may positively influence third-quarter results [8] - The RibFix Advantage Fixation System has received CE Mark certification, further enhancing the company's product portfolio [8] Overall Growth Expectations - ZBH's total S.E.T. business is estimated to report 9.7% year-over-year growth, while the Technology & Data, Bone Cement, and Surgical business is expected to see a 16.1% increase [10][11] Earnings ESP and Zacks Rank - Zimmer Biomet has an Earnings ESP of +3.53% and a Zacks Rank of 3, indicating a higher chance of beating estimates [12]

Core Viewpoint - Zimmer Biomet Holdings, Inc. (ZBH) is set to report its second-quarter 2025 results on August 7, with expectations of revenue growth driven by its Hips and Knees business segments [1][7]. Group 1: Financial Estimates - The Zacks Consensus Estimate for ZBH's revenues is $2.04 billion, reflecting a 5.3% increase from the previous year [2]. - The earnings estimate is projected at $1.98 per share, indicating a 1.5% decline from the year-ago figure [2]. - The earnings estimate has decreased by 0.5% over the past 30 days [2]. Group 2: Business Segment Performance - The Hips business is expected to grow due to the company's comprehensive solutions, including the new Z1 triple-taper hip system and the automated hip surgical impactor system HAMMR, with an estimated 4% year-over-year growth [3][4]. - The Knees business is anticipated to benefit from the Persona portfolio and the FDA clearance for Persona Revision SoluTion Femur, projecting a 6.2% year-over-year growth [5][6]. - The S.E.T business is expected to continue its growth trend, with a projected increase of 2.6% year-over-year, bolstered by the acquisition of Paragon 28, Inc. [7][8]. Group 3: Market Dynamics - The robotics and navigation platforms, particularly OrthoGrid, are expected to have gained market share, contributing positively to the Hips business [4]. - Sales in the Technology & Data, Bone Cement, and Surgical business are projected to report a 4.7% year-over-year growth, despite previous declines due to tough comparisons [9].