Financial Data and Key Metrics Changes - The company reported a 2.8% organic constant currency sales growth for Q2 2025, despite an 80 basis point headwind from selling days [8][24] - Adjusted earnings per share (EPS) increased to $2.07, up 3% year-over-year, despite dilution from the Paragon 28 acquisition [24][30] - Full year organic constant currency revenue growth expectations were updated to a range of 3.5% to 4.5%, down from the previous 3% to 5% range [10][32] Business Line Data and Key Metrics Changes - The US hips business grew by 5.2% year-over-year, while US knees saw a sequential increase of 150 basis points, growing 1.7% [9][26] - The Surgical and Sports Medicine (SET) segment reported nearly 5% growth, marking the seventh consecutive quarter of mid-single-digit growth [9][28] - Technology and Data, Bone Cement, and Surgical segments declined by 2.2% due to difficult comparisons from the prior year [29] Market Data and Key Metrics Changes - International organic revenue grew by 3.4%, with global hips increasing by 4% and US hips growing by 5.2% [26] - The company noted strong early adoption of new products, particularly in the US market, contributing to growth [19][20] Company Strategy and Development Direction - The company is focusing on three strategic priorities: people and culture, operational excellence, and innovation and diversification [7][12] - The acquisition of Monogram Technologies aims to enhance the company's capabilities in robotic surgery, with expectations for revenue growth starting in 2027 [13][14] - The company is committed to diversifying into higher growth segments through disciplined mergers and acquisitions [14][68] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in the second half of 2025, driven by new product launches and improved operational efficiency [10][11] - The company anticipates a strong growth acceleration in Q3, with expectations of organic growth around 6% [45][76] - Management noted that the orthopedic market remains healthy, with no signs of slowing down [50][53] Other Important Information - The company has reduced its expected tariff impact for 2025 to approximately $40 million, down from earlier estimates of $60 to $80 million [34][85] - Adjusted gross margin was reported at 72.3%, higher than the previous year, due to favorable product mix [30] Q&A Session Summary Question: Can you elaborate on the updated organic sales growth guidance? - Management highlighted confidence in the second half due to the absence of selling day headwinds and favorable comparisons from the previous year [41][42] Question: What are the current trends in the orthopedic market? - Management noted that the orthopedic market remains healthy, with strong volumes and pricing trends [50][52] Question: Can you discuss the Monogram acquisition and its implications? - Management expressed high confidence in the regulatory pathway for Monogram and its potential to disrupt the market with autonomous capabilities [90][91] Question: How do you see knee growth evolving? - Management indicated that recent commercial investments and new product introductions are expected to sustain growth in the knee segment [99][100]