Zimmer Biomet Q1 2025 Earnings Summary

Zimmer Biomet reported first quarter 2025 net sales of $1.909 billion, a year-over-year increase of 1.1% as reported, and 2.3% on a constant currency basis. Net earnings were $182 million ($0.91 per diluted share), while adjusted net earnings were $361 million ($1.81 per diluted share). U.S. sales grew 1.3%, while international sales rose 3.7% on a constant currency basis.
The strongest growth came from the S.E.T. (Sports Medicine, Extremities, Trauma) segment, which grew 4.9% on a constant currency basis. Hips grew 2.4%, and Knees increased 1.9%. Technology & Data, Bone Cement, and Surgical declined by 3.5%.
Zimmer Biomet updated its full-year 2025 guidance:
• Reported revenue growth revised upward to 5.7%–8.2% (previously 1.0%–3.5%), including Paragon 28 acquisition and currency impact.
• Adjusted EPS revised downward to $7.90–$8.10 (previously $8.15–$8.35), incorporating tariffs and other adjustments.
• Organic constant currency revenue growth remains at 3.0%–5.0%.
Highlights:
• Completed acquisition of Paragon 28 to expand in the high-growth foot and ankle market.
• Showcased key innovations at AAOS 2025, including the Z1™ Hip System and Oxford® Cementless Partial Knee.
• Launched a new awareness campaign with Arnold Schwarzenegger.
• Named one of the 2025 World’s Most Ethical Companies by Ethisphere.
• Adjusted gross margin was 71.5% (down from 72.9% in Q1 2024).
• Free cash flow improved significantly to $278.5 million (from $90.9 million).
• Net debt rose slightly to $5.79 billion, reflecting funding for the Paragon 28 acquisition.