Carl Zeiss Meditec AG

Nine-month revenue was EUR 1.554 billion, down 2.2% year over year, and down 0.7% on a constant-currency basis; adjusted EBITA was EUR 124.5 million with an 8.0% margin, versus 11.1% last year. Reported EBITA was EUR 108.4 million with a 7.0% margin; EBIT was EUR 87.4 million; EPS was EUR 0.80 and adjusted EPS was EUR 1.02. Gross profit was EUR 793 million and gross margin declined to 51.0% from 52.7%. Order entry was EUR 1.606 billion, down 5.5% year over year, and order backlog was EUR 432 million. On cash flow, operating cash flow was EUR 146 million and net financial debt was EUR 234.8 million as of June 30, 2026. For FY25/26, management continues to expect revenue of approximately EUR 2.15 billion to EUR 2.20 billion and an adjusted EBITA margin of 8% to 10%, with the business trending more toward the lower end of the range. Guidance excludes special items in the mid-double-digit million euro range, and management expects a goodwill impairment of approximately EUR 150 million in Ophthalmology in Q4, with no impact on adjusted EBITA or cash flow.

Andreas Pecher framed the period as one of ongoing recovery but still below the prior year, with Q3 partially offsetting earlier headwinds. He emphasized strategic execution: appointing a new Head of Ophthalmology, launching the ZEISS TORUS Ultrasonic Aspirator, deepening the Aier partnership in China, and moving ahead with ProfitUp. His tone was constructive but realistic, repeatedly pointing to operational focus, customer engagement, and confidence in the long-term transformation.

Justus Wehmer focused on the financial pressure points and the mechanics behind margin performance. He cited weaker Ophthalmology, FX headwinds, bifocal IOL scrapping, and product mix as the main drivers of lower gross margin, while noting tariff refunds of EUR 20.8 million, of which EUR 9.3 million fell into the current fiscal year and EUR 11.5 million related to the prior year. He also highlighted stable core OpEx excluding one-offs, strong operating cash flow of EUR 146 million, and net financial debt reduction to EUR 234.8 million, while saying ProfitUp savings should be back-end loaded and not materially change next year.

Analysts focused heavily on China refractive trends, the timing and pricing impact of the VBP relisting, and whether the company can still grow EBIT and margins in 2026-2027. Management said China procedure growth was still slightly positive year to date but had weakened recently, with June down 8% and July down 5% year over year; pricing for treatment packs was still tracking as expected. On VBP, management said it expects a harsh impact similar to the first round, but noted the successor lens is now expected to relist in September or October with implementation around December. Questions also centered on ProfitUp, where management said savings are real but delayed, and on the new TORUS device, which management described as highly differentiated and likely sold through existing direct and indirect channels.