Medacta Group S.A.

Medacta reported H1 2025 revenue of EUR 344.1 million, up 19.8% in constant currency. Gross profit was EUR 235.1 million versus EUR 197.7 million last year, and gross margin was 68.3% versus 68.5%. Adjusted EBITDA margin in constant currency was 29.6% versus 26.9%, with adjusted EBITDA of EUR 98.8 million; reported adjusted EBITDA was EUR 110.5 million including a EUR 12 million badwill gain from Parcus. Net profit was EUR 60 million, up 58% year over year, and operating cash flow was EUR 73 million, resulting in EUR 8 million of positive free cash flow. Net leverage was 0.9x EBITDA. For 2025, management reiterated revenue growth of 16% to 18% in constant currency and an adjusted EBITDA margin of around 28% before currency effects; the midterm outlook remains 10% to 14% CAGR for 2024-2027 and around 28% adjusted EBITDA margin.

Francesco Siccardi framed the quarter as proof that Medacta’s strategy is working: innovation, surgeon education, and a broader sales force are driving above-market growth. He highlighted strong performance across hips, knees, extremities, and spine, saying the company is consistently growing well ahead of the market. His tone was confident and upbeat, but he acknowledged that H2 faces tougher comps even as momentum remains solid.

Corrado Farsetta emphasized that gross profit increased to EUR 235.1 million while gross margin stayed broadly stable at 68.3%, with FX largely offset by economies of scale. He explained that H1 adjusted EBITDA margin of 29.6% will normalize toward the full-year target of about 28% because of Parcus timing, seasonal costs in H2, and the full cost effect of hires made in H1. He also noted that operating cash flow of EUR 73 million more than funded CapEx, producing EUR 8 million of free cash flow, and that leverage remained low at 0.9x EBITDA.

Analysts focused on whether geographic mix, especially stronger U.S. and Australia exposure, helped margins; management said the geographic mix impact was negligible in H1. Questions also centered on the gross margin dip and the gap between H1 EBITDA margin and full-year guidance; management pointed to FX on gross margin and several timing/seasonality effects on EBITDA, including Parcus dilution, seasonal expenses, and full cost impact from H1 hiring. On U.S. manufacturing, management said the Florida Parcus facility is a useful asset and confirmed local production expansion remains part of the long-term plan, driven not only by tariffs but also by market size and the need to relieve Swiss capacity over time.