Demant A/S

Demant reported first-half 2026 revenue growth of 15%, made up of 7% organic growth, 10% acquisitive growth, and a 3% FX drag. Gross profit increased 17% to just shy of DKK 10 billion, with gross margin up 1.1 percentage points year over year. EBIT before special items was DKK 2.134 billion, equal to a 16.5% margin, and cash flow from operations was DKK 1.6 billion, up 6% versus first half 2025. Looking ahead, full-year 2026 organic revenue growth is now expected at 6% to 7%, with EBIT before special items of DKK 4.4 billion to DKK 4.8 billion. Management also raised special items to DKK 400 million from DKK 325 million, and said net gearing was 3.0, with year-end 2026 expected slightly above the 2 to 2.5 long-term range.

Søren Nielsen said Demant is seeing strong momentum across all business areas, with growth accelerating from Q1 to Q2 and performance ahead of expectations. He repeatedly pointed to Oticon Zeal as the main driver of the Hearing Aids step-up, describing it as a “spearhead” that is opening new doors and broadening customer access. He was upbeat on Oticon Reveal as well, calling it “second to none” and emphasizing the company’s dual-AI approach, improved feedback handling, and stronger connectivity.

René Schneider emphasized the quality of the first-half numbers, especially the 17% increase in gross profit to just under DKK 10 billion and the 1.1 percentage point gross-margin expansion. He said EBIT before special items reached DKK 2.134 billion, with a 19% increase in local currencies, while special items were DKK 216 million in the first half, mainly related to KIND. He also highlighted net cash inflow from acquisitions/divestments of DKK 91 million, no share buybacks in H1 because of debt reduction priorities, and net gearing down to 3.0. On outlook, he said special items were raised to DKK 400 million, cost-effectiveness savings were lifted to DKK 300 million, KIND’s EBIT contribution was raised to DKK 325 million, and the company expects to end 2026 slightly above its 2 to 2.5 gearing target range.

Analysts focused on how much Zeal can keep driving growth, whether lower price points or new geographies can extend its runway, and how Reveal should be priced versus Intent in a more crowded launch environment. Management said Zeal still has room to grow, especially in North America, VA, and selected European markets, and that Reveal should support continued ASP strength with a net price increase over Intent. Another theme was margins: management said it expects margin expansion and that the guidance already reflects competitive launches and some reinvestment in launch support and marketing. On the U.S. commercial market, management said normalization likely depends on managed-care rebalancing, and on pricing discipline they said competitors appear more willing this cycle to defend margins and pass through higher technology costs.