Embla Medical hf: Interim Report Q3 2025

COPENHAGEN, Denmark, Oct. 21, 2025 /PRNewswire/ -- 

Announcement no. 49/2025

Interim report Q3 2025

21 October 2025

Sveinn Sölvason, President and CEO, comments:

"Sales in Q3 2025 amounted to USD 237 million, representing 11% reported growth, of which 7% was organic. Growth picked up in the third quarter as expected, driven by double-digit growth in Prosthetics & Neuro Orthotics. The solid momentum in EMEA continues and growth in Americas was strong following a soft start to the year, supported by our recently launched innovations such as Navii, Icon, and Pro-Flex Terra.

Sales in our Bracing & Supports and Patient Care segments remained soft with flat sales in Bracing & Supports and modest growth in Patient Care. At the end of August, we closed the majority investment in Streifeneder ortho.production, which positions us as a full-range provider with opportunities to strengthen our presence in our key O&P markets and expand our offerings and reach in Emerging Markets.

The EBITDA margin was strong at 22% in Q3 2025 and 21% for the first nine months of the year compared to 20% in the comparable period. In line with our performance recorded in the first nine months of 2025, our guidance for the full-year 2025 has been reiterated."

Highlights Q3 2025

• Sales amounted to USD 237 million for the quarter and organic growth was 7 and 11% reported growth (USD growth).
• Prosthetics & Neuro Orthotics (P&NO) sales grew by 13% organic, Bracing & Supports sales were flat, and Patient Care grew 1%.
• Gross profit margin was 63% for the quarter, on par with Q3 2024. For 9M 2025 the gross profit margin increased to 63% compared to 62% in the same period 2024 (63% of sales excl. special items). The gross profit margin in the quarter was positively impacted by strong performance in P&NO coupled with solid efficiency gains in manufacturing. Adversely, the margin was negatively impacted by softer sales in Bracing & Supports and Patient Care and some impact from US tariffs.
• EBITDA was USD 53 million, and EBITDA margin was 22% of sales, on par with Q3 2024. EBITDA margin for 9M 2025 was 21% compared to 20% before special items in 9M 2024. The EBITDA margin in the quarter was positively impacted from strong sales in P&NO combined with solid manufacturing efficiency and continued cost discipline in SG&A. FX negatively impacted EBITDA margin by around 50 basis points in Q3.
• Net profit was USD 26 million and grew by 17%, corresponding to 11% of sales in Q3 2025, compared to 10% in Q3 2024.
• Free cash flow amounted to USD 38 million or 16% of sales, compared to 15% of sales in Q3 2024. Free cash flow was strong and positively impacted by solid operating results, positive impact from net working capital and CAPEX in line with normalized levels.
• NIBD/EBITDA before special items was 2.5x at the end of Q3 2025. The leverage ratio is within the target range of 2.0-3.0x and the share buyback program is ongoing. Embla Medical bought back 525,733 shares for approximately USD 2.7 million in Q3.

Other highlights

• On August 29, 2025, Embla Medical announced the closing of the majority share investment (51% of the shares) in privately owned Streifeneder ortho.production GmbH, an international developer and supplier of orthopedic mobility solutions, employing around 100 people, with sales of EUR 25 million in 2024 (USD 29 million).
• In connection with the investment in Streifeneder ortho.production, Embla Medical issued 2,805,135 new shares on September 5, 2025. The total value of the issued shares amounted to DKK 93 million (USD 14.5 million), which the sellers subscribed to.
• Launch of Odyssey® iQ, a new microprocessor foot by College Park. Odyssey® iQ is a new hydraulically dampened, lightweight, and low-profile foot solution suitable for various environments and activities offering long-lasting battery, and fast responses.

2025 Outlook

• Organic sales growth guidance is unchanged at 5-6%.
• EBITDA margin before special items guidance is unchanged at 20-21%.

* Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical's financial results, but some absorption of tariffs is assumed in the guidance.

Conference call details
Embla Medical will host a conference call on October 21, 2025, at 9:00 CET / 7:00 GMT / 3:00 ET.
To actively participate in the telephone conference, please use the dial-in details provided below:
DK: +45 78 76 84 90
UK: +44 20 3769 6819
US: +1 646 787 0157
Participant access code: 274982
The webcast will be available through following link: Embla Medical Q3 2025 webcast

Investor presentation
Our updated Q3 2025 investor road show presentation can be downloaded from our IR website Link

Further information
Klaus Sindahl, Head of Investor Relations, KSindahl@emblamedical.com, +45 5363 0134

Embla Medical press releases by e-mail
If you wish to receive Embla Medical press releases by e-mail, please register at http://www.emblamedical.com/investors

About Embla Medical

Embla Medical (Nasdaq Copenhagen: EMBLA) was founded in Reykjavik in 1971 with the mission to improve people's mobility. Embla Medical is home to several brands renowned for positively impacting people's health and well-being. They include Össur, a leading global provider of prosthetics and bracing and supports solutions; FIOR & GENTZ, an innovative developer of neuro orthotics; and College Park Industries, creators of custom-built prosthetic solutions. Embla Medical also provides patients with world-class care through a global network of Orthotic and Prosthetic (O&P) facilities. Embla Medical is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women's Empowerment Principles, and contributes to the UN Sustainable Development Goals. The company's climate targets have been verified by the Science Based Targets initiative. Embla Medical operates globally and has more than 4,000 employees. www.emblamedical.com

Embla Medical was formerly listed as Össur (OSSR) on Nasdaq Copenhagen until 8 April 2024.

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