Embla Medical narrows 2026 organic sales growth outlook to about 5%
Key Facts
Embla Medical narrowed its 2026 organic sales growth outlook to about 5% from a previous range of 5% to 7%, according to its third-quarter earnings disclosure. The revision puts the annual growth estimate at the bottom of the range the company had targeted before the results. Management said the revised outlook reflected performance in the first nine months and its estimates for the fourth quarter. The company also narrowed its outlook for its EBITDA margin before special items to about 21%. The previous range was 20% to 22%, placing the new forecast at its midpoint alongside the narrower sales growth outlook.
Embla Medical's third-quarter sales totaled $250 million, according to the company's official disclosure. Reported sales rose 5%, while organic growth was 4% over the same period. In the second quarter, the company recorded sales of $259 million, with reported growth of 11%, according to its first-half earnings disclosure. Organic growth in that quarter was 6%, before slowing in the latest quarter. Sales for the first nine months reached $741 million, with reported growth of 10% and organic growth of 5%, according to the earnings presentation published on Investing.com.
Performance across the company's segments varied in the third quarter, with Prosthetics and Neuro Orthotics recording organic growth of 7%, according to the official disclosure. That business had delivered organic growth of 12% in the second quarter, according to the first-half earnings disclosure. By contrast, organic growth in Bracing and Supports increased to 2% in the third quarter from 1% in the previous quarter. Patient Care organic sales were flat in the latest quarter, compared with a decline of 2% in the second quarter. Prosthetics and Neuro Orthotics thus remained the fastest-growing of the reported segments, despite slowing from the previous quarter.
In Patient Care, the company said integration efforts had affected its ability to increase patient volumes in selected regions. It added in its disclosure: "Significant integration efforts slowed our ability to drive patient volume growth in selected regions." Patient Care accounted for 33% of the company's sales in 2025, according to its annual report. Embla Medical operates in prosthetics, bracing and neuro orthotics, alongside its ForMotion clinic network. The group's businesses also include the Össur, Fior & Gentz and College Park brands, according to the company's annual report.
On profitability, the third-quarter gross margin fell to 62% from 63% in the same period of 2025. The company attributed part of the margin pressure to temporary costs associated with optimizing selected small manufacturing sites in its prosthetics business. EBITDA totaled $56 million in the quarter, according to the official disclosure. That represented a margin of 22% of sales, matching the margin recorded in the third quarter of the previous year despite the lower gross margin. Net profit was $26 million for the period, according to the company's quarterly results.
Embla Medical had previously narrowed its organic growth forecast range when it announced its first-half results. At the time, it lowered the upper end to 7% from 8%, while keeping the lower end at 5%, according to its disclosure published on Nasdaq. Regarding Patient Care, the chief executive said during the earnings call that the company had won a new tender in Sweden. He expected the tender to add two percentage points to growth in that business in 2027, according to the call transcript published on Investing.com. The company is scheduled to release its results for the final quarter of 2026 and its annual report on 2 February 2027, according to its published financial calendar.