This article first appeared on GuruFocus .
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Revenue:$232 million, representing 15% reported growth and 4% organic growth.
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EBITDA Margin:17%, down 1 percentage point from the previous year.
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Net Profit Growth:21% increase driven by operating results and favorable net financial expenses.
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Gross Profit Margin:62%, compared to 63% in Q1 2025.
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OPEX:52% of sales, with 3% organic growth.
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CapEx:$5 million, or 2% of sales.
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Net Interest-Based Debt to EBITDA:2.4 times.
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Share Buyback:$2.6 million worth of shares repurchased.
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Prosthetics and Neuro Orthotics Organic Growth:9%.
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Bracing and Supports Sales Growth:1%.
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Patient Care Sales Decline:1%.
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Warning! GuruFocus has detected 7 Warning Signs with FRA:66B.
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Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Embla Medical hf ( OSSUY ) reported a 15% increase in sales for Q1 2026, with 4% organic growth.
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Strong performance in prosthetics and neuro-orthotics, with 9% organic growth driven by innovations in Bionics and Feet products.
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The ForMotion brand rollout in Patient Care is over 90% complete, expected to enhance long-term growth and profitability.
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APAC region showed robust sales growth with 14% organic growth across all segments.
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Net profit grew by 21%, driven by growing operating results and favorable changes in net financial expenses.
Negative Points
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EBITDA margin decreased by 1 percentage point to 17% due to external factors like FX and tariffs.
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Sales in the Bracing and Supports segment grew only 1%, with flat growth in the Americas due to competitive pressures.
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Patient Care sales declined by 1% in Europe, affected by timing effects and holiday overlaps.
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Gross profit margin decreased slightly from 63% to 62% compared to Q1 2025, impacted by FX and tariffs.
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Free cash flow generation was lower than the previous year, mainly due to timing effects in net working capital.
Q & A Highlights
Q: Can you confirm if the bracing support segment still maintains healthy profitability despite tariff impacts, and is there potential to increase sales prices? A: Yes, the tariffs mainly impact our bracing business, which remains profitable and contributes positively to the overall margin. However, due to competitive pressures and fixed reimbursements, there is limited opportunity to pass tariff costs onto customers.
Q: How does the recent change in U.S. reimbursement for the upper hand prosthetics portfolio affect your business? A: The reimbursement ruling was slightly unfavorable but not expected to significantly impact our growth trajectory. We continue to see opportunities, especially in the mechanical finger range, and maintain strong high single-digit organic growth rates in our OPEX business.
Q: What assumptions are in place to achieve the 22% EBITDA margin guidance, given the Q1 results were lower due to tariffs and FX headwinds? A: The Q1 comparison is against a period without tariffs. The main factor for achieving our EBITDA margin guidance is the performance of our patient care business. We expect more top-line contributions from patient care in the latter half of the year, which will positively impact margins.
Q: Can you elaborate on the demand for the prosthetics and neuro-orthotics segment, particularly for the Nabi and Icon products? A: The Bionics segment, including the Icon and Navi products, is performing well, partly due to reimbursement expansion in the U.S. We see strong volume growth across major markets, with high single-digit growth rates driven by a positive mix impact from our bionics range.
Q: How are you sizing the K2 patient population in the U.S., and what is the expected impact of the Medicare K2 expansion? A: The lower active population is similar in size to the higher active population. The reimbursement rate for bionics is the same for both groups. This change will gradually impact the industry, and we are well-positioned with products like NAVI, ICON, and RIO knee to capture this opportunity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
