FY2025 Trading Update and 2026 Outlook
The Issuer is pleased to provide an update on trading for the year ending December 31, 2025 and information relating to its outlook for 2026.
FY2025 Trading Update
The Issuer continues to be the global market leader in high-performance ceramics in medical implants and mission critical industrial applications. Based on preliminary unaudited information:
2025 revenues amounted to €685m, of which Medical Markets accounted for 54% of revenues and Industrial Markets for 46%, and Q4 2025 revenues amounted to €158m, representing a year-over-year decrease of 1.4% primarily driven by order delays and discontinuation of one industrial product group; excluding these factors, underlying Q4 2025 revenues would have been broadly stable to slightly positive;
2025 Industrials revenues were comprised of 31% in industrial applications, 30% in mobility, 28% in international affiliates and 11% in electronics, and as of 9M 2025 total revenues were comprised of 50% in Europe (excluding Germany), 21% in Asia, 16% in Germany, 12% in North America and 1% in other regions;
Adjusted Management EBITDA for 2025 reached €257m and Consolidated Pro Forma EBITDA (SFA) for 2025 reached €272m (YTD 9M 2025: €202m), at a healthy 40% margin;
FY25 Cash Generation (Adjusted Management EBITDA - Capex) amounted to €195m and Cash Conversion (Adjusted Management EBITDA - Capex / Adjusted EBITDA) amounted to 77%;
Free Cash Flow (Reported EBITDA less Capex, change in net working capital, taxes, lease payments and other / QoD unwind) for FY2025 met previous guidance, amounting to €53m in Q4 2025 and Free Cash Flow Conversion (Free Cash Flow / Reported EBITDA) of 56%, and Free Cash Flow generation remained strong with a cash balance of €140m at year end, up €31m from Q3 2025 and up €12m for the full year;
cash flow for debt repayment in Q4 2025 amounted to €31m (Q4 2024: €11m); and
Senior Secured Net Leverage Ratio (SFA) remains at 4.9x, driven by stable liquidity and consistent cash flows.
We believe that the de-stocking cycle is a temporary phenomenon close to the end, with 13.3% order intake (€699m) and 7.7% order book (€261m) year-over-year growth respectively in FY2025, including order intake growth of 26% in Medical Markets and order book growth of 5% for hip implant specifically. Our order intake and order book provide strong visibility on continued revenue growth, with the order book alone translating into approximately three to four months of revenue visibility. Volumes are therefore expected to continue rebounding.
2026 Outlook
We currently expect continued strong growth through 2026 backed by favourable market tailwinds to achieve the following targeted metrics in 2026:
High single digit revenue growth;
39% Consolidated Pro Forma EBITDA (SFA) Margin;
Approximately 60% Operational Cash Conversion (Free Cash Flow / Reported EBITDA);
Approximately €60m of net Capex to enable long-term growth; and
4.5x Senior Secured Net Leverage Ratio (SFA).
We currently expect that orders postponed in Q4 2025 will be booked in 2026 and that we will continue to achieve positive cash flow generation and deleveraging supported by the increasing impact from ongoing cost reaction measures.
Disclaimer
THIS ANNOUNCEMENT (THIS "ANNOUNCEMENT") IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR INFORMATION PURPOSES.
The FY2025 financial information included herein is preliminary in nature and has been prepared by management. It is based on a number of assumptions that are subject to inherent uncertainties and subject to change, and has not been audited, reviewed, examined, compiled and nor have any procedures been performed by the Group's independent auditors with respect thereto. Although we believe the financial information to be reasonable, actual results may vary from the information contained below and such variations could be material. As such, you should not place undue reliance on this information and no opinion or any other form of assurance is provided with respect thereto. Our preliminary financial results are not intended to be a comprehensive statement of our financial results as of the dates and for the periods presented. This Announcement also includes certain financial measures that are not recognized by IFRS or any other generally accepted accounting principles and that may not be permitted to appear on the face of the financial statements or footnotes thereto ("Non-GAAP Measures"). Non-GAAP Measures should not be considered as alternatives to performance measures derived in accordance with IFRS or any other generally accepted accounting principles, may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools.
Certain statements contained in this Announcement may be statements of future expectations and other forward-looking statements that are based on third party sources and involve known and unknown risks and uncertainties. The forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Issuer and its subsidiaries (collectively, the "Group"), the Group's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Group participates or is seeking to participate. Forward-looking statements contained in this Announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this Announcement. The forward-looking information contained herein represent the subjective views of the management of the Group and has been prepared on the basis of a number of assumptions and subjective judgments which may prove to be incorrect and, accordingly, actual results may vary. They represent the subjective views of the management of the Group and are based on significant assumptions. Industry experts, business analysts or other persons may disagree with these views, assumptions and judgments, including without limitation the management's view of the market and the prospects for the Group. Any forward-looking statements in this document are subject to a number of risks and uncertainties, many of which are beyond the Group's control, that could cause the Group's actual results and performance to differ materially from any expected future results or performance expressed or implied by any forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The views expressed herein are based on historic numbers, previous business plans, recent business information and include a number of assumptions and other relevant factors.
The Issuer is providing this information voluntarily, and the material contained in this Announcement is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation, or particular needs of any recipient. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness, or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. None of the Issuer, or any of its directors, officers, employees, affiliates, direct or indirect shareholders, advisors, or agents, accepts any liability for any direct, indirect, consequential, or other loss or damage suffered by any person as a result of relying on all or any part of this information, and any liability is expressly disclaimed.