Q4 2025 CONMED Corp Earnings Call

January 28, 2026

Operator: Good day, and thank you for standing by. Welcome to CONMED's Fourth Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. Before the conference call begins, let me remind you that during this call, management will be making comments and statements regarding its financial outlook, its plans and objectives. These statements represent the forward-looking statements that involve risks and uncertainties as those terms are defined under the federal securities laws.

Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one-one on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded.

Speaker #1: Before the conference call begins, let me remind you that during this call, management will be making comments and statements regarding its financial outlook, its plans, and objectives.

Speaker #1: These statements represent the forward-looking statements that involve risk and uncertainties as those terms are defined under the The laws . federal Investors are securities that forward statements looking not guarantees of future events , performance or is not guarantees of future events performance or results .

Operator: Investors are cautioned that any such forward-looking statements that are not guarantees of future events, performance, or results. The company's actual results may differ materially from its current expectations. Please refer to the risks and other uncertainties disclosed under the forward-looking information in today's press release, as well as the company's SEC filings for more details on the risks and uncertainties that may cause actual results to differ materially. The company disclaims any obligation to update any forward-looking statements that may be discussed during the call, except as may be required by applicable law. You will also hear management refer to non-GAAP or adjusted measurements during this discussion.

Q4 2025 CONMED Corp Earnings Call

Request a DemoDemo

CNMD

Conmed

Earnings

Q4 2025 CONMED Corp Earnings Call

CNMD

Wednesday, January 28th, 2026 at 9:30 PM

Transcript

No Transcript Available

No transcript data is available for this event yet. Transcripts typically become available shortly after an earnings call ends.

Want AI-powered analysis? Try AllMind AI →

Investors are cautioned that any such forward-looking statements that are not guarantees of future events, performance, or results. The company's actual results may differ materially from its current expectations. Please refer to the risks and other uncertainties disclosed under the forward-looking information in today's press release, as well as the company's SEC filings for more details on the risks and uncertainties that may cause actual results to differ materially. The company disclaims any obligation to update any forward-looking statements that may be discussed during the call, except as may be required by applicable law. You will also hear management refer to non-GAAP or adjusted measurements during this discussion.

Speaker #1: Actual results may differ materially from the company's current expectations. Please refer to the risks and uncertainties disclosed under the forward-looking information in today's release and press, as well as the company's SEC filings.

Speaker #1: For more details on the risks and uncertainties that may cause actual results to differ materially, the company disclaims any obligation to update any forward-looking statements that may be discussed during the call, except as may be required by applicable law.

Speaker #1: You will also hear management refer to non-GAAP adjusted or during measurements this discussion. While these are not GAAP figures or measurements, management uses these figures to aid in monitoring the company's ongoing financial performance from quarter to quarter and year to year on a regular basis, and for benchmarking against other medical technology companies.

Operator: While these figures are not a substitute for GAAP measurements, management uses these figures to aid in monitoring the company's ongoing financial performance from quarter to quarter and year to year on a regular basis, and for benchmarking against other medical technology companies. Adjusted net income and adjusted earnings per share measure the income of the company, excluding credits or charges that are considered by the company to be special or outside its normal ongoing operations. These adjusting items are specified in the reconciliation supporting the company's earnings releases posted to the company's website. With these required announcements completed, I will turn the call over to Pat Beyer, President and Chief Executive Officer, for opening remarks. Mr. Beyer?

While these figures are not a substitute for GAAP measurements, management uses these figures to aid in monitoring the company's ongoing financial performance from quarter to quarter and year to year on a regular basis, and for benchmarking against other medical technology companies. Adjusted net income and adjusted earnings per share measure the income of the company, excluding credits or charges that are considered by the company to be special or outside its normal ongoing operations. These adjusting items are specified in the reconciliation supporting the company's earnings releases posted to the company's website. With these required announcements completed, I will turn the call over to Pat Beyer, President and Chief Executive Officer, for opening remarks. Mr. Beyer?

Speaker #1: Adjusted net income is an adjusted measure. Earnings per share and the income of the company, excluding charges that are considered by the company to be special credits or outside normal ongoing operations. These are adjusting operations.

Speaker #1: the specified in reconciliation supporting the company's releases posted to the company's website . With these required announcements completed , I will turn the call over to Pat , President and Chief Executive Officer , for opening remarks .

Speaker #1: Mr. Bayer .

Pat Beyer: Good afternoon, and thank you for joining us for CONMED's Q4 2025 earnings call. With me today is Todd Garner, our Executive Vice President and Chief Financial Officer. I'll start and provide you with an overview of our fourth quarter and full year results, and then share updates on our strategic priorities. Todd will then take you through the financials and our 2026 guidance in more detail before we open up the call for your questions. Before I dive into the quarter, I'd like to recognize the continued dedication of our global team. Their commitment to our mission, to our customers, and to one another is evident in every part of our company. I'll start by briefly reviewing our fourth quarter and full year results.

Patrick Beyer: Good afternoon, and thank you for joining us for CONMED's Q4 2025 earnings call. With me today is Todd Garner, our Executive Vice President and Chief Financial Officer. I'll start and provide you with an overview of our fourth quarter and full year results, and then share updates on our strategic priorities. Todd will then take you through the financials and our 2026 guidance in more detail before we open up the call for your questions. Before I dive into the quarter, I'd like to recognize the continued dedication of our global team. Their commitment to our mission, to our customers, and to one another is evident in every part of our company. I'll start by briefly reviewing our fourth quarter and full year results.

Speaker #2: Good afternoon, and thank you for joining us for the fourth quarter 2020 earnings call. With CONMED Corp today is Todd Garner, our Executive Vice President and Chief Financial Officer.

Speaker #2: I'll start and provide you with an overview of our fourth quarter and full-year results, and then share updates on our strategic priorities. Todd will then take you through the financials and our 2026 guidance in detail.

Speaker #2: I'll start and provide you with an overview of our fourth quarter and full year results, and then share updates on our strategic priorities. Todd will then take you through the financials and our 2026 guidance in more detail before we open the call for your questions.

Speaker #2: Before I dive into the quarter, I’d like to recognize the continued commitment of our team globally—their commitment to our mission, to our customers, and to one another is evident as part of our company in every way.

Speaker #2: Before I dive into the quarter, I'd like to recognize the continued commitment of our global team—their dedication to our mission, to our customers, and to one another is evident in every part of our company. I'll start by briefly reviewing our fourth quarter and full year results.

Pat Beyer: Total sales for the quarter were $373.2 million, representing a year-over-year increase of 7.9% as reported, and 7.1% in constant currency. For the full year, sales were $1.375 billion, representing year-over-year growth of 5.2% as reported, and 5.1% in constant currency. Orthopedic sales increased 12.1% in Q4 and 5.5% for the full year on constant currency basis. In General surgery, sales increased 3.8% in Q4 and 4.7% for the full year in constant currency. Q4 adjusted earnings per share of $1.43 grew 6.7%, while full year adjusted EPS of $4.59 grew 10.1%.

Total sales for the quarter were $373.2 million, representing a year-over-year increase of 7.9% as reported, and 7.1% in constant currency. For the full year, sales were $1.375 billion, representing year-over-year growth of 5.2% as reported, and 5.1% in constant currency. Orthopedic sales increased 12.1% in Q4 and 5.5% for the full year on constant currency basis. In General surgery, sales increased 3.8% in Q4 and 4.7% for the full year in constant currency. Q4 adjusted earnings per share of $1.43 grew 6.7%, while full year adjusted EPS of $4.59 grew 10.1%.

Speaker #2: Total sales for the quarter were representing a year over $373.2 million , year increase of 7.9% . As reported , and 7.1% in constant currency .

Speaker #2: For the full sales year, were $1.375 billion. Robotic and laparoscopic surgery, smoke and Converge in, and an orthopedic evacuation, soft repair.

Speaker #2: For the full sales year , were $1.375 billion . robotic and laparoscopic surgery smoke and Converge in and an orthopedic evacuation , soft repair tissue These are high growth , margin high markets are where we uniquely positioned to lead with our differentiated strong commercial teams As part of that portfolio review products and in December , we announced the decision to .

Pat Beyer: Earlier this month marked my first anniversary as CEO of CONMED. Over the past year, through extensive discussions with internal and external stakeholders that culminated in a comprehensive portfolio review, my conviction in where CONMED can win has only strengthened. We win where innovation and minimally invasive surgery converge in robotic and laparoscopic surgery, in smoke evacuation, and in orthopedic soft tissue repair. These are high growth, high margin markets where we are uniquely positioned to lead with our differentiated products and strong commercial teams. As part of that portfolio review, in December, we announced the decision to exit our gastroenterology product lines. While this creates some near-term earnings dilution, the move aligns with our resources tightly to our strongest growth drivers and is expected to improve our long-term consolidated growth margin profile by approximately 80 basis points once complete.

Earlier this month marked my first anniversary as CEO of CONMED. Over the past year, through extensive discussions with internal and external stakeholders that culminated in a comprehensive portfolio review, my conviction in where CONMED can win has only strengthened. We win where innovation and minimally invasive surgery converge in robotic and laparoscopic surgery, in smoke evacuation, and in orthopedic soft tissue repair. These are high growth, high margin markets where we are uniquely positioned to lead with our differentiated products and strong commercial teams. As part of that portfolio review, in December, we announced the decision to exit our gastroenterology product lines. While this creates some near-term earnings dilution, the move aligns with our resources tightly to our strongest growth drivers and is expected to improve our long-term consolidated growth margin profile by approximately 80 basis points once complete.

Speaker #2: Our gastroenterology product lines. While this creates some near-term earnings dilution, the move aligns our resources tightly to our strongest growth drivers expected, and is anticipated to improve our long-term consolidated gross margin profile by approximately 80 basis points.

Pat Beyer: This was a thoughtful and strategic decision that positions CONMED to deploy capital and talent where we create the most value. When I stepped into the CEO role, it was clear that we needed to resolve the supply chain constraints in sports medicine that had weighed on the growth of our orthopedics portfolio. We put the right focus and resources in place, people, planning, and production. We engaged a top-tier outside consultant, invested in infrastructure, and are building out a strong operations team. We made meaningful progress in 2025, culminating in our strongest growth quarter of the year in Q4. We ended the year with our backorder value and number of SKUs on backorder at a three-year low, and we continued to make additional progress in Q1.

This was a thoughtful and strategic decision that positions CONMED to deploy capital and talent where we create the most value. When I stepped into the CEO role, it was clear that we needed to resolve the supply chain constraints in sports medicine that had weighed on the growth of our orthopedics portfolio. We put the right focus and resources in place, people, planning, and production. We engaged a top-tier outside consultant, invested in infrastructure, and are building out a strong operations team. We made meaningful progress in 2025, culminating in our strongest growth quarter of the year in Q4. We ended the year with our backorder value and number of SKUs on backorder at a three-year low, and we continued to make additional progress in Q1.

Speaker #2: Once complete, this was a thoughtful and strategic decision that positions CONMED Corp to deploy capital and create value where we value most.

Speaker #2: I stepped into the CEO role, it was clear that what we needed was to resolve the supply chain constraints in sports medicine that the growth of orthopedics had weighed on.

Speaker #2: We put the right focus and resources in place . People planning portfolio production . We engaged a top tier outside consultant in , invested infrastructure and are building out a strong operations team .

Speaker #2: We made meaningful progress in 2025 , culminating in our strongest growth quarter of the year in the fourth quarter . ended the We year with our back order value and number of SKUs on backorder at a three year low , and we continued to make additional progress in the first quarter .

Pat Beyer: We are not yet at our goal of operating a world-class supply chain, but we have made significant progress and are at a point where our sales force can once again be proactive with our growth drivers. Looking forward, we view the work ahead across two primary objectives. The first is to stabilize and scale, build reliable, repeatable processes that give us sustainable supply resiliency and enable our teams to be on offense. We have made meaningful progress here. The second, longer-term objective is to build a high-performance supply chain that is agile, data-driven, and capable of supporting sustained innovation. Completing this second objective is what we believe will allow us to deliver sustained above-market growth in our orthopedic portfolio over time. Now, turning to our three high-growth platforms. I'll start with AirSeal, our clinical insufflation system used in robotic and laparoscopic surgery.

We are not yet at our goal of operating a world-class supply chain, but we have made significant progress and are at a point where our sales force can once again be proactive with our growth drivers. Looking forward, we view the work ahead across two primary objectives. The first is to stabilize and scale, build reliable, repeatable processes that give us sustainable supply resiliency and enable our teams to be on offense. We have made meaningful progress here. The second, longer-term objective is to build a high-performance supply chain that is agile, data-driven, and capable of supporting sustained innovation. Completing this second objective is what we believe will allow us to deliver sustained above-market growth in our orthopedic portfolio over time. Now, turning to our three high-growth platforms. I'll start with AirSeal, our clinical insufflation system used in robotic and laparoscopic surgery.

Speaker #2: We are not yet at our goal of operating a world class supply chain , but we have made significant progress and are at a point where a sales can once again force be proactive with our growth drivers .

Speaker #2: Looking forward , we view the work ahead across two primary objectives . The first is to stabilize and scale build reliable , repeatable processes that give us sustainable supply , resiliency and enable our teams to be on offense .

Speaker #2: We have made meaningful progress here . The second longer term objective is to build a high performance chain supply that is agile , data driven and capable of supporting sustained innovation .

Speaker #2: Completing this second objective is what we believe will allow us to deliver sustained, above-market growth in our orthopedic portfolio over time.

Speaker #2: Now , turning to our three high growth platforms . I'll start with Air Seal . Our clinical Insufflation system used in robotic and laparoscopic surgery was in .

Speaker #2: Now , turning to our three high growth platforms . I'll start with Air Seal . Our clinical Insufflation system used in robotic and laparoscopic surgery was in . used Aesseal 1.6 million procedures in 2025 , established reflecting its role in complex surgical cases with a clinical low stable , pressure benefit of insufflation are most pronounced utilization and robotic surgery remains in line with expectations with consistent engagement surgeons who from value clinical its .

Pat Beyer: AirSeal was used in approximately 1.6 million procedures in 2025, reflecting its established role in complex surgical cases where the clinical benefit of stable, low-pressure insufflation are most pronounced. Utilization in robotic surgery remains in line with expectations, with consistent engagement from surgeons who value its clinical profile. The expansion of the robotics market outside the US and into lower-cost settings, such as ambulatory surgery centers, represents an additional opportunity for AirSeal. These environments are well aligned with the clinical and economic benefits AirSeal delivers, and we expect them to play an increasingly important role in our long-term growth. We continue to see meaningful white space in traditional laparoscopy. In the US alone, there are more than 3 million laparoscopic procedures performed annually, and AirSeal today is utilized in only about 6% to 7% of cases.

AirSeal was used in approximately 1.6 million procedures in 2025, reflecting its established role in complex surgical cases where the clinical benefit of stable, low-pressure insufflation are most pronounced. Utilization in robotic surgery remains in line with expectations, with consistent engagement from surgeons who value its clinical profile. The expansion of the robotics market outside the US and into lower-cost settings, such as ambulatory surgery centers, represents an additional opportunity for AirSeal. These environments are well aligned with the clinical and economic benefits AirSeal delivers, and we expect them to play an increasingly important role in our long-term growth. We continue to see meaningful white space in traditional laparoscopy. In the US alone, there are more than 3 million laparoscopic procedures performed annually, and AirSeal today is utilized in only about 6% to 7% of cases.

Speaker #2: Expansion of profile, the robotics outside the US and into lower-cost settings such as ambulatory surgery centers, represents an additional assessment opportunity. There are well-aligned clinical and economic benefits.

Speaker #2: Aesseal delivers , and we play an expect increasingly important role term in our . We growth in continue to traditional and the there are than more US laparoscopy procedures annually , performed aesseal and today is in only utilized about 6 to 7% of cases our .

Pat Beyer: As we scale our commercial efforts and drive greater awareness of the clinical and economic benefits that mirror what we've demonstrated in robotics, we believe that laparoscopy represents a substantial long-term growth lever. Taken together, these dynamics reinforce our confidence that AirSeal can deliver high single digits to low double-digit rate growth over the long term, which is what we saw in both Q4 and the full year of 2025. Next, I'd like to turn to Buffalo Filter, which remains one of our most compelling long-term opportunities. Surgical smoke evacuation is now recognized as a billion-dollar-plus potential global market, yet is still in the early stages of adoption. Today, 20 US states, representing approximately 51% of the population, have enacted smoke-free operating room legislation, and we continue to see steady progress internationally, including early momentum across the Nordic countries and Canada.

As we scale our commercial efforts and drive greater awareness of the clinical and economic benefits that mirror what we've demonstrated in robotics, we believe that laparoscopy represents a substantial long-term growth lever. Taken together, these dynamics reinforce our confidence that AirSeal can deliver high single digits to low double-digit rate growth over the long term, which is what we saw in both Q4 and the full year of 2025. Next, I'd like to turn to Buffalo Filter, which remains one of our most compelling long-term opportunities. Surgical smoke evacuation is now recognized as a billion-dollar-plus potential global market, yet is still in the early stages of adoption. Today, 20 US states, representing approximately 51% of the population, have enacted smoke-free operating room legislation, and we continue to see steady progress internationally, including early momentum across the Nordic countries and Canada.

Speaker #2: As we efforts and drive greater awareness of the scale clinical and economic mirror what benefits that we've demonstrated in robotics , we believe that laparoscopy represents a term growth lever substantial long .

Speaker #2: Dynamics together, these confidence that can Aesseal reinforce our deliver high single rate growth long term, which is what we saw in both the over the fourth quarter and the year full 2025.

Speaker #2: Turning to Buffalo, I'd like to remain that it is one of our most compelling long-term opportunities. Surgical smoke evacuation is a recognized billion-dollar-plus potential global market.

Speaker #2: Yet it is still in the early stages of adoption. Today, 20 US states, representing approximately 51% of the population, have smoke-free operating room legislation.

Speaker #2: continue to And we see steady progress internationally , including early across momentum Nordic countries and Canada the . We are also leading the market with product innovation .

Pat Beyer: We are also leading the market with product innovation. Our next generation, PlumeSafe X5, launched in the first half of 2025, delivers significantly enhanced performance, quieter operation, and faster, more efficient smoke clearance, strengthening our competitive position and expanding the clinical and economic value we bring to customers. Our third high-growth platform is BioBrace, which has become a signature element of our sports medicine strategy. BioBrace is now used across more than 70 unique procedures, demonstrating both the breadth of the surgical adoption and the versatility of the technology. Our BioBrace RC delivery system, launched last year, has further strengthened this momentum by making rotator cuff repair more reproducible and expanding our access to a broader set of surgeons. Clinically, the BioBrace platform is backed by a growing body of evidence.

We are also leading the market with product innovation. Our next generation, PlumeSafe X5, launched in the first half of 2025, delivers significantly enhanced performance, quieter operation, and faster, more efficient smoke clearance, strengthening our competitive position and expanding the clinical and economic value we bring to customers. Our third high-growth platform is BioBrace, which has become a signature element of our sports medicine strategy. BioBrace is now used across more than 70 unique procedures, demonstrating both the breadth of the surgical adoption and the versatility of the technology. Our BioBrace RC delivery system, launched last year, has further strengthened this momentum by making rotator cuff repair more reproducible and expanding our access to a broader set of surgeons. Clinically, the BioBrace platform is backed by a growing body of evidence.

Speaker #2: Our next generation plume Safe launched in the first half X5 of 2025 , delivers significantly enhanced performance , quieter and faster , efficient , strengthening competitive our and expanding the position clinical and value economic we bring to customers .

Speaker #2: Our third high growth platform is Brace, which has become a bio element of our sports medicine. The BioBrace strategy is now used in more than 70 unique procedures, demonstrating both the breadth of surgical adoption and the versatility of the technology.

Speaker #2: Our BioBrace RC delivery system, launched last year, has further strengthened momentum by making rotator cuff repair more reproducible this year and expanding our access to a broader set of surgeons.

Speaker #2: Clinically , the bio brace is platform backed by a growing body of evidence . Our 268 patient controlled trial , randomized , remains on track to complete enrollment in 2026 , with publication expected in 2027 .

Pat Beyer: Our 268-patient randomized controlled trial remains on track to complete enrollment in 2026, with publication expected in 2027. As of 2025, the American Academy of Orthopaedic Surgeons guidelines recommended augmentation for rotator cuff repair. We are also seeing increasing utilization of BioBrace in foot and ankle procedures, where surgeons are recognizing the same benefits in strength, healing, support, and workflow efficiency. We expect this trend to continue as BioBrace becomes further embedded across a wider range of soft tissue repairs, reducing revision rates and promoting faster healing. Turning to the balance sheet, our strong cash engine brought leverage to 2.9 times in Q4, giving us the flexibility to lean into innovation, growth, and capital returns. As we announced in Q3, our board suspended our dividend and approved a $150 million share repurchase authorization.

Our 268-patient randomized controlled trial remains on track to complete enrollment in 2026, with publication expected in 2027. As of 2025, the American Academy of Orthopaedic Surgeons guidelines recommended augmentation for rotator cuff repair. We are also seeing increasing utilization of BioBrace in foot and ankle procedures, where surgeons are recognizing the same benefits in strength, healing, support, and workflow efficiency. We expect this trend to continue as BioBrace becomes further embedded across a wider range of soft tissue repairs, reducing revision rates and promoting faster healing. Turning to the balance sheet, our strong cash engine brought leverage to 2.9 times in Q4, giving us the flexibility to lean into innovation, growth, and capital returns. As we announced in Q3, our board suspended our dividend and approved a $150 million share repurchase authorization.

Speaker #2: And as of 2025 , the American of Orthopaedic Surgery recommended augmentation for rotator cuff repair . We are also seeing increasing utilization of bio foot and brace in ankle procedures surgeons are , where recognizing the same benefits and strength healing support and workflow efficiency .

Speaker #2: We expect this trend to continue as BioBrace becomes further embedded more widely across a range of tissue repairs, reducing revision rates and promoting faster healing.

Speaker #2: Turning to the balance sheet, our strong cash engine brought leverage to 2.9 in the fourth quarter, giving us the flexibility to lean into innovation and growth capital returns. As we announced in the third quarter, our board suspended our dividend and approved a $150 million share repurchase authorization.

Pat Beyer: Historically, the dividend represented roughly $25 million annually, and deploying at least that level into repurchases equates to approximately $0.07 of EPS in 2026. Importantly, we view this as a minimum, not a ceiling. Taken together, our financial strength, our operational progress, and the potential of our growth platforms gives us confidence in the path forward. Our focus remains clear: getting CONMED back to above-market growth. We will do this by leaning into our core strengths, continuing to normalize supply in sports medicine, operating with discipline and focus, and investing in high-growth, high-margin platforms. I'm proud of our progress in 2025 and energized by the opportunity ahead. Before I turn the call over to Todd, I want to briefly address the CFO transition we announced earlier this month.

Historically, the dividend represented roughly $25 million annually, and deploying at least that level into repurchases equates to approximately $0.07 of EPS in 2026. Importantly, we view this as a minimum, not a ceiling. Taken together, our financial strength, our operational progress, and the potential of our growth platforms gives us confidence in the path forward. Our focus remains clear: getting CONMED back to above-market growth. We will do this by leaning into our core strengths, continuing to normalize supply in sports medicine, operating with discipline and focus, and investing in high-growth, high-margin platforms. I'm proud of our progress in 2025 and energized by the opportunity ahead. Before I turn the call over to Todd, I want to briefly address the CFO transition we announced earlier this month.

Speaker #2: Historically, the dividend represented roughly $25 million annually, and at least deploying that level into repurchases equates to approximately $0.07 of EPS in 2026.

Speaker #2: Importantly , we view this as a minimum , not a ceiling . Taken together , our financial strength , our operational progress , and the potential of our growth platforms gives us confidence path forward remains focus clear .

Speaker #2: Getting back to above-market growth. We will do this by leaning into our core strengths, continuing to normalize supply and sports medicine, and operating with discipline and focus.

Speaker #2: And investing in high growth , high margin platforms I'm proud of our progress . in 2025 and energized by opportunity the ahead . Before I turn over the call to Todd , I want to briefly the address CFO transition .

Speaker #2: We announced earlier this month. Todd and I have been discussing long-term leadership structure and alignment for some time, and together we concluded this is the right moment for both him and for CONMED.

Pat Beyer: Todd and I have been discussing long-term leadership structure and alignment for some time, and together we concluded this is the right moment for both him and for CONMED. Todd will remain CFO through the transition and will then move into an advisory role, ensuring continuity while we complete a comprehensive search for our next CFO. He has been instrumental in strengthening CONMED's financial foundation over the past eight years, and on behalf of our board and our entire leadership team, I want to thank him for his partnership, contributions, and unwavering commitment to CONMED. With that, I'll turn the call over to Todd, who will provide a more detailed analysis of our financial performance and discuss our 2026 financial guidance. Todd?

Todd and I have been discussing long-term leadership structure and alignment for some time, and together we concluded this is the right moment for both him and for CONMED. Todd will remain CFO through the transition and will then move into an advisory role, ensuring continuity while we complete a comprehensive search for our next CFO. He has been instrumental in strengthening CONMED's financial foundation over the past eight years, and on behalf of our board and our entire leadership team, I want to thank him for his partnership, contributions, and unwavering commitment to CONMED. With that, I'll turn the call over to Todd, who will provide a more detailed analysis of our financial performance and discuss our 2026 financial guidance. Todd?

Speaker #2: Todd will remain the CFO through the transition and will then move into an advisory role, ensuring continuity while we complete a comprehensive search for our next CFO.

Speaker #2: He has been instrumental in strengthening our financial foundation over the past eight years and, on behalf of our Board and our entire leadership team, I want to thank him for his partnership, contributions, and unwavering commitment to CONMED.

Speaker #2: With that , I'll call over Todd , who to will provide a more detailed analysis of our financial performance and our 2020 discuss financial guidance .

Todd Garner: Thank you, Pat. It's been an honor to be CONMED's CFO and working with you, focused on delivering for our shareholders. I'm committed to a smooth transition with a continued focus on what is best for CONMED and our shareholders. All sales growth numbers I reference today will be given in constant currency. The reconciliation to GAAP numbers is included in our press release. As usual, we have included an investor deck on our website that summarizes the results of the quarter, the year, and our financial guidance. For the fourth quarter of 2025, our total sales increased 7.1%. For Q4, our sales in the US increased 1.4% versus the prior year quarter, and our international sales grew 15.4%. Total worldwide orthopedic sales grew 12.1 in the fourth quarter.

Speaker #2: Todd .

Speaker #3: Thank you, Pat. It's been an honor to be confirmed as CFO and to work with you, focused on delivering for our shareholders.

Speaker #3: I'm committed to a smooth transition, with continued focus on what's best for CONMED and our shareholders. All sales growth numbers I referenced are constant, given in currency.

Speaker #3: Today, the GAAP numbers and reconciliation are included in our press release. As usual, we have included this on our investor deck website that summarizes the results of the quarter.

Speaker #3: The year , and our financial guidance for the fourth quarter of 2025 . Our total sales increased 7.1% for Q4 . Our sales in the US increased 1.4% versus the prior year quarter , and our international sales grew 15.4% .

Speaker #3: Total worldwide . Orthopedic sales grew 12.1 . In the fourth quarter , in the US , orthopedic sales grew 6.6% and internationally , orthopedic sales increased 15.7% .

Todd Garner: In the US, Orthopedic sales grew 6.6%, and internationally, Orthopedic sales increased 15.7%. Total worldwide General Surgery sales increased 3.8% in the quarter. The US General Surgery sales declined 0.4%, while internationally, General Surgery sales increased 14.8%. The decline in the US was driven by our OEM smoke evacuation SKUs, which we've been clear is a non-focus area for us. The second biggest decline in the US General Surgery in Q4 was related to strategic portfolio management within our energy platforms. As you've heard from us, we're increasing focus on our growth drivers, and as Pat said, AirSeal grew globally within our expected range, with positive demand in the US. For the full year 2025, our total sales increased 5.1%.

In the US, Orthopedic sales grew 6.6%, and internationally, Orthopedic sales increased 15.7%. Total worldwide General Surgery sales increased 3.8% in the quarter. The US General Surgery sales declined 0.4%, while internationally, General Surgery sales increased 14.8%. The decline in the US was driven by our OEM smoke evacuation SKUs, which we've been clear is a non-focus area for us. The second biggest decline in the US General Surgery in Q4 was related to strategic portfolio management within our energy platforms. As you've heard from us, we're increasing focus on our growth drivers, and as Pat said, AirSeal grew globally within our expected range, with positive demand in the US. For the full year 2025, our total sales increased 5.1%.

Speaker #3: Total . Worldwide general surgery sales increased 3.8% in the quarter . US general surgery sales declined 0.4% , while internationally general sales surgery increased in the 14.8% .

Speaker #3: Decline in the US was driven by our OEM smoke evacuation SKUs, which we've been clear as a non-focused area for us. The second biggest decline in US general surgery in Q4 was related to strategic portfolio management within our energy platforms.

Speaker #3: As you've heard from us , we're increasing focus on our growth drivers . And as Pat said , Air Seal grew within our expected range with positive globally demand in the US for the full year 2025 , our total sales increased 5.1% for the full year .

Todd Garner: For the full year, our US sales grew 3.5%, and international sales grew 7.1% versus the prior year. Total worldwide Orthopedic sales increased 5.5% for the full year 2025. In the US, Orthopedic sales grew 2.3%, and internationally, Orthopedic sales increased 7.6%. Total worldwide General Surgery sales increased 4.7% for the full year 2025. US General Surgery sales grew 4.0%, while internationally, General Surgery sales increased 6.4%. Now let's move to the expense side of the income statement. We'll discuss expenses and profitability in the fourth quarter and the full year, excluding special items, which are detailed in our press release.

For the full year, our US sales grew 3.5%, and international sales grew 7.1% versus the prior year. Total worldwide Orthopedic sales increased 5.5% for the full year 2025. In the US, Orthopedic sales grew 2.3%, and internationally, Orthopedic sales increased 7.6%. Total worldwide General Surgery sales increased 4.7% for the full year 2025. US General Surgery sales grew 4.0%, while internationally, General Surgery sales increased 6.4%. Now let's move to the expense side of the income statement. We'll discuss expenses and profitability in the fourth quarter and the full year, excluding special items, which are detailed in our press release.

Speaker #3: Our U.S. sales grew 3.5%, and international sales grew 7.1% versus the prior year. Total orthopedic worldwide sales increased 5.5% for the full year 2025.

Speaker #3: the In US , orthopedic sales grew 2.3% and internationally , orthopedic sales increased 7.6% . Total worldwide general surgery sales increased 4.7% for the full year 2025 , US General surgery sales grew 4.0% , while internationally general surgery sales increased 6.4% .

Speaker #3: Now let's move to the expense side of the income statement. We'll discuss expenses and profitability in the fourth quarter and the full year.

Speaker #3: Excluding special items, which are detailed in our press release, adjusted gross margin for the fourth quarter was 56.6%, down 100 basis points from the prior year period, driven by the expected tariff impact for the full year.

Todd Garner: Adjusted gross margin for the fourth quarter was 56.6%, down 100 basis points from the prior year period, driven by the expected tariff impact. For the full year, adjusted gross margin was 56.4%, an increase of 10 basis points over 2024, despite the new tariffs. Adjusted research and development expense for the fourth quarter was 3.8% of sales, the same as the prior year quarter. For the full year 2025, adjusted R&D expense was 4.0% of sales, 20 basis points lower than 2024. Fourth quarter adjusted SG&A expenses were 35.6% of sales, the same as the prior year quarter. For the full year, adjusted SG&A expenses were 37.1% of sales, also the same as 2024.

Adjusted gross margin for the fourth quarter was 56.6%, down 100 basis points from the prior year period, driven by the expected tariff impact. For the full year, adjusted gross margin was 56.4%, an increase of 10 basis points over 2024, despite the new tariffs. Adjusted research and development expense for the fourth quarter was 3.8% of sales, the same as the prior year quarter. For the full year 2025, adjusted R&D expense was 4.0% of sales, 20 basis points lower than 2024. Fourth quarter adjusted SG&A expenses were 35.6% of sales, the same as the prior year quarter. For the full year, adjusted SG&A expenses were 37.1% of sales, also the same as 2024.

Speaker #3: Adjusted gross margin was 56.4% and increased ten basis points over 2024. Despite the new tariffs, adjusted research and development expense for the fourth quarter was 3.8% of sales.

Speaker #3: The same as the prior year quarter. For the full year 2025, adjusted R&D expense was 4.0% of sales, 20 basis points higher than 2024.

Speaker #3: points lower SG&A Fourth quarter adjusted expenses were 35.6% of sales , the same as the prior year quarter . For the full year , adjusted G&A expenses were , also the 37.1% of sales same as 2024 on an adjusted interest expense was $5.8 million in the fourth quarter , and $25.4 million for the full year adjusted effective .

Todd Garner: On an adjusted basis, interest expense was $5.8 million in the fourth quarter and $25.4 million for the full year. The adjusted effective tax rate in Q4 was 25.7%. For the full year, our adjusted effective tax rate was 24.9%. Fourth quarter GAAP net income was $16.7 million, compared to $33.8 million in Q4 of 2024. GAAP earnings per diluted share in Q4 were $0.54 this quarter, compared to $1.08 a year ago. For the full year, GAAP net income was $47.1 million, compared to GAAP net income of $132.4 million in 2024. GAAP earnings per diluted share were $1.51 in 2025, compared to $4.25 in 2024.

On an adjusted basis, interest expense was $5.8 million in the fourth quarter and $25.4 million for the full year. The adjusted effective tax rate in Q4 was 25.7%. For the full year, our adjusted effective tax rate was 24.9%. Fourth quarter GAAP net income was $16.7 million, compared to $33.8 million in Q4 of 2024. GAAP earnings per diluted share in Q4 were $0.54 this quarter, compared to $1.08 a year ago. For the full year, GAAP net income was $47.1 million, compared to GAAP net income of $132.4 million in 2024. GAAP earnings per diluted share were $1.51 in 2025, compared to $4.25 in 2024.

Speaker #3: The tax rate in Q4 was 25.7%. For the full year, our adjusted effective tax rate was 24.9%. Fourth quarter GAAP net income was $16.7 million, compared to Q4 of 2020.

Speaker #3: $33.8 million in For GAAP earnings per diluted in share Q4 were $0.54 this quarter , compared to $1.08 a year ago . For the full year , GAAP net income was $47.1 million , compared GAAP net to income of $132.4 million in 2020 .

Speaker #3: For GAAP earnings per diluted share were $1 . 51 in 2025 , compared to $4.25 in 2020 . For excluding impact of the special items discussed earlier in the fourth quarter , we reported adjusted net income of $44.4 million , an increase of 6.2% compared to the fourth quarter of 2020 .

Todd Garner: Excluding the impact of special items discussed earlier, in the fourth quarter, we reported adjusted net income of $44.4 million, an increase of 6.2% compared to the fourth quarter of 2024. Our Q4 adjusted diluted net earnings per share were $1.43, an increase of 6.7% compared to the prior year quarter. For the full year of 2025, we reported adjusted net income of $143.1 million, an increase of 10.1% compared to 2024. Our full-year adjusted diluted net earnings per share were $4.59, also an increase of 10.1% compared to the prior year. Turning to the balance sheet. Our cash balance at the end of the year was $40.8 million, compared to $38.9 million as of September 30.

Excluding the impact of special items discussed earlier, in the fourth quarter, we reported adjusted net income of $44.4 million, an increase of 6.2% compared to the fourth quarter of 2024. Our Q4 adjusted diluted net earnings per share were $1.43, an increase of 6.7% compared to the prior year quarter. For the full year of 2025, we reported adjusted net income of $143.1 million, an increase of 10.1% compared to 2024. Our full-year adjusted diluted net earnings per share were $4.59, also an increase of 10.1% compared to the prior year. Turning to the balance sheet. Our cash balance at the end of the year was $40.8 million, compared to $38.9 million as of September 30.

Speaker #3: For our Q4 adjusted diluted net earnings per share were $1.43, an increase of 6.7% compared to the prior year quarter.

Speaker #3: For the full year of 2025, we reported adjusted net income of $143.1 million, an increase of 10.1% compared to 2020.

Speaker #3: our full year adjusted diluted net earnings per share were $4.59 . Also an increase of 10.1% compared to the prior year . Turning to the balance sheet , our cash balance at the end of the year $40.8 million , was compared to $38.9 million as of September 30th .

Todd Garner: Accounts receivable days as of December 31 were 60 days, the same as the end of Q3 and 2 days lower than a year ago. Inventory days at year-end were 207, compared to 191 at September 30 and 211 days a year ago. Long-term debt at the end of the year was $834.2 million versus $853.0 million as of September 30. Our leverage ratio on December 31 was 2.9 times. Cash flow provided from operations in the quarter was $46.3 million, compared to $43.3 million in Q4 2024.

Accounts receivable days as of December 31 were 60 days, the same as the end of Q3 and 2 days lower than a year ago. Inventory days at year-end were 207, compared to 191 at September 30 and 211 days a year ago. Long-term debt at the end of the year was $834.2 million versus $853.0 million as of September 30. Our leverage ratio on December 31 was 2.9 times. Cash flow provided from operations in the quarter was $46.3 million, compared to $43.3 million in Q4 2024.

Speaker #3: Accounts receivable were 60 days at the end of December 31st, the same as Q3 and two days lower than a year ago. Inventory days at year end were 207, compared to 191 at September 30th and 211 days a year ago.

Speaker #3: debt at the end of the year Long was $834.2 million , versus $853.0 million as of September 30th . Our leverage ratio on December 31st was 2.9 times cash flow provided from operations in the quarter was $46.3 million , compared to $43.3 million in the quarter of 2020 .

Todd Garner: Cash flow provided from operations for the full year of 2025 was $170.7 million, compared to $167.0 million in 2024. Capital expenditures in the fourth quarter were $5.1 million compared to $4.0 million a year ago. For the full year, capital expenditures were $19.8 million in 2025, compared to $13.1 million in 2024. Now let's turn to financial guidance. Let's start with revenue. We're guiding the full-year reported revenue between $1.345 billion and $1.375 billion, which represents constant currency organic growth between 4.5% and 6%, with FX tailwind between 0 and 50 basis points. We've provided the detailed assumptions in our investor deck in conjunction with this call.

Cash flow provided from operations for the full year of 2025 was $170.7 million, compared to $167.0 million in 2024. Capital expenditures in the fourth quarter were $5.1 million compared to $4.0 million a year ago. For the full year, capital expenditures were $19.8 million in 2025, compared to $13.1 million in 2024. Now let's turn to financial guidance. Let's start with revenue. We're guiding the full-year reported revenue between $1.345 billion and $1.375 billion, which represents constant currency organic growth between 4.5% and 6%, with FX tailwind between 0 and 50 basis points. We've provided the detailed assumptions in our investor deck in conjunction with this call.

Speaker #3: For cash flow provided by operations for the full year 2025, it was $170.7 million. For 2020, it was $167.0 million. Capital expenditures were $5.1 million in the fourth quarter, compared to $4.0 million a year ago.

Speaker #3: full year , capital For expenditures were $19.8 million in 2025 , compared to in 2020 . $13.1 million For now , let's turn to financial guidance .

Speaker #3: Let's start with revenue. We're year reported revenue full between $1.345 billion and $1.375 billion, which represents constant currency growth, organic, of between 4% and 6% for the half, with FX tailwind between 0 and 50 basis points.

Speaker #3: We've provided detailed assumptions in our deck, in conjunction with this call. That deck shows the moving pieces and adjusted gross, also margin, from 2025 to 2026.

Todd Garner: That deck also shows the moving pieces in adjusted gross margin from 2025 to 2026. We're guiding a net improvement of 50 to 100 basis points for the full year, despite digesting headwinds from incremental tariffs between 100 and 110 basis points. The improvement is driven by our continued strong organic mix tailwind and cost improvements. We expect adjusted SG&A expense as a percentage of sales to be between 38.0% and 38.5% in 2026. The increase is due to lower sales because of the GI exit, and increased investments to accelerate our key growth drivers. We expect full year adjusted R&D expense in 2026 to be between 4.5 and 5% of sales. This represents increased investment to support our key growth drivers.

That deck also shows the moving pieces in adjusted gross margin from 2025 to 2026. We're guiding a net improvement of 50 to 100 basis points for the full year, despite digesting headwinds from incremental tariffs between 100 and 110 basis points. The improvement is driven by our continued strong organic mix tailwind and cost improvements. We expect adjusted SG&A expense as a percentage of sales to be between 38.0% and 38.5% in 2026. The increase is due to lower sales because of the GI exit, and increased investments to accelerate our key growth drivers. We expect full year adjusted R&D expense in 2026 to be between 4.5 and 5% of sales. This represents increased investment to support our key growth drivers.

Speaker #3: We're guiding a net improvement of 50 to 100 basis points for the full year, despite tariffs incremental between 100 and 110 basis points.

Speaker #3: The is improvement driven by our continued strong organic mix , tailwind and cost improvements adjusted . SG&A expense as a percentage of sales We expect to be between 38.0% and 38.5% in 2026 , the increase is due to lower sales because of the GI exit and increased investments to accelerate our key growth drivers , we expect full year adjusted R&D expense in 2026 to be between 4.5 and 5% of sales .

Speaker #3: This represents increased investment to support our key growth drivers. Based on current forecasts of interest rates from our banking partners, we expect adjusted interest expense to be between $25 and $27 million in 2026.

Todd Garner: Based on current forecasts of interest rates from our banking partners, we expect adjusted interest expense to be between $25 million and $27 million in 2026. This includes room for debt refinancing midway through the year. We expect the adjusted effective tax rate to be in the mid-24% range in 2026. We are guiding adjusted EPS to be between $4.30 and $4.45 in 2026. We've provided the detail of the moving pieces in our investor deck. The significant headwinds are $0.45 to $0.50 from the GI exit and $0.30 to $0.35 from the incremental tariffs. We estimate currency to be a tailwind of about $0.10.

Based on current forecasts of interest rates from our banking partners, we expect adjusted interest expense to be between $25 million and $27 million in 2026. This includes room for debt refinancing midway through the year. We expect the adjusted effective tax rate to be in the mid-24% range in 2026. We are guiding adjusted EPS to be between $4.30 and $4.45 in 2026. We've provided the detail of the moving pieces in our investor deck. The significant headwinds are $0.45 to $0.50 from the GI exit and $0.30 to $0.35 from the incremental tariffs. We estimate currency to be a tailwind of about $0.10.

Speaker #3: This room includes debt refinancing midway through the year. We expect the effective adjusted tax rate to be in the mid-24% range in 2026. We are adjusting and guiding EPS to be between $4.30 and $4.45 in 2026.

Speaker #3: We have the moving detail of the provided pieces in our investor deck, significant. There are headwinds of $0.45 to $0.50 from the GI exit and $0.30 to $0.35 from the incremental tariffs.

Speaker #3: estimate We currency to be a tailwind of about $0.10 . With the initiatives we have underway , we expect full year operating cash flow in 2026 to be between 100 and $45 million and $155 million , with capital expenditures in the 20 to $30 million range free cash flow .

Todd Garner: With the initiatives we have underway, we expect full-year operating cash flow in 2026 to be between $145 million and $155 million, with capital expenditures in the $20 to 30 million dollar range, putting free cash flow around $125 million for the year. We project Adjusted EBITDA between $255 million and $265 million for 2026. For Q1 specifically, we expect reported revenue between $308 million and $313 million. We expect adjusted SG&A expense in Q1 as a percentage of sales to be the highest quarter of the year and above the range we guided for the full year. We expect adjusted EPS in Q1 to be between $0.80 and $0.83.

With the initiatives we have underway, we expect full-year operating cash flow in 2026 to be between $145 million and $155 million, with capital expenditures in the $20 to 30 million dollar range, putting free cash flow around $125 million for the year. We project Adjusted EBITDA between $255 million and $265 million for 2026. For Q1 specifically, we expect reported revenue between $308 million and $313 million. We expect adjusted SG&A expense in Q1 as a percentage of sales to be the highest quarter of the year and above the range we guided for the full year. We expect adjusted EPS in Q1 to be between $0.80 and $0.83.

Speaker #3: Around $125 million for the putting year. We projected adjusted EBITDA of between $255 million and $265 million for 2026 for Q1. Specifically, we expect reported revenue between $308 million and $313 million.

Speaker #3: We expect adjusted SG&A in Q1 as an expense, in percentage of sales, to be the highest quarter of the year and above the range. We guided for the full year.

Speaker #3: We expect adjusted EPS in Q1 to be between $0.80 and $0.83. For 2026, the plan is to strengthen the portfolio by increasing the focus and investments on our key growth and PAT drivers.

Todd Garner: The 2026 plan is built to strengthen the portfolio by increasing the focus and investments on our key growth drivers. As Pat said, our financial strength, our operational progress, and the potential of our growth platforms give us confidence in the path forward. With that, we'd like to open the call to your questions, and I'll hand it back to the operator.

The 2026 plan is built to strengthen the portfolio by increasing the focus and investments on our key growth drivers. As Pat said, our financial strength, our operational progress, and the potential of our growth platforms give us confidence in the path forward. With that, we'd like to open the call to your questions, and I'll hand it back to the operator.

Speaker #3: That said, our financial strength, our operational progress, and the potential of our growth platforms give us confidence in the path forward. With that, we'd like to open the call to your questions, and I'll hand it back to the operator.

Speaker #3: said , our financial strength , operational our progress and the potential of our growth platforms give us confidence in the path forward . With that , we'd like to open the call to your questions and I'll hand it back to the operator .

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again.... You will be limited to one question and one follow-up. Please stand by while we compile the Q&A roster. And our first question comes from Vik Chopra with Wells Fargo. You may proceed.

Speaker #1: Thank you . As a reminder to question , you will need to press star ask a one one on your telephone to remove yourself from the queue .

Speaker #1: You may press star one one again. You will be limited to one question and one follow-up. Please stand by while we compile the Q&A.

Speaker #1: roster first question comes And our from Chopra with Wells Vik Fargo . You may proceed .

Vik Chopra: Oh, thanks for taking the questions, Todd. Thanks for all your help over the years. Really, I enjoyed working with you. So I appreciate the call you gave on Q1, but perhaps can you talk about how you see the rest of the year playing out from a cadence standpoint, and any selling day differences to highlight for the year? I had a quick follow-up.

Vikram Chopra: Oh, thanks for taking the questions, Todd. Thanks for all your help over the years. Really, I enjoyed working with you. So I appreciate the call you gave on Q1, but perhaps can you talk about how you see the rest of the year playing out from a cadence standpoint, and any selling day differences to highlight for the year? I had a quick follow-up.

Speaker #4: Oh , thanks for taking the questions , Todd . Thanks for all your help over the years . Really enjoyed working with you .

Speaker #4: So I appreciate the call you gave on Q1, but perhaps can you talk about how you see the rest of the year playing out from a cadence standpoint, and any selling differences to highlight for the year?

Speaker #4: Had a quick follow-up.

Todd Garner: Yeah, no selling day differences. Thankfully, all the quarters look the same. You know, of course, we're all around the world, right? And so there could be some rounding, but they all round to the same number of days for the quarters. And I wouldn't call anything out other than, you know, normal seasonality that's typical, but as med tech plays out through the quarters. So we called out Q1, and I would say the rest of the year should follow, you know, the normal sequence that the med tech calendar does.

Speaker #3: Yeah . No day selling differences . Thankfully , all the quarters look the same . You know . Of around the all world , right ?

Speaker #3: And of course, there could be some rounding, but they all round the same number to the number of quarters or days for the... And I wouldn’t call anything out.

Speaker #3: Other than , you know , normal seasonality that we're that's as typical medtech plays out through the quarters . called So we out Q1 rest of the and I would year say the should follow , you know , the normal sequence that the medtech calendar does .

Vik Chopra: Okay, great. And my follow-up question is for Pat. Pat, can you maybe just talk about where you are with the CFO search? I'm sure they're pretty big shoes to fill, and maybe talk about what you're looking for in a new CFO. Thank you.

Vikram Chopra: Okay, great. And my follow-up question is for Pat. Pat, can you maybe just talk about where you are with the CFO search? I'm sure they're pretty big shoes to fill, and maybe talk about what you're looking for in a new CFO. Thank you.

Speaker #4: Okay , great . And my follow up question is for Pat , can you maybe just talk about where you are with the CFO search ?

Speaker #4: I'm sure they're pretty big shoes to fill, and maybe you could talk about what you're looking for in a new CFO. Thank you.

Pat Beyer: Vik, appreciate the question. And again, it's an important role for the company. We've been blessed to have Todd as our CFO at CONMED for 8 years, and I've been lucky to have him as a teammate. We are actively searching now. I'm looking for a CFO that exhibits the same dynamics that Todd did, which is a CFO that will be focused on shareholder value accretion, will be a great teammate to the leadership team, and will be a steward of the CONMED shareholders that we have.

Patrick Beyer: Vik, appreciate the question. And again, it's an important role for the company. We've been blessed to have Todd as our CFO at CONMED for 8 years, and I've been lucky to have him as a teammate. We are actively searching now. I'm looking for a CFO that exhibits the same dynamics that Todd did, which is a CFO that will be focused on shareholder value accretion, will be a great teammate to the leadership team, and will be a steward of the CONMED shareholders that we have.

Speaker #2: the They can appreciate question . And again , it is a it's an role for the company important . been We've blessed to have Todd as our CFO at Conmed for eight years .

Speaker #2: I've been lucky to have him as a teammate. We are now searching. I'm looking for a CFO who exhibits the same dynamics that Todd did, which is a CFO focused on shareholder value.

Speaker #2: Accretion will be a great teammate to the leadership team and will be a steward of the shareholders that we have.

Operator: Thank you. Our next question comes from Robert Marcus with JP Morgan. You may proceed.

Speaker #1: Thank you. Our next question comes from Robert Marcus with Morgan. You may proceed.

Robbie Marcus: Oh, great. Thanks for taking the questions. Two from me. Todd, I just wanted to ask on the slides you showed at our healthcare conference and the slides you showed today, different organic revenue numbers, same similar, growth rates, but different organic revenue numbers. Maybe you could just walk through that, and then I had a follow-up.

Speaker #5: Oh , taking the Thanks for questions . Two for Todd , I wanted to ask just slides . at me our healthcare showed .

Speaker #5: In the slides you showed today , different organic revenue numbers , same , similar growth rates , but different organic revenue numbers . just walk through that .

Todd Garner: Yeah, absolutely. Robbie, your conference was, I think, on the fifth business day of the year. So the final 25 numbers were still rolling out. What we guided was in the neighborhood of 4% to 6% organic constant currency growth at your conference. As the final 25 numbers come into play, and that's now the base, we landed at 4.5 to 6, which is just more precise. So, so I would say at your conference, we were a little wider on the characterization, and now we're a little more precise with the final 25 numbers and the specific 26 pieces of how it all lays out.

Speaker #5: Then I had—and a follow-up.

Speaker #3: Yeah , absolutely . Robbie , your your conference was I think of the on the year . So the , the final 25 numbers were still rolling we guided up what in the neighborhood was of 4 to 6% organic currency growth at your conference as the final 25 numbers , constant into play .

Speaker #3: that's now the And base . We landed at four and a half to six , which is just more precise . So so I would say at your conference , we were a little wider on the and now characterization , we're a little more precise with the final 25 numbers the and specific 26 pieces of how it all lays out .

Robbie Marcus: Great. Then, a follow-up. It looks like versus the street, you beat pretty handily in ortho and missed in surgery. I was hoping you could just talk through what drove the upside in ortho, what drove the downside, and how you're thinking about the two different businesses throughout 2026. Thanks.

Speaker #5: Great, and then as a follow-up, it looks like the Street versus beat you pretty handily in Ortho and missed in Surgery.

Speaker #5: I was hoping you could just talk through what drove the upside in Ortho. What drove the downside, and how you're thinking about the two different businesses throughout '26.

Pat Beyer: Robbie, thanks for the question. Pat here. I'll take that. Again, we, we feel good about both pieces of our portfolio. Again, soft tissue augmentation and sports medicine repair is a strong platform for us, and robotic and laparoscopic innovation platforms also continue to be a strong platform for us. I'll take the orthopedic side first. We really had four things, Robbie, I would call out on the ortho side. So how did we beat? Number one, I would just, you know, level set everybody. The base of our ortho performance is a group of committed sales professionals that have continued to support our clinicians tirelessly through the supply chain challenges we've had.

Patrick Beyer: Robbie, thanks for the question. Pat here. I'll take that. Again, we, we feel good about both pieces of our portfolio. Again, soft tissue augmentation and sports medicine repair is a strong platform for us, and robotic and laparoscopic innovation platforms also continue to be a strong platform for us. I'll take the orthopedic side first. We really had four things, Robbie, I would call out on the ortho side. So how did we beat? Number one, I would just, you know, level set everybody. The base of our ortho performance is a group of committed sales professionals that have continued to support our clinicians tirelessly through the supply chain challenges we've had.

Speaker #5: Thanks , Robbie .

Speaker #2: Thanks for question , Pat . Here . the I'll take that again . We we feel good both about our portfolio again tissue , soft augmentation and sports medicine is a repair strong for us .

Speaker #2: platform And robotic and laparoscopic innovation platforms also continue to be a strong I'll platform take the for us . orthopedic We side first .

Speaker #2: really had four things . Robbie . I would on the call out ortho side . So how did we beat number one ? I would just , you know , level set .

Speaker #2: Everybody, the base of our ortho performance is a group of committed sales professionals that have continued to support our clinicians tirelessly through the supply chain challenges.

Pat Beyer: So when you have that, and then you have the benefit of an improving supply chain, continued strength of BioBrace, and we've got a positive benefit of some of the clinical solutions CONMED has had approved in the United States, that we're now getting those approved around the world. And in Q4, our European business was able to launch our AIM meniscus repair program that had just been approved on it. So really, three good things happening on the global side for our orthopedic business. On the general surgery side, you know, Robbie, I want to confirm that our smoke and our AirSeal business performed in line with guidance that we've said it would do, which is high single digits to low double digits.

So when you have that, and then you have the benefit of an improving supply chain, continued strength of BioBrace, and we've got a positive benefit of some of the clinical solutions CONMED has had approved in the United States, that we're now getting those approved around the world. And in Q4, our European business was able to launch our AIM meniscus repair program that had just been approved on it. So really, three good things happening on the global side for our orthopedic business. On the general surgery side, you know, Robbie, I want to confirm that our smoke and our AirSeal business performed in line with guidance that we've said it would do, which is high single digits to low double digits.

Speaker #2: We've had… So when you have that, and then you have the benefit of an improving supply chain, continued strength of Bio Base, and we've got a positive benefit of some of the Clinical Solutions.

Speaker #2: Conmed has approved had in the United States that we're getting approved those around the world and in the fourth quarter, our European business was launch able to our a meniscal repair program that been had just approved on it.

Speaker #2: So really , three good things happening on the on the global side for orthopedic business , on the general surgery side , you know , Robbie , I want to confirm that our smoke air and our business performed line with that guidance we've said it would do , which is high single to low digits digits double that , backdrop of the on the USA GPS growth was impacted by our continued execution on portfolio management and focusing on our growth drivers .

Pat Beyer: On the backdrop of that, the US GS growth was impacted by our continued execution on portfolio management and focusing on our growth drivers. During Q4 and during 2025, we've been doing heavy portfolio management, and we exited some minor products in the GS range, and we continue to focus on our direct smoke business. Those things will continue to evolve, but our focus continues to be accretive growth over the long term and continue to factor this approach into our guidance. So we knew what we were doing in Q4. We tried to include that in our guidance and the overall macro level for CONMED.

On the backdrop of that, the US GS growth was impacted by our continued execution on portfolio management and focusing on our growth drivers. During Q4 and during 2025, we've been doing heavy portfolio management, and we exited some minor products in the GS range, and we continue to focus on our direct smoke business. Those things will continue to evolve, but our focus continues to be accretive growth over the long term and continue to factor this approach into our guidance. So we knew what we were doing in Q4. We tried to include that in our guidance and the overall macro level for CONMED.

Speaker #2: During the fourth quarter and during 2025, we've been doing portfolio-heavy management, and we exited some products in the minor GHz range, and we want to continue our direct focus on business smoke.

Speaker #2: Things will continue to evolve, but our focus continues to be accretive. Growth over the long term will continue to factor this approach into our guidance.

Speaker #2: so we knew were doing what we in And quarter four . We tried to include that in our guidance and the overall macro and level for CONMED Corp .

Operator: Thank you. Our next question comes from Matthew O'Brien with Piper Sandler. You may proceed.

Speaker #1: Thank you . Our next question comes from Matthew O'Brien Sandler . You may with Piper proceed .

Matt O'Brien: ... Afternoon. Thanks for taking the questions. Todd, maybe just to follow up on Robbie's question, and I'm trying to do this on the fly and get all these numbers correct with FX and, and the GI divestiture. But, it just seems like the constant currency full year number for CONMED is a little bit lower than what you said at JPM a few weeks ago. Am I doing the math on that, wrong, or is it just, is it just the delta in terms of how you did versus the street in 2025 that, that makes things maybe a little skewed in terms of, of how we're calculating things?

Matthew O'Brien: ... Afternoon. Thanks for taking the questions. Todd, maybe just to follow up on Robbie's question, and I'm trying to do this on the fly and get all these numbers correct with FX and, and the GI divestiture. But, it just seems like the constant currency full year number for CONMED is a little bit lower than what you said at JPM a few weeks ago. Am I doing the math on that, wrong, or is it just, is it just the delta in terms of how you did versus the street in 2025 that, that makes things maybe a little skewed in terms of, of how we're calculating things?

Speaker #5: Thanks for taking the Afternoon . questions , Todd . Rob's on question , and follow up Maybe just a I'm trying to do this and get all on the fly numbers these correct with FX and and the GI but divestiture , it just seems like the constant currency full year for number a little Conmed is bit said at JPM lower than a few weeks what you ago .

Speaker #5: I'm doing the math on that wrong, am I? Or is it just in terms of the delta of how you did versus the Street, that on 25 things it makes it skewed a little in terms of how maybe things are?

Todd Garner: Yeah, it really is just the finish of 25, and then the mix between what's expected in the GI business. You know, that's the only piece, really. There's FX and then the GI sales. So we got to the total dollar range that we gave at JP Morgan, but the pieces shook out just slightly when you add in the prior year starting point for both the GI business and the organic side of the business.

AllMind AI

AllMind AI

Q4 2025 CONMED Corp Earnings Call

Event Details

Conmed

Q4 2025 CONMED Corp Earnings Call

Open Event Documents

Search Transcript

Conmed

Q4 2025 CONMED Corp Earnings Call

Transcript

No Transcript Available