
CREDIT: ZIMMER BIOMET
Zimmer Biomet Holdings Inc. reported financial results for the quarter ended March 31, 2025. The Company reported first quarter net sales of $1.909 billion, an increase of 1.1% over the prior year period, and an increase of 2.3% on a constant currency basis. Net earnings for the first quarter were $182.0 million, or $361.1 million on an adjusted basis. Diluted earnings per share were $0.91 for the first quarter, and adjusted diluted earnings per share were $1.81.
"We are proud of our team's continued execution and performance to start the year, as we delivered solid first quarter results and advanced our bold innovation agenda," says Ivan Tornos, Zimmer Biomet's president and CEO. "We're excited about the momentum in U.S. Hips, fueled by our revamped portfolio inclusive of the Z1 Triple-Taper Femoral Hip System, HAMMR Automated Hip Surgical Impactor System, as well as navigation capabilities, and believe the early enthusiasm from surgeons for our new Oxford Cementless Partial Knee positions us well to accelerate growth in the second half of the year. The recently completed acquisition of Paragon 28 is another bold step toward our innovation and diversification ambitions, expanding our S.E.T. business with leading technologies and a dedicated commercial channel in the high-growth foot and ankle segment."
Recent highlights
- Completed the acquisition of Paragon 28 Inc., a leading medical device company focused exclusively on the foot and ankle orthopedic segment, further strengthening Zimmer Biomet's position in this high-growth space.
- Showcased a broad portfolio of innovations at the 2025 American Academy of Orthopaedic Surgeons (AAOS) annual meeting, including a comprehensive hip portfolio anchored by the new Z1 Triple-Taper Femoral Hip System, along with the latest technologies for knee and upper extremity reconstruction and key robotic solutions. In addition, Zimmer Biomet debuted ZBX, its new Ambulatory Surgery Center (ASC) offering to surgeons and institutions looking to expand their orthopedic footprint.
- Received U.S. Food and Drug Administration (FDA) 510(k) clearance of Persona Revision SoluTion Femur, a revision knee implant component offering an alternative for patients with sensitivities to certain metals. The product will be commercially available in the U.S. in Q3 2025.
- Launched the You'll Be Back Campaign with Chief Movement Officer Arnold Schwarzenegger, providing millions of people living with joint pain with an online community that empowers them with resources to make informed choices about their mobility.
- Announced upcoming changes to Zimmer Biomet's Board of Directors, effective at the Company's annual meeting of stockholders on May 29, 2025, including the retirement of Non-Executive Chairman Christopher Begley; the appointment of President and CEO Ivan Tornos as chairman of the Board upon Begley's retirement; and the naming of Michael Farrell as lead independent director upon Begley's retirement.
- Appointed Jehanzeb Noor as senior vice president, chief strategy, innovation and business development officer, and Kristen Cardillo as senior vice president, chief communications officer, to the Zimmer Biomet Executive Leadership Team.
- Named one of the 2025 World's Most Ethical Companies by Ethisphere.
Geographic and product category sales
The following sales table provides results by geography and product category for the three-month period ended March 31, 2025, as well as the percentage change compared to the applicable prior year period, on both a reported basis and a constant currency basis.
NET SALES - THREE MONTHS ENDED MARCH 31, 2025 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in millions, unaudited) | |||||||||||||||||||||
Constant | |||||||||||||||||||||
Net | Currency | ||||||||||||||||||||
Sales | % Change | % Change | |||||||||||||||||||
Geographic Results | |||||||||||||||||||||
United States | $ | 1,113.6 | 1.3 | % | 1.3 | % | |||||||||||||||
International | 795.5 | 0.7 | 3.7 | ||||||||||||||||||
Total | $ | 1,909.1 | 1.1 | % | 2.3 | % | |||||||||||||||
Product Categories | |||||||||||||||||||||
Knees | |||||||||||||||||||||
United States | $ | 459.0 | 0.2 | % | 0.2 | % | |||||||||||||||
International | 333.9 | 1.2 | 4.2 | ||||||||||||||||||
Total | 792.9 | 0.6 | 1.9 | ||||||||||||||||||
Hips | |||||||||||||||||||||
United States | 264.3 | 3.7 | 3.7 | ||||||||||||||||||
International | 231.5 | (2.0) | 1.0 | ||||||||||||||||||
Total | 495.8 | 0.9 | 2.4 | ||||||||||||||||||
S.E.T. * | 470.5 | 3.9 | 4.9 | ||||||||||||||||||
Technology & Data, Bone Cement and Surgical ** | 149.9 | (4.7) | (3.5) | ||||||||||||||||||
Total | $ | 1,909.1 | 1.1 | % | 2.3 | % | |||||||||||||||
* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic | |||||||||||||||||||||
** Historically referred to as "Other" | |||||||||||||||||||||
Amounts reported in millions are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Percentages presented are calculated from the underlying unrounded amounts.
Financial guidance
The Company is updating its full-year 2025 reported revenue guidance to include the Paragon 28, Inc. ("Paragon 28") acquisition and currency expectations, and full-year 2025 adjusted earnings per share guidance to include Paragon 28, currency, and the impact from current tariff proposals:
Projected Year Ending December 31, 2025 | |||
Previous Guidance | Updated Guidance | ||
2025 Reported Revenue Change | 1.0% - 3.5% | 5.7% - 8.2% | |
Foreign Currency Exchange Impact | (2.0)% - (1.5)% | 0.0% - 0.5% | |
2025 Constant Currency Revenue Change | N/A | 5.7% - 7.7% | |
2025 Organic Constant Currency Revenue Change(1) | 3.0% - 5.0% | 3.0% - 5.0% | |
Adjusted Diluted EPS(2) | $8.15 - $8.35 | $7.90 - $8.10 | |
(1) | Excludes the projected impact of the Paragon 28 acquisition. Reconciliation of this measure to the most directly comparable GAAP financial measure is included in this press release. | ||
(2) | These measures are non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures. | ||
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