CONMED (NYSE:CNMD) reported fourth-quarter fiscal 2025 sales of $373.2 million, representing a 7.9% year-over-year increase as reported and 7.1% growth in constant currency, as management emphasized continued progress in orthopedics and improved supply conditions. For the full year, sales were $1.375 billion, up 5.2% as reported and 5.1% in constant currency.
President and CEO Pat Beyer said the company’s priorities are centered on markets “where innovation and minimally invasive surgery converge,” highlighting robotic and laparoscopic surgery, smoke evacuation, and orthopedic soft tissue repair. Executive Vice President and CFO Todd Garner, who is transitioning out of the CFO role, reviewed results and provided 2026 guidance that reflects the company’s planned exit from its gastroenterology product lines and incremental tariff headwinds.
Fourth-quarter performance driven by orthopedics and international growth
Garner said Q4 U.S. sales grew 1.4% while international sales increased 15.4%. Segment performance showed a similar split:
- Orthopedics: U.S. sales +6.6% and international sales +15.7% (Q4, constant currency)
- General surgery: U.S. sales -0.4% and international sales +14.8% (Q4, constant currency)
Garner attributed the U.S. general surgery decline primarily to lower OEM smoke evacuation SKUs, which he called “a non-focus area,” and also to strategic portfolio management within energy platforms. Beyer later added that smoke evacuation and AirSeal performed within the company’s stated expectation of high single-digit to low double-digit growth, while U.S. general surgery results were impacted by product line exits and continued emphasis on the direct smoke business.
Profitability and tariffs, plus a gap between GAAP and adjusted results
CONMED reported fourth-quarter GAAP net income of $16.7 million, compared with $33.8 million in the prior-year quarter. GAAP diluted EPS was $0.54 versus $1.08 a year earlier. For the full year, GAAP net income was $47.1 million compared to $132.4 million in 2024, and GAAP diluted EPS was $1.51 versus $4.25.
On an adjusted basis, the company reported Q4 adjusted net income of $44.4 million, up 6.2%, and adjusted diluted EPS of $1.43, up 6.7%. Full-year adjusted net income was $143.1 million, up 10.1%, and adjusted diluted EPS was $4.59, also up 10.1%.
Adjusted gross margin was 56.6% in Q4, down 100 basis points year over year, which Garner said was driven by “the expected tariff impact.” For the full year, adjusted gross margin was 56.4%, up 10 basis points despite new tariffs. Adjusted R&D was 3.8% of sales in Q4 and 4.0% for the full year, while adjusted SG&A was 35.6% of sales in Q4 and 37.1% for the full year.
Portfolio changes, supply chain progress, and three growth platforms
Beyer said CONMED completed a comprehensive portfolio review and, in December, announced a decision to exit its gastroenterology product lines. He said the move will create “some near-term earnings dilution” but is expected to improve the long-term consolidated growth margin profile by approximately 80 basis points once complete.
Operationally, Beyer described 2025 as a year of progress in resolving sports medicine supply chain constraints. He said CONMED ended the year with backorder value and the number of SKUs on backorder at a three-year low, and that the company continued to make progress in the first quarter of 2026.
Management highlighted three high-growth platforms:
- AirSeal: Beyer said the system was used in approximately 1.6 million procedures in 2025. He pointed to underpenetration in traditional laparoscopy in the U.S. and said AirSeal is used in about 6% to 7% of laparoscopic cases, citing more than 3 million annual laparoscopic procedures in the U.S.
- Buffalo Filter: Beyer described surgical smoke evacuation as a “$1 billion-plus potential global market” that is still early in adoption, noting smoke-free operating room legislation in 20 U.S. states representing about 51% of the population, along with momentum in Nordic countries and Canada. He also highlighted the first-half 2025 launch of PlumeSafe X5.
- BioBrace: Beyer said BioBrace is now used across more than 70 unique procedures. He noted the BioBrace RC delivery system launch and said a 268-patient randomized controlled trial is on track to complete enrollment in 2026 with publication expected in 2027.
Balance sheet, capital returns, and CFO transition
Garner said leverage was 2.9x at year-end. Long-term debt was $834.2 million, down from $853.0 million at the end of the third quarter. Cash was $40.8 million at year-end. Operating cash flow was $46.3 million in Q4 and $170.7 million for the full year, while 2025 capital expenditures totaled $19.8 million.
Beyer reiterated prior capital return actions: the board suspended the dividend and approved a $150 million share repurchase authorization. He said the dividend had been roughly $25 million annually and suggested deploying at least that level into repurchases “equates to approximately $0.07 EPS in 2026,” adding it was viewed as a minimum.
On leadership changes, Beyer said the company is conducting a CFO search and that Garner will remain CFO through the transition and then move into an advisory role. In response to an analyst question, Beyer said he is looking for a CFO focused on shareholder value accretion, teamwork, and stewardship of shareholders.
2026 outlook reflects GI exit and tariff headwinds
For 2026, CONMED guided reported revenue of $1.345 billion to $1.375 billion, which management said implies constant currency organic growth of 4.5% to 6% with an FX tailwind of 0 to 50 basis points. Garner said the company expects adjusted gross margin to improve 50 to 100 basis points for the year despite incremental tariff headwinds of 100 to 110 basis points.
CONMED guided 2026 adjusted EPS of $4.30 to $4.45. Garner said key headwinds include $0.45 to $0.50 from the gastroenterology exit and $0.30 to $0.35 from incremental tariffs, partly offset by an estimated $0.10 currency tailwind. The company projected adjusted EBITDA of $255 million to $265 million, operating cash flow of $145 million to $155 million, and capital expenditures of $20 million to $30 million, implying free cash flow of around $125 million.
For the first quarter, CONMED guided reported revenue of $308 million to $313 million and adjusted EPS of $0.80 to $0.83. Garner said adjusted SG&A as a percentage of sales is expected to be the highest quarter of the year and above the full-year range.
About CONMED (NYSE:CNMD)
CONMED Corporation (NYSE: CNMD) is a global medical technology company headquartered in Utica, New York. Founded in 1970, CONMED develops, manufactures and markets a broad portfolio of surgical devices and accessories for minimally invasive procedures. The company’s product line supports surgeons and healthcare providers in specialties including orthopedics, general surgery, gastroenterology and gynecology.
CONMED operates two principal segments: Orthopedics, and Visualization & Energy.
