ConvaTec (LSE:CTEC) reported revenue of $2.44 billion for 2025, representing a 6.5% increase on a reported basis, with organic growth excluding InnovaMatrix reaching 6.4%. Performance was supported by broad-based expansion across advanced wound care, ostomy care, continence care and infusion care. Adjusted operating profit rose 12.1% to $544 million, lifting the adjusted operating margin by 110 basis points to 22.3%, while adjusted diluted earnings per share increased 16%. Strong cash generation enabled $185 million in capital expenditure, dividend payments of $140 million and a $300 million share buyback programme.
Infusion care delivered the strongest category performance with organic growth of 12.5%, while the group’s other divisions recorded mid- to high-single-digit gains. These advances were partly offset by a sharp decline in InnovaMatrix sales and a $72 million impairment linked to changes in CMS reimbursement policies. Looking ahead, management expects another year of double-digit adjusted EPS growth in 2026, reaffirming guidance for 5–7% underlying organic revenue growth excluding InnovaMatrix and an adjusted operating margin of at least 23%. The company also upgraded its medium-term outlook, targeting 6–8% organic growth from 2027 alongside mid-20s operating margins and sustained double-digit expansion in both EPS and free cash flow, reflecting confidence in its product pipeline and execution strategy.
During the year, ConvaTec further strengthened its financial position by achieving investment-grade credit ratings from all three major agencies and issuing a $500 million 10-year senior unsecured bond. Net leverage remained at 2.0x adjusted EBITDA, consistent with management targets. The board increased the full-year dividend by 13% while maintaining a payout ratio of 40% of adjusted net profit, signalling confidence in future cash generation as the company continues investing in innovation and production capacity to meet growing demand.
The group’s outlook is supported by strong operating performance and shareholder-friendly capital allocation, including ongoing buybacks. However, weaker technical momentum and valuation concerns suggest some caution, with shares appearing relatively fully valued despite solid fundamentals.
More about ConvaTec
ConvaTec Group is a global medical products and technologies company focused on solutions for managing chronic health conditions. The FTSE 100 constituent holds leading positions in advanced wound care, ostomy care, continence care and infusion care, supplying products in around 90 countries and employing more than 10,000 people worldwide.
Its portfolio includes wound dressings such as Aquacel and ConvaFoam, ostomy systems including Esteem Body, continence solutions such as GentleCath catheters and infusion sets used in diabetes and other therapies. Through these offerings, ConvaTec aims to improve patient outcomes while helping healthcare systems manage the long-term costs associated with chronic disease care.
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