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Embla Medical Reports Strong Performance in Q4 and Full Year 2025

Embla Medical hf, a leading provider of innovative mobility solutions, recently published its interim report for the fourth quarter and full year 2025, showing strong sales performance despite challenging global conditions. The report, highlighted by President and CEO Sveinn Sölvason, revealed that the company achieved sales of USD 257 million during Q4, reflecting a 7% increase in organic sales growth and a notable 10% increase when considering local currency adjustments. The growth can be largely attributed to the company’s significant investment and recent innovations in the Prosthetics and Neuro Orthotics (PNO) segment.

Key Highlights from Q4 2025

In Q4 2025, Embla Medical's sales growth was significantly driven by the Prosthetics and Neuro Orthotics divisions, which experienced a robust organic growth of 9%. The Bracing and Supports segment, however, ended the quarter flat, while Patient Care saw a slight uptick in its sales with a 5% organic growth. For the full year, organic sales growth stood at 6%. The company managed to maintain a gross profit margin of 62%, comparable to previous quarters, despite facing headwinds from foreign exchange fluctuations, tariffs, and new initiatives aimed at enhancing long-term growth in the Patient Care segment.

Sölvason commented on the decrease in the EBITDA margin, which fell to 19% compared to 21% in Q4 of the previous year, emphasizing how their focus on enhancing manufacturing efficiency and robust sales growth contributed positively to the margins. However, he also noted the challenges presented by external factors like tariffs that have impacted their overall cost structure.

Performance in 2025

The 2025 fiscal year was marked by significant advancements for Embla Medical across various geographical markets. The fundamental demand for their products remains strong even as the geopolitical landscape becomes increasingly unstable. In the report, the company is optimistic about issuing guidance for 2026, projecting organic sales growth between 5% to 8% and aiming for an EBITDA margin of 20% to 22%.

Achievements and Community Initiatives

Noteworthy achievements include being listed among the world's top 500 companies for sustainable growth for two consecutive years. Embla Medical also announced significant community initiatives, including the launch of a new prosthetic clinic in Kyiv in partnership with the Government of Iceland, aimed at delivering high-quality care to Ukrainian amputees through their three-year program titled “Iceland Supports Mobility in Ukraine.” This illustrates Embla Medical's commitment not just to business excellence but also to social responsibility.

Financial Health and Future Outlook

As of the end of Q4, the company reported a net profit of USD 25 million, a remarkable 33% increase compared to the same quarter the previous year. Free cash flow also surged to USD 42 million, representing 16% of sales, showing solid operating results alongside a strategic focus on capital expenditure. The company maintains a strong financial position with an NIBD/EBITDA ratio of 2.4x, within their target range of 2-3x.

With an impressive performance this past year, Embla Medical is set to continue its trajectory of growth while also prioritizing sustainable practices to meet the needs of its customers and communities. The company remains committed to innovating and improving healthcare solutions, further solidifying its position as a leader in the industry.

For more information on the report and future guidance, readers can access the full interim report through the company’s investor relations page.