ConvaTec shares surged to the top of the FTSE 100 leaderboard on Tuesday after lifting its outlook amid strong earnings growth and a ‘rich innovation pipeline’.
ConvaTec has reported a solid set of full-year results for 2025, with revenue rising 6.5% to $2,439m and adjusted operating profit climbing 12.1% to $544m. Adjusted diluted earnings per share grew 16% to 17.6 cents, comfortably in the mid-teens range the group had guided towards.
The adjusted operating margin widened by 110 basis points to 22.3%, whilst the company generated $362m in free cash flow to equity before growth capex. This was broadly flat year-on-year, but reflecting a step-up in capital investment to $185m as the group backs its pipeline.
This was all good news for investors, who were happy to bid the stock higher on Tuesday, sending shares up 7.4% as of the time of writing.
Growth across the board
All four divisions delivered organic revenue growth. Infusion Care led the way at 12.5%, driven by strong demand for infusion sets in both diabetes and non-diabetes treatments.
Continence Care grew 6.6% on US volume gains and expanding international sales, whilst Ostomy Care added 4.5%, supported by new patient starts and the well-received Esteem Body launch. Advanced Wound Care grew 4.1% excluding InnovaMatrix, which fell 30% to $69m following a $72m impairment charge on the Triad intangible asset.
2026 outlook
Management expects organic revenue growth of 5-7% excluding InnovaMatrix. The adjusted operating margin is guided to at least 23.0%, taking into consideration tariff costs in the first half. The group is confident it can replicate its double-digit adjusted EPS growth again in the coming year.
“Convatec performed strongly in 2025, demonstrating further resilient growth. We delivered broad-based organic revenue growth across all categories, supported by new product launches, operating margin expansion, mid-teens growth in adjusted earnings per share and strong cash conversion,” said Jonny Mason, Chief Executive Officer of ConvaTec.
“Looking ahead, we are increasing our medium-term revenue growth target to 6-8% from 2027. This acceleration follows the successful implementation of our strategy and is underpinned by our rich innovation pipeline. These results are also testament to our great team of Convatec colleagues who bring our promise of forever caring to life daily for the millions of people around the world who rely on our trusted medical solutions.”
The group returned $300m through share buybacks and is recommending a full-year dividend of 7.244 cents, up 13%.