Carl Zeiss Meditec AgXETR: AFX

Analyst conference 3 months 2025/26

· Issued by Carl Zeiss Meditec Ag
Watch Carl Zeiss Meditec explain itCarl Zeiss Meditec Ag (CZMWF) Q2 2026 Earnings Call · Replay · May 12


‌Carl Zeiss Meditec Group

3M 2025/26 Results

Andreas Pecher, President and CEO Justus Felix Wehmer, CFO

12 February 2026





01

02

03

3M 2025/26 at aGlance

Financial Performance

Key Topics andOutlook



‌Agenda‌

‌Weak start to FY 2025/26 with revenue and EBITA below PY

FX and unfavorable product mix cause margin drop

3M 2025/26

Revenue

  • FX-adj. revenue -2.1% mainly from USD

€ 467.0m

  • FX-adj. revenue -0.7% when factoring all currency headwinds of -€20m, mainly incl. USD and CNY,

3M 2024/25

-4.8%

arising from German exports invoiced in foreign currencies to the ZEISS Group's distribution network

490.5

  • Revenue decline both in Equipment and consumables

  • Softer start to the FY following the exceptionally strong equipment delivery baseline in Sep 2025

  • Revenue loss from bifocal IOL in China following its withdrawal from current VBP tender; delayed

refractive treatment pack sales due to the late timing of the Chinese New Year holidays

3M 2025/26

3M 2024/25

3M 2025/26

3M 2024/25

35.2

522.1

€ 471.2m

-9.7%

€ 8.1m

-77.0%

Order entry

  • FX- adj. orders declined by -6.9%

  • Slight increase in order backlog to €404.7m (30 Sep 2025: €379.6m )

    Service

    Equipment

    52%

    Revenue

    breakdown

    11%

    Consumables

    37%

    EBITA1

  • EBITA margin at 1.7% (PY 7.2%)

  • Significant decline in EBITA mainly driven by FX effects and unfavorable product mix

  • OpEx ratio weighed on margins, as expenses remained stable

    1. Earnings before interest, taxes and amortization of intangible assets from purchase price allocation



01

02

03

3M 2025/26 at aGlance

Financial Performance

Key Topics andOutlook



‌Agenda‌

‌Ophthalmology

Weak start due mainly to refractive phasing and bifocal IOL sales loss in China

Revenue

3M 2025/26

3M 2024/25

376.2

€ 356.9m

-5.1%

  • FX-adj. revenue declined by -2.4%

  • Revenue pressured by FX effects, strong prior-year-end equipment sales, later phasing of refractive treatment pack sales and the loss of bifocal IOL sales in China

  • Potential bifocal IOL scrap risk estimated at ~€8m in Q2 (treated as non-recurring impact), successor model registration progressing well

    EBITA margin

    3M 2025/26

    3M 2024/25

    4.8%

    -0.4%

    -5.2 pp

  • Gross margin declined -1.9pp driven by FX effects and unfavorable product mix

  • OpEx ratio weighed -2.8pp on margin while expenses remained stable



    Revenue Split

    of total revenue

    OPT

    76%

    Equipment

    45%

    of OPT revenue

    Service

    9%

    Consumables

    46%



    ‌Microsurgery

    Margin decline due to FX headwinds and unfavorable product mix

    Revenue

    3M 2025/26

    3M 2024/25

    3M 2025/26

    3M 2024/25

    114.3

    15.1%

    € 110.1

    -3.7%

    8.7%

    -6.5 pp

  • FX-adj. revenue declined -0.9%

  • Soft revenue despite a modest base mainly reflects exceptionally strong deliveries towards prior fiscal year end;

  • Unfavorable mix with slower than planned deliveries of neurosurgical microscopes weighing on profit

    EBITA margin

  • Gross margin -5.5 pp lower yoy arising from FX effects, unfavorable product mix and

    amortization of capitalized R&D for KINEVO®



  • OpEx ratio weighed -1pp on margin while expenses remained stable

    Revenue Split

    of total revenue

    MCS

    24%

    Equipment

    79%

    of MCS

    Service



    15%

    revenue Consumables

    6%



    ‌Regional development

    EMEA stable while softer performance in Americas and APAC



    Americas

    25.0%

    Americas

    3M 2025/26

    3M 2024/25

    133.7

    € 116.7m

    -12.7%

    • FX-adj. revenue decreased -6.2%

    • Weaker investment climate amid heightened geopolitical volatility

    • Revenue decline in key markets incl. US



      EMEA

      3M 2025/26

      37.2%

      EMEA

      3M 2024/25

      174.0

      € 173.6m

      -0.2%

    • FX-adj. revenue growth of +1.2%

    • Resilient development supported by growth in selected markets, incl. the Middle East

    • Sideways in core European markets, incl. Germany, Spain and the Nordics



      APAC

      37.8%

      APAC

      Incl.

      17.7%

      China

      3M 2025/26

      3M 2024/25

      182.7

      € 176.7m

      -3.3%

    • FX-adj. revenue decline of -2.2%

    • China remained stable; India and Australia showed positive trends; weaker revenue in Japan and South Korea



      ‌P&L - Contraction in margin while OpEx remained stable 3M 2025/26 3M 2024/25

      in €m in % of sales

      48.6

      Income Statement

      Gross profit

      252.1

      51.4

      226.1

      48.4

      226.2

      46.1 capitalized R&D expenses for KINEVO®

      115.9

      24.8

      120.5

      24.6 ▪ OpEx flat y/y while ratio increased due to negative

      34.7

      7.4 operating leverage

      G&A expenses

      28.2

      5.7

      75.5

      16.2 ▪ EPS down to -€0.06 driven by sharp EBIT decline and

      R&D expenses

      77.5

      15.8 negative financial results, primarily arising from

      EBIT

      1.1

      0.2 higher interest expenses

      28.0

      5.7

      EBITA

      8.1

      1.7 ▪ Adj. EPS down to €0.03, based on logic of adj. EBITA,

      35.2

      7.2

      10.3

      2.2

      Adj. EBITA

      33.1

      6.7 purchase price liabilities in financial result, FX/hedging

      EPS (€)

      -0.06

      result not adjusted

      0.18

      Adj. EPS (€)

      0.03

      0.24

      • Gross margin decline due to FX, lower contribution from neurosurgical microscopes, IOLs and refractive treatment packs, and higher amortization of

excluding non-cash valuation effects on contingent



‌EBIT, EBITA, adj. EBITA bridge

EBITA

3M 2025/26

€m

3M 2024/25

€m

yoy

%

EBIT

1.1

28.0

-96.1

+ Amortization of PPA*

7.0

7.2

-2.8

EBITA

8.1

35.2

-77.0

EBITA margin

1.7%

7.2%

-5.5 pp

./. Other special items**

-2.2

+2.1

-

Adjusted EBITA

10.3

33.1

-68.9

Adjusted EBITA margin

2.2%

6.7%

-4.5 pp

* Regular amortizations on purchase price allocations (PPA) of DORC (€6.5m) and former acquisitions (€0.5m)

** legal expenses in connection with a lawsuit related to CZM CT (former IanTech)



‌Operating cash-flow improvement

Cash flow statement

3M 2025/26 3M 2024/25 in €m

Cash flow from operating activities

-26.3

16.7

Cash flow from investing activities

-17.6

0.7

Cash flow from financing

activities

Net financial debt

-365.6

-16.9

-281.7



as of 31stDec 2025 as of 31stDec 2024

50.1

  • Operating cash flow increased, mainly driven by a strong reduction in receivables, in particular from third parties, and income tax refunds reflecting weaker operating results
  • Investing cash flow improved, primarily due to lower investments in property, plant and equipment compared to the prior year
  • Financing cash flow declined, mainly impacted by the reduction of liabilities to the ZEISS Group Treasury
  • Net financial debt at a lower level compared to a year ago


01

02

03

3M 2025/26 at aGlance

Financial Performance

Key Topics andOutlook



‌Agenda‌

‌Guidance temporarily suspended in January - changes vs. Dec 2025 Message at 12M 24/25 analyst conference How things evolved

  • Bifocal IOL (AT lisa 809) withdrawn from existing VBP

    tender and can't be sold to public hospitals

  • Ambiguity in VBP withdrawal, while license still valid, investigating possibility to sell to other markets or private section

  • How to treat stocks remains unclear, in worst case need to recall and scrap

  • Limited re-sale opportunities for bifocal IOLs

  • Partial recall of product negotiated with external distributors and Carl Zeiss China, earnings risk around

€8m for CZM

  • 2ndVBP will pressure IOL prices, magnitude rather softer than the 1stnation-wide tender

  • In multifocal categories, Chinese companies have passed registration

  • Price competition in multifocal categories expected to be tougher than previously assumed - new VBP tender expected from April 2026

  • Competition in equipment heating up, buy local policies expanding

  • Anticipation of weaker equipment sales in October/November and recovery as of December (following strong year end 2024/25).

  • Currently weaker demand in US and Americas markets, internal sales forecasts have been reduced to account for weaker capex outlook



‌ZEISS remains strongly committed to innovation and expansion of the operational footprint in China

  • New Campus construction launched in Shanghai, positioned as a key global innovation hub

  • Transfer of manufacturing for key consumables and equipment

  • SMILE ®pro procedures > 50,000 since its launch in China





‌We will provide new guidance at latest with half year results considering the following factors: Headwinds such as Trade barriers, regulatory changes, weak consumer climate and FX will further pressure our business in FY 25/26 - we will be able to provide further quantification by May Swing factors Non-recurring items Key positive drivers

Timing of successor Bifocal IOL

registration and launch

Expected in March

Old Bifocal IOL scrap

FQ2

VISUMAX®800 (SMILE®pro) rollout in China

VBP results

Expected April / May

Results of reprioritization of R&D projects and potential impact on IP

FH2

Global KINEVO®900 S momentum

Refractive procedure consumption during Chinese New Year holidays

Expected March

One-time non-recurring expenses related to reorganization projects

FH2 and beyond

Reorganization plan

April / May



‌Temporary suspension of guidance for FY 2025/26

  • As announced through the ad-hoc news on 22 January 2026, the previous forecast of €2.3bn in revenue and an EBITA margin of 12.5% before non-recurring items is expected unlikely to be achieved due to a weak start to the year and a subdued sales outlook in the key markets of the US and China;

  • The updated outlook for FY 2025/26, together with an update on further reorganization and cost-reduction measures, focusing on accelerating product localization, reprioritizing R&D activities, and implementing additional efficiency initiatives, will be presented as soon as possible, at the latest with the six-month results on 12 May 2026. By then, more detailed assessments are also expected regarding consumption patterns during the Chinese winter season in the refractive market, as well as the outcome of the nationwide volume-based tender for IOLs in China.