CONMED

Overview

CONMED is a medical technology company that supplies devices and equipment for surgical procedures. The company's commercial focus is on two main product lines: orthopedic surgery and general surgery.

Product lines

• Orthopedic surgery
  • Sports medicine, lower extremities, arthroplasty, biologics, and fracture/fixation.
  • Products include BioBrace; TruShot with Y-Knot All-In-One Soft Tissue Fixation System; Y-Knot all-suture anchors; Argo knotless suture anchors; and a range of bone power tools under the Hall brand.
• General surgery
  • Advanced surgical and endoscopic technologies.
  • Products include the AirSeal insufflation system, Buffalo Filter smoke evacuation products, energy devices, endomechanical instruments, and imaging and monitoring products for gastroenterology and other applications.
• Strategic actions
  • Exiting certain gastroenterology product lines; Gore VIABIL biliary stent distribution terminated effective January 1, 2026.
  • Ongoing portfolio optimization, including discontinuation of some products and planned divestitures where applicable.

International footprint and customers

• Products sold in over 100 countries.
• International operations represent a meaningful portion of revenue; international sales were approximately 44% of consolidated net sales in 2025. Foreign currency impacts are discussed in the MD&A.
• Direct presence in Europe, Australia, Canada, and Asia; local currency-denominated sales represented about 32% of total net sales in 2025.
• Customer base is diversified; no single customer accounted for more than 10% of net sales in 2025.
• Approximately 6,000+ hospitals, surgery centers, and other healthcare institutions purchase CONMED products directly or via distributors.

Manufacturing, facilities and operations

• Principal manufacturing sites: Utica, New York; Largo, Florida; Chihuahua, Mexico.
• Principal distribution centers: Lithia Springs, Georgia and Brussels, Belgium.
• Additional sales and administrative offices located worldwide.

Employees

• Approximately 3,900 full-time employees as of December 31, 2025 (about 2,400 in operations; the remainder in sales, marketing, R&D and administration).

Financial highlights (fiscal year ended December 31, 2025)

• Net sales (revenue): $1,374.7 million (up 5.2% from 2024; 2023 net sales were $1,244.7 million).
• Net income: $47.1 million (3.4% of net sales) for 2025; compare $132.4 million (10.1%) in 2024 and $64.5 million (5.2%) in 2023.
• Gross margin: 54.6% in 2025 (56.1% in 2024; 54.3% in 2023).
• Operating income: $102.6 million in 2025 (7.5% operating margin on net sales; 15.3% in 2024; 9.7% in 2023).
• Selling, general and administrative expense (SG&A): $592.0 million in 2025.
• Research and development expense: $55.9 million in 2025.
• Interest expense: $31.1 million in 2025.
• Effective tax rate: 33.8% in 2025 (18.8% in 2024).
• Cash and liquidity: cash on hand was $40.8 million at December 31, 2025; available borrowings under the revolving credit facility were $648.5 million.
• Debt and related items: outstanding long-term debt included $840.0 million; convertible notes due 2027 are outstanding, with associated hedges and accounting impacts.
• Dividends and share repurchases: dividend payments were suspended when the share repurchase program was extended; 2025 dividends paid were approximately $24.7 million. A revised share repurchase program of up to $150 million was authorized on October 31, 2025 (previous program was $200 million); no shares were repurchased in 2025 under either program. The company plans to repurchase at least $25 million in 2026.
• Non-GAAP: net sales are also analyzed on a constant currency basis in the MD&A to measure growth excluding foreign currency effects.

Product and market dynamics

• A large portion of orthopedic revenue (about 78% in 2025) comes from single-use products with recurring revenue characteristics.
• A large portion of general surgery revenue (about 92% in 2025) also comes from single-use products.
• Competition includes large multi-line medical device manufacturers and specialized surgical suppliers across orthopedics and general surgery.
• The company emphasizes supplier diversification and manufacturing and operational efficiencies to address cost pressures and supply chain challenges.

Summary

CONMED is a global medical device company focused on orthopedic and general surgery product lines, selling to more than 6,000 healthcare facilities worldwide. International sales were a substantial share of revenue in 2025. The company operates three main manufacturing sites and two primary distribution hubs, employs about 3,900 people, and reported 2025 net sales of $1.375 billion and net income of $47.1 million (3.4% margin), with a 54.6% gross margin and a 7.5% operating margin. CONMED is pursuing portfolio optimization and globalization, including exiting selected gastroenterology products, while managing its balance sheet and maintaining a share repurchase program.