Convatec Group PLC delivered robust financial performance for the full year 2025, with reported revenue rising 6.5% to over $2.4 billion. Organic revenue growth excluding InnovaMatrix reached 6.4%, reflecting broad-based strength across all categories.4433
Key Financial Highlights
Adjusted operating profit climbed 12.1% to $544 million, expanding the adjusted operating margin by approximately 110 basis points to 22.3%. Adjusted diluted EPS increased 16.0% to 17.6 cents, supported by strong cash generation that funded $185 million in capex, $140 million in dividends, and $300 million in share buybacks.44
Reported operating profit dipped 2.7% to $316 million due to a $72 million impairment on the Triad intangible asset amid InnovaMatrix reimbursement changes. Net debt stood at $1.33 billion, with an adjusted EBITDA ratio of 2.0x.
Performance Across Categories
- Advanced Wound Care (AWC): 4.1% organic growth excluding InnovaMatrix, driven by ConvaFoam and Aquacel Ag+ Extra. InnovaMatrix revenue fell 30% to $69 million.
- Ostomy Care (OC): 4.5% growth, boosted by new U.S. patient starts, Esteem Body launch, and gains in Germany, Europe, and Middle East.
- Continence Care (CC): 6.6% increase from U.S. volume growth and international expansion.
- Infusion Care (IC): 12.5% surge, fueled by demand for infusion sets in diabetes and non-diabetes therapies like Neria Guard for Parkinson’s.
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Innovation and Strategic Progress
New products gained traction, including ConvaFoam taking wound care share and EU/UK approval for ConvaNiox nitric oxide dressing. In ostomy, Esteem Body exceeded plans, securing key U.S. GPO contracts. Continence saw share wins with GentleCath Air for Women, and infusion expanded with AbbVie supply deals.44
FY2026 Guidance and Medium-Term Targets
Management projects FY2026 organic revenue growth excluding InnovaMatrix at 5-7%, with adjusted operating margin at or above 23.0% despite tariff headwinds. Double-digit adjusted EPS growth remains on track, alongside $200-230 million capex and around 100% equity cash conversion.
Medium-term ambitions upgrade to 6-8% annual organic revenue growth from 2027, mid-20s adjusted operating margin by 2027, and sustained double-digit EPS growth.44
The Board proposes a final dividend of 5.367 cents, lifting the full-year payout 13% to 7.244 cents at a 40% payout ratio.
CEO Commentary
Chief Executive Officer Jonny Mason stated, “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.”
He added, “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.”44
