Annual results for the year ended 31 December 2025

Strong delivery drives revenue growth, margin progress & mid-teens adjusted EPS growth

Upgrading medium-term organic growth target to 6-8%

London, UK, 26 February 2025 – Convatec, a leading medical products and technologies company, announces its annual results for the twelve months ended 31 December 2024.

FY 25 financial highlights: strong delivery, in line with our guidance
· Organic revenue excluding InnovaMatrix^® up 6.4% (2024: 6.8%); including InnovaMatrix^® 4.8%¹; reported growth 6.5%
· Adjusted operating margin² up c.110 bps to 22.3%. Adjusted diluted EPS² up 16.0% 
· Strong cash generation funding re-investment & returns: $185m capex, $140m dividend & $300m share buyback 

Broad-based organic revenue growth across categories, geographies and products

· AWC⁴: 4.1%¹ ex-InnovaMatrix^®, led by a growing contribution from ConvaFoam^TM and further Aquacel^® Ag+ Extra^TM growth. InnovaMatrix^®3 revenue of $69m (<3% of Group), down 30% YoY 
· OC⁴: 4.5%¹ supported by new patient starts in the US and Europe, Esteem Body^TM launch and growth in GEM 
· CC⁴: 6.6%¹ driven by volume growth in the US, excellent customer service and growing international sales
· IC⁴: 12.5%¹ with continued strong demand for our infusion sets in both diabetes and non-diabetes treatments

Innovative pipeline driving new product launches and winning share
· In AWC, ConvaFoam^TM delivered excellent growth and is taking segment share. We also achieved EU and UK regulatory approval for ConvaNiox^TM, our highly innovative wound dressing powered by nitric oxide, with revenue expected to grow from 2027
· In OC, Esteem Body^TM performed very strongly and is ahead of our plan. We also secured our first US Group Purchasing Organisation (GPO) contract win in over 5 years, plus a further GPO win post-year end
· In CC, our compact catheter GentleCath Air^TM for Women is winning segment share, and we are progressing towards launch of the male version in 2026
· In IC, we achieved our fastest organic growth from new customers and therapies, particularly Neria^TM Guard for AbbVie’s Parkinson’s disease treatment, where we have significantly extended our long-term supply contract 

Confidence in FY26 outlook: another year of double-digit EPS² growth
· Group organic revenue growth excluding InnovaMatrix^®3 of 5-7% (unchanged), with growth weighted to H2 
· InnovaMatrix^® revenue of c.$20m³, representing a headwind of c. 2% of Group revenue in FY26 and c.3% in H1 26
· Adjusted Group operating margin² ≥23.0%, inclusive of c.20bps of incremental YoY tariff costs, all in H1
· Double-digit adjusted EPS² growth (unchanged)
· Capex of $200-$230m, including growth capex of $135-165m, as we invest in all categories to meet rising demand
· Strong cash generation, with c.100% equity cash conversion^† 

Increasing medium-term organic revenue growth target
· Upgrading annual organic revenue growth target to 6-8% (previously 5-7%) from 2027. This acceleration follows successful implementation of our strategy and will be driven by our rich innovation pipeline
· Mid-20s% (24-26%) adjusted operating margin² by 2027
· Sustainable double-digit adjusted annual EPS² growth and double-digit free cash flow to equity CAGR

Jonny Mason, Chief Executive Officer, commented:
“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. 

“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.”

2025 financial summary 
· Adjusted operating profit² up 12.1% to $544m. Reported operating profit down 2.7% to $316m, including a $72m impairment of the Triad intangible asset given the InnovaMatrix^® CMS rate change
· Adjusted operating margin² of 22.3%, up c.110 bps YoY. Reported operating margin of 13.0%, down 120 bps YoY 
· Adjusted diluted EPS² increased 16.0% to 17.6 cents. Net finance costs decreased $10m YoY to $68m given lower average net debt; adjusted tax rate unchanged at 24.0%. Reported diluted EPS 8.6 cents (2024: 9.3 cents) 
· Record investment to support future growth, with growth capex of $121m (2024: $59m) and operational capex of $64m (2024: $63m)
· Free cash flow to equity⁵ before growth capex^† of $362m (2024: $361m), representing equity cash conversion⁵ of 101% (2024: 116%). Equity cash conversion on a comparable basis to the prior year was 61% (2024: 97%)
· Secured investment grade status with all three large credit agencies, extended our financing maturity with new $500m ten-year senior unsecured note
· Returned $300m to shareholders via share repurchases
· Net debt of $1,330m (2024: $1,058m), representing an adjusted EBITDA ratio of 2.0x (2024: 1.8x), in line with target
· As a sign of confidence in our outlook and strategy, the Board recommends a final dividend of 5.367 cents, resulting in a full year dividend of 7.244 cents, an increase of 13%. The payout ratio of 40% (2024: 42%) of adjusted net profit is in the middle our target range of 35-45%  

Investor and analyst presentation

The results presentation will be held at 09:00hrs (UK time) today. The event will be simultaneously webcast and the link can be found here. The full text of this announcement and the presentation for the analysts and investors meeting can be found on the ‘Results centre’ page of the Convatec Investor Relations website (link here).

Contact
Investor Relations: IR@convatec.com   
Media: MediaRelations@convatec.com

Scheduled events

Dividend calendar

About Convatec

Pioneering trusted medical solutions to improve the lives we touch: Convatec is a global medical products and technologies company, focused on solutions for the management of chronic conditions, with leading positions in Advanced Wound Care, Ostomy Care, Continence Care, and Infusion Care. With over 10,000 colleagues, we provide products and services in around 90 countries, united by a promise to be forever caring. Our solutions provide a range of benefits, from infection prevention, treatment for hard to heal wounds, at-risk skin and ulcerated tissue to supporting debilitating conditions, improved patient outcomes and reduced care costs. Convatec's revenues in 2025 were over $2 billion. The company is a constituent of the FTSE 100 Index (LSE:CTEC). To learn more please visit http://www.convatecgroup.com 

(1) Organic growth is calculated by applying the applicable prior period average exchange rates to the Group's actual performance in the respective period and excluding acquired and disposed/discontinued businesses. Acquisitions and disposals added 20 bps to constant currency growth in 2025

(2) Consistent with prior years, management present adjustments to the reported figures to produce more meaningful measures in monitoring the underlying performance of the business.

(3) In October 2025, Medicare Administrative Contractors announced a price rate of $127/cm² for Skin Substitutes and Tissue-Based Products. As reported at our H1 25 results and November 2025 trading update we expect this will impact FY26 Group revenue by 2%. As a result of this significant reduction in revenue, and in advance of returning to growth, we have recorded a $72m impairment of the Triad Life Sciences acquisition intangible asset (see Financial Review for further details). 

(4) AWC is Advanced Wound Care; OC is Ostomy Care; CC is Continence Care and IC is Infusion Care.

(5) Certain financial measures in this document, including adjusted results, are not prepared in accordance with International Financial Reporting Standards (IFRS). All adjusted measures are reconciled to the most directly comparable measure prepared in accordance with IFRS in the Non-IFRS Financial Information