ZBH Filings — Zimmer Biomet Holdings, Inc. - FilingSpy
ZBH
Zimmer Biomet Holdings, Inc.
A maker of orthopedic implants and surgical tools, Zimmer Biomet builds replacement knees and hips, sports-medicine and trauma devices, and robotic surgery systems like the ROSA robot, used by surgeons worldwide. It began in 1927 when Justin Zimmer, dismissed by his employer as "just small potatoes," founded the company in the basement of his Warsaw, Indiana home. In 2015 it merged with fellow Warsaw firm Biomet, and the combined company still calls the "Orthopedic Capital of the World" home.
Net earnings rose 29.8% to $198.3M as lower acquisition costs and a tariff refund lifted profit despite a gross margin decline.
Profit rebounded from a year-ago trough driven by integration costs. rose 4.8% to $2,177.0M and climbed 33.8% to $1.03, helped by a $30M U.S. tariff refund and lower restructuring and R&D expenses, while slipped 0.7 points to 70.8% on higher manufacturing costs. The quarter shows the Paragon 28 acquisition beginning to contribute to earnings rather than just revenue, but underlying margin pressure persists.
Key takeaways
rose 29.8% to $198.3M from $152.8M a year earlier, primarily because acquisition, integration, and restructuring costs fell sharply and R&D spending declined after EU MDR compliance work concluded.
rose 4.8% to $2,177.0M, with volume and mix contributing 5.5 percentage points of growth, partially offset by a 0.8-point pricing ; the acquisition and strong and bone cement demand were the main drivers.
Technology & Data, Bone Cement and Surgical sales rose 21.1% on and bone cement demand, while grew 6.4% aided by .
Section summaries
Management's Discussion and Analysis
Net sales rose 4.8% in Q2 FY2026 driven by Paragon 28, robots, and bone cement; net earnings grew on lower acquisition costs and a tariff refund.
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Consolidated increased 4.8% to $2,177.0 million in Q2 FY2026, with volume/mix contributing 5.5% growth and pricing a 0.8% .
fell 0.7 points to 70.8% as higher manufacturing costs and the step-up of to fair value outweighed the benefit of a ~$30M U.S. tariff refund adjustment that aided the six-month margin.
reached $807.2M year-to-date, and the company repurchased $500.8M of stock in the first half, ending the quarter with $410.0M in cash and $2.75B in available credit facilities.
Full-year 2026 growth is guided at 3.9%–4.9%, with adding approximately 1.1% and foreign currency about 0.5%, partly offset by go-to-market changes and price declines.
What changed
The Q1 FY2026 watch item on whether the ~$30M tariff refund was a one-quarter item is partially resolved: the refund aided the six-month margin, but cost of products sold as a percentage of sales still increased in Q2 due to higher manufacturing costs, indicating the underlying tariff and cost pressure continues.
Restructuring charges remained low at $6.3M in Q1 and the Q2 narrative confirms restructuring savings are flowing through, with lower charges contributing to the increase.
The prior concern about integration costs weighing on profit reversed: lower acquisition and integration costs were a primary driver of the 29.8% increase in Q2, suggesting the heaviest integration spending is past.
sales, which had declined in earlier periods, rebounded as Technology & Data, Bone Cement and Surgical sales rose 21.1% on strong robot and bone cement demand.
What to watch
Whether can recover from 70.8% in the second half as the step-up rolls off and manufacturing cost pressures are addressed.
Q3 FY2026 against the 3.9%–4.9% full-year guide, particularly whether the 0.8-point pricing persists or widens.
The pace of share repurchases after $500.8M was spent in H1 and whether the remaining authorization is used or preserved given cash of $410.0M.
Any update on the U.S. sales-force conversion from independent agents to employees flagged in the FY2025 10-K and whether it affects go-to-market execution.
Technology & Data, Bone Cement and Surgical sales surged 21.1% on strong and bone cement demand; grew 6.4% aided by .
rose to $198.3 million from $152.8 million, helped by lower acquisition/integration costs, reduced R&D spending, and restructuring savings.
Cost of products sold as a % of sales increased in Q2 due to higher manufacturing costs and step-up, but a $30M tariff refund aided the six-month margin.
reached $807.2 million year-to-date; the company repurchased $500.8 million in stock and holds $410.0 million in cash with $2.75 billion in credit facilities.
Full-year 2026 growth is guided at 3.9%–4.9%, with adding ~1.1% and foreign currency ~0.5%, partly offset by go-to-market changes and price declines.
Information pertaining to legal proceedings can be found in Note 16 to our interim condensed consolidated financial statements included in Part I, Item 1 of this report and is incorporated herein by reference.
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Information pertaining to legal proceedings can be found in Note 16 to our interim condensed consolidated financial statements included in Part I, Item 1 of this report and is incorporated herein by reference.
You should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”), which could materially affect our business, financial condition and results of operations. The risks d…
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You should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”), which could materially affect our business, financial condition and results of operations. The risks described in our 2025 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or results of operations.