Ambu A/S reported third-quarter fiscal 2025/26 earnings that fell short of market expectations, sending shares down 15.15% to $66.35 on Wednesday.
The company posted earnings per share of $0.62, missing the $0.6223 consensus estimate by approximately $0.0023, or 0.37%. Revenue totaled $1.64 billion, falling short of the $1.65 billion forecast by about $10 million, or 0.61%. The stock’s decline erased $11.85 per share from the prior close of $78.20, leaving it 40.6% below its 52-week high of $111.80 and 17.6% above its 52-week low of $56.40.
Organic growth for the quarter reached 10.3%, with the 12-month rolling organic growth at 9%. Management raised its full-year organic growth guidance to around 10%, up from prior expectations. Endoscopy Solutions revenue grew 16% in the quarter, now accounting for 64% of total revenue, aligning with the long-term compound annual growth target of 15% to 20%.
The Respiratory portfolio grew 17.1% year-over-year, while Urology, ENT, and GI segments expanded 15%. Anesthesia & Patient Monitoring, which represents 36% of revenue, grew 1.6% in the quarter, in line with its long-term market growth target of 3% to 5%.
Reported EBIT margin improved to 13.5%, up 2.2 percentage points from the prior year. Full-year EBIT margin guidance was maintained at 12% to 14%, with expectations to land in the upper end. Long-term targets remain at 20% by fiscal 2028 and above 20% by fiscal 2030. Adjusted EBIT margin stood at 12.5%, while gross margin increased to 59.5%, up 60 basis points from 58.9% a year earlier.
Net free cash flow for the quarter was DKK 154 million, with a cash conversion rate of 48%. The company maintained its full-year cash conversion target above 40%. Tariffs weighed on results by about 1 percentage point for the year before refunds, and additional tariff refunds of DKK 85 million were received after quarter-end, with DKK 70 million still outstanding.
Chief Executive Officer Britt Meelby Jensen highlighted the company’s leadership in single-use endoscopy, citing strong adoption supported by key opinion leaders. Chief Financial Officer Henrik Skak Bender noted that third-quarter results were impacted by one-time costs primarily in administrative and selling expenses, while reiterating confidence in fourth-quarter performance, driven by refunds and underlying EBIT growth.
