Shares in Ambu, the Danish medical device manufacturer, tumbled 17.41% on Wednesday after the company reduced its full-year revenue guidance for fiscal 2025/26, citing weaker-than-expected demand in key segments.
The company now expects organic revenue growth of around 10% for the year, down from its prior forecast of 10-12%. The adjustment reflects slower volume uptake in the Anesthesia & Patient Monitoring division, which is now projected to deliver only very low-single-digit organic growth. In contrast, the Endoscopy Solutions division maintained its outlook of more than 15% organic growth.
Ambu also kept its EBIT margin guidance at 12-14%, with the range now skewed toward the high end. The company attributed this to operating leverage and tariff refunds, partially offset by investments in its commercial organization.
Third-quarter results showed organic revenue growth of 10.3%, rising to DKK 1.64 billion from DKK 1.51 billion a year earlier. Reported revenue increased 8.8%, while EBIT climbed to DKK 221 million from DKK 170 million. The EBIT margin improved to 13.5% from 11.3%, supported by operational efficiency and tariff reclaims.
Free cash flow before acquisitions totaled DKK 154 million, up from DKK 128 million, driven by solid operational performance and better working capital management. Regional organic growth varied, with Europe at 10.2%, Rest of World at 14.4%, and North America at 9.7%, the latter boosted by strong Endoscopy Solutions performance.
Ambu’s updated guidance and the sharp share decline underscore challenges in sustaining growth across its portfolio amid shifting market dynamics.
