Carl Zeiss Meditec (AFX) Q2 2026 earnings summary

Executive summary

• Revenue and profitability declined for the first six months, mainly due to currency headwinds, unfavorable product mix, weak intraocular lens sales in China, and significant one-off items such as R&D write-offs and legal expenses.

• The company launched the Profit Up/ProfitUp Program, targeting over EUR 200 million in annual profit improvements by 2028/2029 through cost restructuring, portfolio optimization, and commercial strengthening, with up to 1,000 positions globally affected.

• Midterm targets reaffirmed: aiming for adjusted EBITDA/EBITA margin above 15% by 2028/2029, with long-term potential of 16%-20%.

• Order entry showed solid growth in EMEA, while Americas and APAC remained weak; order backlog increased slightly.

• Net income attributable to shareholders decreased by 76% to €14.7m, with EPS at €0.17.

Financial highlights

• Revenue for six months was EUR 991 million, down 5.7% year-over-year (2.8% decline currency-adjusted).

• Adjusted EBITDA/EBITA was EUR 60.5 million (margin 6.1%), down from 10.7% prior year; reported EBITDA/EBITA EUR 39 million (margin 3.9%).

• Earnings per share fell to EUR 0.17; adjusted EPS was EUR 0.48.

• Gross margin decreased to 49.5% from 52.7% last year.

• Cash flow from operating activities improved to €98.9m, up from €8.5m in the prior year.

Outlook and guidance

• FY 2025/2026 revenue expected at EUR 2.15–2.2 billion, down 1% to 3.5% year-over-year; currency-adjusted revenue to remain broadly stable.

• Adjusted EBITDA/EBITA margin forecasted at 8%-10% for the year, with H2 expected to be stronger.

• Midterm organic revenue growth targeted at mid-single-digit percentage; adjusted EBITDA/EBITA margin >15% by 2028/2029.

• Cumulative one-off costs for restructuring could reach up to EUR 150 million over three years.

• Long-term EBITA margin target set at 16–20%.