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- **Q3 Growth**: 5% organic revenue growth, driven by U.S. knees (3.5% YoY) and hips (4% YoY), despite 120bps headwinds in emerging markets.
- **Product Momentum**: Persona OsseoTi implants now 30% of U.S. knee volume, on track for 50%+ penetration by 2027.
- **Financial Strength**: $800M year-to-date free cash flow, maintaining $8.10-8.30 EPS guidance amid $40M tariff headwinds.
- **Strategic Focus**: Semi-autonomous robotics (Monogram) and iodine-treated hips (FDA Breakthrough) position for 2026+ growth.

**【CEO Summary Section】**
- Zimmer Biomet reported 5% organic constant currency revenue growth in Q3 2025, driven by U.S. market acceleration (5.6% YoY) and new product adoption. Key highlights include:
  - **Knees**: U.S. growth of 3.5% YoY, with Persona OsseoTi and Oxford Partial Cementless implants exceeding internal adoption targets.
  - **Hips**: 4% YoY growth, supported by Z1 triple-taper stems and HAMMR surgical impactors.
  - **S.E.T.**: 6.4% YoY growth, despite weakness in restorative therapies.
- Updated 2025 guidance: Organic growth of 3.5-4% (down from 3.5-4.5% prior range), reflecting headwinds in emerging markets and restorative therapies.
- Strategic priorities: Innovation (e.g., Monogram semi-autonomous robotics), operational excellence, and disciplined capital allocation.

**【CFO Financial Commentary】**
- **Revenue**: Q3 2025 net sales of $2 billion (+9.7% reported basis), with adjusted EPS of $1.90 (+9.2% YoY).
- **Margins**: Adjusted gross margin of 72.6%, driven by favorable product mix and lower manufacturing costs.
- **Cash Flow**: Operating cash flow of $419 million, free cash flow of $278 million (year-to-date $800 million).
- **2025 Guidance**: Maintains $8.10-8.30 EPS target, with free cash flow of $1 billion-$1.2 billion.

**【Q&A Key Highlights】**
- **Guidance Philosophy**: CEO Ivan Tornos emphasized being 'more measured' in future guidance due to Q3 2025's unexpected 120bps headwinds (emerging market distributor cancellations, restorative therapy weakness).
- **Innovation Pipeline**: Monogram semi-autonomous robotics expected to launch with Persona implants in early 2027; iodine-treated hip implants received FDA Breakthrough Designation.
- **Capital Allocation**: CFO Suketu Upadhyay highlighted $1.6 billion+ EBITDA and low-3x leverage, supporting disciplined M&A and share buybacks.
- **Market Dynamics**: U.S. revision market softness may persist, but long-term growth driven by robotics adoption (ROSA utilization up 400bps YoY).

Zimmer Biomet Holdings, Inc. (ZBH) Q3 2025 Earnings Call Transcript

Revenue

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ZBH

ZBH fundamentals

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