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ConvaTec Group H1 earnings call highlights. August 4, 2026 Key points. * ConvaTec maintained its 2026 targets after delivering 5% first-half organic revenue growth excluding InnovaMatrix, 6% adjusted EPS growth and a 21.2% operating margin. Management expects stronger second-half growth, particularly in Infusion Care, and reaffirmed double-digit full-year EPS growth. * InnovaMatrix remains a significant headwind: first-half sales dropped to £2.5 million, prompting a £69 million non-cash impairment charge and reducing full-year revenue expectations to £5 million-£10 million. The company expects the product to approach breakeven in the second half as U.S. market conditions stabilize. * Shareholder returns and future investment increased: ConvaTec raised its interim dividend by 15% and launched a £200 million share buyback, while investing about $90 million in 2026 growth capital - primarily to expand Infusion Care capacity and support its product pipeline. * Interested in ConvaTec Group? Here are five stocks we like better. ConvaTec Group LON: CTEC said it remained on track to meet its 2026 financial targets after reporting 5% organic revenue growth in the first half, excluding the impact of its InnovaMatrix skin-substitute product. The company said revenue growth was broad-based across its four chronic-care categories, while it continued to invest in manufacturing capacity, new-product launches, simplification programs and technology. Management reiterated its expectation that growth will accelerate in the second half, led principally by Infusion Care. First-half operating margin was 21.2%, down 10 basis points from a year earlier but up 50 basis points at constant currency. Adjusted earnings per share rose 6%, with the company maintaining its expectation for double-digit EPS growth for the full year. Chief Financial Officer Fiona Ryder said ConvaTec expects around 100% free-cash-flow-to-equity conversion for 2026 despite lower first-half cash flow, which reflected working-capital timing and growth capital expenditures. The company increased its interim dividend by 15% and announced a £200 million share buyback program to be completed by year-end. InnovaMatrix creates revenue and margin headwind. InnovaMatrix sales fell £37 million year over year to £2.5 million in the first half, creating a little more than a 3% headwind to group revenue growth. ConvaTec now expects InnovaMatrix revenue of £5 million to £10 million for the full year, compared with previous expectations, representing an estimated 2.5% headwind to annual group revenue growth. The company took a £69 million non-cash impairment charge related to the product. Ryder said the reduction in expected InnovaMatrix revenue would not have a material negative impact on results beyond 2026. Management attributed the weak performance to uncertainty in the U.S. skin-substitutes market, including lower prices set by the Centers for Medicare & Medicaid Services, litigation challenging those actions and audit activity that has reduced physician activity. The company said InnovaMatrix sales began to improve in May and June versus earlier in the year, though the recovery has been slower than expected. Management said InnovaMatrix did not make money in the first half, but it expects the business to be close to breakeven in the second half. The company said roughly $10 million in sales would be required for the product to reach breakeven on an ongoing basis. * Advanced Wound Care: Revenue rose 3.4% excluding InnovaMatrix. Management said wound-care markets were somewhat softer than in 2025, while May and June were affected by order phasing for Aquacel. It still expects mid-single-digit growth for the category in 2026, supported by the continued rollout of ConvaFoam. * Ostomy Care: Organic growth was 4.3%. Esteem Body, the company's one-piece soft convex pouch, was annualizing at about $60 million in revenue and continuing to gain share. ESENTA accessories represented 20% of Ostomy Care sales. Flexi-Seal sales declined 4%, which management attributed to fewer intensive-care procedures during a less severe flu season. * Continence Care: Organic revenue grew 5.9%, driven by U.S. volume gains, international expansion and demand for hydrophilic products. GentleCath Air for Women more than doubled year over year and contributed one percentage point to category growth. * Infusion Care: Organic growth reached 7.4%, supported by diabetes demand and high-double-digit growth in therapies outside diabetes, including infusion sets used with AbbVie's Parkinson's disease treatment. Management expects double-digit Infusion Care growth in the second half and high-single-digit growth for the full year. Management said it has purchase orders supporting its expectation for stronger second-half Infusion Care growth and does not need newly added capacity to meet that near-term demand. Most of the larger capacity expansion is expected to come online in 2027 and later. Margin improvement expected in second half. ConvaTec reaffirmed guidance for an operating margin of at least 23% in 2026, despite an expected full-year InnovaMatrix drag of about 80 basis points and a foreign-exchange headwind of about 40 basis points. Discover more Cryptocurrency News Stock Split Calculator Ryder said the company expects a substantial second-half margin improvement due to higher seasonal revenue, four additional trading days in the second half, a more favorable Infusion Care sales mix, a lower InnovaMatrix impact and continuing productivity initiatives. These measures include manufacturing automation, strategic sourcing, debottlenecking, organizational simplification and reduced commercial and general-and-administrative expenses. The company said it expects operating margin to reach about 25% in the second half and remain in the mid-20% range from 2027. Management also noted that the legacy Bristol Myers Squibb amortization charge ended in July, reducing the gap between ConvaTec's reported and adjusted financial results going forward. Investment supports product pipeline and future growth. ConvaTec is investing about $90 million in growth capital expenditures during 2026, with the largest share directed toward Infusion Care capacity. It is also investing in manufacturing and launches across Wound Care, Ostomy Care and Continence Care. Management said capital expenditure is currently elevated as it adjusts to a higher growth trajectory, but expects it to settle at 5% to 7% of sales over time. The company highlighted its pipeline of "Wave Two" products, including ConvaNiox, ConvaFiber, ConvaVAC, Cure Aqua, GentleCath Air Pocket and Set, and Natura Body. ConvaNiox, a wound dressing initially focused on diabetic foot ulcers, is in limited market release and evaluation. Management said its first randomized controlled trial showed 60% more ulcers healed within 12 weeks and wound-area reduction three times faster than standard care. ConvaTec expects ConvaNiox to begin contributing meaningfully from 2028 rather than 2026 or 2027. It also said Flexi-Seal Air's launch has been delayed into 2027 to accommodate product-design refinements following customer evaluations. Management confirmed its medium-term objective of 6% to 8% annual organic revenue growth from 2027, supported by product launches, market-share gains and double-digit Infusion Care growth. It also expects continued double-digit EPS growth and leverage of about two times EBITDA at the end of 2026, including the newly announced share repurchase program. About ConvaTec Group (LON:CTEC). ConvaTec Group PLC engages in the development, manufacturing, and sale of medical products, services, and technologies in Europe, North America, and internationally. The company offers advanced wound dressings and skin care products for the management of acute and chronic wounds resulting from various conditions, such as diabetes, and acute conditions resulting from traumatic injury and burns. It also provides ostomy care solutions, including devices, accessories, and services for people with a stoma resulting from colorectal cancer, inflammatory bowel disease, and bladder cancer. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider ConvaTec Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ConvaTec Group wasn't on the list. While ConvaTec Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. 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FTSE100 firm completes multimillion-pound expansion of South Wales manufacturing site. Medical products and technologies company Convatec has completed a multi-year expansion of more than £24m at its manufacturing site in South Wales. A new production line at the Rhymney facility, inaugurated with a ribbon-cutting ceremony, will strengthen Convatec's advanced wound care innovation pipeline. The investment builds on nearly four decades of expertise at the Rhymney site, supporting highly skilled manufacturing in the region and reinforcing its role as a centre of excellence for Hydrofiber Technology, Convatec's proprietary wound care platform. Almost 1.5 billion Aquacel dressings have been sold worldwide leveraging the technology over the last three decades. The expansion also reflects Convatec's ongoing commitment to the UK life sciences sector. Across its UK sites, including manufacturing in Deeside and Rhymney, the company continues to invest in the skills, infrastructure and innovation needed to support patients living with chronic conditions around the world. Convatec employs approximately 650 colleagues across its UK manufacturing operations. About 15 per cent are based at the expanded site in South Wales, with the remainder operating out of Convatec's larger manufacturing site in Deeside. Last October, Convatec announced plans to invest more than £500m in UK R&D, including establishing a new state-of-the-art R&D hub in Manchester in 2028. Tanja Dormels, president, Advanced Wound Care at Convatec, said: "For nearly four decades, our Rhymney team has built deep expertise and world-class manufacturing capability, and this expansion is a testament to their skill, dedication and pride in serving patients. By strengthening production in the UK, we can reach more people around the world with trusted wound care solutions, while keeping that expertise firmly rooted in Rhymney and the wider UK life sciences ecosystem." Nick Smith, MP for Blaenau Gwent and Rhymney, added: "The completion of Convatec's multi-year investment of over £24m is a significant vote of confidence in UK and Welsh manufacturing and in the talented people who work at this site. "Convatec is one of many firms supporting a stronger future for the life sciences sector in Wales, which in turn is benefiting patients across the UK. I was delighted to be here to mark this milestone with the team." The Rhymney site has operated as a manufacturing hub since 1986.

Jyske Bank maintains its view that Convatec has significant potential despite pressure from the US. Jyske Bank sees an overreaction to the changes in US subsidies. This could give Convatec a boost if the uncertainty eases in 2026. MARKETWIRE 16 June 2026at 14:45 According to Jyske Bank, the market is likely overestimating the negative impact of changes to public reimbursement schemes in the US on Coloplast's British competitor, Convatec. Try MedWatch for 14 days - and get access to all content. * Continues as a recurring subscription and is billed annually. Can be terminated after 5 months of subscription with 1 month's notice at the end of a month. Minimum price is up to €539.58 excl. VAT corresponding to 7 months of subscription. Right of withdrawal under the Consumer Contracts Act. Read more here. ** Continues as a recurring subscription for 3 months at a time. Minimum price €286.00 excl. VAT. Can be terminated with 1 month's notice at the end of a 3-month period. Right of withdrawal under the Consumer Contracts Act. Read more here.