ConvaTec Lifts Growth Targets After Strong 2025 Earnings and Margin Gains

An announcement from ConvaTec ( (GB:CTEC) ) is now available.

ConvaTec posted 2025 revenue of $2.44 billion, up 6.5% on a reported basis, with organic growth excluding InnovaMatrix of 6.4% and broad-based gains across advanced wound care, ostomy care, continence care and infusion care. Adjusted operating profit rose 12.1% to $544 million, lifting the adjusted margin by 110 basis points to 22.3%, while adjusted diluted EPS climbed 16% as strong cash generation funded $185 million of capex, $140 million in dividends and a $300 million share buyback.

Category performance was led by 12.5% organic growth in infusion care and solid mid-single to high-single digit growth in the other businesses, offset by a sharp decline in InnovaMatrix revenue and a $72 million impairment tied to CMS reimbursement changes. Management guided to another year of double-digit adjusted EPS growth in 2026, reaffirmed 5–7% underlying organic revenue growth excluding InnovaMatrix and at least a 23% adjusted operating margin, and upgraded its medium-term organic growth target to 6–8% from 2027 with a mid-20s margin and sustained double‑digit EPS and free cash flow growth, underscoring confidence in its innovation pipeline and strategic execution.

The group strengthened its balance sheet and funding profile by achieving investment-grade status with all three major credit agencies and issuing a new $500 million 10-year senior unsecured note, while keeping net leverage at 2.0x adjusted EBITDA, in line with its target. The board raised the full-year dividend by 13% and maintained a payout ratio of 40% of adjusted net profit, signalling confidence in future cash flows and creating a supportive backdrop for shareholders amid continued investment in new products and capacity to meet rising demand.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £3.25 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

Spark’s Take on GB:CTEC Stock

According to Spark, TipRanks’ AI Analyst, GB:CTEC is a Neutral.

ConvaTec’s overall stock score is driven by strong financial performance and positive corporate events, particularly the share buyback program. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

To see Spark’s full report on GB:CTEC stock, click here.

More about ConvaTec

ConvaTec Group is a global medical products and technologies company focused on solutions for managing chronic conditions. It holds leading positions in advanced wound care, ostomy care, continence care and infusion care, serving around 90 countries with products aimed at infection prevention, treatment of hard-to-heal wounds and support for debilitating conditions. The FTSE 100 constituent generated more than $2 billion in revenue in 2025 and employs over 10,000 people worldwide.

The company’s portfolio spans dressings such as Aquacel and ConvaFoam, ostomy systems including Esteem Body, continence products like GentleCath catheters and infusion sets used in diabetes and other therapies. Its offerings target improved patient outcomes and reduced care costs, positioning ConvaTec as a key supplier to health systems and payers dealing with chronic disease management globally.

Average Trading Volume: 8,258,241

Technical Sentiment Signal: Hold

Current Market Cap: £4.5B

See more insights into CTEC stock on TipRanks’ Stock Analysis page.