Orthofix Medical Inc. Reports 7.1% Revenue Growth to $799.5 Million for Fiscal Year 2024

Orthofix Medical Inc. reported a net revenue of $799.5 million for the fiscal year ending December 31, 2024, marking a 7.1% increase compared to $746.6 million in 2023. The company's gross profit also saw a rise, reaching $545.9 million, which translates to a gross margin of 68.3%, up from 65.1% in the previous year. This improvement in profitability was attributed to increased sales across all major product categories, particularly in the U.S. Spine Fixation segment, which experienced a 14.2% growth driven by distribution expansion and deeper penetration in existing accounts. The Bone Growth Therapies segment also performed well, with a 9.8% increase in sales.

The company underwent significant changes in its operational structure following the merger with SeaSpine Holdings Corporation in January 2023, which has been described as a "merger of equals." This strategic move has allowed Orthofix to enhance its product offerings and market reach. The merger has also led to a record number of placements for the 7D FLASH Navigation System, a key product in their portfolio. However, the integration process remains ongoing, and the company has acknowledged the potential challenges in realizing all anticipated benefits from the merger.

In terms of operational metrics, Orthofix reported a total employee headcount of 1,616 as of December 31, 2024, with 1,256 employees based in the U.S. The company has focused on expanding its sales network, which includes a mix of direct sales representatives and independent distributors. The U.S. Orthopedics segment saw a notable 16.4% growth, attributed to recent product launches and effective commercial execution. The company also reported improvements in inventory management, with inventory turns increasing to 1.3 times, compared to 1.2 times in the previous year.

Looking ahead, Orthofix has entered into a new $275 million credit facility to optimize its capital structure and support long-term growth. The company anticipates that its cash and cash equivalents, along with access to credit facilities, will be sufficient to meet its future cash requirements. However, it has also highlighted potential risks, including ongoing healthcare reforms, regulatory changes, and competitive pressures in the medical device industry, which could impact its financial performance. The company remains committed to innovation and expanding its product portfolio to drive future growth.