Zimmer Biomet Reports 1.1% Net Sales Increase to $1.909 Billion in Q1 2025

Zimmer Biomet Holdings, Inc. reported a net sales increase of 1.1% for the first quarter of 2025, reaching $1.909 billion compared to $1.889 billion in the same period last year. The company's net earnings also rose to $182.0 million, up from $172.4 million in the prior year, driven by lower restructuring charges and increased sales. The earnings per share for the quarter were $0.91 diluted, compared to $0.84 in the previous year. The growth in revenue was attributed to market expansion, new product introductions, and effective commercial execution, although it faced a negative impact of 1.2% from foreign currency exchange rate fluctuations.

In terms of operational changes, Zimmer Biomet initiated a new global restructuring program in February 2025, expected to incur pre-tax charges of approximately $85 million. This follows the completion of the 2023 Restructuring Plan, which resulted in total pre-tax charges of about $117 million. The company also completed several acquisitions in 2024, including a third-party orthopedics distributor and a medical device company, which are anticipated to enhance its market position and operational synergies. The company’s total assets increased to $22.184 billion as of March 31, 2025, up from $21.365 billion at the end of 2024.

Geographically, sales in the United States rose by 1.3% to $1.114 billion, while international sales increased by 0.7% to $795.5 million. The product categories that contributed to this growth included knees, hips, and sports medicine, with knees generating $792.9 million in sales, a slight increase from $788.1 million in the previous year. However, the Technology & Data, Bone Cement, and Surgical category saw a decline in sales, dropping to $149.9 million from $157.3 million.

The company’s cash and cash equivalents significantly improved, totaling $1.385 billion as of March 31, 2025, compared to $525.5 million at the end of 2024. Cash flows from operating activities also increased to $382.8 million, up from $228.0 million in the prior year. This improvement was attributed to lower inventory investments and favorable timing in accounts payable. Looking ahead, Zimmer Biomet anticipates revenue growth of 5.7% to 8.2% for 2025, driven by the integration of Paragon 28, market growth, and new product launches, although it expects net earnings to decrease due to higher acquisition costs and inflation-related expenses.