Orthofix International ( (OFIX) ) has released its Q3 earnings. Here is a breakdown of the information Orthofix International presented to its investors.
Orthofix Medical Inc. is a global medical technology company headquartered in Lewisville, Texas, specializing in spinal hardware, bone growth therapies, and orthopedic solutions. The company is renowned for its comprehensive portfolio that includes the 7D FLASH™ navigation system.
In the third quarter of 2024, Orthofix reported net sales of $196.6 million, marking a 7% increase compared to the same period in 2023. Despite this growth, the company experienced a net loss of $27.4 million. Orthofix also reiterated its full-year financial guidance and introduced new financial targets for the next three years.
Key highlights include an 18% sales growth in U.S. Spine Fixation and a 15% increase in U.S. Orthopedics sales, which represent record figures for the company. Additionally, Bone Growth Therapies showed a 9% growth overall and a 13% increase in fracture sales. The company also secured a new $275 million credit facility to optimize its capital structure.
Adjusted EBITDA for the quarter rose to $19.2 million, reflecting an increase of $5.7 million and an expansion in the adjusted EBITDA margin by approximately 250 basis points compared to the previous year. This was achieved through strategic distribution expansion and improved cash flow management.
Looking ahead, Orthofix remains confident in its commercial strategy and aims to achieve a 6% to 7% net sales CAGR from 2025 to 2027, along with mid-teens non-GAAP adjusted EBITDA as a percentage of net sales by 2027. The company expects continued positive free cash flow generation throughout this period.
