Earnings release
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1 AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR The Medartis Group accelerates organic sales growth in H1 to 17.0% and achieves a core EBITDA margin of 18.0% Total sales reached CHF 160.8 million (+30.7%), including contributions from NeoOrtho, Keri Medical and CADskills Core sales rose organically1 by 17.0% (CER), driven by dynamic growth in the US and further share gains in EMEA Core2 EBITDA margin improved to 18.0% despite FX pressure and additional costs from US tariffs Guidance 2026 increased: Medartis expects organic core sales growth of 17% –19% and a core EBITDA margin in the high teens (at CER) HALF-YEAR 2026 KEY FINANCIALS in CHF million, rounded H1 2026 H1 2025 Organic growth1 of core business Reported Non-core items2 Core Reported Non-core items2 Core in CHF at CER Net sales 160.8 (0.6) 160.2 123.0 (1.0) 122.1 13.7% 17.0% Gross profit 131.4 (0.9) 130.5 97.8 0.7 98.5 EBITDA 27.6 1.2 28.8 21.0 0.8 21.8 EBIT 12.5 2.0 14.5 9.3 1.1 10.4 Net profit / loss 4.9 1.8 6.8 (1.3) 0.9 (0.4) Margins in % of sales Change in %-points (PP) of core business Gross profit 81.7% 81.5% 79.5% 80.7% 0.8 PP 1.4 PP EBITDA 17.2% 18.0% 17.0% 17.8% 0.2 PP 0.9 PP EBIT 7.8% 9.0% 7.7% 8.5% 0.5 PP 1.3 PP Basel, 18 August 2026: Medartis Holding AG (MED:SW), a leading orthopaedic company specialising in head and extremity surgery, today reported total sales of CHF 160.8 million for H1 2026, representing organic growth of 17.0%. The US and the EMEA region were key growth drivers, supported by new product introductions, further sales force expansion, and the international rollout of Keri Medical's TOUCH ® prosthesis. Expanding faster than the market and leveraging its cost base, Medartis lifted gross-, EBITDA, and net profit margins despite currency and tariff headwinds. 1 Organic growth is calculated using fixed exchange rates (CER). To ensure fair comparison, it includes the acquired business's sales in the baseline figures from the date Medartis assumed control. 2 This report and accompanying financial documents include alternative performance measures (APMs), referred to as ‘core’ figures, which provide additional insight into Medartis' underlying performance. Core figures exclude certain one-time, nonrecurring and extraordinary items or items related to M&A. For a detailed overview of all non-core events in the Income Statement, please refer to APM section of the Half-year Report.
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2 Matthias Schupp, CEO of Medartis, comments on the H1 result: "We are pleased with the momentum in H1. Every element of the plan presented in March is progressing: Latin America is scaling, the US distribution network is making progress and TOUCH is reaching more surgeons. In addition to receiving a new CPT code in the US , TOUCH has now also been granted a dedicated reimbursement code in Australia, a signal that healthcare authorities recognise the distinct clinical benefit the implant offers patients." PERFORMANCE BY REGION Strong momentum continues in EMEA despite some headwind In the EMEA region, core sales rose from CHF 67.9 million in H1 2025 to CHF 95.0 million in H1 2026, corresponding to total growth at CER of 42.5%. Of this increase, CHF 16.9 million were attributable to the acquired KeriMedical and CADskills businesses. Organic sales amounted to 17.7% (CER). Growth was particularly strong in Q1, when severe winter conditions drove up trauma volumes in the DACH region and Poland. Throughout the six months, growth was broad based across the entire region, with Austria, Poland, Spain and the UK expanding market share — the latter two despite strikes by hospital staff. The distributor markets, led by Scandinavia, also grew at a double -digit rate. Performance in the Middle East region was softer than in the prior-year period, primarily due to the prevailing geopolitical situation. Keri Medical continued to grow dynamically. Sales surged by 45% in Medartis's direct-distribution countries (e.g. Austria, Germany and the UK) and by 30% in the business with external distribution partners (incl. the more mature French and Belgium markets). Medartis also strengthened its commercial presence by moving its CMF franchise in the United Kingdom to a direct sales model. On the product side, the recently launched dorsal olecranon plates received very positive surgeon feedback. The company's visibi lity among hand surgeons was reinforced at the FESSH congress, held in Medartis's home city of Basel. There, Medartis organised a charity bike event and offered production tours of its headquarters, which together attracted more than 500 hand surgeons, while its scientific symposium recorded its highest attendance to date. Core sales1 in CHF million H1 2026 H1 2025 Organic growth2 in CHF Organic growth2 at CER EMEA 95.0 67.9 15.4% 17.7% US 30.3 26.1 16.2% 27.4% APAC 17.8 17.1 3.1% 5.5% LATAM 17.2 10.9 12.0% 9.7% Total Group 160.2 122.1 13.7% 17.0% 1 The NSI contract manufacturing business and NeoOrtho's hip business, which was divested in 2025, were classified as non -core. 2 Organic growth is measured at CER and incl. acquired business in the baseline from the date Medartis assumed control.
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3 Positive US momentum continues with 27% growth The US business delivered strong organic growth of 27.4% in core sales. Despite the weak US dollar, which reduced sales by 11pp, core sales reached a first-half record of CHF 30.3 million. As expected, an additional growth driver in H1 was the US rollout of the TOUCH thumb prosthesis, which is now fully under way and running ahead of the company's plan. In view of the momentum recorded year -to-date, management has raised its initial unit projection from 1,200 to 1,800 TOUCH units in 2026. Medartis trained more than 180 surgeons in the first six months and remains on track to train a total of 330 hand surgeons over the course of the year. The training courses include both existing customers and new surgeon relationships. Although the new surgeon base is developing favourably, the sales contribution from cross -selling was still building in H1. This broader portfolio approach, which aims to win the surgeon with TOUCH and subsequently expand into APTUS plates and screws, will remain a strategic focus going forward. In its legacy business, Medartis further narrowed the performance gap in the Southeast region that arose from the distributor changes in the prior year. While North Florida has almost returned to its former performance level, the recovery in South Florida is still in progress. In H1 2026, the company prepared the launch of the new ‘Titan Nail’, an intramedullary implant that stabilises the bone from within rather than through a plate-and-screw construct, and which is designed to reduce soft -tissue exposure and operating time in suitable indications. This represents an important addition to the upper limb portfolio and an improved alternative to the NX nail system previously sourced from a 3 rd party vendor. This supply agreement will expire in 2027. Medartis will gradually phase out the NX nail and transition to its proprietary technology, delivered via a new procedure kit designed to be flexible and asset-light for hospitals to use. PERFORMANCE BY PRODUCT CATEGORY Core sales1 in CHF million H1 2026 H1 2025 Organic growth2 in CHF Organic growth2 at CER Upper Extremities 113.4 81.9 16.1% 21.1% Lower Extremities 25.5 22.5 7.4% 10.4% CMF and Others 21.3 17.7 8.9% 5.5% Total Group 160.2 122.1 13.6% 17.0% 1 The NSI contract manufacturing business and NeoOrtho's hip business, which was divested in 2025, were classified as non -core. 2 Organic growth is measured at CER and incl. acquired business in the baseline from the date Medartis assumed control. APAC grows despite softer distributor markets; TOUCH secures Australian listing Core regional sales in APAC rose at a robust pace against a strong 2025 comparison in the distributor markets. Organic growth reached 5.5% (total business: 6.6%), taking sales to CHF 17.8 million. Despite solid high-single-digit growth in the main market, Australia, and double-digit growth in Japan, sales in the distributor markets declined. As expected, the prior-year base was elevated by a one-time distributor build-out of surgical sets; less anticipated were government-mandated price cuts in Thailand. In Australia, TOUCH performed above budget and maintained strong momentum, while wrist and hand sales were flat against a higher base comparison from the prior year. The TOUCH® CMC1 prosthesis was granted a listing on Australia's Prescribed List, effective 01 July 2026, giving Australian patients access to the same technology used in Europe for over a decade to treat rhizarthrosis. At the Hand and Wrist Society congress in Melbourne, the KeriMedical cadaver lab was fully booked and drew strong interest.
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4 In Japan, the company began its re -organisation during Q2, adopting a more customer -focused approach, with new management joining in September. Lower-limb products performed well, but wrist sales fell short of the prior -year level owing to competitive pres sure from the former distributor. The elbow and clavicle launches have been delayed pending regulatory clearance, now expected in Q4, with the launch to follow shortly afterwards. Direct markets drive LATAM growth The LATAM business, accounting for 11% of the group’s total, generated sales of CHF 17.2 million and reported organic growth of 9.7% in H1 (total: +51.4%). The NeoOrtho business, consolidated since May 2025, contributed CHF 7.2 million to regional sales. In the largest market, Brazil, organic sales advanced in the mid- teens. NeoOrtho achieved good growth in direct sales, driven by new contracts in São Paulo, formerly an indirect region, and executed well with the launch of the trauma line extension. The Me dartis brand also performed well, supported by dynamic sales in CMF (Modus 2), which drove portfolio growth. New sales leadership for the Medartis brand has been in place since Q2, and a repositioned pricing strategy, with a more transparent pricing and a clear distinction between premium and value was put in place. The indirect distribution has been streamlined with a sharper focus on direct sales in the metropolitan areas. For both Medartis and NeoOrtho, 2026 is a transition year in which the positive momentum continues. The 'Cold Fusion' project, which brings the two head offices together at the new NeoOrtho facility in Curitiba, has been completed on time. Mexico, the second largest market in the region, grew strongly and maintained its momentum following the restructuring and refocusing of the subsidiary in 2025. A hybrid sales model has replaced the previous 100%-distributor-led approach, giving Medartis direct access to the private healthcare market in Mexico City. The clear focus on upper extremity and head surgery paid off with growth close to 50%. In Q4, NeoOrtho will penetrate the Mexican market through the Medartis Group subsidiary. Costa Rica remains the most important distributor market in LATAM at present, driven largely by the 2023 national social security tender for hand and wrist. In H2, the company expects to enter the CMF segment in the market once the regulatory registration process is complete. In Colombia, Argentina and Chile, Medartis is preparing launch activities for NeoOrtho while positioning the Medartis brand in the premium segment. In Argentina, where the company already has a strong presence with Modus 2, sales grew over 20%, driven mainly by orthognathic surgery. FINANCIAL PERFORMANCE This media release and other investor and financial press communications include Alternative Performance Measures (APMs), which exclude one-time effects and M&A-related intangible asset amortisation to provide a clearer view of the company's underlying ope rating performance. To derive the core result, the following items were excluded from the reported IFRS figures.
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5 − Under ‘3rd party business NSI,' a negative contribution of CHF 0.9 million from the US contract manufacturing business (fading out) and the NeoOrtho hip business (disposed in 2025) were excluded from the core results. − ‘M&A effects’ comprising amortisation of intangible assets of CHF 1.0 million related to historical acquisitions were recorded in H1 2026 and excluded from the core figures. − ‘Other’: OPEX included CHF 1.9 million of transaction costs related to the acquisition of CADskills and legal costs from a full resolved supplier dispute. For part of 2025, trade tariffs on implants exported into the US were charged at a higher rate than was ultimately due. Medartis has therefore claimed a refund from the US authorities and recognised a receivable of CHF 4.4 million at 30 June 2026, which it expects to collect in H2 2026. Of that sum, CHF 1.7 million concerns tariffs on implants sold during the 2025 financial year, and this credit has been excluded from the core result. The refund exceeds the tariffs incurred in the period, so reported cost of goods sold carries a net tariff credit of CHF 0.8 million. Once that element is stripped out, the core result shows a net tariff charge of CHF 0.9 million. The following commentary compares the core results for H1 2026 with those of the prior -year period on a like-for-like basis. Core gross profit margin rose 0.8pp to 81.5% (H1 2025: 80.7% supported mainly by a favourable product & country mix, efficiency gains and by the internalisation of the accretive Keri Medical business. Together these outweighed the drag from currency and from higher US tariffs, each of which accounted for 0.6pp. Sales outpaced the increase in core operating expenses. OPEX of CHF 116.1 million equated to 72.4% of sales in H1 2026, against 73.0% a year earlier, evidence of cost discipline maintained and reflecting the inclusion of the acquired businesses and investments into various growth projects. Setting aside the non- core items described above, and measured before interest, taxes, depreciation and amortisation, core EBITDA came in at CHF 28.8 million (H1 2025: CHF 21.8 million), lifting the margin by 0.2pp to 18.0% . At CER, the increase would have amounted to 0.9pp. The stronger gross margin accounted for most of that gain. At EBIT level the core margin also moved higher, reaching 9.0% against 8.5% in the prior year period, an improvement of 0.5pp at CHF or 1.3pp at constant exchange rates. The core net result strengthened to CHF 6.8 million from a small loss of CHF -0.4 million in H1 2025, on the back of the items already noted and a finance result CHF 6.7 million better year on year. Financial expenses of CHF -2.0 million, compared with CHF -5.0 million a year earlier (soft USD), was mainly attributable to the appreciation of t he Brazilian real, Mexican peso and Australian dollar, and a more stable USD. The corresponding FX gains more than covered higher interest expense and finance transaction fees of CHF 1.3 million. Core income tax expense came in CHF -5.7 million above the prior-year figure, consistent with the stronger operating result and the inclusion of Keri Medical. Operating cash flow of CHF 7.8 million was CHF 0.5 million lower compared to last year, mainly reflecting a CHF 25.0 million increase in net working capital, of which CHF 4.1 million related to higher inventory for new surgical sets and CHF 4.4 million to an unsettled US tariff refund in ‘othe r receivables’. The days sales outstanding remained unchanged at 59 days compared with the end of the year. Free cash flow in H1 was negative at CHF -10.1 million, as capital expenditure (CAPEX) exceeded the prior -year level by close to CHF 10 million. The spending went into new surgical set investments and the US production expansion in
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6 Warsaw, to increase the local production footprint. The company also increased production capacity at the sites in France (Keri Medical), Brazil (new NeoOrtho facility) and Switzerland to serve current demand and the growth anticipated ahead. Outflows for M&A came to CHF 14.9 million, covering the acquisition of CADskills and the second of three earn-out payments for the Keri Medical takeover. Cash stood at CHF 25.8 million at the half -year mark compared to CHF 33.0 million at year-end 2025 and CHF 120.5 million a year earlier, a reduction that follows the payments for the Keri Medical takeover and the acquisition of the 51% equity stake in NeoOrtho. The financial section of the 2026 Half-Year Report, available on the Medartis website, sets out further detail. FULL-YEAR 2026 OUTLOOK UPDATED (barring any unforeseen circumstances) Based on business performance to date, the Medartis Group updates its full -year 2026 financial outlook published in March. The company expects organic growth in core sales 3 of 17% –19% for the full year (previously: 16% –18%), alongside a core EBITDA margin in the high teens (at CER), reflecting planned investments in growth initiatives and the ongoing TOUCH rollout in the US and Australia. 3 Organic growth denotes the increase in sales at constant exchange rates (CER), excluding the sales from acquired or sold businesses (i.e. NeoOrtho, KeriMedical, CADskills) in the baseline. NSI's contract manufacturing business and divested NeoOrtho hip business were non-core activities.
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7 MEDARTIS TO HOST HALF-YEAR 2026 RESULTS CONFERENCE CALL WITH Q&A Medartis will present its half-year results for 2026 today at 09:30 CEST in an online webcast. The event will be hosted by the CEO, Matthias Schupp, and the CFO, Peter Hackel. The conference will be held in English. The presentation slides, the H1 Financia l Report, and a recording of the event will be available on the Medartis website (https://medartis.com/en/investors#reports). Please use this link to register, follow the slide presentation and submit questions in writing or via the webcast: https://medartis.com/en/results-conference. IMPORTANT DATES AND UPCOMING INVESTOR EVENTS Date Event Broker Destination 01 September Reverse roadshow Octavian Basel 02 September Non-deal roadshow ZKB Geneva 03 September Non-deal roadshow UBS Paris 22 September Non-deal roadshow ZKB London 23 September Reverse roadshow Barclays Basel 23 September Best of Switzerland Conference UBS Online 24 September Best of Switzerland Conference UBS Wolfsberg, Switzerland 05 November Swiss Equities Conference ZKB Zurich 10 November Non-deal roadshow Stifel Boston 11 November Stifel Healthcare Conference Stifel New York 12 November Non-deal roadshow Stifel Toronto 19 November Jefferies Healthcare Conference Jefferies London 02 March 2027 2026 full-year results publication Basel 22 April 2027 Annual General Meeting 2027 Basel Your contact: Medartis Holding AG, Corporate Communications, Hochbergerstrasse 60E, CH-4057 Basel Fabian Hildbrand, Head of Corporate Communications, investor.relations@medartis.com Andreas Richter, Corporate Communications Manager, corporate.communication@medartis.com +41 61 633 37 36 / +41 61 633 37 34
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8 About Medartis Founded in 1997 and headquartered in Basel, Switzerland, the Medartis Group is one of the world's leading manufacturers and providers of medical devices for surgical fixation of bone fractures and joint replacement for upper and lower extremities as well as for the craniomaxillofacial region. The Group has manufacturing sites in Switzerland, the United States, Brazil, France and Belgium. Medartis employs approx. 1,400 individuals across 13 countries, with products offered in over 60 countries globally. Meda rtis is committed to providing surgeons and operating theatre personnel with the most innovative implants and instruments as well as best-in-class service.For more information, please visit www.medartis.com. Disclaimer This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Medartis Holding AG. This publication may contain certain forward- looking statements and assessments or intentions concerning the company and its business. Such statements involve certain risks, uncertainties and other factors which could cause the actual results, financi al condition, performance or achievements of the company to be materially different from those expressed or implied by such statements. Readers should therefore not place reliance on these statements, particularly in connection with any contract or investment decision. The company disclaims any obligation to update these forward-looking statements, assessments orintentions. Furthermore, neither the company nor any of its directors, officers, employees, agents, counsel or advisers noranyother person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained her ein or of the views given or implied, and accordingly no reliance should be placed thereon.