A reassuring trading update from ConvaTec Group PLC (LSE:CTEC) saw its shares continue to heal on Thursday, after falling to a nine-month low earlier in the autumn.
The FTSE 100 medical products group reported trading remained strong across all divisions in the 10 months to October, prompting it to narrow full-year revenue guidance while reaffirming its margin and earnings outlook.
Organic revenue this year is now expected to grow 6.0-6.5%, tightened from its previous 5.5-7.0% range, after the company reported year-to-date growth of 6.3%, excluding InnovaMatrix.
All four segments – Advanced Wound Care, Ostomy Care, Continence Care and Infusion Care – grew as fast or faster than in the first half.
Adjusted operating margin guidance for 2025 was held at 22.0-22.5%, with the company explaining how it will absorb roughly 30 basis points of tariff headwinds. Capital expenditure is expected to rise to $160-180 million to support new product development.
ConvaTec reaffirmed its 2026 target for double-digit adjusted EPS growth and further margin expansion.
Analysts at UBS said the group had “de-risked 2026”, noting its confidence in delivering profit growth even under a tougher US reimbursement scenario for its wound care business.
The company maintained its medium-term targets of 5–7% annual organic growth and mid-20s margins by 2026–27.