Highlights

  • Convatec’s FY24 revenue rose 6.9% YoY to GBP 1.83 billion, with positive EBITDA and net income gains.
  • Net debt was reduced by 6.4% YoY, reflecting an improving balance sheet discipline.
  • FY25 organic revenue growth tracking 6.0–6.5%, supported by margin expansion and cash conversion of ~80%.
  • The innovation pipeline strengthens with multiple 2026 product launches, alongside continued share buybacks and a new investment-grade bond issuance.

ConvaTec Group PLC (LSE:CTEC) is an FTSE 100 medical products and technologies company. It develops, manufactures, and markets a range of healthcare solutions, with a primary focus on products that support the management of chronic conditions.

ConvaTec reported steady top-line and profit improvement for the financial year 2024 (FY2024). Revenue reached GBP 1,829.76 million, reflecting 6.9% year-over-year growth. EBITDA increased to GBP 454.08 million, up 13.2% YoY, while net income rose sharply by 46.2% to GBP 152.27 million, indicating an improvement in profitability. The company also reduced its net debt to GBP 908.72 million, a decline of 6.4% YoY.

Historical metrics show:

  • Revenue growth averaged 4.6% over FY2020–FY2024.
  • Return on equity improved steadily, averaging 7.4%, with FY2024 rising to 11.3%.
  • EBITDA margin averaged 23%, increasing to 24.8% in FY2024.

Company Outlook

ConvaTec maintains its FY25 targets, including roughly USD 70 million in InnovaMatrix® revenue, and expects FY26 to deliver double-digit adjusted EPS growth with continued margin expansion, regardless of regulatory outcomes for InnovaMatrix®. Medium-term goals remain steady, with management aiming for 5–7% organic revenue growth, sustainable double-digit EPS growth, and adjusted operating margins rising to the mid-20% range by 2026/2027.

Year-to-date, organic revenue growth stands at 6.3% excluding InnovaMatrix® (reported 6.2%). FY25 is tracking toward 6.0–6.5% growth ex-InnovaMatrix®, with an adjusted operating margin of 22.0–22.5%, despite roughly 30 basis points of tariff headwinds. Management reiterates confidence in delivering double-digit adjusted EPS growth and around 80% cash conversion, supported by a modest FY25 foreign exchange benefit of about 120 basis points.

The company’s innovation pipeline is described as its strongest in years, with multiple new products such as ConvaNiox™, ConvaFiber™, ConvaMax™, Flexi-Seal Air™, and Cure™ Aqua set for launch in 2026. Recent commercial achievements include securing its first US Ostomy GPO contract in five years and extending two major US groups purchasing agreements. ConvaTec also advanced its capital allocation strategy, completing USD 202 million of a USD 300 million buyback program and issuing its first USD 500 million investment-grade bond. Guidance includes net finance costs of USD 65–70 million and an adjusted tax rate of about 24%.

Stock Information

CTEC closed at GBX 235.4 on 26 November 2025, up about 0.9% over three months and 6.4% year to date, but still roughly 16.5% lower over six months. The stock’s 52-week high and low span from GBX 311.20 to GBX 218.00.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 26 November 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined: -

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