London-based Convatec (LSE: CTEC) reported strong 2025 full-year earnings, with growth in all four of the company’s business units: infusion care, advanced wound care, continence care and ostomy care.
In a Feb. 24 earnings call, CEO Jonny Mason called 2025 “a year of strong delivery” and noted it was “the fifth consecutive year that we delivered organic revenue sales growth within our target range. That was supported by eight new product launches that we have got underway at the moment.”
Despite “some headwinds,” Mason praised Convatec’s “resilience” in its four chronic care categories — and noted high retention of customers.
“The growth is broad based,” Mason said. “We are not dependent on any one category or product or geography for our growth. There are reimbursement dynamics in this sector. There always have been; there will continue to be. But we build in an expectation of those in our plans, and we grow through them.”
He added that in addition to investing in its fastest-growing segments, Convatec is working to fill current market gaps of what customers need. “We have got the richest product pipeline in our history, which benchmarks pretty well with the industry,” Mason said.
Convatec CFO Fiona Ryder said organic revenue growth of 6.4% was “broad based across all four categories,” excluding the company’s InnovaMatrix line, which uses a Porcine Placental Extracellular Matrix to treat serious wounds, including pressure injuries, burns and diabetic ulcers.
Infusion care led the way in 2025 with organic growth of 12.5%. “There was continued strong demand in diabetes across both long-standing and newer customers, as the penetration of automated insulin delivery over multiple daily injections is increasing,” Ryder said.
The advanced wound care segment reported 4.1% growth last year, excluding InnovaMatrix numbers.
“As you know, from Jan. 1, 2026, CMS [Centers for Medicare & Medicaid Services] has introduced a price rate of $127 per square centimeter, which represented about an 80% reduction for InnovaMatrix,” Ryder said. “As previously guided, this equates to a headwind in 2026 of around 2% of group revenue.”
Ostomy care had 2025 organic growth of 4.5%: “The highlight of the year was the performance of Esteem Body, a one-piece soft convex pouch, which grew ahead of expectations and where we anticipate further strong growth in 2026,” Ryder noted.
Continence care saw 6.6% organic growth last year “driven by further volume increases in the USA, backed by our outstanding customer service and our broadening product portfolio,” Ryder said. “We saw faster growth in sales of Convatec product relative to other manufacturers, which is now 59% of our sales mix.”
The CFO said Convatec expects 5% to 7% organic growth in group revenue this year, excluding InnovaMatrix. “Group revenue will be second-half-weighted as product launches build,” Ryder added.
Mason added, “All four categories are contributing to the growth, four strong categories working together. That despite the reimbursement headwinds that they have faced along the way. We have got eight products in the market now launching underway, and we have got eight more to come across 2026 and 2027.
“Convatec is a strong and growing business. We have got strong leadership positions in markets that are fundamentally growing with high levels of recurring revenue, and that makes us very resilient as a business. … We are in four chronic care categories. These markets are growing structurally, independent of the economic cycle, and that provides a broad base for growth.
