Shares rose 13.3% following a better-than-expected top-line performance driven by above-market growth in key medical segments and margin expansion despite operational headwinds and elevated costs.

• Total revenue increased 4.1%, led by 5.9% growth in medical sales, with robotic surgery (+7%), patient surfaces & support (+11%), and interventional & surgical (+15%) segments showing solid expansion.
• Non-medical sales declined 15%, reflecting ongoing portfolio repositioning away from slower categories.
• Adjusted gross margin improved to 28.8% from 28.5%, helped by increased capacity utilization in the Dominican Republic despite lingering labor inefficiencies at AJR.
• Adjusted operating margin was 16.7% of sales; EPS grew modestly to $2.48, restrained by startup costs for four simultaneous new product launches, cyberattack-related legal expenses, and labor challenges at AJR.
• Ongoing investments in capacity expansion (new facilities in the Dominican Republic and planned APAC growth) and a disciplined acquisition approach signal confidence in the mid-to-long-term growth trajectory.