LeMaitre Vascular (NASDAQ: LMAT) Reports Robust Q4 2025 Results and Announces Shareholder Initiatives

Key Financial Highlights

• Sales: Q4 2025 net sales reached \$64.5 million, marking a 16% increase over Q4 2024. Organic growth accounted for 15% of this expansion.
• Gross Margin: The company delivered a gross margin of 71.7%, up 240 basis points year-over-year, attributed to higher average selling prices and manufacturing efficiencies.
• Operating Income: Operating income surged 47% to \$18.8 million, with operating margin at 29%.
• Diluted EPS: Diluted earnings per share rose 39% to \$0.68 for Q4 2025.
• Cash Position: Cash and equivalents increased by \$16.1 million sequentially, totaling \$359.1 million.

Business Drivers & Segment Performance

• Product Growth: Grafts (+27%), valvulotomes (+20%), and carotid shunts (+18%) were the main contributors to sales growth.
• Geographical Expansion: EMEA sales grew 29%, APAC sales rose 20%, and Americas sales increased 10%.

Shareholder Initiatives & Potential Price-Sensitive Information

• Dividend Increase: The Board approved a 25% increase in the quarterly dividend to \$0.25 per share, payable on March 26, 2026, to shareholders of record as of March 12, 2026. This significant hike signals confidence in cash generation and may attract yield-driven investors.
• Share Repurchase Program: Authorization for up to \$20 million in common stock repurchases through February 18, 2027. This could provide support to the share price and reflects management’s bullish stance on the company’s prospects.

2026 Guidance and Outlook

• Q1 2026 Guidance:
  • Sales: \$65.6 million to \$67.6 million (midpoint: \$66.6 million; +11% overall, +10% organic)
  • Gross Margin: 72.1%
  • Operating Income: \$16.7 million to \$18.1 million (midpoint: \$17.4 million; +38%)
  • Operating Margin: 26%
  • Diluted EPS: \$0.64 to \$0.69 (midpoint: \$0.66; +38%)
• Full-Year 2026 Guidance:
  • Sales: \$276 million to \$284 million (midpoint: \$280 million; +12% overall, +12% organic)
  • Gross Margin: 72.1%
  • Operating Income: \$75.0 million to \$80.7 million (midpoint: \$77.8 million; +15%, adjusted +21%)
  • Operating Margin: 28%
  • Diluted EPS: \$2.81 to \$3.01 (midpoint: \$2.91; +16%, adjusted +22%)
• Guidance suggests continued strong growth in both sales and profitability, with operating leverage expected to persist.

Balance Sheet & Capital Structure

• Total Assets: \$615.7 million as of December 31, 2025 (\$551.8 million in 2024).
• Total Liabilities: \$222.2 million.
• Stockholders’ Equity: \$393.5 million.
• Convertible Senior Notes: \$168.6 million, comprising a significant portion of long-term liabilities.

Profitability & Cash Flow Details

• Net Income: \$15.6 million in Q4 2025 (\$57.7 million for the full year).
• Adjusted EBITDA: \$20.9 million in Q4 2025 (+39% YoY); \$74.3 million for the year (+20% YoY).
• Cash Dividends: Declared at \$0.20/share in Q4, up from \$0.16/share in Q4 2024; full-year dividends totaled \$0.80/share, up from \$0.64/share in 2024.

Non-GAAP Measures & Adjustments

• Organic Sales Growth: Adjusted to exclude currency and divestitures; Q4 2025 organic growth was 15%, full-year 2025 was 14%.
• Employee Retention Tax Credit: Adjustments exclude a one-time employee retention tax credit received in 2025 to provide a clearer view of continuing profitability.

Forward-Looking Statements & Risks

• The company notes that results are preliminary and unaudited. Forward-looking statements are subject to risks such as pricing pressure, competition, supply chain issues, regulatory changes, potential litigation, IT and cybersecurity risks, and executive turnover.
• Investors should review the detailed risk factors in the company’s latest SEC filings.

Conference Call & Investor Information

• Management will hold a conference call at 5:00pm ET. Webcast and replay access are available through the company’s investor relations website.
• Contact: Gregory Manker, Director of Business Development and Investor Relations, +1 781-362-1260 x419, [email protected]

Summary & Potential Price Movers

LeMaitre Vascular’s Q4 2025 results and 2026 guidance underscore strong operational execution, margin expansion, and robust cash generation. The substantial dividend hike and new share repurchase authorization are likely to be viewed positively by investors and could support share price appreciation. Continued organic growth, especially in international markets, and disciplined expense management further reinforce the bullish outlook. However, investors should monitor potential risks outlined by management and in SEC filings.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All financial figures are preliminary and subject to change. Investors should review official filings and consult a qualified financial advisor before making investment decisions. The author and this publication are not responsible for any investment actions taken based on this report.

View LEMAITRE VASCULAR INC Historical chart here