Convatec Raises Revenue Forecast on Strong Infusion Care Demand, Announces $200M Buyback

British medical products manufacturer Convatec Group PLC (LON:CTEC) announced Tuesday it expects a materially higher operating margin in the second half of the year, driven by accelerating demand for its infusion care products. The company also unveiled a new $200 million share buyback program and adjusted its full-year revenue guidance.

Updated Financial Outlook

Convatec has revised its full-year organic revenue growth forecast, excluding its InnovaMatrix product, to a range of 5.5% to 6.5%, a slight tightening from the previous range of 5% to 7%. The company stated it anticipates growth to accelerate in the second half, projecting organic revenue growth of 6% to 8% for that period.

The improved outlook is primarily attributed to a stronger performance in its infusion care division, which supplies disposable sets for insulin pumps and therapies for conditions like Parkinson's disease. This unit accounts for approximately 19% of the group's total revenue. Convatec also maintained its forecast for double-digit earnings growth for the full year.

First-Half Performance

For the six months ending June 30, Convatec reported key financial results that provide context for its updated guidance:

Ad

• Total Revenue: $1.23 billion, an increase of 1.8% at constant currency.
• Organic Revenue Growth: 5% during the period, excluding InnovaMatrix.

These figures set the stage for the expected second-half acceleration. The company also confirmed it is on schedule with its product pipeline, planning to launch six new chronic-care products this year as part of a broader plan to introduce eight new products during 2026 and 2027.

Shareholder Returns and Strategy

Alongside its operational update, Convatec announced a new $200 million share repurchase program. The company said it intends to complete the buyback by the end of 2026, signaling confidence in its financial position and a commitment to returning capital to shareholders.