Zimmer Biomet Holdings, Inc.

Please stand by. Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet fourth quarter 2025 earnings conference call. If anyone needs assistance at any time during the conference, please press the star followed by the zero. As a reminder, this conference is being recorded today, February 10th, 2026. Following today's presentation, there will be a question and answer session. At this time, all participants are in a listen-only mode. If you have a question, please press the star followed by the one on your push button phone. I would now like to turn the conference over to David DiMartino, Senior Vice President, Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Zero Biomet's fourth quarter 2025 earnings conference call. Joining me on today's call are Yvonne Tornos, our Chairman, President, and CEO, and Sukhya Patia, our CFO in EVP Finance, Operations, and Supply Chain. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. For detailed discussion of all these risks and uncertainties, in addition to the inherent limitations of such forward-looking statements, please refer to our SEC filings. Please note, we assume no obligation to update these forward-looking statements, even if actual results or future expectations change materially. Additionally, the discussions on this call will include certain non-GAAP financial measures, some of which are forward-looking non-GAAP financial measures. Reconciliation on these measures to the most directly comparable GAAP financial measures and an explanation of our basis for calculating these measures is included within our fourth quarter earnings release, which can be found on our website, ZimmerBiometh.com. With that, I'll turn the call over to Yvonne. Yvonne?

Good morning, everyone, and thank you for joining today's call. I would like to start the way that I always do, by sharing my gratitude to our Zimmer Biomed team members around the world who move our business and mission forward each and every day. Thank you for your tireless work, thank you for your dedication to solving the most pressing challenges in healthcare, and thank you for your relentless commitment to serving our customers and their patients. Today, Zimmer Biomed is a totally different company than it was just a few short years ago, and this is no doubt thanks to your efforts. Through my prepared remarks this morning, I'll cover four key areas. I'll start summarizing our fourth quarter results and the results for the fiscal year 2025. Second, I'll provide an update on the plan which we are executing upon to evolve our U.S. commercial organization. Thirdly, I'll introduce our 2026 guidance. And lastly, I'll briefly cover the progress that we have made across our key strategic priorities, those being people and culture, operational excellence, and thirdly, innovation and diversification. Starting with the year and the fourth quarter, I'm proud of how the team ended the year 2025 delivering on our commitments on sales growth, EPS, and free cash flow while navigating quite a complex challenge in the year, tariff headwinds and integrating three acquisitions within one year. From a constant currency organic revenue standpoint, we ended 2025 right at the middle of our initial yearly guidance, marking the fifth consecutive year for Seamer Biomed growing mid-single-digit or above. Looking at the fourth quarter results, we grew sales on an organic constant currency basis by 5.4% against a mid-single-digit growth comparable, with our critical U.S. business increasing 5.7%, and international, growing 5%. Healthy end markets, new product momentum, the ongoing evolution of our U.S. sales channel, and the recent leadership additions continue to drive an acceleration in our critical U.S. business. U.S. knee growth of 6% in the quarter was driven by increased penetration of persona osteotite, or total cementless knee, which ended the year roughly around 35% penetration. Or Oxford partial cementless knee continues to deliver above expectations with adoption rates post-training continue to be very high with great conversions from competitive accounts. Notably, our DTP, direct-to-patient awareness campaign, in partnership with Arnold Schwarzenegger, drove accelerated momentum in the second half of the year with a personalized knee campaign yielding very meaningful results. Turning to our hips franchise, Z1, or triple taper stem penetration, fuel U.S. hip growth of nearly 8% in the quarter, with the implant, Z1, now representing over 35% of U.S. hip stems and gaining meaningful competitive conversions. Next, our robotics and navigation strategy of offering a comprehensive suite of customer-centric technology solutions continues to pay strong dividends. Our U.S. technology and data, bone cement, and surgical cells increased over 10% in the quarter, driven by the strongest robotic capital sales quarter in over two years. Finally, in SCT, our U.S. CMFT, cranial maxillofacial thoracic business, continues to perform strongly, growing mid-teens in the quarter, led by a continuous shift in external fixation from wires to plating. Upper extremities had another great quarter of high single-digit growth in the U.S., where our identity solder and Osiofit stemless solder continue to convert competitive accounts. Looking now at 2026, we're accelerating the transition to a dedicated and specialized U.S. sales channel in order to drive more durable and consistent growth. By the end of 2027, we expect the vast majority of the conversion to dedicated CVH, similar Biomed employees, to be complete, and also expect a substantial increase in the number of reps specialized in the higher growth areas, such as SCT, robotics, and in our ASC channel, Ambulatory Surgical Center channel. We have already addressed one-third of these organizational changes, and have best-in-class plans and project management capabilities with third-party help to ensure a smooth transition for the last two-thirds of this evolution. With a robust innovation cycle in place, we feel is the opportune time to move faster, and we will. With that context, we now expect full-year organic constant currency revenue growth for 2026 in the low single-digit range, or 1% to 3% growth, with an adjusted EPS, earnings per share, of $8.30 to $8.45, which includes the contribution from Paragon 28 beginning April 21st, the one-year anniversary of the deal closing. Suki will provide further details during his remarks. The evolution of the U.S. Salesforce represents the final core initiative in a transformation. And while it might create some short-term disruption across pockets of an organization, it is by far the most crucial step in order to convert Zimmer Biomed into a durable mid-single-digit-plus growth company for the long term. Turning now to our three key strategic priorities for Zimmer Biomed, starting with number one, people and culture, we remain committed to having the right people in the right roles to maintain our leading position in the key areas where we compete. By having a dedicated and specialized US sales channel, we will now enhance our ability to consistently, and with no surprises, execute our strategy. This will drive increased productivity while enabling us to be more competitive in high growth segments, as mentioned before, such as robotics, ASCs, and the growth drivers within SCT, where we have tremendous opportunity ahead, and we are still under-penetrated. Secondly, On the second priority of operational excellence, we believe our disciplined cost management and robust capital allocation strategy will enable EPS growth while allowing us to invest in the business for the long term. Further, given our operating rigor, we expect to continue to grow free cash flow in the upper single digit to double digit range in 2026, marking the fourth consecutive year delivering meaningful free cash flow growth. Against that backdrop, we plan to prioritize meaningful return of capital to shareholders over M&A. Lastly, on our third priority of innovation and diversification, we're making significant advancements. Over the past two years, we have closed all core portfolio gaps with the introduction of the Magnificent 7 platform, and we now have the potential to change the standard of care with solutions such as the Oxford Partial Cement Destiny, iodine-coated devices recently launched in Japan, our second largest market globally, Rosasolder, and the mBoss semi and fully autonomous AI-driven orthopedic robotic system that we acquired via the monogram acquisition. In addition to this, we continue to invest internally and partner externally to strengthen our pipeline of new product launches, which is today 3X what it was just a few short years ago. Given the strength of our innovation cycle, we feel once again that this is the right time to accelerate the evolution of our U.S. channel so we can fully capitalize on a dedicated and specialized sales force. I'll tell you, having traveled to all key sales meetings across the U.S. in the month of January, the excitement behind our innovation story is very high, and so is the engagement. It is now up to us to execute on the plans via this transformation. In conclusion, we are very proud of the progress in our organization, but we are far from being satisfied with where we are at today. In 2026, to close our core turnaround efforts, we are going to be laser focused on the U.S. go-to-market commercial transformation while we continue to showcase the strength of a robust innovation cycle across the globe. As we then enter 2027, we'll be ready to transform the musculoskeletal space with the launch of mBoss and other disruptive technology platforms while responsibly accelerating our diversification strategy, gaining access to a higher growth market environment. And with this behind, in 2028 and beyond, Zimmer Biome will look and act like a totally different company. With that, I'll now turn the call over to Suki. Thank you.