## Zimmer Biomet Holdings (ZBH) — filings‑driven deep dive (SEC as source of truth) **Primary documents used:** FY2024 Form 10‑K (filed Feb 25, 2025), Q3’25 Form 10‑Q (filed Nov 5, 2025), and selected 8‑Ks / proxy disclosures. ["10-K"](0000950170-25-026604|0) ["10-Q"](0001193125-25-266884|0) ["8-K"](0001193125-26-009895|0) ["proxy statement"](0000950170-25-053494|0) --- # 1) Business model “map”: what ZBH sells + how it reports results ### How Zimmer Biomet describes its *operating segments* ZBH allocates resources and manages profit through **three regional operating segments: Americas, EMEA, and Asia Pacific**. ["three regional operating segments"](0000950170-25-026604|0) - **Americas** is the largest segment; the U.S. accounted for ~95% of net sales in this region in 2024. ["approximately 95 percent"](0000950170-25-026604|0) - **EMEA** (Europe, Middle East & Africa) includes major European markets; several of the largest countries collectively accounted for ~50% of regional net sales in 2024. ["collectively accounted for approximately 50 percent"](0000950170-25-026604|0) - **Asia Pacific** includes markets such as Japan, China, Australia, etc.; **Japan** accounted for ~45% of the region’s net sales in 2024. ["Japan is the largest market…45 percent"](0000950170-25-026604|0) ### How ZBH describes *product categories* (a second lens) Management also analyzes sales by: - **Geography**: United States vs International - **Product categories**: **Knees**, **Hips**, **S.E.T.**, and **Technology & Data, Bone Cement and Surgical**. ["Knees; Hips; S.E.T."](0000950170-25-026604|0) This product-category lens **differs from reportable segments**; each operating segment sells across all product categories. ["differs from our reportable operating segments"](0000950170-25-026604|0) --- # 2) FY2024 topline: where revenue came from (with tables) ## 2.1 Net sales by geography (FY2022–FY2024) **Units: USD millions.** | Geography | FY2024 | FY2023 | FY2022 | FY2024 vs FY2023 | FY2023 vs FY2022 | |---|---:|---:|---:|---:|---:| | United States | 4,439.0 ["United States…4,439.0"](0000950170-25-026604|0) | 4,288.8 ["United States…4,288.8"](0000950170-25-026604|0) | 4,012.4 ["United States…4,012.4"](0000950170-25-026604|0) | +3.5% ["2024 vs. 2023 % Inc…3.5"](0000950170-25-026604|0) | +6.9% ["2023 vs. 2022 % Inc…6.9"](0000950170-25-026604|0) | | International | 3,239.6 ["International…3,239.6"](0000950170-25-026604|0) | 3,105.4 ["International…3,105.4"](0000950170-25-026604|0) | 2,927.5 ["International…2,927.5"](0000950170-25-026604|0) | +4.3% ["2024 vs. 2023 % Inc…4.3"](0000950170-25-026604|0) | +6.1% ["2023 vs. 2022 % Inc…6.1"](0000950170-25-026604|0) | | **Total** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["Total…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["Total…6,939.9"](0000950170-25-026604|0) | **+3.8%** ["2024 vs. 2023 % Inc…3.8"](0000950170-25-026604|0) | **+6.5%** ["2023 vs. 2022 % Inc…6.5"](0000950170-25-026604|0) | **Management’s own explanation (FY2024):** - U.S. growth was driven by market growth across Knees, Hips, and S.E.T., but was **negatively impacted by ERP implementation issues** affecting fulfillment. ["negatively impacted…ERP system"](0000950170-25-026604|0) - International growth was driven by market growth, but volume was **partially offset by FX headwinds** (negative impact of 2.3% in 2024). ["negative impacts…foreign currency…2.3 percent"](0000950170-25-026604|0) ## 2.2 Net sales by product category (FY2022–FY2024) **Units: USD millions.** | Product category | FY2024 | FY2023 | FY2022 | FY2024 vs FY2023 | FY2023 vs FY2022 | |---|---:|---:|---:|---:|---:| | Knees | 3,173.5 ["Knees…3,173.5"](0000950170-25-026604|0) | 3,038.4 ["Knees…3,038.4"](0000950170-25-026604|0) | 2,778.3 ["Knees…2,778.3"](0000950170-25-026604|0) | +4.4% ["2024 vs. 2023 % Inc…4.4"](0000950170-25-026604|0) | +9.4% ["2023 vs. 2022 % Inc…9.4"](0000950170-25-026604|0) | | Hips | 1,999.1 ["Hips…1,999.1"](0000950170-25-026604|0) | 1,967.2 ["Hips…1,967.2"](0000950170-25-026604|0) | 1,894.9 ["Hips…1,894.9"](0000950170-25-026604|0) | +1.6% ["2024 vs. 2023 % Inc…1.6"](0000950170-25-026604|0) | +3.8% ["2023 vs. 2022 % Inc…3.8"](0000950170-25-026604|0) | | S.E.T. | 1,865.7 ["S.E.T.…1,865.7"](0000950170-25-026604|0) | 1,752.6 ["S.E.T.…1,752.6"](0000950170-25-026604|0) | 1,696.7 ["S.E.T.…1,696.7"](0000950170-25-026604|0) | +6.5% ["2024 vs. 2023 % Inc…6.5"](0000950170-25-026604|0) | +3.3% ["2023 vs. 2022 % Inc…3.3"](0000950170-25-026604|0) | | Technology & Data, Bone Cement and Surgical | 640.3 ["Technology & Data…640.3"](0000950170-25-026604|0) | 636.0 ["…636.0"](0000950170-25-026604|0) | 570.0 ["…570.0"](0000950170-25-026604|0) | +0.7% ["2024 vs. 2023 % Inc…0.7"](0000950170-25-026604|0) | +11.6% ["2023 vs. 2022 % Inc…11.6"](0000950170-25-026604|0) | | **Total** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["Total…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["Total…6,939.9"](0000950170-25-026604|0) | **+3.8%** ["2024 vs. 2023 % Inc…3.8"](0000950170-25-026604|0) | **+6.5%** ["2023 vs. 2022 % Inc…6.5"](0000950170-25-026604|0) | **Product-category read‑through (FY2024):** - Knees & Hips benefited from market growth and new product introductions; FX was a negative on both categories in 2024. ["market growth and new product introductions"](0000950170-25-026604|0) ["negative effects…foreign currency"](0000950170-25-026604|0) - Technology & Data category (which includes ROSA) was helped by **higher ROSA robot sales in 1H24**, but impacted by ERP fulfillment challenges. ["higher net sales for our ROSA robot"](0000950170-25-026604|0) ["ERP system implementation"](0000950170-25-026604|0) --- # 3) Profitability: what’s driving margins (management’s own bridge) ZBH discloses a **gross margin bridge** that attributes the year-to-year movement to pricing, manufacturing costs, mix, inventory charges, FX, and amortization. ["factors that contributed to the gross margin changes"](0001193125-25-266884|0) From the FY2024 10‑K’s gross margin bridge: - Prior year gross margin (2023): **63.3%** ["Prior year gross margin…63.3"](0000950170-25-026604|0) - Current year gross margin (2024): **63.8%** ["Current year gross margin…63.8"](0000950170-25-026604|0) - Notably: manufacturing costs were a **(1.2)** headwind in 2024 in the bridge. ["Manufacturing costs…(1.2)"](0000950170-25-026604|0) **Interpretation:** the bridge suggests ZBH’s FY2024 margin outcome is a tug‑of‑war between (i) mix/other tailwinds and (ii) manufacturing cost pressure, with modest pricing contribution. ["Impact from selling prices"](0000950170-25-026604|0) ["Manufacturing costs"](0000950170-25-026604|0) ["Volume, product and market mix"](0000950170-25-026604|0) --- # 4) Segment economics: sales vs segment profit (FY2022–FY2024) **Units: USD millions; segment profit is ZBH’s segment measure in the 10‑K.** | Segment | FY2024 net sales | FY2023 net sales | FY2022 net sales | FY2024 segment profit | FY2023 segment profit | FY2022 segment profit | |---|---:|---:|---:|---:|---:|---:| | Americas | 4,794.8 ["Americas…4,794.8"](0000950170-25-026604|0) | 4,624.1 ["…4,624.1"](0000950170-25-026604|0) | 4,295.5 ["…4,295.5"](0000950170-25-026604|0) | 2,577.0 ["Segment profit…2,577.0"](0000950170-25-026604|0) | 2,487.1 ["…2,487.1"](0000950170-25-026604|0) | 2,282.4 ["…2,282.4"](0000950170-25-026604|0) | | EMEA | 1,691.1 ["EMEA…1,691.1"](0000950170-25-026604|0) | 1,592.4 ["…1,592.4"](0000950170-25-026604|0) | 1,456.5 ["…1,456.5"](0000950170-25-026604|0) | 585.8 ["…585.8"](0000950170-25-026604|0) | 538.2 ["…538.2"](0000950170-25-026604|0) | 416.1 ["…416.1"](0000950170-25-026604|0) | | Asia Pacific | 1,192.8 ["Asia Pacific…1,192.8"](0000950170-25-026604|0) | 1,177.7 ["…1,177.7"](0000950170-25-026604|0) | 1,187.8 ["…1,187.8"](0000950170-25-026604|0) | 457.6 ["…457.6"](0000950170-25-026604|0) | 432.3 ["…432.3"](0000950170-25-026604|0) | 429.1 ["…429.1"](0000950170-25-026604|0) | | **Total segments (sum)** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["…6,939.9"](0000950170-25-026604|0) | **3,620.4** ["…3,620.4"](0000950170-25-026604|0) | **3,457.6** ["…3,457.6"](0000950170-25-026604|0) | **3,127.6** ["…3,127.6"](0000950170-25-026604|0) | Management’s qualitative commentary on segment profitability points to: - Americas: higher net sales + lower royalty expense (via licensing buyouts), but offset by investments and higher bad debt-related charges. ["lower royalty expense"](0000950170-25-026604|0) ["higher bad debt-related charges"](0000950170-25-026604|0) - EMEA and APAC: improved pricing, lower inventory charges, reduced royalty expense, and restructuring/cost savings initiatives. ["improved pricing"](0000950170-25-026604|0) ["lower excess and obsolete inventory charges"](0000950170-25-026604|0) ["2023 Restructuring Plan"](0000950170-25-026604|0) --- # 5) Cash flow & capital allocation: what ZBH does with cash ## 5.1 Cash flow summary (FY2022–FY2024) **Units: USD millions.** | Cash flow line | FY2024 | FY2023 | FY2022 | |---|---:|---:|---:| | Net cash provided by operating activities (continuing ops) | 1,499.4 ["Net cash provided…1,499.4"](0000950170-25-026604|0) | 1,581.6 ["…1,581.6"](0000950170-25-026604|0) | 1,356.2 ["…1,356.2"](0000950170-25-026604|0) | | Net cash used in investing activities (continuing ops) | (888.1) ["Net cash used…(888.1)"](0000950170-25-026604|0) | (778.9) ["…(778.9)"](0000950170-25-026604|0) | (522.0) ["…(522.0)"](0000950170-25-026604|0) | | Net cash used in financing activities (continuing ops) | (484.5) ["Net cash used…(484.5)"](0000950170-25-026604|0) | (763.5) ["…(763.5)"](0000950170-25-026604|0) | (775.7) ["…(775.7)"](0000950170-25-026604|0) | | Cash & cash equivalents (end of year) | 525.5 ["end of year…525.5"](0000950170-25-026604|0) | 415.8 ["end of year…415.8"](0000950170-25-026604|0) | 375.7 ["end of year…375.7"](0000950170-25-026604|0) | ## 5.2 Shareholder returns: dividends + buybacks in FY2024 - Dividends paid to stockholders (FY2024): **$196.0m**. ["Dividends paid to stockholders…(196.0)"](0000950170-25-026604|0) - Repurchase of common stock (FY2024): **$868.0m**. ["Repurchase of common stock…(868.0)"](0000950170-25-026604|0) Management also describes a financing playbook in 2024: issuing senior notes and using proceeds (plus cash) to repurchase stock and redeem notes. ["issued senior notes for $1,436.3 million"](0000950170-25-026604|0) ["repurchase $868.0 million"](0000950170-25-026604|0) ["redeem $850.0"](0000950170-25-026604|0) --- # 6) Balance sheet & leverage: what’s on it, and why it matters ## 6.1 FY2024 balance sheet snapshot (Dec 31, 2024) **Units: USD millions.** | Line item | Dec 31, 2024 | Dec 31, 2023 | |---|---:|---:| | Cash and cash equivalents | 525.5 ["Cash and cash equivalents…525.5"](0000950170-25-026604|0) | 415.8 ["…415.8"](0000950170-25-026604|0) | | Total assets | 21,365.3 ["Total Assets…21,365.3"](0000950170-25-026604|0) | 21,496.9 ["Total Assets…21,496.9"](0000950170-25-026604|0) | | Current portion of long‑term debt | 863.0 ["Current portion…863.0"](0000950170-25-026604|0) | 900.0 ["…900.0"](0000950170-25-026604|0) | | Long‑term debt | 5,341.6 ["Long-term debt…5,341.6"](0000950170-25-026604|0) | 4,867.9 ["…4,867.9"](0000950170-25-026604|0) | | Total stockholders’ equity | 12,476.2 ["Total Stockholders' Equity…12,476.2"](0000950170-25-026604|0) | 12,488.1 ["…12,488.1"](0000950170-25-026604|0) | ## 6.2 Debt stack detail (Dec 31, 2024) ZBH provides a detailed debt table (including senior notes and euro notes). ["Long-term debt"](0000950170-25-026604|0) **Units: USD millions (as presented).** | Instrument | Amount | |---|---:| | Current: 3.550% Senior Notes due 2025 | 863.0 ["3.550% Senior Notes due 2025…863.0"](0000950170-25-026604|0) | | 3.050% Senior Notes due 2026 | 600.0 ["3.050% Senior Notes due 2026…600.0"](0000950170-25-026604|0) | | 5.350% Senior Notes due 2028 | 500.0 ["5.350% Senior Notes due 2028…500.0"](0000950170-25-026604|0) | | 2.600% Senior Notes due 2031 | 750.0 ["2.600% Senior Notes due 2031…750.0"](0000950170-25-026604|0) | | 5.200% Senior Notes due 2034 | 700.0 ["5.200% Senior Notes due 2034…700.0"](0000950170-25-026604|0) | | 2.425% Euro Notes due 2026 | 517.7 ["2.425% Euro Notes due 2026…517.7"](0000950170-25-026604|0) | | 1.164% Euro Notes due 2027 | 517.7 ["1.164% Euro Notes due 2027…517.7"](0000950170-25-026604|0) | | 3.518% Euro Notes due 2032 | 724.8 ["3.518% Euro Notes due 2032…724.8"](0000950170-25-026604|0) | | Debt discount & issuance costs | (34.1) ["Debt discount and issuance costs…(34.1)"](0000950170-25-026604|0) | | Swap-related adjustment | (158.6) ["Adjustment related to interest rate swaps…(158.6)"](0000950170-25-026604|0) | | **Total long‑term debt** | **5,341.6** ["Total long-term debt…5,341.6"](0000950170-25-026604|0) | ### Revolving facilities / liquidity backstops (FY2024) As of Dec 31, 2024, ZBH disclosed **$525.5m cash**, plus **$1.0b available** on a 364‑day revolver (maturing June 27, 2025) and **$1.5b available** on a five‑year revolver (maturing June 28, 2029). ["$525.5 million"](0000950170-25-026604|0) ["$1.0 billion available"](0000950170-25-026604|0) ["$1.5 billion available"](0000950170-25-026604|0) --- # 7) “What changed recently?” — 2025 operating cadence + 2026 event disclosure ## 7.1 Q3’25 performance (10‑Q, period ended Sep 30, 2025) ZBH reported: - **Q3’25 net sales:** $2,001.4m vs $1,824.2m in Q3’24. ["Net Sales…2,001.4"](0001193125-25-266884|0) ["…1,824.2"](0001193125-25-266884|0) - **9M’25 net sales:** $5,987.7m vs $5,655.4m in 9M’24. ["…5,987.7"](0001193125-25-266884|0) ["…5,655.4"](0001193125-25-266884|0) **Management’s explanation for 2025 growth:** the 10‑Q says net sales growth was driven by **Paragon 28 acquisition**, market growth, new products, and an easier compare due to prior-year ERP-related fulfillment challenges. ["driven by…Paragon 28 acquisition"](0001193125-25-266884|0) ["ERP…operational challenges"](0001193125-25-266884|0) ## 7.2 2025 outlook (as stated in Q3’25 10‑Q) Management stated an expectation for **2025 full year revenue growth of 6.7% to 7.7%**, with Paragon 28 estimated to contribute **2.7%** to net sales growth. ["revenue growth of 6.7 percent to 7.7 percent"](0001193125-25-266884|0) ["contribute 2.7 percent"](0001193125-25-266884|0) They also discussed tariffs, anticipating **~$40m** of additional expenses related to tariffs in FY2025 (based on then-current tariff rates and mitigation efforts). ["approximately $40 million"](0001193125-25-266884|0) ## 7.3 January 2026 8‑K: executive change On Jan 8, 2026, **Mark Bezjak** informed ZBH he would resign employment (effective Jan 16, 2026) to pursue another opportunity; it also notes he ceased to be an executive officer on July 1, 2025. ["will resign…effective as of January 16, 2026"](0001193125-26-009895|0) ["ceased to be an executive officer…July 1, 2025"](0001193125-26-009895|0) --- # 8) M&A / technology narrative: robotics as a strategic wedge ## 8.1 Monogram Technologies acquisition (closed Oct 7, 2025) Zimmer Biomet announced completion of its acquisition of **Monogram**, describing it as an AI-driven orthopedic robotics company. ["completed the acquisition of Monogram"](0001193125-25-233473|1) Key disclosed points: - Monogram’s **CT-based, semi-autonomous, AI-navigated TKA robotic tech** received FDA 510(k) clearance in March 2025, and is expected to be commercialized with Zimmer Biomet implants by early 2027. ["received FDA 510(k) clearance in March 2025"](0001193125-25-233473|1) ["expected to be commercialized…by early 2027"](0001193125-25-233473|1) - Consideration: each Monogram share converted into **$4.04 cash + CVR up to $12.37** tied to milestones through 2030. ["$4.04 in cash"](0001193125-25-233473|1) ["up to $12.37"](0001193125-25-233473|1) ["through 2030"](0001193125-25-233473|1) **Why this matters (filings-backed framing):** the disclosure positions robotics/navigation breadth (ROSA plus additional modalities) as a strategic lever to drive procedure adoption and differentiation. ["broad portfolio features imageless robotics…ROSA"](0001193125-25-233473|1) --- # 9) Risk factors (how management wants you to think about downside) The 10‑K frames a broad set of risks, emphasizing that the business operates in a rapidly changing competitive/economic/tech environment and that risks could materially affect business/financial condition/results. ["numerous risks"](0000950170-25-026604|0) ["could materially harm"](0000950170-25-026604|0) A few *specific* risk themes explicitly surfaced in the business/risk discussion excerpt you have here: - **Competition is intense**, with major competitors named (J&J/DePuy Synthes, Stryker, Smith & Nephew). ["major competitors include Johnson & Johnson…Stryker…Smith & Nephew"](0000950170-25-026604|0) - The company highlights dependence on information systems and acknowledges ongoing cybersecurity incidents (while stating none have been material to date). ["regularly experience cybersecurity incidents"](0000950170-25-026604|0) ["have not…materially affected us"](0000950170-25-026604|0) --- # 10) Governance & pay disclosures (proxy-based): what the board is incentivizing ## 10.1 Pay-versus-performance disclosure: what metric ZBH chose In its pay-vs-performance table, ZBH includes **Net income** and **Consolidated constant currency revenue** alongside TSR comparisons. ["Net Income (Loss)($ in millions)"](0000950170-25-053494|0) ["Consolidated Constant Currency Revenue"](0000950170-25-053494|0) For 2024, the table shows: - **Net income (USD m): 903.8** ["$903.8"](0000950170-25-053494|0) - **Consolidated constant currency revenue (USD m): 7,689** ["$7,689"](0000950170-25-053494|0) The proxy states the company selected **consolidated constant currency revenue** as the company-selected measure for pay-vs-performance. ["company-selected measure…consolidated constant currency revenue"](0000950170-25-053494|0) ## 10.2 CEO compensation (proxy) The proxy discloses that the **annual total compensation of Mr. Tornos for 2024** (as reported in the Summary Compensation Table) was **$14,992,868**. ["annual total compensation…$14,992,868"](0000950170-25-053494|0) --- ## “Interactive” drill‑downs you can request next (no extra setup needed) Pick any module and I’ll go deeper using the same filings/disclosures: 1) **ERP impacts**: where exactly it hit (service levels, working capital, margin). ["ERP…operational challenges"](0001193125-25-266884|0) 2) **Paragon 28**: acquisition economics + integration costs and how much of 2025 growth is acquisition vs organic. ["Paragon 28 had a positive impact…"](0001193125-25-266884|0) 3) **Debt & interest-rate posture**: fixed vs floating, covenant headroom (as disclosed), and refinancing timeline. ["consolidated indebtedness to consolidated EBITDA"](0000950170-25-026604|0) 4) **Robotics strategy**: how ROSA + Monogram is positioned across procedures and why management thinks it drives growth. ["broadest choice in robotics and navigation"](0001193125-25-233473|1) If you want one starting recommendation: ask for **(2) Paragon 28 economics** + **(3) debt posture**, because the 10‑Q explicitly ties 2025 growth and earnings headwinds to acquisition costs and interest expense dynamics. ["Paragon 28 acquisition"](0001193125-25-266884|0) ["higher interest expense"](0001193125-25-266884|0)

## Zimmer Biomet Holdings (ZBH) — filings‑driven deep dive (SEC as source of truth) **Primary documents used:** FY2024 Form 10‑K (filed Feb 25, 2025), Q3’25 Form 10‑Q (filed Nov 5, 2025), and selected 8‑Ks / proxy disclosures. ["10-K"](0000950170-25-026604|0) ["10-Q"](0001193125-25-266884|0) ["8-K"](0001193125-26-009895|0) ["proxy statement"](0000950170-25-053494|0) --- # 1) Business model “map”: what ZBH sells + how it reports results ### How Zimmer Biomet describes its *operating segments* ZBH allocates resources and manages profit through **three regional operating segments: Americas, EMEA, and Asia Pacific**. ["three regional operating segments"](0000950170-25-026604|0) - **Americas** is the largest segment; the U.S. accounted for ~95% of net sales in this region in 2024. ["approximately 95 percent"](0000950170-25-026604|0) - **EMEA** (Europe, Middle East & Africa) includes major European markets; several of the largest countries collectively accounted for ~50% of regional net sales in 2024. ["collectively accounted for approximately 50 percent"](0000950170-25-026604|0) - **Asia Pacific** includes markets such as Japan, China, Australia, etc.; **Japan** accounted for ~45% of the region’s net sales in 2024. ["Japan is the largest market…45 percent"](0000950170-25-026604|0) ### How ZBH describes *product categories* (a second lens) Management also analyzes sales by: - **Geography**: United States vs International - **Product categories**: **Knees**, **Hips**, **S.E.T.**, and **Technology & Data, Bone Cement and Surgical**. ["Knees; Hips; S.E.T."](0000950170-25-026604|0) This product-category lens **differs from reportable segments**; each operating segment sells across all product categories. ["differs from our reportable operating segments"](0000950170-25-026604|0) --- # 2) FY2024 topline: where revenue came from (with tables) ## 2.1 Net sales by geography (FY2022–FY2024) **Units: USD millions.** | Geography | FY2024 | FY2023 | FY2022 | FY2024 vs FY2023 | FY2023 vs FY2022 | |---|---:|---:|---:|---:|---:| | United States | 4,439.0 ["United States…4,439.0"](0000950170-25-026604|0) | 4,288.8 ["United States…4,288.8"](0000950170-25-026604|0) | 4,012.4 ["United States…4,012.4"](0000950170-25-026604|0) | +3.5% ["2024 vs. 2023 % Inc…3.5"](0000950170-25-026604|0) | +6.9% ["2023 vs. 2022 % Inc…6.9"](0000950170-25-026604|0) | | International | 3,239.6 ["International…3,239.6"](0000950170-25-026604|0) | 3,105.4 ["International…3,105.4"](0000950170-25-026604|0) | 2,927.5 ["International…2,927.5"](0000950170-25-026604|0) | +4.3% ["2024 vs. 2023 % Inc…4.3"](0000950170-25-026604|0) | +6.1% ["2023 vs. 2022 % Inc…6.1"](0000950170-25-026604|0) | | **Total** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["Total…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["Total…6,939.9"](0000950170-25-026604|0) | **+3.8%** ["2024 vs. 2023 % Inc…3.8"](0000950170-25-026604|0) | **+6.5%** ["2023 vs. 2022 % Inc…6.5"](0000950170-25-026604|0) | **Management’s own explanation (FY2024):** - U.S. growth was driven by market growth across Knees, Hips, and S.E.T., but was **negatively impacted by ERP implementation issues** affecting fulfillment. ["negatively impacted…ERP system"](0000950170-25-026604|0) - International growth was driven by market growth, but volume was **partially offset by FX headwinds** (negative impact of 2.3% in 2024). ["negative impacts…foreign currency…2.3 percent"](0000950170-25-026604|0) ## 2.2 Net sales by product category (FY2022–FY2024) **Units: USD millions.** | Product category | FY2024 | FY2023 | FY2022 | FY2024 vs FY2023 | FY2023 vs FY2022 | |---|---:|---:|---:|---:|---:| | Knees | 3,173.5 ["Knees…3,173.5"](0000950170-25-026604|0) | 3,038.4 ["Knees…3,038.4"](0000950170-25-026604|0) | 2,778.3 ["Knees…2,778.3"](0000950170-25-026604|0) | +4.4% ["2024 vs. 2023 % Inc…4.4"](0000950170-25-026604|0) | +9.4% ["2023 vs. 2022 % Inc…9.4"](0000950170-25-026604|0) | | Hips | 1,999.1 ["Hips…1,999.1"](0000950170-25-026604|0) | 1,967.2 ["Hips…1,967.2"](0000950170-25-026604|0) | 1,894.9 ["Hips…1,894.9"](0000950170-25-026604|0) | +1.6% ["2024 vs. 2023 % Inc…1.6"](0000950170-25-026604|0) | +3.8% ["2023 vs. 2022 % Inc…3.8"](0000950170-25-026604|0) | | S.E.T. | 1,865.7 ["S.E.T.…1,865.7"](0000950170-25-026604|0) | 1,752.6 ["S.E.T.…1,752.6"](0000950170-25-026604|0) | 1,696.7 ["S.E.T.…1,696.7"](0000950170-25-026604|0) | +6.5% ["2024 vs. 2023 % Inc…6.5"](0000950170-25-026604|0) | +3.3% ["2023 vs. 2022 % Inc…3.3"](0000950170-25-026604|0) | | Technology & Data, Bone Cement and Surgical | 640.3 ["Technology & Data…640.3"](0000950170-25-026604|0) | 636.0 ["…636.0"](0000950170-25-026604|0) | 570.0 ["…570.0"](0000950170-25-026604|0) | +0.7% ["2024 vs. 2023 % Inc…0.7"](0000950170-25-026604|0) | +11.6% ["2023 vs. 2022 % Inc…11.6"](0000950170-25-026604|0) | | **Total** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["Total…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["Total…6,939.9"](0000950170-25-026604|0) | **+3.8%** ["2024 vs. 2023 % Inc…3.8"](0000950170-25-026604|0) | **+6.5%** ["2023 vs. 2022 % Inc…6.5"](0000950170-25-026604|0) | **Product-category read‑through (FY2024):** - Knees & Hips benefited from market growth and new product introductions; FX was a negative on both categories in 2024. ["market growth and new product introductions"](0000950170-25-026604|0) ["negative effects…foreign currency"](0000950170-25-026604|0) - Technology & Data category (which includes ROSA) was helped by **higher ROSA robot sales in 1H24**, but impacted by ERP fulfillment challenges. ["higher net sales for our ROSA robot"](0000950170-25-026604|0) ["ERP system implementation"](0000950170-25-026604|0) --- # 3) Profitability: what’s driving margins (management’s own bridge) ZBH discloses a **gross margin bridge** that attributes the year-to-year movement to pricing, manufacturing costs, mix, inventory charges, FX, and amortization. ["factors that contributed to the gross margin changes"](0001193125-25-266884|0) From the FY2024 10‑K’s gross margin bridge: - Prior year gross margin (2023): **63.3%** ["Prior year gross margin…63.3"](0000950170-25-026604|0) - Current year gross margin (2024): **63.8%** ["Current year gross margin…63.8"](0000950170-25-026604|0) - Notably: manufacturing costs were a **(1.2)** headwind in 2024 in the bridge. ["Manufacturing costs…(1.2)"](0000950170-25-026604|0) **Interpretation:** the bridge suggests ZBH’s FY2024 margin outcome is a tug‑of‑war between (i) mix/other tailwinds and (ii) manufacturing cost pressure, with modest pricing contribution. ["Impact from selling prices"](0000950170-25-026604|0) ["Manufacturing costs"](0000950170-25-026604|0) ["Volume, product and market mix"](0000950170-25-026604|0) --- # 4) Segment economics: sales vs segment profit (FY2022–FY2024) **Units: USD millions; segment profit is ZBH’s segment measure in the 10‑K.** | Segment | FY2024 net sales | FY2023 net sales | FY2022 net sales | FY2024 segment profit | FY2023 segment profit | FY2022 segment profit | |---|---:|---:|---:|---:|---:|---:| | Americas | 4,794.8 ["Americas…4,794.8"](0000950170-25-026604|0) | 4,624.1 ["…4,624.1"](0000950170-25-026604|0) | 4,295.5 ["…4,295.5"](0000950170-25-026604|0) | 2,577.0 ["Segment profit…2,577.0"](0000950170-25-026604|0) | 2,487.1 ["…2,487.1"](0000950170-25-026604|0) | 2,282.4 ["…2,282.4"](0000950170-25-026604|0) | | EMEA | 1,691.1 ["EMEA…1,691.1"](0000950170-25-026604|0) | 1,592.4 ["…1,592.4"](0000950170-25-026604|0) | 1,456.5 ["…1,456.5"](0000950170-25-026604|0) | 585.8 ["…585.8"](0000950170-25-026604|0) | 538.2 ["…538.2"](0000950170-25-026604|0) | 416.1 ["…416.1"](0000950170-25-026604|0) | | Asia Pacific | 1,192.8 ["Asia Pacific…1,192.8"](0000950170-25-026604|0) | 1,177.7 ["…1,177.7"](0000950170-25-026604|0) | 1,187.8 ["…1,187.8"](0000950170-25-026604|0) | 457.6 ["…457.6"](0000950170-25-026604|0) | 432.3 ["…432.3"](0000950170-25-026604|0) | 429.1 ["…429.1"](0000950170-25-026604|0) | | **Total segments (sum)** | **7,678.6** ["Total…7,678.6"](0000950170-25-026604|0) | **7,394.2** ["…7,394.2"](0000950170-25-026604|0) | **6,939.9** ["…6,939.9"](0000950170-25-026604|0) | **3,620.4** ["…3,620.4"](0000950170-25-026604|0) | **3,457.6** ["…3,457.6"](0000950170-25-026604|0) | **3,127.6** ["…3,127.6"](0000950170-25-026604|0) | Management’s qualitative commentary on segment profitability points to: - Americas: higher net sales + lower royalty expense (via licensing buyouts), but offset by investments and higher bad debt-related charges. ["lower royalty expense"](0000950170-25-026604|0) ["higher bad debt-related charges"](0000950170-25-026604|0) - EMEA and APAC: improved pricing, lower inventory charges, reduced royalty expense, and restructuring/cost savings initiatives. ["improved pricing"](0000950170-25-026604|0) ["lower excess and obsolete inventory charges"](0000950170-25-026604|0) ["2023 Restructuring Plan"](0000950170-25-026604|0) --- # 5) Cash flow & capital allocation: what ZBH does with cash ## 5.1 Cash flow summary (FY2022–FY2024) **Units: USD millions.** | Cash flow line | FY2024 | FY2023 | FY2022 | |---|---:|---:|---:| | Net cash provided by operating activities (continuing ops) | 1,499.4 ["Net cash provided…1,499.4"](0000950170-25-026604|0) | 1,581.6 ["…1,581.6"](0000950170-25-026604|0) | 1,356.2 ["…1,356.2"](0000950170-25-026604|0) | | Net cash used in investing activities (continuing ops) | (888.1) ["Net cash used…(888.1)"](0000950170-25-026604|0) | (778.9) ["…(778.9)"](0000950170-25-026604|0) | (522.0) ["…(522.0)"](0000950170-25-026604|0) | | Net cash used in financing activities (continuing ops) | (484.5) ["Net cash used…(484.5)"](0000950170-25-026604|0) | (763.5) ["…(763.5)"](0000950170-25-026604|0) | (775.7) ["…(775.7)"](0000950170-25-026604|0) | | Cash & cash equivalents (end of year) | 525.5 ["end of year…525.5"](0000950170-25-026604|0) | 415.8 ["end of year…415.8"](0000950170-25-026604|0) | 375.7 ["end of year…375.7"](0000950170-25-026604|0) | ## 5.2 Shareholder returns: dividends + buybacks in FY2024 - Dividends paid to stockholders (FY2024): **$196.0m**. ["Dividends paid to stockholders…(196.0)"](0000950170-25-026604|0) - Repurchase of common stock (FY2024): **$868.0m**. ["Repurchase of common stock…(868.0)"](0000950170-25-026604|0) Management also describes a financing playbook in 2024: issuing senior notes and using proceeds (plus cash) to repurchase stock and redeem notes. ["issued senior notes for $1,436.3 million"](0000950170-25-026604|0) ["repurchase $868.0 million"](0000950170-25-026604|0) ["redeem $850.0"](0000950170-25-026604|0) --- # 6) Balance sheet & leverage: what’s on it, and why it matters ## 6.1 FY2024 balance sheet snapshot (Dec 31, 2024) **Units: USD millions.** | Line item | Dec 31, 2024 | Dec 31, 2023 | |---|---:|---:| | Cash and cash equivalents | 525.5 ["Cash and cash equivalents…525.5"](0000950170-25-026604|0) | 415.8 ["…415.8"](0000950170-25-026604|0) | | Total assets | 21,365.3 ["Total Assets…21,365.3"](0000950170-25-026604|0) | 21,496.9 ["Total Assets…21,496.9"](0000950170-25-026604|0) | | Current portion of long‑term debt | 863.0 ["Current portion…863.0"](0000950170-25-026604|0) | 900.0 ["…900.0"](0000950170-25-026604|0) | | Long‑term debt | 5,341.6 ["Long-term debt…5,341.6"](0000950170-25-026604|0) | 4,867.9 ["…4,867.9"](0000950170-25-026604|0) | | Total stockholders’ equity | 12,476.2 ["Total Stockholders' Equity…12,476.2"](0000950170-25-026604|0) | 12,488.1 ["…12,488.1"](0000950170-25-026604|0) | ## 6.2 Debt stack detail (Dec 31, 2024) ZBH provides a detailed debt table (including senior notes and euro notes). ["Long-term debt"](0000950170-25-026604|0) **Units: USD millions (as presented).** | Instrument | Amount | |---|---:| | Current: 3.550% Senior Notes due 2025 | 863.0 ["3.550% Senior Notes due 2025…863.0"](0000950170-25-026604|0) | | 3.050% Senior Notes due 2026 | 600.0 ["3.050% Senior Notes due 2026…600.0"](0000950170-25-026604|0) | | 5.350% Senior Notes due 2028 | 500.0 ["5.350% Senior Notes due 2028…500.0"](0000950170-25-026604|0) | | 2.600% Senior Notes due 2031 | 750.0 ["2.600% Senior Notes due 2031…750.0"](0000950170-25-026604|0) | | 5.200% Senior Notes due 2034 | 700.0 ["5.200% Senior Notes due 2034…700.0"](0000950170-25-026604|0) | | 2.425% Euro Notes due 2026 | 517.7 ["2.425% Euro Notes due 2026…517.7"](0000950170-25-026604|0) | | 1.164% Euro Notes due 2027 | 517.7 ["1.164% Euro Notes due 2027…517.7"](0000950170-25-026604|0) | | 3.518% Euro Notes due 2032 | 724.8 ["3.518% Euro Notes due 2032…724.8"](0000950170-25-026604|0) | | Debt discount & issuance costs | (34.1) ["Debt discount and issuance costs…(34.1)"](0000950170-25-026604|0) | | Swap-related adjustment | (158.6) ["Adjustment related to interest rate swaps…(158.6)"](0000950170-25-026604|0) | | **Total long‑term debt** | **5,341.6** ["Total long-term debt…5,341.6"](0000950170-25-026604|0) | ### Revolving facilities / liquidity backstops (FY2024) As of Dec 31, 2024, ZBH disclosed **$525.5m cash**, plus **$1.0b available** on a 364‑day revolver (maturing June 27, 2025) and **$1.5b available** on a five‑year revolver (maturing June 28, 2029). ["$525.5 million"](0000950170-25-026604|0) ["$1.0 billion available"](0000950170-25-026604|0) ["$1.5 billion available"](0000950170-25-026604|0) --- # 7) “What changed recently?” — 2025 operating cadence + 2026 event disclosure ## 7.1 Q3’25 performance (10‑Q, period ended Sep 30, 2025) ZBH reported: - **Q3’25 net sales:** $2,001.4m vs $1,824.2m in Q3’24. ["Net Sales…2,001.4"](0001193125-25-266884|0) ["…1,824.2"](0001193125-25-266884|0) - **9M’25 net sales:** $5,987.7m vs $5,655.4m in 9M’24. ["…5,987.7"](0001193125-25-266884|0) ["…5,655.4"](0001193125-25-266884|0) **Management’s explanation for 2025 growth:** the 10‑Q says net sales growth was driven by **Paragon 28 acquisition**, market growth, new products, and an easier compare due to prior-year ERP-related fulfillment challenges. ["driven by…Paragon 28 acquisition"](0001193125-25-266884|0) ["ERP…operational challenges"](0001193125-25-266884|0) ## 7.2 2025 outlook (as stated in Q3’25 10‑Q) Management stated an expectation for **2025 full year revenue growth of 6.7% to 7.7%**, with Paragon 28 estimated to contribute **2.7%** to net sales growth. ["revenue growth of 6.7 percent to 7.7 percent"](0001193125-25-266884|0) ["contribute 2.7 percent"](0001193125-25-266884|0) They also discussed tariffs, anticipating **~$40m** of additional expenses related to tariffs in FY2025 (based on then-current tariff rates and mitigation efforts). ["approximately $40 million"](0001193125-25-266884|0) ## 7.3 January 2026 8‑K: executive change On Jan 8, 2026, **Mark Bezjak** informed ZBH he would resign employment (effective Jan 16, 2026) to pursue another opportunity; it also notes he ceased to be an executive officer on July 1, 2025. ["will resign…effective as of January 16, 2026"](0001193125-26-009895|0) ["ceased to be an executive officer…July 1, 2025"](0001193125-26-009895|0) --- # 8) M&A / technology narrative: robotics as a strategic wedge ## 8.1 Monogram Technologies acquisition (closed Oct 7, 2025) Zimmer Biomet announced completion of its acquisition of **Monogram**, describing it as an AI-driven orthopedic robotics company. ["completed the acquisition of Monogram"](0001193125-25-233473|1) Key disclosed points: - Monogram’s **CT-based, semi-autonomous, AI-navigated TKA robotic tech** received FDA 510(k) clearance in March 2025, and is expected to be commercialized with Zimmer Biomet implants by early 2027. ["received FDA 510(k) clearance in March 2025"](0001193125-25-233473|1) ["expected to be commercialized…by early 2027"](0001193125-25-233473|1) - Consideration: each Monogram share converted into **$4.04 cash + CVR up to $12.37** tied to milestones through 2030. ["$4.04 in cash"](0001193125-25-233473|1) ["up to $12.37"](0001193125-25-233473|1) ["through 2030"](0001193125-25-233473|1) **Why this matters (filings-backed framing):** the disclosure positions robotics/navigation breadth (ROSA plus additional modalities) as a strategic lever to drive procedure adoption and differentiation. ["broad portfolio features imageless robotics…ROSA"](0001193125-25-233473|1) --- # 9) Risk factors (how management wants you to think about downside) The 10‑K frames a broad set of risks, emphasizing that the business operates in a rapidly changing competitive/economic/tech environment and that risks could materially affect business/financial condition/results. ["numerous risks"](0000950170-25-026604|0) ["could materially harm"](0000950170-25-026604|0) A few *specific* risk themes explicitly surfaced in the business/risk discussion excerpt you have here: - **Competition is intense**, with major competitors named (J&J/DePuy Synthes, Stryker, Smith & Nephew). ["major competitors include Johnson & Johnson…Stryker…Smith & Nephew"](0000950170-25-026604|0) - The company highlights dependence on information systems and acknowledges ongoing cybersecurity incidents (while stating none have been material to date). ["regularly experience cybersecurity incidents"](0000950170-25-026604|0) ["have not…materially affected us"](0000950170-25-026604|0) --- # 10) Governance & pay disclosures (proxy-based): what the board is incentivizing ## 10.1 Pay-versus-performance disclosure: what metric ZBH chose In its pay-vs-performance table, ZBH includes **Net income** and **Consolidated constant currency revenue** alongside TSR comparisons. ["Net Income (Loss)($ in millions)"](0000950170-25-053494|0) ["Consolidated Constant Currency Revenue"](0000950170-25-053494|0) For 2024, the table shows: - **Net income (USD m): 903.8** ["$903.8"](0000950170-25-053494|0) - **Consolidated constant currency revenue (USD m): 7,689** ["$7,689"](0000950170-25-053494|0) The proxy states the company selected **consolidated constant currency revenue** as the company-selected measure for pay-vs-performance. ["company-selected measure…consolidated constant currency revenue"](0000950170-25-053494|0) ## 10.2 CEO compensation (proxy) The proxy discloses that the **annual total compensation of Mr. Tornos for 2024** (as reported in the Summary Compensation Table) was **$14,992,868**. ["annual total compensation…$14,992,868"](0000950170-25-053494|0) --- ## “Interactive” drill‑downs you can request next (no extra setup needed) Pick any module and I’ll go deeper using the same filings/disclosures: 1) **ERP impacts**: where exactly it hit (service levels, working capital, margin). ["ERP…operational challenges"](0001193125-25-266884|0) 2) **Paragon 28**: acquisition economics + integration costs and how much of 2025 growth is acquisition vs organic. ["Paragon 28 had a positive impact…"](0001193125-25-266884|0) 3) **Debt & interest-rate posture**: fixed vs floating, covenant headroom (as disclosed), and refinancing timeline. ["consolidated indebtedness to consolidated EBITDA"](0000950170-25-026604|0) 4) **Robotics strategy**: how ROSA + Monogram is positioned across procedures and why management thinks it drives growth. ["broadest choice in robotics and navigation"](0001193125-25-233473|1) If you want one starting recommendation: ask for **(2) Paragon 28 economics** + **(3) debt posture**, because the 10‑Q explicitly ties 2025 growth and earnings headwinds to acquisition costs and interest expense dynamics. ["Paragon 28 acquisition"](0001193125-25-266884|0) ["higher interest expense"](0001193125-25-266884|0)