LeMaitre Vascular Q2 Earnings Call Highlights

LeMaitre Vascular NASDAQ: LMAT reported second-quarter 2026 results marked by 10% organic revenue growth, record operating income and continued expansion of its Artegraft product line, while foreign exchange, Middle East export delays and cardiac allograft supply constraints weighed on sales relative to management’s expectations. Chief Executive Officer George LeMaitre said the company fell $1.1 million short of its second-quarter sales guidance. He attributed the gap in roughly equal parts to the strengthening U.S. dollar after guidance was issued in May, export disruptions tied to the Middle East war, and limited supply of cardiac allografts. Management said those factors are expected to continue affecting sales during the second half of 2026. Second-Quarter Performance Organic sales increased 10% in the quarter, including 7% growth from pricing and 3% from unit volume. Excluding catheters, organic growth was 12%, consisting of 7% price growth and 5% unit growth. Catheter sales declined 11% from the prior-year period, reflecting elevated customer stocking orders during the year-earlier quarter following a package-related catheter recall. Artegraft sales rose 34% and represented 21% of total sales, according to George LeMaitre. Graft sales grew 23%, shunt sales increased 18%, and patch sales rose 4%, with each category posting records. Regional sales also reached records, with EMEA and Asia-Pacific each up 18% and the Americas up 5%. Chief Financial Officer Dorian LeBlanc said gross margin rose 210 basis points year over year to 72.1%, driven by higher average selling prices, lower shipping costs and favorable product mix, particularly from growing sales of higher-margin Artegraft products. Operating income reached a record $20.4 million, up 26% year over year. Operating margin was 29%. Net income increased 24% to $17.1 million. Fully diluted earnings per share rose 23% to $0.74. Cash and securities totaled $376 million at quarter-end, up $9 million during the quarter. Operating expenses increased 5% to $34.4 million. LeBlanc said the company maintained hiring restraint during the quarter, with full-time headcount rising only modestly to 660 from 658 a year earlier, though LeMaitre expects to continue investing in its global sales organization. Artegraft Expansion and International Investment Management identified Artegraft as its fastest-growing and largest product line. International Artegraft sales increased sequentially to $2.8 million in the second quarter from $2.1 million in the first quarter. The company now expects $11 million in Artegraft sales during 2026, compared with $4 million in 2025. The product received approvals in Vietnam, Morocco and Turkey during the quarter, bringing the total number of approved countries to 56. LeMaitre expects to seek or receive major approvals in Ko...