Straumann Earnings: Solid Start to 2025 in a Tough Environment but US Uncertainty Remains

Narrow-moat Straumann reported first-quarter results that came in largely as we expected. Total sales of CHF 681 million were up 5.7% year over year, or 10.1% when adjusted for the DrSmile divestiture. Resilient implantology demand and solid execution across EMEA and Asia-Pacific helped offset ongoing macroeconomic headwinds. Management reaffirmed its full-year outlook of high-single-digit organic revenue growth, and while we remain in line with this guidance, we anticipate a tougher macroeconomic backdrop and tariff uncertainty to weigh on consumer sentiment and discretionary spending, particularly in the US, resulting in softer demand over the remainder of the year. We are narrowly trimming our growth assumptions and lowering our fair value estimate to CHF 115 per share from CHF 120.