Stryker plans to absorb the impact of tariffs, an estimated $200 million cost, Vice President and CFO Preston Wells said in a May 1 quarterly earnings call.
Four earnings call notes:
1. Tariff impact is expected to be $200 million in 2025, Mr. Wells said, as transcribed by Seeking Alpha. The impact on margin will likely affect margins in the second half of the year, but Stryker has mitigation factors addressing tariffs.
2. Mr. Wells didn’t share specifics of where tariffs are coming from. However he said that 2% of Stryker’s business is in China, where tariffs were hit harder.
3. Demand for orthopedics remains strong as surgeons still have “significant backlogs,” Stryker CEO Kevin Lobo said. The orthopedic market is expected to grow 4% to 5%, and Mr. Lobo said he projects Stryker will grow above that rate.
4. Stryker, which sold its U.S. spine business to Viscogliosi Brothers, plans to work with the new VB Spine company. Viscogliosi Brothers has an exclusive contract with Stryker for the Mako Spine robot.
