State releases six-year, $7 billion funding plan for capital improvement projects
Virginia's Department of Rail and Public Transportation has just released their draft six- year improvement program for fiscal year 2026, totaling roughly $7 billion. The funds cover both operational costs and larger sums for capital improvement projects statewide.
The City of Alexandria, for example, will get money to help cover the $200,000 operational cost for their GO Alex program, which is the city's outreach program to get residents to ride transit, carpool and commute by bicycle. Hampton Roads' transportation department will receive funds towards replacing two large buses, a project that will total $1.6 million – and that's just one of their more than 30 plus capital improvement projects. Localities depend on the state money to update the equipment used to serve the public in various regions of Virginia.
'We of course got money to buy new buses. We have a fleet of over 300 buses,' said Ray Amoruso, chief planning and development officer for Hampton Roads Transportation. 'The average life of a bus is either 10 or 12 years and at some point they have to be replaced. So every year we ask for bus money.'
The Six-year Improvement Program (SYIP) is an annual funding program that both DRPT and the Virginia Department of Transportation administer to help fund rail — including freight – and public transit programs across the state. The different amounts of funding found in the six-year projects is derived by formulas established by Virginia law. Individual projects, which localities apply for, are funded by the SYIP and are evaluated and given scores by DRPT, then approved by the Commonwealth Transportation Board.
'The state updates their six-year improvement plan every year. So it's like a moving window. Each year we progress,' said Amoruso. 'Sometimes we ask for the same money if they didn't award it to us [the first time]. Next year, we'll do this all over again.'
Here's a breakdown of how the funds will be allocated in the upcoming fiscal year:.
Public Transportation: $332 million
Washington Metropolitan Area Transit Authority (WMATA): $442 million
Virginia Railway Express (VRE): $17 million
Rail (DRPT) $20 million
Transforming Rail in Virginia (VPRA) $232 million
Amoruso said the district gets federal operating assistance based on the size of their metropolitan area and the number of people who live in that area. The Hampton Roads Transportation District covers six cities: Chesapeake, Hampton, Newport News, Norfolk, Portsmouth and Virginia Beach.
'A lot of folks who aren't familiar with HRT or don't use HRT think that the money they drop in the fare box pays for their ride,' he said.
One capital project that Amoruso is excited about getting funding to build is an off-street transfer facility off Chesapeake Boulevard known as the Evelyn T. Butts Transfer Station, named after a local Civil Rights activist. Since 1999, riders have had to wait on the street to transfer buses.
'It's not a pleasant environment. Nine routes come together and people run up and down the block along the length of the block to make connections to other routes,' said Amoruso. 'It's the third busiest transfer center we have in terms of moving human beings back in and out every day.'
Though next year's state transportation fiscal funding is taking shape, the uncertainty of future federal support weighs heavy on Amoruso, he said.
President Donald Trump's administration and Elon Musk's Department of Government Efficiency have committed to cutting over a trillion dollars in government spending they deem wasteful, targeting scores of federal programs with special emphasis on eliminating ones supporting diversity, equity and inclusion initiatives (DEI). A January executive order by Trump sparked panic with its directives to federal agencies, including the Department of Transportation, to pause millions in federal funds disbursements, including money allotted for capital improvement projects through the Infrastructure Investment and Jobs Act, and for electric vehicle and clean energy infrastructure development.
'It's not just us, every transit property in the country is nervous because the administration is targeting certain discretionary programs that are connected to DEI initiatives, climate change initiatives,' Amoruso said. 'We in the past have been successful in getting grant awards for low-emission, no-emission buses, meaning electric buses.'
Amoruso said HRT had a goal to convert their 300 diesel buses to a 100% hundred emissions-free, all electric bus system by 2045.
'This administration doesn't look like they have an appetite to support those kinds of investments,' he said. 'That's just one example, but there are other programs that are at risk related to DEI and all the transit properties in the country are nervous about that and [are] watching very carefully these discretionary grants.'
One grant program Amoruso is watching is a capital investment initiative administered through Congress to help build out bus rapid transit, such as Richmond's Pulse line or other light rail systems.
'That's under the microscope of the federal government right now,' said Amoruso, 'which is making a lot of people nervous for high capacity transit projects.'
Department of Transportation Secretary Sean Duffy has stated to cut federal funding to Democratic-led states and cities, like New York and California, if they don't release information on transit crime and safety funding, according E&E News by Politico.
The public is invited to comment on all the projects that have been recommended for funding in the draft six-year plan. The Commonwealth Transportation Board will host nine meetings across the state from the week of April 22 through May 15. Online comments, email or regular mail are also being accepted.
The first meetings take place this week, starting in Richmond, followed by a meeting Wednesday in Lynchburg and one on Thursday in Hampton Roads.
On June 17 staff from DRPT will present the draft, including any changes, to the Commonwealth Transportation Board for approval. On July 1, all the approved funding will become available.
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Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of the acquisition of Paragon 28, including the possibility that the expected benefits from the transaction will not be realized or will not be realized within the expected time period; 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A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC). Copies of these filings are available online at or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary note is applicable to all forward-looking statements contained in this press release. Note: Amounts reported in millions within this press release are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts. ZIMMER BIOMET HOLDINGS, CONSOLIDATED STATEMENTS OF EARNINGSFOR THE THREE MONTHS ENDED JUNE 30, 2025 and 2024(in millions, except per share amounts, unaudited) 2025 2024Net Sales $ 2,077.3 $ 1,942.0Cost of products sold, excluding intangible asset amortization592.2553.6Intangible asset amortization160.6144.0Research and development113.3109.4Selling, general and administrative814.8737.1Restructuring and other cost reduction initiatives17.541.5Acquisition, integration, divestiture and related78.95.2Operating expenses1,777.31,590.8Operating Profit300.0351.3Other income, net3.92.0Interest expense, net(79.3)(51.1)Earnings before income taxes224.6302.2Provision for income taxes71.259.1Net Earnings153.4243.1Less: Net earnings attributable to noncontrolling interest0.60.3Net Earnings of Zimmer Biomet Holdings, Inc. $ 152.8 $ 242.8Earnings Per Common ShareBasic $ 0.77 $ 1.18Diluted $ 0.77 $ 1.18Weighted Average Common Shares OutstandingBasic197.9205.7Diluted198.3206.4 ZIMMER BIOMET HOLDINGS, CONSOLIDATED STATEMENTS OF EARNINGSFOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024(in millions, except per share amounts, unaudited) 2025 2024Net Sales $ 3,986.4 $ 3,831.2Cost of products sold, excluding intangible asset amortization1,142.01,065.9Intangible asset amortization311.6286.1Research and development223.9217.4Selling, general and administrative1,573.51,473.2Restructuring and other cost reduction initiatives53.5165.9Acquisition, integration, divestiture and related89.55.5Operating expenses3,394.03,214.0Operating Profit592.3617.2Other income, net6.91.9Interest expense, net(145.5)(101.8)Earnings before income taxes453.6517.3Provision for income taxes117.6101.4Net Earnings336.0415.9Less: Net earnings attributable to noncontrolling interest1.10.7Net Earnings of Zimmer Biomet Holdings, Inc. $ 334.9 $ 415.2Earnings Per Common ShareBasic $ 1.69 $ 2.02Diluted $ 1.68 $ 2.01Weighted Average Common Shares OutstandingBasic198.4205.4Diluted199.0206.3 ZIMMER BIOMET HOLDINGS, CONSOLIDATED BALANCE SHEETS(in millions, unaudited)June 30, December 31,2025 2024Assets Cash and cash equivalents$ 556.9 $ 525.5Receivables, net 1,611.31,480.7Inventories 2,454.22,235.3Other current assets 431.4430.1Total current assets 5,053.94,671.5Property, plant and equipment, net 2,175.72,048.8Goodwill 9,709.58,951.1Intangible assets, net 4,890.84,598.4Other assets 1,035.21,095.5Total Assets$ 22,865.1 $ 21,365.3Liabilities and Stockholders' Equity Current liabilities$ 1,879.5 $ 1,587.9Current portion of long-term debt 820.0863.0Other long-term liabilities 878.81,096.6Long-term debt 6,752.55,341.6Stockholders' equity 12,534.312,476.2Total Liabilities and Stockholders' Equity$ 22,865.1 $ 21,365.3 ZIMMER BIOMET HOLDINGS, CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024(in millions, unaudited) 2025 2024Cash flows provided by (used in) operating activities Net earnings$ 336.0 $ 415.9Depreciation and amortization 526.2481.8Share-based compensation 40.855.4Changes in operating assets and liabilities, net of acquired assets and liabilities Income taxes (132.0)(104.5)Receivables (18.6)(10.2)Inventories (40.2)(41.8)Accounts payable and accrued liabilities 40.4(181.5)Other assets and liabilities 8.3(17.7)Net cash provided by operating activities 761.0597.4Cash flows provided by (used in) investing activities Additions to instruments (140.2)(147.2)Additions to other property, plant and equipment (94.7)(107.8)Net investment hedge settlements 3.516.5Business combination investments, net of acquired cash (1,226.3)(66.5)Acquisition of intangible assets (32.4)(97.3)Other investing activities (0.3)(39.7)Net cash used in investing activities (1,490.4)(442.0)Cash flows provided by (used in) financing activities Net proceeds on revolving facilities 220.0115.0Proceeds from senior notes 1,748.1-Redemption of senior notes (863.0)-Dividends paid to stockholders (95.3)(98.8)Proceeds from employee stock compensation plans 17.163.0Business combination contingent consideration payments (17.4)(1.5)Debt issuance costs (17.3)-Repurchase of common stock (237.0)(199.5)Other financing activities (16.1)(20.3)Net cash provided by (used in) financing activities 739.2(142.0)Effect of exchange rates on cash and cash equivalents 21.6(9.0)Change in cash and cash equivalents 31.44.4Cash and cash equivalents, beginning of year 525.5415.8Cash and cash equivalents, end of period$ 556.9 $ 420.1 ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF REPORTED NET SALES % CHANGE TO CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE (unaudited)For the Three Months EndedJune 30, 2025 vs. 2024OrganicForeignConstantParagonConstantExchangeCurrency28Currency% ChangeImpact% ChangeImpact% Change Geographic ResultsUnited States6.1% -% 6.1% 3.8% 2.3% International8.1 3.5 4.6 1.2 3.4 Total7.0% 1.6% 5.4% 2.6% 2.8% Product CategoriesKneesUnited States1.7% -% 1.7% -% 1.7% International4.8 3.0 1.8 - 1.8 Total3.1 1.3 1.8 - 1.8 HipsUnited States5.2 - 5.2 - 5.2 International6.5 3.8 2.7 - 2.7 Total5.8 1.8 4.0 - 4.0 S.E.T.17.3 1.3 16.0 11.1 4.9 Technology & Data, Bone Cement and Surgical(0.2) 2.0 (2.2) - (2.2) Total7.0% 1.6% 5.4% 2.6% 2.8% ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF REPORTED NET SALES % CHANGE TO CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE (unaudited)For the Six Months EndedJune 30, 2025 vs. 2024OrganicForeignConstantParagonConstantExchangeCurrency28Currency% ChangeImpact% ChangeImpact% Change Geographic ResultsUnited States3.7% -% 3.7% 1.9% 1.8% International4.5 0.4 4.1 0.6 3.5 Total4.0% 0.1% 3.9% 1.4% 2.5% Product CategoriesKneesUnited States0.9% -% 0.9% -% 0.9% International3.1 0.1 3.0 - 3.0 Total1.9 0.1 1.8 - 1.8 HipsUnited States4.5 - 4.5 - 4.5 International2.3 0.4 1.9 - 1.9 Total3.4 0.2 3.2 - 3.2 S.E.T.10.7 0.1 10.6 5.7 4.9 Technology & Data, Bone Cement and Surgical(2.4) 0.4 (2.8) - (2.8) Total4.0% 0.1% 3.9% 1.4% 2.5% ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF PROJECTED FULL-YEAR 2025 REPORTED REVENUE CHANGE TO ORGANIC CONSTANT CURRENCY REVENUE CHANGE (unaudited)Projected Full-year 2025Reported revenue change 6.7 - 7.7 % Less: Foreign currency exchange impact 0.5Less: Paragon 28 2.7Organic constant currency revenue change 3.5 - 4.5 % ZIMMER BIOMET HOLDINGS, OF REPORTED TO ADJUSTED RESULTSFOR THE THREE MONTHS ENDED JUNE 30, 2025 and 2024(in millions, except per share amounts, unaudited)FOR THE THREE MONTHS ENDED JUNE 30, 2025Cost of products sold, excluding intangible asset amortization Intangible asset amortization Research and development Selling, general and administrative Restructuring and other cost reduction initiatives Acquisition, integration, divestiture and related Other income, net Interest expense, net Provision for income taxes Net Earnings of Zimmer Biomet Holdings, Inc. Diluted earnings per common shareAs Reported$ 592.2 $ 160.6 $ 113.3 $ 814.8 $ 17.5 $ 78.9 $ 3.9 $ (79.3) $ 71.2 $ 152.8 $ 0.77Inventory and manufacturing-related charges(1) (17.0)-------4.712.30.06Intangible asset amortization(2) -(160.6)------32.6128.00.65Restructuring and other cost reduction initiatives(3) ----(17.5)---3.913.60.07Acquisition, integration, divestiture and related(4) -----(78.9)--13.465.50.33European Union Medical Device Regulation(6) --(4.3)-----1.03.30.02Other charges(7) ---(0.3)--(0.5)0.80.10.5-Other certain tax adjustments(8) --------(35.2)35.20.18As Adjusted$ 575.2 $ - $ 109.0 $ 814.5 $ - $ - $ 3.4 $ (78.5) $ 91.7 $ 411.2 $ 2.07 FOR THE THREE MONTHS ENDED JUNE 30, 2024Cost ofproducts sold, excluding intangible asset amortization Intangible asset amortization Research and development Selling, general and administrative Restructuring and other cost reduction initiatives Acquisition, integration, divestiture and related Other income, net Provision for income taxes Net Earnings of Zimmer Biomet Holdings, Inc. Diluted earnings per common shareAs Reported$ 553.6 $ 144.0 $ 109.4 $ 737.1 $ 41.5 $ 5.2 $ 2.0 $ 59.1 $ 242.8 $ 1.18Inventory and manufacturing-related charges(1) (2.7)------1.21.50.01Intangible asset amortization(2) -(144.0)-----29.4114.60.56Restructuring and other cost reduction initiatives(3) ----(41.5)--9.332.20.16Acquisition, integration, divestiture and related(4) -----(5.2)-0.64.60.02Litigation(5) ---(0.1)----0.1-European Union Medical Device Regulation(6) --(7.6)----1.85.80.03Other charges(7) ---(0.2)--4.11.42.90.01Other certain tax adjustments(8) -------(10.4)10.40.05As Adjusted$ 550.9 $ - $ 101.8 $ 736.7 $ - $ - $ 6.1 $ 92.4 $ 415.0 $ 2.01 ZIMMER BIOMET HOLDINGS, OF REPORTED TO ADJUSTED RESULTSFOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024(in millions, except per share amounts, unaudited)FOR THE SIX MONTHS ENDED JUNE 30, 2025Cost of products sold, excluding intangible asset amortization Intangible asset amortization Research and development Selling, general and administrative Restructuring and other cost reduction initiatives Acquisition, integration, divestiture and related Other income, net Interest expense, net Provision for income taxes Net Earnings of Zimmer Biomet Holdings, Inc. Diluted earnings per common shareAs Reported$ 1,142.0 $ 311.6 $ 223.9 $ 1,573.5 $ 53.5 $ 89.5 $ 6.9 $ (145.5) $ 117.6 $ 334.9 $ 1.68Inventory and manufacturing-related charges(1) (23.2)-------6.816.40.08Intangible asset amortization(2) -(311.6)------60.8250.81.26Restructuring and other cost reduction initiatives(3) ----(53.5)---11.142.40.21Acquisition, integration, divestiture and related(4) -----(89.5)--15.374.20.37European Union Medical Device Regulation(6) --(8.7)-----1.96.80.04Other charges(7) ---(0.2)--(0.5)5.62.82.50.01Other certain tax adjustments(8) --------(44.3)44.30.22As Adjusted$ 1,118.8 $ - $ 215.3 $ 1,573.4 $ - $ - $ 6.4 $ (139.9) $ 172.0 $ 772.3 $ 3.88 FOR THE SIX MONTHS ENDED JUNE 30, 2024Cost of products sold, excluding intangible asset amortization Intangible asset amortization Research and development Selling, general and administrative Restructuring and other cost reduction initiatives Acquisition, integration, divestiture and related Other income, net Provision for income taxes Net Earnings of Zimmer Biomet Holdings, Inc. Diluted earnings per common shareAs Reported$ 1,065.9 $ 286.1 $ 217.4 $ 1,473.2 $ 165.9 $ 5.5 $ 1.9 $ 101.4 $ 415.2 $ 2.01Inventory and manufacturing-related charges(1) (3.8)------2.01.80.01Intangible asset amortization(2) -(286.1)-----57.2228.91.11Restructuring and other cost reduction initiatives(3) ----(165.9)--37.1128.80.62Acquisition, integration, divestiture and related(4) -----(5.5)-1.04.50.02Litigation(5) ---(0.1)----0.1-European Union Medical Device Regulation(6) --(13.4)----3.110.30.05Other charges(7) ------6.41.94.50.02Other certain tax adjustments(8) -------(20.5)20.50.10As Adjusted$ 1,062.1 $ - $ 204.0 $ 1,473.1 $ - $ - $ 8.2 $ 183.3 $ 814.7 $ 3.95(1) Inventory and manufacturing-related charges include inventory step-up expense, excess and obsolete inventory charges on certain product lines we intend to discontinue, the acceleration of depreciation and fixed overhead costs expensed immediately related to a manufacturing plant shutdown, and other inventory and manufacturing-related charges or gains. Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture. Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value. (2) We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization. Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company. (3) In December 2019, 2021 and 2023, and in February 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie, Inc. ("ZimVie"). Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization. The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs. (4) The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provide to ZimVie and a transition manufacturing and supply agreement for products we supply to ZimVie for a limited period. The expenses in the three and six-month periods ended June 30, 2025, include $43.4 million of compensation expense related to the discretionary accelerated vesting of Paragon 28 unvested restricted stock units as agreed upon as part of the merger agreement. (5) We are involved in patent litigation, product liability litigation, commercial litigation and other various litigation matters. We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information. Litigation matters can vary in their characteristics, frequency and significance to our operating results. The litigation charges and gains excluded from our non-GAAP financial measures in the periods presented relate to patent litigation and product liability litigation. Once the litigation matter has been excluded from our non-GAAP financial measures in a particular period, any additional expenses or gains from changes in estimates are also excluded, even if they are not significant, to ensure consistency in our non-GAAP financial measures from period-to-period. (6) The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements. The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements. For certain devices, this transition period was extended until May 2024. A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class. We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices. The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources. (7) We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures. These include gains and losses from changes in fair value on our equity investments, among other various costs. In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received. We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date. Interest expense subsequent to the acquisition date has not been excluded. (8) Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions, and impacts of significant tax reform including Swiss reform. In June 2025, we recognized tax expense related to certain unremitted foreign earnings that were previously expected to remain permanently reinvested in those foreign subsidiaries. ZIMMER BIOMET HOLDINGS, OF NET CASH PROVIDED BY OPERATINGACTIVITIES TO FREE CASH FLOWFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 and 2024(in millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Net cash provided by operating activities $ 378.2 $ 369.4 $ 761.0 $ 597.4Additions to instruments(80.5)(65.2)(140.2)(147.2)Additions to other property, plant and equipment(50.0)(52.7)(94.7)(107.8)Free cash flow $ 247.7 $ 251.5 $ 526.1 $ 342.4 ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF GROSS PROFIT & MARGIN TO ADJUSTED GROSS PROFIT & MARGIN FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 and 2024 (in millions, unaudited)Three Months Ended June 30,Six Months Ended June 30,2025 20242025 2024 Net Sales $ 2,077.3 $ 1,942.0$ 3,986.4 $ 3,831.2 Cost of products sold, excluding intangible asset amortization592.2553.6 1,142.01,065.9 Intangible asset amortization160.6144.0 311.6286.1 Gross Profit $ 1,324.5 $ 1,244.4$ 2,532.8 $ 2,479.2 Inventory and manufacturing-related charges17.02.7 23.23.8 Intangible asset amortization160.6144.0 311.6286.1 Adjusted gross profit $ 1,502.1 $ 1,391.1$ 2,867.6 $ 2,769.1 Gross margin63.8%64.1% 63.5%64.7% Inventory and manufacturing-related charges0.80.1 0.60.1 Intangible asset amortization7.77.4 7.87.5 Adjusted gross margin72.3%71.6% 71.9%72.3% ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 and 2024 (in millions, unaudited)Three Months Ended June 30,Six Months Ended June 30,2025 20242025 2024 Operating profit $ 300.0 $ 351.3$ 592.3 $ 617.2 Inventory and manufacturing-related charges17.02.7 23.23.8 Intangible asset amortization160.6144.0 311.6286.1 Restructuring and other cost reduction initiatives17.541.5 53.5165.9 Acquisition, integration, divestiture and related78.95.2 89.55.5 Litigation-0.1 -0.1 European Union Medical Device Regulation4.37.6 8.713.4 Other charges0.30.2 0.2- Adjusted operating profit $ 578.5 $ 552.6$ 1,079.0 $ 1,092.0 Operating profit margin14.4%18.1% 14.9%16.1% Inventory and manufacturing-related charges0.80.1 0.60.1 Intangible asset amortization7.77.4 7.87.5 Restructuring and other cost reduction initiatives0.82.1 1.34.3 Acquisition, integration, divestiture and related3.80.3 2.20.1 European Union Medical Device Regulation0.20.4 0.20.3 Adjusted operating profit margin27.8%28.5% 27.1%28.5% ZIMMER BIOMET HOLDINGS, INC. RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 and 2024 (unaudited)Three Months Ended June 30,Six Months Ended June 30,2025 20242025 2024 Effective tax rate31.7%19.6% 25.9%19.6% Tax effect of adjustments made to earnings before taxes(1)2.22.0 2.12.8 Other certain tax adjustments (2)(15.7)(3.4) (9.8)(4.0) Adjusted effective tax rate18.2%18.2% 18.2%18.4% (1) Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges (2) Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions, and impacts of significant tax reform including Swiss reform. In June 2025 we recognized tax expense related to certain unremitted foreign earnings that were previously expected to remain permanently reinvested in those foreign subsidiaries. ZIMMER BIOMET HOLDINGS, OF DEBT TO NET DEBTAS OF JUNE 30, 2025 and DECEMBER 31, 2024(in millions, unaudited) June 30, 2025 December 31, 2024Debt, both current and long-term $ 7,572.5 $ 6,204.6Cash and cash equivalents(556.9)(525.5)Net debt $ 7,015.6 $ 5,679.1 Media Investors Kristen Cardillo David DeMartino (925) 786-4913 (646) 531-6115 Kirsten Fallon Zach Weiner (781) 779-5561 (908) 591-6955 View original content to download multimedia: SOURCE Zimmer Biomet Holdings, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data
