Key Points
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Q3 organic sales grew 12%, driven by 7% pricing growth and 5% higher unit volumes; biologics performed especially well, with Artegraft sales up 18% and RestoreFlow revenue up 34%.
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LeMaitre reported 71.7% gross margin and $0.65 diluted EPS, but lowered its 2026 gross margin outlook to 72.1% from 72.4%, citing an inventory reserve, foreign-exchange pressure and RestoreFlow transfer costs. It maintained its 11% organic revenue growth forecast and expects $2.80 in full-year diluted EPS.
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The B. Braun device acquisition faces an 18–24-month commercial transition, with management warning hypothetically of 10%–15% customer or sales losses in the first year. RestoreFlow also remains constrained by quality-control processing capacity, limiting its ability to meet demand.
LeMaitre Vascular (NASDAQ:LMAT) reported 12% organic sales growth in the third quarter of 2026, driven by higher prices and unit volumes, while reiterating its full-year organic growth outlook and lowering its gross margin forecast.
CEO George LeMaitre said on the Nov. 4 earnings call that organic growth comprised a 7% increase from pricing and a 5% increase in units. Reported sales growth was 11%, with foreign exchange reducing revenue by $440,000 as the U.S. dollar strengthened year over year.
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Biologic products continued to grow faster than the broader portfolio: Artegraft sales rose 18%, and RestoreFlow allograft revenue increased 34%. Graft sales grew 20% and shunt sales rose 14%. By region, reported sales increased 18% in Europe, the Middle East and Africa; 9% in the Americas; and 5% in Asia-Pacific.
Margins Rise Despite Inventory Charge
Third-quarter gross margin was 71.7%, up 90 basis points from a year earlier, excluding a $4.8 million employee retention tax credit recorded in the 2025 period. CFO Dorian LeBlanc attributed the improvement primarily to higher average selling prices and lower shipping costs, partly offset by a $500,000 inventory reserve tied to the discontinuation of FAS-TIP.
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Without that charge, gross margin would have been 72.4%, up 160 basis points year over year. Operating expenses rose 18% to $31 million, reflecting sales force expansion and a $1.1 million increase in research and development spending. LeBlanc said the higher R&D spending was driven by process improvements and expenses related to transferring RestoreFlow operations.
