ConvaTec Group PLC: H1 preview: All eyes on the H2 margin bridge

Research evidence excerpt

ConvaTec Group PLC: H1 preview: All eyes on the H2 margin bridge

Equity Research

European Medical Technology & Services

23 June 2026

ConvaTec Group PLC

H1 preview: All eyes on the H2

margin bridge

We expect H1 to track 4M trends and see H2 acceleration CTEC.L/CTEC LN OVERWEIGHT

driven by IC phasing, a lower IMX headwind and pipeline Unchanged

European Medical

ramp. CEO confidence on the H2 margin bridge and inflation Technology & Services POSITIVE

Unchanged

mitigation was evident at our recent C-Suite call, & any Price Target GBp 300

Unchangedbuyback would be welcome given leverage, offering

incremental EPS upside Price (22-Jun-26) GBp 207

Potential Upside/Downside +44.6%

Source: Bloomberg, Barclays Research

ConvaTec is due to report its H1 2026 results on 4 August. We expect broadly similar trends

to the first four months to carry through H1, with IMX drag weighing on the profile (see: An Market Cap (GBP mn) 4054

even more H2-skewed year, 21 May). We see momentum accelerating in H2, driven by Shares Outstanding (mn) 1954.85

infusion care order phasing, a progressively smaller IMX headwind, and a rich product Free Float (%) 99.85

pipeline scaling through H2 and beyond. Our tracking of US Vyalev prescriptions continues 52 Wk Avg Daily Volume (mn) 5.6

to support a strong ramp in Infusion Care, albeit with some moderation in recent Dividend Yield (%) 2.59

months (see here). The focus is likely to be on margin trajectory, where we see Return on Equity TTM (%) 10.91

seasonality, stronger topline and self-help levers supporting a material H2 ramp, helping Current BVPS (GBp) 77

offset inflationary and FX headwinds. We forecast a step-up in organic growth to c.+5.4% Source: Bloomberg

in H2 (vs. +1.7% in H1), alongside a meaningful margin expansion (c.24.9% in H2 vs. 20.9%