LeMaitre Vascular (NASDAQ:LMAT) reported second-quarter 2026 results marked by 10% organic revenue growth, record operating income and continued expansion of its Artegraft product line, while foreign exchange, Middle East export delays and cardiac allograft supply constraints weighed on sales relative to management’s expectations.
Chief Executive Officer George LeMaitre said the company fell $1.1 million short of its second-quarter sales guidance. He attributed the gap in roughly equal parts to the strengthening U.S. dollar after guidance was issued in May, export disruptions tied to the Middle East war, and limited supply of cardiac allografts.
Second-Quarter Performance
Organic sales increased 10% in the quarter, including 7% growth from pricing and 3% from unit volume. Excluding catheters, organic growth was 12%, consisting of 7% price growth and 5% unit growth. Catheter sales declined 11% from the prior-year period, reflecting elevated customer stocking orders during the year-earlier quarter following a package-related catheter recall.
Artegraft sales rose 34% and represented 21% of total sales, according to George LeMaitre. Graft sales grew 23%, shunt sales increased 18%, and patch sales rose 4%, with each category posting records. Regional sales also reached records, with EMEA and Asia-Pacific each up 18% and the Americas up 5%.
Chief Financial Officer Dorian LeBlanc said gross margin rose 210 basis points year over year to 72.1%, driven by higher average selling prices, lower shipping costs and favorable product mix, particularly from growing sales of higher-margin Artegraft products.
- Operating income reached a record $20.4 million, up 26% year over year.
- Operating margin was 29%.
- Net income increased 24% to $17.1 million.
- Fully diluted earnings per share rose 23% to $0.74.
- Cash and securities totaled $376 million at quarter-end, up $9 million during the quarter.
Operating expenses increased 5% to $34.4 million. LeBlanc said the company maintained hiring restraint during the quarter, with full-time headcount rising only modestly to 660 from 658 a year earlier, though LeMaitre expects to continue investing in its global sales organization.
Artegraft Expansion and International Investment
Management identified Artegraft as its fastest-growing and largest product line. International Artegraft sales increased sequentially to $2.8 million in the second quarter from $2.1 million in the first quarter. The company now expects $11 million in Artegraft sales during 2026, compared with $4 million in 2025.
The product received approvals in Vietnam, Morocco and Turkey during the quarter, bringing the total number of approved countries to 56. LeMaitre expects to seek or receive major approvals in Korea, Brazil and India in 2027. The company also said it received an initially positive response from Japan’s PMDA after a July meeting and believes it could obtain approval for the arteriovenous indication by 2029 or 2030 without a clinical trial.
Canada approved Artegraft last year, and the company plans a September launch there. LeMaitre also plans to file for approval in the U.S. and Europe during the fourth quarter for longer Artegraft packaging tubes, intended to support use in leg bypass procedures. Sales of longer bovine grafts could begin in the second half of 2027, management said.
The company ended the second quarter with 163 sales representatives and continues to target 170 to 180 representatives by year-end. Nine representatives have signed to begin in the third quarter, while 13 sales positions remain open.
LeMaitre is also expanding its distribution infrastructure. Its primary warehouse has moved and tripled in size in Billerica, Massachusetts, while projects are underway in Madrid, Paris, Toronto, the London area, Dublin and Warsaw. The company expects to begin selling directly to Polish hospitals from a Warsaw warehouse in December.
George LeMaitre described the effort as “relocalization,” aimed at placing customer service, inventory and shipping closer to hospital customers. He said localized shipping has reduced costs in some European markets and supported improved regional gross margins.
Allograft Supply and Regulatory Updates
Revenue from RFA allografts increased 17% during the quarter, while cardiac allograft sales grew 39% quarter over quarter, according to management. However, the company reduced its full-year organic growth outlook in part because of anticipated supply constraints for cardiac allografts.
President Dave Roberts said LeMaitre remains focused on improving U.S. cardiac tissue supply before pursuing tissue processing expansion outside the country. The company is transferring tissue processing from Fox River Grove, Illinois, to Burlington, Massachusetts, and has already yielded tissue at the Burlington facility.
LeMaitre currently distributes cadaver tissues in the U.S., Canada, the United Kingdom and Germany. It expects potential approvals in Ireland during the first half of 2027, followed by Austria, the Netherlands and Spain in the same period, and Australia and Switzerland in the second half of 2027.
Separately, the company said an FDA pre-submission for its QuickStitch project indicated that a clinical trial is likely to be required. George LeMaitre said the company is evaluating whether to pursue that path, noting that a clinical trial timeline would be measured in years rather than quarters.
The FDA also re-audited LeMaitre’s New Jersey facility in June following a 2025 warning letter. Management said it believes it adequately addressed three-fourths of the prior observations, received additional quality-system observations on June 25 and responded on July 16. The observations have not disrupted production, shipping or invoicing, the company said.
Updated 2026 Outlook
LeMaitre updated its full-year guidance to revenue of $276.3 million, representing 11% reported revenue growth and 11% organic revenue growth. The company had previously projected 12% organic growth.
Management expects full-year gross margin of 72.4%, operating income of $76.8 million and an operating margin of 28%. Fully diluted earnings per share is projected at $2.89, up 21% from adjusted 2025 results.
LeBlanc said the lower revenue and operating-income outlook reflects updated foreign-exchange assumptions, continuing Middle East export restrictions and slower-than-expected cardiac allograft growth due to supply limitations. He added that stronger returns on invested cash are expected to provide some benefit below the operating-income line.
About LeMaitre Vascular (NASDAQ:LMAT)
LeMaitre Vascular, Inc is a specialty medical device company focused on the development, manufacture and marketing of products for the treatment of peripheral vascular disease. Headquartered in Burlington, Massachusetts, the company’s offerings include a broad portfolio of vascular surgical instruments, grafts, patches, catheters and embolic protection devices. LeMaitre’s product lines address key areas such as arterial reconstruction, endovascular repair and vascular access, serving the needs of cardiovascular surgeons and interventional specialists.
Founded in 1983 by George D.
