Embla Medical reported strong growth in its prosthetics and neuro-orthotics business during the second quarter of 2026, supported by new product launches, expanding bionic adoption and increasing activity across EMEA, Asia-Pacific and emerging markets.
The Iceland-headquartered mobility company recorded overall organic sales growth of 6% during the quarter, while reported sales increased by 11%. Its EBITDA margin reached 22%, compared with 21% during the corresponding period of 2025, and net profit increased by 39%.
The strongest performance came from Prosthetics and Neuro Orthotics, where second-quarter sales reached USD 151 million, representing organic growth of 12%. The segment accounted for 54% of Embla Medical’s total quarterly sales.
For the first half of 2026, Prosthetics and Neuro Orthotics generated USD 287 million in sales and organic growth of 10%.
The results underline the continued commercial strength of advanced prosthetic technologies while also highlighting a much larger unresolved issue: most people undergoing amputations worldwide still do not receive a prosthesis.
EMEA growth supported by prosthetics and new markets
Embla Medical recorded organic growth of 8% across EMEA during the second quarter, compared with 3% in the Americas and 9% in Asia-Pacific.
The company said prosthetic growth was strong across established European markets and its wider distributor network, including Ukraine. Bionic products and other major prosthetic categories contributed to the performance, alongside the recently acquired Streifeneder business.
The company’s inclusion of Ukraine among its new growth markets is significant for the rehabilitation sector.
The country has developed an urgent requirement for prosthetic limbs, orthotic devices, rehabilitation technologies and professional training as a result of military and civilian injuries. International manufacturers are increasingly seeking to support this demand through local distribution, clinical education and partnerships with Ukrainian rehabilitation providers.
Across the wider EMEA region, future growth is also likely to come from countries where access to prosthetic technology remains considerably below that of reimbursed European markets.
Emerging markets account for most new amputees
Embla Medical estimates that approximately 90% of its current sales are generated in developed markets with established reimbursement systems.
However, emerging markets account for more than 80% of new amputee volume.
The company estimates that developed markets contain approximately five million amputees, compared with around 25 million in emerging markets. Yet access to prosthetic fitting remains significantly lower in the latter group.
Globally, more than 850,000 major lower-limb amputations are estimated to occur each year. Approximately 650,000 of these take place in emerging markets, compared with around 200,000 in developed markets.
Only 30% to 40% of all new lower-limb amputees are fitted with a prosthesis. The estimated fitting rate ranges from 40% to 60% in developed countries but falls to between 10% and 30% in emerging markets.
For the Middle East, Africa and South Asia, this gap represents both a major unmet healthcare need and a substantial opportunity to expand local prosthetic services.
The global prosthetics market continues to expand
Embla Medical values the global prosthetics market at approximately USD 2 billion and estimates annual market growth of between 6% and 8%.
Its Prosthetics and Neuro Orthotics business increased from USD 316 million in sales in 2022 to USD 478 million in 2025.
The company estimates that it holds approximately 25% of the global prosthetic component market through brands including Össur, College Park and Streifeneder.
Several structural factors are supporting continued growth:
- Increasing numbers of people undergoing amputations
- Rising prosthetic fitting rates
- Greater access to reimbursement
- Expansion into emerging markets
- Increased adoption of bionic technology
- Functional upgrading from basic to advanced components
- Regular maintenance and replacement requirements
Embla Medical estimates that more than 70% to 80% of prosthetic component sales are recurring sales to existing patients.
This reflects the reality that prosthetic provision is not a one-time transaction. Users require replacement sockets, liners, feet, knees and other components as devices wear, physical needs change or improved technologies become available.
Six new products launched during the quarter
Embla Medical launched six products during the second quarter across prosthetics, neuro-orthotics and bracing.
The company said more than 25% of current Prosthetics and Neuro Orthotics sales are now generated by products launched within the past five years.
Recent and planned launches include:
- Pro-Flex Terra
- Pro-Flex LP Waterproof
- Unity for Pro-Flex ST
- Iceross Seal-In X Locking TF
- Power Knee Gen 3
- Navii
- Icon
- Odyssey iQ
- OA Move Brace
- New Iceross sleeves and cushioning products
Embla Medical expects to invest approximately USD 50 million in research and development during 2026, equivalent to around 7% to 8% of product sales.
The company is also developing a dedicated microprocessor knee solution for K2 users, with a planned launch in late 2027.
Bionic prosthetics moving towards lower-activity users
Microprocessor knees were initially developed mainly for highly active prosthetic users classified as K3 or K4.
The market is now expanding towards people classified as K2, who are generally limited community walkers but may still need to negotiate kerbs, stairs and uneven surfaces.
Embla Medical identifies the K2 population as an important future growth area following reimbursement changes in the United States that expanded Medicare access to microprocessor knees for less-mobile users.
The company argues that clinical evidence increasingly supports the use of advanced knees for selected lower-activity patients, including potential improvements in stability, safety and confidence.
This development may eventually influence reimbursement discussions outside the United States.
Across the IMEA region, however, access to microprocessor knees remains highly uneven. Advanced components may be routinely reimbursed in selected Gulf markets but remain unaffordable or unavailable in many African, Middle Eastern and South Asian countries.
Expanding access will require more than product availability. It will depend on appropriate assessment, trained prosthetists, clinical follow-up, maintenance capacity and reimbursement systems that recognise long-term functional value.
Neuro-orthotics identified as a high-growth market
Embla Medical describes neuro-orthotics as an attractive but underdeveloped market, estimated to be worth approximately USD 500 million and growing by 10% to 12% annually.
The company entered the segment through its acquisition of Fior & Gentz and now markets premium knee and ankle orthotic joints for people with neurological conditions.
Potential patient groups include people affected by:
- Stroke
- Multiple sclerosis
- Cerebral palsy
- Spinal cord injury
- Peripheral nerve damage
- Other chronic neurological conditions
Embla Medical estimates that neuro-orthotic penetration remains below 5% across most indications in developed markets, with Germany being a notable exception at approximately 15% to 20%.
The company believes the neuro-orthotic market remains more than a decade behind prosthetics in terms of product awareness, technology development and reimbursement.
Products currently range from low-cost plastic AFOs to custom carbon orthoses and microprocessor-controlled lower-limb systems.
According to the investor presentation, anticipated reimbursed prices may range from USD 50 to USD 100 for simple plastic orthoses to USD 25,000–50,000 for microprocessor-controlled lower-limb devices.
Major potential across the IMEA region
The Middle East and Africa contain a large population living with stroke, cerebral palsy, multiple sclerosis, spinal injury and other neurological conditions.
Yet access to advanced neuro-orthotic assessment remains limited in many markets.
Patients are frequently supplied with basic plastic devices because these are familiar, affordable and relatively easy to manufacture. In some cases, however, a more functional orthosis could provide better stance control, toe clearance, stability or walking efficiency.
Growth in this sector will depend on:
- Increasing awareness among rehabilitation physicians
- Training orthotists in advanced joint selection
- Developing appropriate reimbursement pathways
- Demonstrating functional outcomes
- Establishing trial and assessment programmes
- Supporting local fabrication and maintenance
- Identifying patients who can benefit from functional upgrading
The opportunity is not simply to replace every conventional AFO or KAFO with a higher-cost device.
It is to identify patients whose mobility may improve through a more appropriate level of technology.
Patient Care performance remained mixed
Embla Medical’s Patient Care segment operates approximately 200 clinics across 12 markets under the ForMotion brand.
All clinics included in the company’s rebranding programme have now moved to the ForMotion identity, completing an important part of its transition from a product manufacturer towards a more patient-focused organisation.
Patient Care generated USD 79 million in second-quarter sales, but organic sales declined by 2%.
The company attributed the reduction primarily to challenging market conditions and timing effects in European markets including France and Sweden. Performance was stronger in the Americas and Australia.
Embla Medical said initiatives introduced during the second half of 2025 were beginning to improve profitability and performance, although consistent sales recovery had not yet been achieved across all regions.
The development of ForMotion illustrates a broader trend towards vertical integration, with manufacturers increasing their participation in clinical service delivery as well as component production.
Vertical integration creates opportunities and concerns
Embla Medical’s business now covers much of the orthotic and prosthetic value chain.
Its activities include:
- Prosthetic component development and manufacturing
- Neuro-orthotic technology
- Bracing and supports
- Clinical patient-care services
- Education and technical support
- Distribution and market development
This model can support faster product adoption, closer contact with patients and stronger coordination between manufacturing and clinical care.
However, increasing vertical integration also creates questions for independent prosthetic and orthotic clinics.
Manufacturers operating their own clinical networks may compete directly with the same providers that purchase their products. The sector will need transparency around product choice, clinical independence and referral relationships as vertical integration grows.
Independent clinics can continue to differentiate themselves through local expertise, broad supplier choice and long-term relationships with patients and referral sources.
Bracing faced greater competitive pressure
Embla Medical’s Bracing and Supports division produced USD 39 million in second-quarter sales and organic growth of 1%.
The company said strong performance in the Americas and Asia-Pacific was partly offset by unfavourable market conditions in Europe, where competition and price sensitivity remain significant.
Recent launches included the OA Move knee brace and the Formfit Walker boot, but these were insufficient to offset the European decline during the quarter.
Embla Medical estimates the global bracing market at approximately USD 3 billion, growing at 2% to 3% annually.
Unlike chronic prosthetic and neuro-orthotic services, bracing is generally a higher-volume market with more intense competition and greater exposure to commoditisation.
Guidance narrowed despite strong quarterly performance
Embla Medical narrowed its organic sales-growth guidance for 2026 from 5%–8% to 5%–7%.
Its EBITDA-margin guidance remained unchanged at 20%–22%.
The company generated USD 31 million in free cash flow during the second quarter and reported net interest-bearing debt of USD 435 million. Its leverage ratio declined to 2.2 times EBITDA, or 1.6 times when leases were excluded.
Embla Medical also completed an existing share-buyback programme in July and initiated a new USD 10 million programme.
While these financial measures are primarily relevant to investors, the company’s continued profitability supports further research, acquisitions and expansion into new rehabilitation markets.
Growth must translate into greater access
The strongest message for the IMEA orthotic and prosthetic sector is not simply that Embla Medical’s sales are increasing.
It is that the global prosthetic industry remains concentrated in developed markets even though the majority of new amputations occur elsewhere.
Emerging markets cannot be served sustainably through premium technology alone.
Greater access will require:
- More trained prosthetists and orthotists
- Local clinical and technical education
- Reliable component distribution
- Affordable mechanical product ranges
- Appropriate bionic solutions for selected patients
- Local repair and maintenance capacity
- Stronger public and private reimbursement
- Collaboration with governments and rehabilitation centres
- Long-term patient follow-up
The difference between a market opportunity and a healthcare improvement lies in whether products reach the people who need them.
Embla Medical’s Q2 results show that prosthetics and neuro-orthotics remain commercially attractive, innovation-driven sectors.
Its own data also show that most new amputees—particularly those in emerging markets—remain outside the formal prosthetic system.
Closing that access gap will be one of the defining challenges and opportunities for the global O&P profession over the next decade.
- Embla Medical
- Össur
- ForMotion
- Fior & Gentz
- College Park Industries
- Streifeneder
- International Society for Prosthetics and Orthotics
- World Health Organization – Rehabilitation
Source: Embla Medical, Q2 2026 Investor Road Show Presentation, dated July 21, 2026.