Strong growth ahead: Edwards Lifesciences bets on new therapies & market expansion

Overview

Edwards Lifesciences delivered strong financial and operational performance in 2024, driven by robust demand across its transcatheter heart valve therapies and structural heart innovations. Full-year revenue increased to $5.44bn, while Q4 revenue grew to $1.39bn, surpassing expectations. The company also made significant progress in clinical trials, positioning itself for continued growth in 2025 and beyond.

CEO Bernard Zovighian emphasized: “It was a year of meaningful progress for Edwards in 2024, as our 16,000 employees advanced life-saving structural 1heart innovations for patients around the world. We exited the year in a strong position with three important growth drivers: TAVR, Mitral and Tricuspid, and two emerging opportunities in Structural Heart Failure and Aortic Regurgitation.”

Q4 2024 vs. Q4 2023:

Total revenue rose to $1.39bn (+9% YoY), driven by broad-based strength across all product segments.
- Transcatheter Aortic Valve Replacement (TAVR) sales increased to a value of $1.04 bn (+6% YoY), fueled by continued global adoption of the SAPIEN 3 Ultra RESILIA platform.
- Transcatheter Mitral and Tricuspid Therapies (TMTT) sales was $105m (+88% YoY), supported by strong demand for the PASCAL repair system and EVOQUE tricuspid replacement system.
- Surgical Structural Heart sales recorded a value of $244m (+6% YoY), reflecting healthy global adoption of the RESILIA portfolio, including MITRIS, INSPIRIS, and KONECT.
Net income was on a slightly upward trend, reaching the value of $384.3m (+4% YoY).
Adjusted EPS reached $0.59 (+7% vs. Q4 2023), driven by strong top-line growth and disciplined cost management.
Gross margin was 78.9% (79.0% adjusted), in line with expectations despite higher R&D and SG&A investments.

Full-Year 2024 highlights:

Total revenue increased to $5.44bn (+8.6% YoY), supported by TAVR growth and expanding mitral and tricuspid therapies.
- TAVR global sales reached $4.1bn (+6% YoY), with balanced growth across the U.S. and international markets, especially in Europe.
- TMTT full-year sales was $352m (+78% YoY), driven by PASCAL and EVOQUE market adoption. PASCAL and EVOQUE demonstrated strong patient outcomes, leading to higher adoption at existing and new centers.
Operating income increased slightly to $1.38bn (+5% vs. 2023), while net income experienced impressive expansion, reaching $4.17bn (+198% vs. 2023), reflecting investment in clinical trials and new product development.
Diluted EPS was on the same significant growth trend, increasing 3 times to a value of $6.97.
Free cash flow recorded a value of $1.0bn, maintaining strong liquidity with $3.0bn in cash reserves.
Total debt was $600m, ensuring a solid financial foundation for strategic investments.

Edwards Lifesciences anticipates another year of steady growth in 2025, driven by expanded indications, new therapy launches, and increasing adoption of structural heart solutions. Revenue growth is forecasted at 8% – 10% YoY, reflecting broad-based strength across all product categories. Adjusted EPS is expected to range between $2.40 – $2.50, supported by gross margin stability and operational efficiencies. Q1 2025 sales are projected at $1.35bn – $1.43bn, maintaining sequential growth momentum. The company is also preparing for mid-year FDA approval for the asymptomatic severe AS indication, which is expected to expand the U.S. market for TAVR therapies. Meanwhile, adjusted operating margins are projected at 27% – 28%, reflecting ongoing improvements in efficiency and cost discipline.

After the announcement of the results, which mostly slightly exceeded the estimates of Wall Street analysts, but also the optimistic outlook for this year, the price of EW shares had a week of rising trading, increasing by approximately +8% after the publication of the report. However, in the last year, the shares are still trading at a declining price, by approximately -11.5%.