ZBH · 8-K · 20260805PR335108
Inventory Levels and Obsolescence
ZIMMER BIOMET HOLDINGS, INC. · 2026-08-05 · Importance 83 · Surprise 82 · From source text
Inventories increased to $2,286.4 million at December 31, 2025 from $2,235.3 million a year earlier. Finished goods were the largest component at $1,832.2 million, followed by work in progress of $181.0 million and raw materials of $273.2 million. Charges for excess and obsolete inventory more than doubled to $311.2 million in 2025 from $149.9 million in 2024, indicating a significant inventory-quality and demand-alignment issue.
Key facts
- Inventory and instrument charges of approximately $170 million were recorded related to certain product lines the company intends to discontinue. source
- The company recorded excess and obsolete inventory charges related to management's December 2025 decision to discontinue selling certain products by 2032 and recognized a charge of approximately $170 million. source
- Amounts charged for excess and obsolete inventory were $311.2 million in 2025, $149.9 million in 2024 and $155.2 million in 2023. source
- Inventories as of December 31, 2025: Finished goods $1,832.2 million; Work in progress $181.0 million; Raw materials $273.2 million; Total inventories $2,286.4 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -7.8% | Inventory and instrument charges of approximately $170 million were recorded related to certain product lines the company intends to… |
| operating_income | negative | realized | -7.4% | Amounts charged for excess and obsolete inventory were $311.2 million in 2025, $149.9 million in 2024 and $155.2 million in 2023. |
| assets | positive | realized | — | Inventories as of December 31, 2025: Finished goods $1,832.2 million; Work in progress $181.0 million; Raw materials $273.2 million; Total… |