F&P fields questions on mask pipeline, tariff impact

AUCKLAND, New Zealand – Analysts pressed Fisher & Paykel Healthcare executives during a recent earnings call on the company’s lack of new full-face mask launches for obstructive sleep apnea (OSA), even as other product categories continue to gain traction.

Analyst Ben Crozier described the full-face mask category as “a bit of a headwind” for F&P, noting it has been offset by more recent and frequent launches in other categories, including the F&P Solo (nasal), F&P Nova (micro nasal) and F&P Nova Nasal, which launched in the United States in January.

“That’s all a fair assumption – all quite accurate,” said Lewis Gradon, managing director and CEO, in response to that assessment.

F&P reported mask revenue was up 7% in fiscal 2026, or 5% in constant currency terms. Analysts indicated that the performance suggested a loss in market share, but Gradon attributed it to tough double-digit comparisons from previous years.

Why full-face mask launches have been delayed

Analyst Marcus Curley followed, asking about the challenges F&P is experiencing in the full-face mask category.

“We haven’t seen a full-face mask in OSA in a while; I was sort of expecting to see one,” he said.

Gradon said the delay reflects F&P’s product philosophy: The company will only launch a product “where our customers, dealers, patients can see a difference.”

“When we're running our R&D programs, we're aiming at a perceivable difference,” he said. “Whether we like it or not, that takes as long as it takes. No matter the planning and the strategies and the schedules that go in, we don't know we've hit that metric till we hit it. I think it's as simple as that.”

Curley responded, asking whether that meant the company has experienced several false starts.

“Fair assessment,” Gradon said. “When it takes longer, that’s probably had more iterations in it.”

Tariffs, Middle East conflict weigh on margins

The uncertain U.S. tariff environment led F&P to factor in a 70-basis-point adverse impact to gross margin in constant currency terms—an improvement of 20 basis points compared to last year, company officials said.

“Tariffs actually help us year over year, 2027 from 2026,” said CFO Lyndal York.

Offsetting that, the conflict in the Middle East is expected to impact raw materials by 45 basis points and freight by an additional 25 basis points, company officials said.

“We have a very seasoned and experienced team of supply chain professionals, and we’ve got longstanding supportive working relationships with our suppliers, and they have all been working long and hard from the very beginning to mitigate the impact of this conflict on our supply of medical devices,” Gradon said.

• Related: F&P highlights full-face masks in new campaign.