F&P sees mask biz settling after new product boost

AUCKLAND, New Zealand – Fisher & Paykel Healthcare saw revenue for its CPAP masks slow in the second half of its fiscal year 2025, after the launch of its Solo range resulted in “strong” revenue in the first half. 

The company reported revenue for masks was up 9% in constant currency terms for the second half vs. 14% for the first half. 

“So, in the first half, we had the Solo range hit the United States, so we think of it as a new product introduction boost,” said Lewis Gradon, managing director and CEO, during a recent conference call to discuss the company’s financial results. “So, you’ve got that as the primary driver of the first half 14% constant currency. Then, in our second half, we’ve got multiple introductions of new masks from multiple companies. So that kind of takes the boost (out) of the new product introduction cycle.” 

Overall, F&P’s Homecare segment saw revenue of $739.9 million for FY2025, up 13% compared to FY2024 or 11% in constant currency terms. 

Does the company expect high single digit growth in revenue for masks to be more the norm for FY2026? 

“That probably is our best guess, because we’ve got two things going on there,” said Gradon. “We’re lapping that 14%, so that’s always challenging. But then offsetting that, we’ve got the Nova Nasal currently out in New Zealand and Australia, and we’ll be getting that to the U.S. over this year, as well. So, a similar 9% would be our thinking.” 

What will be the impact of tariffs on F&P’s mask business? 

Gradon confirmed that F&P’s masks are protected from tariffs under the United States-Mexico-Canada Agreement and the Nairobi Protocol. Overall, the company expects about a 50-basis point impact to gross margin in constant currency for FY2026, but it believes it can offset that with a roughly 100-basis point improvement through efficiencies and other measures, netting a roughly 50-basis point improvement for the year. 

“I think a really important point is that during the year, we are going to continue with a holistic approach to improving the gross margin just like we always have for all cost increases that come our way, whether it's driven by inflation, materials, exchange rate, freight or tariffs or whatever the source of the increase,” he said. “And that's our long-standing approach of continuous improvements across all of the business processes.” 

Will F&P’s mask business take a hit from GLP-1s? 

When asked by an analyst if F&P has any anecdotal or other evidence that CPAP users are stopping their therapy after using the drugs and achieving weight loss, Gradon said, “Nothing I’ve seen or heard and Justin (Callahan, vice president of marketing) is shaking his head, as well. We haven’t seen anything we’d pin on GLP-1 at all.” 

• Related: F&P says, ‘It looks like we’re taking market share’ in masks.