SAN CLEMENTE, Calif., Nov. 20, 2025 (GLOBE NEWSWIRE) -- ICU Medical, Inc. (Nasdaq: ICUI), a leader in the development, manufacture and sale of innovative medical products, today announced that Company management will participate in a fireside chat at the Piper Sandler 37th Annual Healthcare Conference being held in New York, December 2-4, 2025. ICU Medical’s fireside chat will be on Thursday, December 4, 2025 at 10:00 a.m. PT (1:00 p.m. ET). Company management will also be participating in one-on-one meetin ...

Core Insights - ICU Medical reported Q3 CY2025 revenue of $537 million, an 8.9% year-on-year decline, but exceeded analyst expectations of $512.2 million by 4.8% [1][6] - The company achieved a non-GAAP profit of $2.03 per share, which was 41.6% above analysts' consensus estimates of $1.43 [1][6] - Adjusted EBITDA was reported at $105.9 million, surpassing analyst estimates of $87.86 million, resulting in a margin of 19.7% [1][6] Business Performance - Strong growth in the Consumables and IV Systems segments helped offset revenue declines due to the deconsolidation of the IV Solutions segment [3] - CEO Vivek Jain highlighted operational improvements and strong customer implementations as key drivers for sequential earnings growth [3] - Integration synergies and favorable settlements contributed to enhanced gross margins [3] Future Outlook - Management's guidance emphasizes sustaining profitable growth through product innovation and operational efficiency [4] - Ongoing investments in new hardware and software, along with efforts to resolve regulatory matters with the FDA, are deemed critical for future performance [4] - CFO Brian Bonnell mentioned priorities such as mitigating tariff impacts, optimizing the manufacturing network, and maintaining disciplined cost controls [4] Management Insights - The quarter's performance was attributed to strong execution in core business lines and strategic portfolio moves, despite challenges from tariffs and deconsolidation [5] - The company aims to deleverage its balance sheet and explore strategic portfolio optimization in the medium term [4]

分组1 - ICU Medical reported quarterly earnings of $2.03 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing an increase from $1.59 per share a year ago, resulting in an earnings surprise of +31.82% [1] - The company achieved revenues of $533.3 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.66%, although this represents a decline from year-ago revenues of $580.07 million [2] - Over the last four quarters, ICU Medical has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed, losing about 17.9% since the beginning of the year, compared to the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $527.85 million, and for the current fiscal year, it is $7.03 on revenues of $2.19 billion [7] - The Zacks Industry Rank indicates that the Medical - Products sector is currently in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [8]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $533 million, representing a 5% organic growth but an 8% decline reported year over year due to the deconsolidation of IV solutions [5][6] - Adjusted EBITDA increased by 12% to $106 million compared to $95 million last year, while adjusted diluted EPS rose by 28% to $2.03 from $1.59 [18][21] - Gross margin for Q3 was 41%, slightly better than expectations, with improvements attributed to the deconsolidation of IV solutions and a one-time benefit from settling a liability [14][15] Business Line Data and Key Metrics Changes - The consumables business grew 8% reported and 7% organic, driven by new customer implementations and growth in niche markets [7][9] - The IV systems business experienced a 9% reported growth and 8% organic growth, with strong contributions from LVP pumps and dedicated sets [9][10] - The vital care segment saw a significant decline of 52% reported and 4% organic due to the deconsolidation of IV solutions [13] Market Data and Key Metrics Changes - The demand and utilization environment remained attractive across almost all geographies, although growth rates were not as high as the previous year [6] - The capital environment is stable, with customers proceeding with necessary investments [6] Company Strategy and Development Direction - The company aims to build a comprehensive infusion therapy company, focusing on innovation and expanding its product portfolio [26][27] - The strategy includes enhancing patient safety and workflow efficiencies through new product developments and maintaining a competitive edge in the market [12][27] - The company is also focused on optimizing its balance sheet and reducing leverage over time, with a target of around two times levered net debt to EBITDA [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit growth for the consumables and IV systems businesses for the remainder of the year [7][10] - The company is increasing its full-year EBITDA guidance from $380 million-$390 million to $395 million-$405 million, and adjusted EPS guidance from $6.85-$7.15 to $7.35-$7.65 [21][22] - Management acknowledged challenges from tariffs and the absence of one-time benefits in future quarters but remains optimistic about overall performance [22][23] Other Important Information - The company has made significant progress in reducing debt, with $273 million repaid year to date [20] - Free cash flow for the quarter was $28 million, with expectations for improved cash flow generation as restructuring costs decrease [19][56] Q&A Session Summary Question: Sources of strength in consumables growth - Management identified several drivers including market share gains, successful customer implementations, and growth in niche markets like oncology and dialysis [33][34] Question: Expectations for consumables growth in Q4 - Management indicated that while they expect growth, it may not match the sequential lift seen from Q2 to Q3, maintaining a cautious outlook [37] Question: Traction of Duo and Solo infusion systems - Management confirmed that they are taking orders for Solo and noted ongoing discussions in the pump market, with installations still in early stages [38] Question: 2026 tariff exposure outlook - Management reiterated that they do not want to annualize the tariff impact and are actively working on mitigation strategies [41][42] Question: Future gross margin targets and earnings growth - Management discussed the potential for earnings growth through technology value, product mix, and financial leverage, while acknowledging the need to close the gap to their gross margin targets [44][45] Question: Updates on FDA warning letters - Management confirmed ongoing dialogue with the FDA and emphasized their focus on obtaining new product approvals [61][62] Question: Portfolio management within the vital care segment - Management stated they are exploring all available avenues for portfolio optimization but emphasized the importance of not engaging in value-destructive actions [64][66]

Financial Performance - Total revenues for Q3 2025 were $536.99 million, a decrease of 8.8% from $589.13 million in Q3 2024[16] - Gross profit for Q3 2025 was $200.88 million, compared to $204.85 million in Q3 2024, reflecting a gross margin of approximately 37.3%[16] - Net loss for Q3 2025 was $3.40 million, or $0.14 per share, compared to a net loss of $32.98 million, or $1.35 per share, in Q3 2024[16] - Total revenues for the three months ended September 30, 2025, were $536,990, a decrease of 8.8% compared to $589,131 for the same period in 2024[63] - For the nine months ended September 30, 2025, total revenues were $1,690,558, down from $1,752,241 in 2024, reflecting a decline of 3.5%[63] - The company reported a net gain on the sale of business amounting to $44,792 thousand in the nine months ended September 30, 2025[25] - The company recognized a consolidated net loss of $3,396 for the three months ended September 30, 2025, compared to a loss of $32,983 in 2024[74] - For the nine months ended September 30, 2025, the net income was $16.466 million, a significant improvement from a net loss of $93.860 million in the same period of 2024[86] Assets and Liabilities - Total current assets decreased to $1.21 billion as of September 30, 2025, from $1.44 billion at December 31, 2024[14] - Total liabilities decreased to $1.93 billion as of September 30, 2025, from $2.20 billion at December 31, 2024[14] - Total assets as of September 30, 2025, were $4.10 billion, a decrease from $4.20 billion at December 31, 2024[14] - The company’s total contract liabilities decreased to $37,213 as of September 30, 2025, from $42,177 at the beginning of the year[65] - The company’s accrued liabilities totaled $316,103 thousand as of September 30, 2025, compared to $306,923 thousand as of December 31, 2024, reflecting an increase of about 3.9%[121] Expenses - Operating expenses for Q3 2025 were $187.16 million, down from $196.62 million in Q3 2024, indicating a reduction of approximately 4.5%[16] - Research and development expenses remained stable at $21.25 million in Q3 2025, compared to $21.03 million in Q3 2024[16] - Depreciation and amortization for the nine months ended September 30, 2025, was $149,912 thousand, down from $166,519 thousand in 2024[25] - Stock compensation expense for the nine months ended September 30, 2025, was $41,879 thousand, compared to $34,366 thousand in 2024[25] - Restructuring expenses for the three and nine months ended September 30, 2025, were $6.2 million and $21.2 million, respectively, compared to $3.6 million and $16.6 million for the same periods in 2024[38] - Strategic transaction and integration expenses for the three and nine months ended September 30, 2025, were $6.9 million and $24.9 million, respectively, down from $13.2 million and $33.5 million in 2024[40] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $119,248 thousand, compared to $163,841 thousand in 2024[25] - Net cash used in investing activities for the nine months ended September 30, 2025, was $140,620 thousand, while it was $(62,414) thousand in 2024[25] - Cash and cash equivalents at the end of the period on September 30, 2025, were $299,732 thousand, down from $312,512 thousand at the end of September 30, 2024[25] Debt and Financing - Principal repayments of long-term debt for the nine months ended September 30, 2025, totaled $272,750 thousand, compared to $38,250 thousand in 2024[25] - The company made a prepayment of $200 million on Term Loan A during the second quarter of 2025, funded by the sale of its IV Solutions business[143] - The outstanding principal balance of Term Loan A was $559.7 million as of September 30, 2025, with no borrowings under the $500 million revolving credit facility[173] - The company was in compliance with all financial covenants as of September 30, 2025[151] - The maximum Senior Secured Leverage Ratio is 4.50 to 1.00 until June 30, 2024, and thereafter it will be 4.00 to 1.00[149] Investments and Acquisitions - The company recognized a gain of $44.8 million from the sale of a 60% ownership interest in its IV Solutions business, which included a $45.6 million gain from the disposal and a $19.4 million gain from the fair value of the retained 40% interest[48] - The investment in Otsuka ICU Medical LLC was recorded at $131.1 million as of September 30, 2025, reflecting the retained 40% interest in the IV Solutions business[108] - The total consideration for the acquisition of Smiths Medical included a potential earn-out payment of $100 million contingent on stock price targets[96] Taxation - The effective tax rate for the three months ended September 30, 2025, was 26%, compared to an effective tax rate of (84)% for the same period in 2024[120] - The company recorded a tax benefit of $12.0 million for the year ended December 31, 2024, related to U.S. return-to-provision adjustments[123] - The company has considered the impact of the EU's Pillar Two legislation on its tax provision for fiscal year 2025, which may alter tax obligations in certain countries[124] Other Financial Metrics - The company’s total comprehensive loss for the nine months ended September 30, 2025, was $105,395 thousand[22] - The company recorded a net reversal of $0.7 million for the estimated costs related to field service corrective actions associated with the 2021 FDA Warning Letter, adjusting the total accrued amount to approximately $23.3 million[163] - The company has a share purchase plan approved for up to $100 million, with no shares purchased under this plan during the three months ended September 30, 2025[156]

Q3 2025 Performance - Consumables revenue reached $285 million in Q3 2025, representing an 8% year-over-year growth[8] - Systems revenue increased to $174 million in Q3 2025, a 9% year-over-year increase[8] - Vital Care revenue declined significantly to $74 million in Q3 2025, a 52% year-over-year decrease[8] - Total ICU Medical revenue was $533 million in Q3 2025, reflecting an 8% year-over-year decrease[8] 2025 Guidance Update (Post JV Transaction) - Adjusted EBITDA is projected to be between $395 million and $405 million[9] - Adjusted EPS is expected to be between $735 and $765[9] - Consolidated revenue is expected to have a ~ (6%) FXN impact, with low to mid single digits organic growth[9] - Vital Care is expected to have a ~ (35%) FXN impact, with flat organic growth[9] - Net interest expenses are projected to be around $19 million in Q4[9] - Capital expenditures are estimated to be between $85 million and $95 million[9]

Company Overview - ICU Medical, founded in 1984, specializes in developing and manufacturing medical products for infusion therapy, vascular access, and vital care applications used in healthcare settings [3]. Q3 CY2025 Financial Performance - ICU Medical reported Q3 CY2025 revenue of $537 million, which represents an 8.9% decline year on year but exceeded Wall Street's expectations by 4.8% [6][7]. - The non-GAAP profit was $2.03 per share, surpassing analysts' consensus estimates by 41.6% [6]. - Adjusted EBITDA for the quarter was $105.9 million, with a margin of 19.7%, also beating analyst estimates [6]. - The operating margin decreased to 2.6% from 3.6% in the same quarter last year, while the free cash flow margin improved to 5.1% from 2.7% [6]. Revenue Growth Trends - Over the past five years, ICU Medical achieved a compounded annual growth rate of 12.9%, outperforming the average healthcare company [4]. - However, the annualized revenue growth over the last two years was only 1.6%, indicating a slowdown compared to the five-year trend [5]. - Analysts project a further revenue decline of 7.8% over the next 12 months, suggesting potential demand challenges for the company's products and services [7]. Guidance and Market Capitalization - The adjusted EPS guidance for the full year is set at $7.50 at the midpoint, exceeding analyst estimates by 7.3% [6]. - Full-year EBITDA guidance is projected at $400 million, above analyst expectations of $384.8 million [6]. - The current market capitalization of ICU Medical stands at $3.14 billion [6].

Financial Performance - Third quarter 2025 revenue was $537.0 million, a decrease of 8.8% from $589.1 million in the same period last year[3] - GAAP gross profit for Q3 2025 was $200.9 million, with a gross margin of 37%, compared to $204.9 million and 35% in Q3 2024[3] - GAAP net loss for Q3 2025 was $(3.4) million, or $(0.14) per diluted share, significantly improved from a net loss of $(33.0) million, or $(1.35) per diluted share, in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $105.9 million, up from $94.8 million in Q3 2024[3] - Total revenues for the three months ended September 30, 2025, were reported at $536.99 million[37] - Gross profit for the same period was $200.88 million, representing 37% of total revenues[37] - The company reported a net loss of $3.40 million, with a diluted loss per share of $0.14[37] - Adjusted net income was $50.25 million, with an adjusted diluted earnings per share of $2.03[37] - The company recorded a net loss of $(32.98) million for Q3 2024, with a diluted loss per share of $(1.35)[39] Revenue Breakdown - Revenue from the Consumables product line for Q3 2025 was $285.1 million, an increase of 7.6% from $264.9 million in Q3 2024[5] - Infusion Systems revenue for Q3 2025 was $173.9 million, up 8.8% from $159.8 million in Q3 2024[5] - Vital Care revenue for Q3 2025 was $78.0 million, a decrease of 47.5% from $164.5 million in Q3 2024, impacted by the disposal of the IV Solutions business[5] Guidance and Projections - The company updated its fiscal year 2025 guidance for GAAP net loss to a range of $(8) million to $0 million, improving from a previous range of $(43) million to $(35) million[7] - Adjusted EBITDA guidance for FY 2025 was raised to a range of $395 million to $405 million, up from $380 million to $390 million[7] - The company expects a GAAP net loss in FY 2025 to be between $(8) million and $0, with total non-GAAP adjustments projected at $403 million to $405 million[44] - Adjusted EBITDA for FY 2025 is forecasted to be between $395 million and $405 million[44] - The company anticipates an adjusted earnings per share of $7.35 to $7.65 for FY 2025[44] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $119,248,000, down from $163,841,000 in 2024, reflecting a decrease of approximately 27%[17] - The cash and cash equivalents at the end of the period were $299,732,000 for September 30, 2025, down from $312,512,000 in 2024, showing a decrease of about 4%[17] - The company reported net cash provided by investing activities of $140,620,000 for the nine months ended September 30, 2025, compared to a net cash used of $62,414,000 in 2024, showing a substantial improvement[17] - Total current assets decreased to $1,207.3 million as of September 30, 2025, from $1,441.9 million at the end of 2024[13] Expenses and Adjustments - Research and development expenses amounted to $21.25 million, accounting for 4% of total revenues[37] - The company incurred $13.14 million in restructuring and strategic transaction expenses[37] - Quality system and product-related remediation costs were $13.80 million, contributing to a net loss impact[37] - The company incurred stock compensation expenses of $15,243,000 for the three months ended September 30, 2025, compared to $11,770,000 in 2024, reflecting a rise of about 29%[36] - The restructuring, strategic transaction, and integration costs for Q3 2024 amounted to $16.8 million, impacting net income significantly[39] - Stock compensation expense for Q3 2024 was $1.8 million, contributing to the overall financial adjustments[39] Debt and Financial Position - Principal repayments of long-term debt increased significantly to $272,750,000 in 2025 from $38,250,000 in 2024, indicating a strategic focus on debt reduction[17] Tax and Valuation - The company recorded a tax expense of $1.39 million related to valuation allowance against certain deferred tax assets[37] - The tax expense from valuation allowance was $22.4 million, affecting the non-GAAP annual effective tax rate calculation[39] - The non-GAAP annual effective tax rate was adjusted based on a three-year cumulative U.S. income position[37] Other Financial Metrics - The total non-GAAP adjustments for the three months ended September 30, 2025, amounted to $109,307,000, compared to $127,821,000 in 2024, indicating a decrease of approximately 14.5%[36] - The effect of exchange rate changes on cash resulted in an increase of $8,338,000 for the nine months ended September 30, 2025, compared to $4,472,000 in 2024, reflecting favorable currency movements[17]