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]

Core Insights - ICU Medical, Inc. reported a revenue of $537.0 million for Q3 2025, a decrease from $589.1 million in Q3 2024, indicating a year-over-year decline of approximately 8.8% [2] - The company achieved a GAAP gross profit of $200.9 million with a gross margin of 37%, an improvement from 35% in the same period last year [2] - The net loss for Q3 2025 was $(3.4) million, significantly reduced from a net loss of $(33.0) million in Q3 2024, translating to a loss per diluted share of $(0.14) compared to $(1.35) [2][12] - Adjusted diluted earnings per share rose to $2.03 from $1.59 year-over-year, while adjusted EBITDA increased to $105.9 million from $94.8 million [2][3] Financial Performance - Revenue breakdown for Q3 2025 by product line showed: - Consumables: $285.1 million, up from $264.9 million (increase of $20.2 million) - Infusion Systems: $173.9 million, up from $159.8 million (increase of $14.1 million) - Vital Care: $78.0 million, down from $164.5 million (decrease of $86.5 million) [3] - For the nine months ended September 30, 2025, total revenue was $1,690.5 million, down from $1,752.2 million in the same period of 2024 [3] Fiscal Year Guidance - The company updated its fiscal year 2025 guidance for GAAP net loss to a range of $(8) million to $0 million, an improvement from the previous range of $(43) million to $(35) million [4] - Adjusted EBITDA guidance for the full year was revised to a range of $395 million to $405 million, up from $380 million to $390 million [4] - Diluted earnings per share guidance was also increased to a range of $7.35 to $7.65 from $6.85 to $7.15 [4] Conference Call - A conference call to discuss the third quarter 2025 financial results was scheduled for today at 4:30 p.m. ET, accessible via phone and webcast [5] Company Overview - ICU Medical is a global leader in infusion systems and high-value critical care products, focusing on quality, innovation, and value for clinical customers worldwide [6]

Core Points - ICU Medical, Inc. will release its third quarter 2025 earnings results on November 6, 2025, at approximately 4:00 p.m. ET [2] - A conference call to discuss the results will take place on the same day at 4:30 p.m. ET, accessible via phone and webcast [2] - ICU Medical is a global leader in infusion systems and critical care products, focusing on quality and innovation for clinical customers [3]

Group 1 - The company has shown evolving dynamics in its story, indicating a positive shift in its operational strategy [2] - The recent personal stock purchase by Vivek Jain suggests increased confidence and enthusiasm in the company's future prospects [2] - The restructuring and integration of Smiths has been a significant focus for the company, reflecting its commitment to enhancing operational efficiency [2]

Summary of ICU Medical Conference Call Company Overview - **Company**: ICU Medical - **Industry**: Medical Devices, specifically focusing on infusion systems and consumables Key Points Business Segments Performance - **Consumables Segment**: - Grew 4% in Q2, with expectations of mid-single digit growth for the year [4] - Historical growth rate of 5-6% annually over the past five years [4] - Drivers include strong end-market demand, demographic trends, and a national shortage of IV solutions [4][5] - Incremental innovations and FDA clearances are expected to enhance competitive advantage [6][8] - **IV Systems**: - Double-digit growth in LVP (Large Volume Pump) revenue [10] - Market growth is estimated at 3-4%, with ICU Medical outpacing this due to market refresh from competitors' device issues [12] - Focus on integrating various pumping modalities into a single software platform for improved user experience [10][11] - **Vital Care Division**: - Approximately $600 million division, now reduced to $300 million post joint venture with Otsuka Pharmaceutical [24][25] - Experienced a decline of 4% in Q2, with expectations of flat growth moving forward [29] Regulatory Landscape - Regulatory scrutiny is high, which is seen as a necessary barrier to ensure safety in drug delivery systems [15] - The company is focused on maintaining compliance and improving product standards to avoid setbacks [45] Innovation and Product Development - Recent FDA approvals for new products are expected to drive growth in both consumables and IV systems [16][17] - The company is investing in R&D to enhance product offerings and maintain competitive edge [42] Financial Guidance and Market Outlook - Updated guidance reflects a $17 million EBITDA loss from divestiture and $30 million in tariffs impacting the second half of the year [35][36] - Anticipated growth in 2026 is supported by innovation in consumables and a potential increase in average selling prices (ASP) for new pump technologies [40][46] - The company aims for mid-single digit growth while improving gross margins and generating cash flow for shareholder returns [42][57] Strategic Focus - Emphasis on home care as a growth area, leveraging existing market share and technology [22][20] - The company is cautious about pursuing new M&A opportunities unless they are compelling [57] Competitive Landscape - ICU Medical is positioned well against competitors by offering integrated solutions that enhance user experience and operational efficiency [18][19] - The company is focused on differentiating its offerings in the home care market, which is fragmented and competitive [21] Conclusion - ICU Medical is at a pivotal point with ongoing innovations and strategic initiatives aimed at sustaining growth and enhancing shareholder value. The focus remains on executing current opportunities while navigating regulatory challenges and market dynamics [61]

Financial Data and Key Metrics Changes - The company reported a 4% organic growth in the consumables business for the second quarter and expects sequential sales growth to average mid-single digits for the year [4][5] - The guidance for 2025 was updated, with the high end of the range adjusted from $425 million to $408 million due to the divestment of solutions and unexpected tariffs amounting to $30 million [41][42] Business Segment Data and Key Metrics Changes - The consumables business has compounded growth at 5% to 7% annually for over five years, driven by good clinical outcomes, brand inertia, and market share gains due to industry shortages [5][6] - The LVP (Large Volume Pump) revenue experienced double-digit growth, attributed to increased utilization and competitive wins, with a new product, Plum Duo, recently installed at customers [10][12] - The Vital Care segment saw a negative 4% organic growth in the second quarter, with expectations for flat sales in 2025 [33] Market Data and Key Metrics Changes - The overall market for infusion pumps has been abnormal, with significant catch-up growth due to actions taken by other manufacturers [10] - The competitive environment is shifting, with recalls and sales pauses affecting market dynamics, leading to a need for hospitals to decide on infusion pump platforms in the next 18 to 24 months [18][19] Company Strategy and Development Direction - The company is focused on maintaining competitive advantages through product innovation and integration of all pumps on a single platform, which enhances operational efficiency for customers [30] - The joint venture with Otsuka Pharmaceutical is seen as a strategic move to align with a leading innovator in the market, enhancing the company's product offerings without the capital intensity of traditional manufacturing [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utilization rates across geographies, indicating a stable operating environment despite some challenges [3] - The company anticipates that the replacement cycle for its pump products will begin towards the end of next year, which could drive future revenue growth [16][17] Other Important Information - The company is navigating a complex regulatory environment, with ongoing scrutiny and multiple product approvals in the pipeline, which are critical for future growth [23][24] - Management highlighted the importance of not annualizing the impact of tariffs, as they are actively working on mitigating their effects through various strategies [56] Q&A Session Summary Question: What are the drivers of the consumables business growth? - Management identified good clinical outcomes, brand inertia, and market share gains from industry shortages as key drivers [5][6] Question: How does the company view the competitive environment for LVP? - Management noted that the competitive landscape is changing due to recalls and the need for hospitals to make decisions on infusion pump platforms [18][19] Question: What is the expectation for the approval of new devices? - Management expects a minimum of nine months for the approval of new devices, with ongoing efforts to streamline the process [26] Question: How does the company plan to address the Vital Care segment's performance? - Management indicated they are exploring the right solutions for the Vital Care segment, acknowledging its different growth rates compared to other segments [33][34] Question: What is the company's strategy for capital deployment once leverage ratios improve? - Management stated that they are focused on organic growth and do not feel pressured to pursue M&A, emphasizing the importance of R&D investments [61][62]

Financial Data and Key Metrics Changes - The company reported 4% organic growth in the consumables business for Q2 and expects mid-single digit sequential sales growth for the year [4][5] - The guidance for 2025 was updated, with the high end of the range adjusted from $425 million to $408 million due to tariffs and divestiture of the solutions business [42][43] Business Segment Data and Key Metrics Changes - The consumables business has compounded growth of 5% to 7% annually for over five years, driven by good clinical outcomes, brand inertia, and market share gains due to industry shortages [5][6] - The LVP (Large Volume Pump) revenue experienced double-digit growth, attributed to strong volume, competitive wins, and improvements in software and service [11][12] - The Vital Care segment saw a negative 4% organic growth in Q2, with expectations for flat sales in 2025 [34] Market Data and Key Metrics Changes - The infusion pump market has been abnormal for years, with current growth driven by catch-up from competitors and the company's competitive pipeline [11][19] - The competitive environment is influenced by recalls and sales pauses from other manufacturers, creating opportunities for market share gains [19][20] Company Strategy and Development Direction - The company is focused on integrating all pumps onto a single platform to enhance operational efficiency and customer experience [30][31] - The joint venture with Otsuka Pharmaceutical is seen as a strategic move to align with a leading innovator and improve product offerings in IV solutions [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utilization rates across geographies, indicating a stable operating environment [3] - The company anticipates that the replacement cycle for pumps will begin towards the end of next year, which could drive future growth [17][18] Other Important Information - The company is navigating challenges related to tariffs, which are expected to impact gross margins by 200 to 300 basis points [49] - Management emphasized the importance of maintaining high regulatory standards in the infusion pump market, which they view as a competitive advantage [24] Q&A Session Summary Question: Why did the CEO buy back stock personally? - The CEO felt the market was missing the earnings opportunity and believed it was a good time to act [2] Question: What are the growth drivers for the consumables business? - Key drivers include good clinical outcomes, brand inertia, and market share gains from industry shortages [5][6] Question: How does the company view the competitive environment for LVP? - The company sees opportunities due to competitors facing recalls and the need for market remediation [19][20] Question: What is the expectation for the approval of new devices? - The company expects approvals for new devices like Plum Duo and Plum Solo within nine months [27] Question: How are tariffs impacting the financial outlook? - Tariffs are expected to have a $30 million impact, but the company is confident in mitigating some of these effects through cost-saving measures [43][45]