Group 1 - The healthcare sector is showing initial signs of recovery after reaching a 30-year high in valuation discount relative to the S&P 500 index [1][2] - Healthcare stocks have been in a "persistent downtrend" since reaching historical highs on September 3, 2024, missing out on market rebounds [1] - The recovery is driven by a historical valuation gap and a macroeconomic environment characterized by GDP growth slowing to 1.5% or lower while inflation remains at 3% or higher, which historically favors healthcare sector performance [1] Group 2 - The current price-to-earnings ratio of the overall market is 25.5 times, while healthcare stocks still present attractive investment options [2] - The potential recovery of healthcare stocks is described as part of "the fastest bear market rebound in history," indicating a larger bull market may extend until 2026 [2] - Evercore ISI recommends healthcare stocks with both valuation and sentiment appeal, including Cencora, BioMarin Pharmaceutical, Cigna, Cardinal Health, Humana, Incyte, Labcorp, Pfizer, Quest Diagnostics, Teleflex, Tenet Healthcare, Universal Health Services, and Viatris [2]

Core Insights - Teleflex Incorporated has launched Barrigel™ rectal spacer in Japan, following regulatory approval and insurance coverage acceptance, marking a significant step in its global expansion strategy [3][5][11] - Barrigel™ is the first and only sculptable non-animal stabilized hyaluronic acid (NASHA) rectal spacer, designed to reduce radiation exposure to the rectum during prostate cancer treatment [4][9] - In 2022, prostate cancer was the most common cancer among men in Japan, with 104,318 new cases, representing 18% of all cancer diagnoses nationwide [5] Product Details - Barrigel™ rectal spacer has demonstrated a 98% success rate in achieving at least a 25% reduction in radiation to the rectum in a U.S. clinical study, with an average reduction of 85% in rectal V54 Gy radiation [6] - The product is indicated for prostate cancer patients with T1-T3b disease and is cleared for use in the U.S., Australia, Europe, and Japan [11][12] - Barrigel™ is made from biodegradable NASHA, which is biocompatible and fully absorbable, ensuring safety and efficacy in various medical applications [10][12] Market Impact - The launch in Japan is expected to enhance access to Barrigel™ for men undergoing prostate cancer radiation therapy, minimizing rectal side effects [7] - Teleflex aims to establish Barrigel™ as the standard of care for prostate cancer radiation therapy, emphasizing its innovative technology and precision in placement [5][8] - Training for healthcare professionals in Japan has commenced, led by top radiation oncologists, to ensure effective implementation of the product [8]

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. One company value investors might notice is Teleflex (TFX) . TFX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. While the proven Zacks Rank places an emphasis on earni ...

Teleflex Incorporated (NYSE:TFX) Q2 2025 Earnings Call July 31, 2025 8:00 AM ET Anthony Charles Petrone - Mizuho Securities USA LLC, Research Division Jayson Tyler Bedford - Raymond James & Associates, Inc., Research Division Matthew Charles Taylor - Jefferies LLC, Research Division Michael K. Polark - Wolfe Research, LLC Michael Stephen Matson - Needham & Company, LLC, Research Division Richard Samuel Newitter - Truist Securities, Inc., Research Division Samantha Munoz - Piper Sandler & Co., Research Divis ...

Financial Data and Key Metrics Changes - Second quarter revenues were $780.9 million, an increase of 4.2% year over year on a GAAP basis and up 1% on an adjusted constant currency basis [5][6] - Adjusted earnings per share were $3.73, a 9.1% increase year over year [6][25] - Adjusted gross margin was 59.7%, a 110 basis point decrease year over year, primarily due to cost inflation and unfavorable product mix [24] - Adjusted operating margin was 26.9%, a 20 basis point year over year increase [24] Business Line Data and Key Metrics Changes - Vascular Access revenue increased 1.4% year over year to $185.5 million, driven by growth in PICCs [9] - Interventional revenue was $170 million, an increase of 19.3% year over year, led by intra aortic balloon pumps and complex catheters [9] - Anesthesia revenues decreased 7.6% year over year to $96.4 million, impacted by tough comps in military orders [10] - Surgical business revenue increased 1.4% year over year to $114 million, with solid underlying trends [10] - Interventional Urology revenue decreased 8.3% year over year to $76.4 million, with pressure on UroLift [11] Market Data and Key Metrics Changes - Americas revenues were $525.7 million, a 2% increase year over year [7] - EMEA revenues decreased 2.1% year over year to $166.2 million, with strength in Interventional business offset by Anesthesia challenges [7] - Asia revenues were $89 million, a 1.2% increase year over year, driven by Southeast Asia, India, and Japan [8] Company Strategy and Development Direction - The company is progressing with the separation announced in February, aiming for focused strategic direction and streamlined operations [12][13] - A potential sale of NewCo is being pursued, with significant interest from potential buyers [13] - The acquisition of BioTronic's vascular intervention business is expected to enhance growth and improve margins, with anticipated annual revenues exceeding $800 million [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational excellence and value creation, with updated financial guidance reflecting strong performance [5][28] - The company expects total constant currency growth for 2025 to be in the range of 7.7% to 8.7% [28] - Management highlighted the positive impact of proposed CMS reimbursement changes on UroLift and Barajel, which could enhance growth prospects [72][73] Other Important Information - The company completed the acquisition of BioTronic for a net initial cash payment of €4 million [15] - The impact from tariffs is now estimated at approximately $29 million for 2025, a reduction from previous estimates [30] - The company plans to initiate a U.S. pivotal study for PRESOLVE technology in the coming months [19] Q&A Session Summary Question: Can you provide more context on the guidance bridge between tariffs, FX, and business outperformance? - Management expects organic growth of the BioTronic business in the second half of the year to be mid single digits, with a long-term growth expectation of 6% or better starting in 2026 [40][41] Question: Can you provide a rough breakout between the growth of remainco and newco? - Remainco is expected to grow in the upper 5% range, while newco's growth is anticipated to be in the mid single digits [45] Question: What is the outlook for the interventional business growth? - The interventional business is expected to grow high single to low double digits for the full year of 2025 [46] Question: Can you provide an update on the timing for the sale versus spin of NewCo? - If a spin proceeds, it is expected to occur in mid-2026, while the timing for a sale remains uncertain [50][81] Question: How will the proposed CMS rule impact UroLift? - The proposed rule is expected to provide a 10% uplift in reimbursement, which could significantly benefit UroLift's growth [72][84] Question: What is the site of service mix for Barajel? - The site of service mix for Barajel is spread across all three service sites, with the proposed uplift expected to encourage more product movement to the office side [87]

Financial Data and Key Metrics Changes - Second quarter revenues were $780.9 million, an increase of 4.2% year over year on a GAAP basis and up 1% on an adjusted constant currency basis, exceeding previous guidance of $769 million to $777 million [5][6] - Adjusted earnings per share were $3.73, a 9.1% increase year over year [6][25] - Adjusted gross margin was 59.7%, a decrease of 110 basis points year over year, primarily due to cost inflation and unfavorable product mix [23][24] - Adjusted operating margin was 26.9%, a 20 basis point year over year increase [23][24] Business Line Data and Key Metrics Changes - Americas revenues were $525.7 million, a 2% increase year over year, driven by intra-aortic balloon pumps [7] - EMEA revenues decreased 2.1% year over year to $166.2 million, with strength in Interventional business offset by challenges in Anesthesia [7] - Asia revenues were $89 million, a 1.2% increase year over year, driven by Southeast Asia, India, and Japan [8] - Vascular Access revenue increased 1.4% year over year to $185.5 million, led by growth in PICCs [9] - Interventional revenue was $170 million, a 19.3% increase year over year, driven by intra-aortic balloon pumps and complex catheters [9] - Anesthesia revenues decreased 7.6% year over year to $96.4 million, primarily due to tough comps in military orders [10] - Surgical business revenue increased 1.4% year over year to $114 million, with solid underlying trends [10] Market Data and Key Metrics Changes - The company expects continued revenue improvement in China through the remainder of 2025, despite previously announced volume-based procurement dynamics [8] - The acquisition of the Vascular Intervention business is expected to generate over $800 million in annual revenues [15] Company Strategy and Development Direction - The company is progressing with the separation announced in February, aiming for focused strategic direction and streamlined operations [12][36] - A potential sale of NewCo is being pursued, with significant interest from potential buyers [13][36] - The acquisition of BioTronic's vascular intervention business is a key part of the value creation strategy, expected to enhance global presence and improve patient care [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational excellence and value creation, with updated financial guidance reflecting strong performance [5][36] - The company anticipates total constant currency growth for 2025 to be in the range of 7.7% to 8.7%, significantly higher than previous guidance [27][28] - Management highlighted the positive impact of proposed reimbursement changes from CMS on UroLift and Baragel, which could enhance growth prospects [71][72] Other Important Information - Cash flow from operations for the first half of 2025 was $81.2 million, a decrease from $204.5 million in the prior period, primarily due to unfavorable changes in working capital [26] - The company expects a tariff impact of approximately $29 million in 2025, a reduction from previous estimates [30] Q&A Session Summary Question: Can you provide more context on the guidance bridge between tariffs, FX, and business outperformance? - Management indicated that the organic growth expectation for the Biotronic business is mid-single digits for the second half of the year, with overall operational performance contributing positively to EPS [40][41] Question: What is the growth outlook for remainco and newco? - Remainco is expected to grow in the upper 5% range, while newco's interventional business is anticipated to grow high single to low double digits for the full year of 2025 [44][46] Question: Can you discuss the timing and decision-making process for NewCo? - The timing for a potential spin-off is still mid-2026, with ongoing due diligence and interest from potential buyers [50][81] Question: How will the proposed CMS rule impact UroLift? - The proposed rule is expected to provide a 10% uplift in reimbursement for UroLift, which could significantly enhance growth prospects [71][84] Question: What are the expectations for the integration of the BioTronic salesforce? - The integration is expected to leverage existing channels, with significant opportunities for revenue synergies due to the combined sales force [94][95]

Group 1: Earnings Performance - Teleflex reported quarterly earnings of $3.73 per share, exceeding the Zacks Consensus Estimate of $3.36 per share, and up from $3.42 per share a year ago, representing an earnings surprise of +11.01% [1] - The company posted revenues of $780.89 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.27%, compared to year-ago revenues of $749.69 million [2] Group 2: Stock Performance and Outlook - Teleflex shares have declined approximately 36% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $3.36 on revenues of $791.97 million, and for the current fiscal year, it is $13.36 on revenues of $3.11 billion [7] Group 3: Industry Context - The Medical - Instruments industry, to which Teleflex belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Q2 2025 Performance - Adjusted constant currency revenue grew by 1.0% year-over-year[12] - Adjusted gross margin was 59.7%[12] - Adjusted operating margin was 26.9%[12] - Adjusted EPS reached $3.73, a 9.1% increase year-over-year[12] 2025 Financial Guidance - Adjusted constant currency revenue growth guidance increased to a range of 7.70% to 8.70%, compared to the prior range of 1.00% to 2.00%[12] - Adjusted diluted EPS from continuing operations guidance increased to a range of $13.90 to $14.30, compared to the prior range of $13.20 to $13.60[12] - GAAP Revenue Growth is forecasted between 9.00% and 10.00%[41] Segment Performance (Q2 2025) - Americas reported revenue of $525.7 million, with adjusted constant currency revenue growth of 2.0%[13, 14] - EMEA reported revenue of $166.2 million, but experienced an adjusted constant currency revenue decline of 2.1%[13, 14] - Asia reported revenue of $89.0 million, with adjusted constant currency revenue growth of 1.2%[13, 14] Strategic Updates - Teleflex is progressing with the separation into RemainCo and NewCo, and is evaluating a potential sale of NewCo[23] - Teleflex completed the acquisition of BIOTRONIK's Vascular Intervention business for an initial upfront cash payment of €704 million[23]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Financial Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Summary) The company reported solid Q2 results with increased constant currency revenue and adjusted EPS, raising its full-year 2025 guidance **Second Quarter 2025 Key Financials (YoY Growth):** | Metric | Value | Growth | | :----------------------------------- | :------ | :----- | | GAAP Revenue | $780.9M | 4.2% | | Adjusted Constant Currency Revenue | $780.9M | 1.0% | | GAAP Diluted EPS from Continuing Operations | $2.77 | 63.9% | | Adjusted Diluted EPS from Continuing Operations | $3.73 | 9.1% | [Full Year 2025 Outlook Summary](index=1&type=section&id=Full%20Year%202025%20Outlook%20Summary) Teleflex increased its full-year 2025 guidance for revenue and EPS, driven by the BIOTRONIK acquisition and positive foreign exchange impact **Full Year 2025 Guidance (Revised Ranges):** | Metric | Low | High | | :------------------------------------------ | :------ | :------ | | GAAP Revenue Growth | 9.00% | 10.00% | | Adjusted Constant Currency Revenue Growth | 7.70% | 8.70% | | GAAP EPS from Continuing Operations | $6.73 | $7.13 | | Adjusted Diluted EPS from Continuing Operations | $13.90 | $14.30 | [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) The CEO highlighted strong Q2 results, the strategic acquisition of BIOTRONIK's Vascular Intervention business, and ongoing value creation efforts - Solid second quarter results reflected an **increase in constant currency revenue growth** and **adjusted earnings per share** compared to the prior year period[3](index=3&type=chunk) - Successfully completed the acquisition of BIOTRONIK's Vascular Intervention business, which drove the **increase in 2025 adjusted constant currency revenue guidance**[3](index=3&type=chunk) - The Vascular Intervention business enhances global presence in the cath lab and establishes a footprint in the **fast-growing peripheral intervention market**[3](index=3&type=chunk) - Remaining focused on unlocking value through the **separation of NewCo** and actively exploring options to maximize shareholder value creation[3](index=3&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Net Revenue by Segment](index=2&type=section&id=Net%20Revenue%20by%20Segment) Segment net revenue showed varied regional performance, with notable reported growth in EMEA for Q2 offset by a decline on a constant currency basis [Three Months Ended June 29, 2025](index=2&type=section&id=Net%20Revenue%20by%20Segment%20-%20Three%20Months%20Ended%20June%2029%2C%202025) **Net Revenue by Segment (Three Months Ended June 29, 2025 vs. June 30, 2024):** | Segment | June 29, 2025 (Reported) | Reported Revenue Growth | Adjusted Constant Currency Revenue Growth | | :-------- | :----------------------- | :---------------------- | :---------------------------------------- | | Americas | $525.7M | 1.9% | 2.0% | | EMEA | $166.2M | 13.0% | (2.1)% | | Asia | $89.0M | 2.3% | 1.2% | | Consolidated | $780.9M | 4.2% | 1.0% | [Six Months Ended June 29, 2025](index=2&type=section&id=Net%20Revenue%20by%20Segment%20-%20Six%20Months%20Ended%20June%2029%2C%202025) **Net Revenue by Segment (Six Months Ended June 29, 2025 vs. June 30, 2024):** | Segment | June 29, 2025 (Reported) | Reported Revenue Growth | Adjusted Constant Currency Revenue Growth | | :-------- | :----------------------- | :---------------------- | :---------------------------------------- | | Americas | $1,001.4M | (0.8)% | (0.6)% | | EMEA | $317.4M | 3.5% | (2.4)% | | Asia | $162.8M | (4.9)% | (4.0)% | | Consolidated | $1,481.6M | (0.4)% | (1.3)% | [Net Revenue by Global Product Category](index=2&type=section&id=Net%20Revenue%20by%20Global%20Product%20Category) Interventional products showed strong growth, while OEM and Interventional Urology declined, and the 'Other' category was impacted by prior-year adjustments [Three Months Ended June 29, 2025](index=2&type=section&id=Net%20Revenue%20by%20Global%20Product%20Category%20-%20Three%20Months%20Ended%20June%2029%2C%202025) **Net Revenue by Global Product Category (Three Months Ended June 29, 2025 vs. June 30, 2024):** | Product Category | June 29, 2025 (Reported) | Reported Revenue Growth | Adjusted Constant Currency Revenue Growth | | :------------------- | :----------------------- | :---------------------- | :---------------------------------------- | | Vascular Access | $185.5M | 2.4% | 1.4% | | Interventional | $170.0M | 20.4% | 19.3% | | Anesthesia | $96.4M | (6.0)% | (7.6)% | | Surgical | $114.0M | 2.5% | 1.4% | | Interventional Urology | $76.4M | (8.1)% | (8.3)% | | OEM | $78.7M | (11.4)% | (12.4)% | | Other (1) | $59.9M | 43.5% | 3.5% | | Consolidated | $780.9M | 4.2% | 1.0% | [Six Months Ended June 29, 2025](index=3&type=section&id=Net%20Revenue%20by%20Global%20Product%20Category%20-%20Six%20Months%20Ended%20June%2029%2C%202025) **Net Revenue by Global Product Category (Six Months Ended June 29, 2025 vs. June 30, 2024):** | Product Category | June 29, 2025 (Reported) | Reported Revenue Growth | Adjusted Constant Currency Revenue Growth | | :------------------- | :----------------------- | :---------------------- | :---------------------------------------- | | Vascular Access | $367.9M | 1.5% | 1.6% | | Interventional | $307.6M | 11.5% | 11.5% | | Anesthesia | $183.0M | (8.0)% | (8.1)% | | Surgical | $219.8M | 1.4% | 1.7% | | Interventional Urology | $147.4M | (9.5)% | (9.5)% | | OEM | $142.6M | (19.2)% | (19.5)% | | Other (1) | $113.3M | 20.3% | 4.0% | | Consolidated | $1,481.6M | (0.4)% | (1.3)% | - The 'Other' category includes revenues from respiratory and urology products and in 2024, reflects the impact from increases in reserves related to the **Italian payback measure** pertaining to prior years[9](index=9&type=chunk) [Other Financial Highlights](index=3&type=section&id=Other%20Financial%20Highlights) Key balance sheet and expense metrics show a slight decrease in depreciation, a reduction in cash, and increases in receivables and inventories **Other Financial Highlights (Six Months Ended June 29, 2025 vs. Prior Periods):** | Metric | June 29, 2025 | December 31, 2024 | Prior Year Period (6 months) | | :------------------------------------------ | :------------ | :---------------- | :--------------------------- | | Depreciation expense, amortization of intangible assets and deferred financing charges | $134.7M | N/A | $135.9M | | Total cash, cash equivalents and restricted cash equivalents | $283.9M | $327.7M | N/A | | Net accounts receivable | $513.8M | $459.5M | N/A | | Inventories | $693.7M | $600.1M | N/A | [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) [Revenue Guidance](index=3&type=section&id=Revenue%20Guidance) The full-year 2025 revenue growth outlook was increased, primarily due to the BIOTRONIK acquisition and favorable foreign exchange impacts **Full Year 2025 Revenue Growth Outlook (Revised):** | Metric | Previous Range | New Range | Change Driver | | :------------------------------------------ | :------------- | :-------- | :------------ | | GAAP Revenue Growth | 1.28% to 2.28% | 9.00% to 10.00% | BIOTRONIK acquisition, 0.85% FX impact | | Adjusted Constant Currency Revenue Growth | 1.00% to 2.00% | 7.70% to 8.70% | BIOTRONIK acquisition | - The BIOTRONIK Vascular Intervention business is expected to generate revenues of **$204 million** in the second half of 2025[11](index=11&type=chunk) [Earnings Per Share Guidance](index=3&type=section&id=Earnings%20Per%20Share%20Guidance) The company raised its full-year 2025 GAAP and adjusted diluted earnings per share outlook from continuing operations **Full Year 2025 EPS Outlook (Revised):** | Metric | Previous Range | New Range | | :------------------------------------------ | :------------- | :-------- | | GAAP Diluted EPS from Continuing Operations | $6.51 to $6.91 | $6.73 to $7.13 | | Adjusted Diluted EPS from Continuing Operations | $13.20 to $13.60 | $13.90 to $14.30 | - The revised adjusted diluted EPS guidance represents a **decrease of 0.8% to an increase of 2.1%** year-over-year[12](index=12&type=chunk) [Reconciliation of Forecasted Adjusted Constant Currency Revenue Growth](index=3&type=section&id=Reconciliation%20of%20Forecasted%20Adjusted%20Constant%20Currency%20Revenue%20Growth) This reconciliation details adjustments from GAAP revenue growth to forecasted adjusted constant currency revenue growth for 2025 **Forecasted 2025 Adjusted Constant Currency Revenue Growth Reconciliation:** | Item | Low | High | | :------------------------------------------ | :------ | :------ | | Forecasted 2025 GAAP revenue growth | 9.00% | 10.00% | | Estimated impact of foreign currency exchange rate fluctuations | 0.85% | 0.85% | | Prior year Italian payback measure adjustment | 0.45% | 0.45% | | Forecasted 2025 adjusted constant currency revenue growth | 7.70% | 8.70% | [Reconciliation of Forecasted Adjusted Diluted EPS](index=3&type=section&id=Reconciliation%20of%20Forecasted%20Adjusted%20Diluted%20EPS) A detailed reconciliation from forecasted GAAP diluted EPS to adjusted diluted EPS outlines various non-GAAP adjustments **Forecasted 2025 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation:** | Item | Low | High | | :---------------------------------------------------- | :------ | :------ | | Forecasted GAAP diluted earnings per share from continuing operations | $6.73 | $7.13 | | Restructuring and rationalization items, net of tax | $0.54 | $0.54 | | Impairment items, net of tax | $0.14 | $0.14 | | Acquisition, integration and divestiture related items, net of tax | $0.23 | $0.23 | | Separation costs, net of tax | $1.48 | $1.48 | | ERP implementation, net of tax | $0.42 | $0.42 | | MDR, net of tax | $0.16 | $0.16 | | Intangible amortization expense, net of tax | $4.25 | $4.25 | | Tax adjustments | $(0.05) | $(0.05) | | Forecasted adjusted diluted earnings per share from continuing operations, net of tax | $13.90 | $14.30 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Overview and Rationale](index=5&type=section&id=Overview%20and%20Rationale) The company uses non-GAAP measures to supplement GAAP results for assessing performance and facilitating period-to-period comparisons - Non-GAAP measures are used by management to **assess financial performance**, make operating decisions, allocate resources, provide guidance, and evaluate comparisons[21](index=21&type=chunk) - Non-GAAP measures provide insight into management's assessment and supplemental information for comparing ongoing operations, but **should not be relied upon as a substitute for GAAP**[21](index=21&type=chunk) [Definitions of Adjustments](index=5&type=section&id=Definitions%20of%20Adjustments) This section defines specific adjustments used to derive non-GAAP measures from reported GAAP figures - Adjusted revenue excludes the impact of a **$13.8 million increase in reserves** related to the Italian payback measure in 2024, as these are not indicative of core performance[23](index=23&type=chunk)[24](index=24&type=chunk) - Adjusted constant currency revenue growth further **eliminates the impact of foreign currency exchange rate fluctuations** to facilitate comparison of underlying operating performance[25](index=25&type=chunk) - Adjusted diluted earnings per share excludes items such as restructuring, impairment, acquisition costs, separation costs, and intangible amortization, as these are **not considered indicative of core performance**[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) [Reconciliation of Net Revenue (Historical)](index=8&type=section&id=Reconciliation%20of%20Net%20Revenue%20(Historical)) Detailed reconciliations show adjustments from reported GAAP revenue to adjusted constant currency revenue growth by segment and product category **Reconciliation of Consolidated Net Revenue by Segment (Three Months Ended June 30, 2024):** | Segment | Reported Revenue | Adjustment | Adjusted Revenue | Reported Revenue Growth | Currency Impact | Adjustment impact | Adjusted Constant Currency Revenue Growth | | :-------- | :--------------- | :--------- | :--------------- | :---------------------- | :-------------- | :---------------- | :---------------------------------------- | | EMEA | $147.1M | ($13.8M) | $160.9M | 13.0% | 5.7% | 9.4% | (2.1)% | | Consolidated | $749.7M | ($13.8M) | $763.5M | 4.2% | 1.2% | 2.0% | 1.0% | **Reconciliation of Consolidated Net Revenue by Global Product Category (Three Months Ended June 30, 2024):** | Product Category | Reported Revenue | Adjustment | Adjusted Revenue | Reported Revenue Growth | Currency Impact | Adjustment impact | Adjusted Constant Currency Revenue Growth | | :------------------- | :--------------- | :--------- | :--------------- | :---------------------- | :-------------- | :---------------- | :---------------------------------------- | | Other (1) | $41.7M | ($13.8M) | $55.5M | 43.5% | 4.5% | 35.5% | 3.5% | | Consolidated | $749.7M | ($13.8M) | $763.5M | 4.2% | 1.2% | 2.0% | 1.0% | **Reconciliation of Consolidated Net Revenue by Segment (Six Months Ended June 30, 2024):** | Segment | Reported Revenue | Adjustment | Adjusted Revenue | Reported Revenue Growth | Currency Impact | Adjustment impact | Adjusted Constant Currency Revenue Growth | | :-------- | :--------------- | :--------- | :--------------- | :---------------------- | :-------------- | :---------------- | :---------------------------------------- | | EMEA | $306.7M | ($13.8M) | $320.5M | 3.5% | 1.3% | 4.6% | (2.4)% | | Consolidated | $1,487.5M | ($13.8M) | $1,501.3M | (0.4)% | 0.0% | 0.9% | (1.3)% | **Reconciliation of Consolidated Net Revenue by Global Product Category (Six Months Ended June 30, 2024):** | Product Category | Reported Revenue | Adjustment | Adjusted Revenue | Reported Revenue Growth | Currency Impact | Adjustment impact | Adjusted Constant Currency Revenue Growth | | :------------------- | :--------------- | :--------- | :--------------- | :---------------------- | :-------------- | :---------------- | :---------------------------------------- | | Other (1) | $94.3M | ($13.8M) | $108.1M | 20.3% | 0.1% | 16.2% | 4.0% | | Consolidated | $1,487.5M | ($13.8M) | $1,501.3M | (0.4)% | 0.0% | 0.9% | (1.3)% | [Reconciliation of Consolidated Statement of Income Items (Historical)](index=9&type=section&id=Reconciliation%20of%20Consolidated%20Statement%20of%20Income%20Items%20(Historical)) This section provides comprehensive reconciliations of GAAP income statement items to adjusted non-GAAP figures for recent periods **Reconciliation of Consolidated Statement of Income Items (Three Months Ended June 29, 2025):** | Item | GAAP Basis | Adjustments Total | Adjusted Basis | | :------------------------------------------ | :--------- | :---------------- | :------------- | | Revenue | $780.9M | — | $780.9M | | Gross margin | 55.2% | 4.5% | 59.7% | | Operating margin | 19.9% | 7.0% | 26.9% | | Income before income taxes | $135.2M | $54.9M | $190.1M | | Diluted earnings per share from continuing operations | $2.77 | $0.96 | $3.73 | **Reconciliation of Consolidated Statement of Income Items (Three Months Ended June 30, 2024):** | Item | GAAP Basis | Adjustments Total | Adjusted Basis | | :------------------------------------------ | :--------- | :---------------- | :------------- | | Revenue | $749.7M | $13.8M | $763.5M | | Gross margin | 55.6% | 5.2% | 60.8% | | Operating margin | 15.6% | 11.1% | 26.7% | | Income before income taxes | $97.5M | $87.3M | $184.8M | | Diluted earnings per share from continuing operations | $1.69 | $1.73 | $3.42 | **Reconciliation of Consolidated Statement of Income Items (Six Months Ended June 29, 2025):** | Item | GAAP Basis | Adjustments Total | Adjusted Basis | | :------------------------------------------ | :--------- | :---------------- | :------------- | | Revenue | $1,481.6M | — | $1,481.6M | | Gross margin | 55.4% | 4.6% | 60.0% | | Operating margin | 19.0% | 6.9% | 25.9% | | Income before income taxes | $244.2M | $102.3M | $346.5M | | Diluted earnings per share from continuing operations | $4.82 | $1.81 | $6.63 | **Reconciliation of Consolidated Statement of Income Items (Six Months Ended June 30, 2024):** | Item | GAAP Basis | Adjustments Total | Adjusted Basis | | :------------------------------------------ | :--------- | :---------------- | :------------- | | Revenue | $1,487.5M | $13.8M | $1,501.3M | | Gross margin | 56.0% | 4.9% | 60.9% | | Operating margin | 7.5% | 19.2% | 26.7% | | Income before income taxes | $71.7M | $288.6M | $360.3M | | Diluted earnings per share from continuing operations | $2.02 | $4.61 | $6.63 | - Acquisition, integration and divestiture related items for the three and six months ended June 29, 2025, primarily related to the **BIOTRONIK Vascular Intervention business acquisition**[52](index=52&type=chunk)[53](index=53&type=chunk) [Company Information](index=14&type=section&id=Company%20Information) [About Teleflex Incorporated](index=14&type=section&id=About%20Teleflex%20Incorporated) Teleflex is a global provider of medical technologies with a diverse portfolio of solutions designed to improve health and quality of life - Teleflex is a global provider of medical technologies driven by the purpose to **improve the health and quality of people's lives**[54](index=54&type=chunk) - Offers a diverse portfolio with solutions in **anesthesia, emergency medicine, interventional cardiology and radiology, surgical, vascular access, and urology**[54](index=54&type=chunk) - Key brands include **Arrow™, Barrigel™, Deknatel™, LMA™, Pilling™, QuikClot™ Rüsch™, UroLift™ and Weck™**[55](index=55&type=chunk) [Caution Concerning Forward-Looking Information](index=14&type=section&id=Caution%20Concerning%20Forward-Looking%20Information) This section advises caution regarding forward-looking statements, as actual results may differ materially due to various enumerated risks - Forward-looking statements, including **2025 financial forecasts** and statements about the BIOTRONIK acquisition and NewCo separation, are subject to material risks[57](index=57&type=chunk) - Risks include **unanticipated difficulties in integration**, financing risks, customer and shareholder reactions, operational disruptions, and regulatory actions[57](index=57&type=chunk) - Other factors affecting actual results include product demand, restructuring execution, healthcare reform, competitive conditions, and **global economic factors**[57](index=57&type=chunk) [Contacts](index=14&type=section&id=Contacts) Contact information for investor relations is provided for Teleflex Incorporated - Investor Relations Contact: **Lawrence Keusch**, Vice President, Investor Relations and Strategy Development, 610-948-2836[64](index=64&type=chunk) [Unaudited Consolidated Financial Statements](index=15&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=15&type=section&id=Consolidated%20Statements%20of%20Income) The statements of income detail the company's financial performance for the three and six-month periods ended June 29, 2025, and June 30, 2024 **Consolidated Statements of Income (in thousands, except per share data):** | Metric | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net revenues | $780,889 | $749,691 | | Gross profit | $431,085 | $416,458 | | Income from continuing operations before interest and taxes | $155,311 | $116,878 | | Net income | $122,580 | $80,038 | | Diluted EPS from continuing operations | $2.77 | $1.69 | **Consolidated Statements of Income (in thousands, except per share data):** | Metric | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net revenues | $1,481,558 | $1,487,540 | | Gross profit | $820,524 | $832,592 | | Income from continuing operations before interest and taxes | $280,881 | $112,085 | | Net income | $217,582 | $95,327 | | Diluted EPS from continuing operations | $4.82 | $2.02 | [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) The balance sheets present the company's financial position as of June 29, 2025, compared to December 31, 2024 **Consolidated Balance Sheets (in thousands):** | Item | June 29, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total current assets | $1,723,862 | $1,471,124 | | Total assets | $7,375,219 | $7,097,914 | | Total current liabilities | $716,148 | $649,360 | | Total liabilities | $3,132,351 | $2,819,774 | | Total shareholders' equity | $4,242,868 | $4,278,140 | [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The statements of cash flows detail cash inflows and outflows from operating, investing, and financing activities for the recent six-month periods **Consolidated Statements of Cash Flows (in thousands):** | Item | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net cash provided by operating activities from continuing operations | $81,186 | $204,532 | | Net cash used in investing activities from continuing operations | ($59,280) | ($55,040) | | Net cash used in financing activities from continuing operations | ($83,192) | ($127,992) | | Net (decrease) increase in cash, cash equivalents and restricted cash equivalents | ($43,728) | $15,719 | | Cash, cash equivalents and restricted cash equivalents at the end of the period | $283,922 | $238,567 |

Core Insights - Teleflex Incorporated reported solid second quarter results with an increase in constant currency revenue growth and adjusted earnings per share compared to the prior year [3][6] - The company successfully completed the acquisition of BIOTRONIK's Vascular Intervention business, which positively impacted the 2025 adjusted constant currency revenue guidance [3][9] - The company is focused on unlocking value through the separation of NewCo and exploring options to maximize shareholder value [3] Financial Performance - For the three months ended June 29, 2025, consolidated net revenue was $780.9 million, reflecting a 4.2% increase compared to $749.7 million in the prior year [5][6] - Adjusted diluted earnings per share from continuing operations for the second quarter was $3.73, up from $3.42 in the prior year [6][10] - The company raised its full year 2025 GAAP revenue growth guidance to a range of 9.00% to 10.00% and adjusted constant currency revenue growth guidance to 7.70% to 8.70% [9][10] Revenue by Segment - In the Americas, net revenue for the three months ended June 29, 2025, was $525.7 million, a 1.9% increase from $515.6 million in the prior year [5] - EMEA segment revenue increased by 13.0% to $166.2 million, while Asia segment revenue grew by 2.3% to $89.0 million [5] - For the six months ended June 29, 2025, consolidated net revenue was $1,481.6 million, a slight decrease of 0.4% compared to $1,487.5 million in the prior year [5][6] Product Category Performance - The Interventional product category saw significant growth, with revenue increasing by 20.4% to $170.0 million for the three months ended June 29, 2025 [8] - Vascular Access revenue grew by 2.4% to $185.5 million, while Anesthesia and OEM categories experienced declines of 6.0% and 11.4%, respectively [8] - For the six months ended June 29, 2025, Interventional revenue increased by 11.5% to $307.6 million, while Anesthesia and OEM categories saw declines of 8.0% and 19.2%, respectively [8][36] Outlook - The company expects the acquisition of the Vascular Intervention business to generate approximately $204 million in revenue in the second half of 2025 [9] - The adjusted diluted earnings per share guidance for 2025 was raised to a range of $13.90 to $14.30, reflecting a year-over-year increase [10][14] - The company anticipates a positive impact of approximately 0.85% from foreign exchange rate fluctuations for the full year [9][11]