Teleflex(US:TFX)2025-07-31 11:00Executive Summary & Highlights Second Quarter 2025 Financial Summary 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 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 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 period3 - Successfully completed the acquisition of BIOTRONIK's Vascular Intervention business, which drove the increase in 2025 adjusted constant currency revenue guidance3 - The Vascular Intervention business enhances global presence in the cath lab and establishes a footprint in the fast-growing peripheral intervention market3 - Remaining focused on unlocking value through the separation of NewCo and actively exploring options to maximize shareholder value creation3 Detailed Financial Results Net Revenue by Segment 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 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 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 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 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 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 years9 Other Financial Highlights 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 Revenue Guidance 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 202511 Earnings Per Share Guidance 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-year12 Reconciliation of Forecasted Adjusted Constant Currency Revenue Growth 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 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 Overview and Rationale 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 comparisons21 - 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 GAAP21 Definitions of Adjustments 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 performance2324 - Adjusted constant currency revenue growth further eliminates the impact of foreign currency exchange rate fluctuations to facilitate comparison of underlying operating performance25 - 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 performance2627282931323435363739 Reconciliation of Net Revenue (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) 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 acquisition5253 Company Information About Teleflex Incorporated 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 lives54 - Offers a diverse portfolio with solutions in anesthesia, emergency medicine, interventional cardiology and radiology, surgical, vascular access, and urology54 - Key brands include Arrow™, Barrigel™, Deknatel™, LMA™, Pilling™, QuikClot™ Rüsch™, UroLift™ and Weck™55 Caution Concerning Forward-Looking Information 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 risks57 - Risks include unanticipated difficulties in integration, financing risks, customer and shareholder reactions, operational disruptions, and regulatory actions57 - Other factors affecting actual results include product demand, restructuring execution, healthcare reform, competitive conditions, and global economic factors57 Contacts Contact information for investor relations is provided for Teleflex Incorporated - Investor Relations Contact: Lawrence Keusch, Vice President, Investor Relations and Strategy Development, 610-948-283664 Unaudited Consolidated Financial Statements Consolidated Statements of Income 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 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 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 |