Financial Data and Key Metrics Changes - Revenue for Q2 was $544 million, reflecting a 2% organic growth but a reported decline of 6% due to the impact of the joint venture [5][6] - Adjusted EBITDA was $100 million, with EPS at $2.1, and gross margins improved due to the joint venture [6][14] - Adjusted gross margin for Q2 was 40%, showing a three percentage point expansion year-over-year and sequentially [14][15] - Free cash flow was a net outflow of $8 million, influenced by higher tax payments and tariff payments [17][18] Business Line Data and Key Metrics Changes - Consumables business grew 4% organically and 3% reported, achieving record sales levels [7][8] - IV Systems business grew 2% organically and reported, driven by double-digit growth in LVP [9][10] - Vital Care segment reported a decline of 434% due to the deconsolidation of IV Solutions revenues [12][13] Market Data and Key Metrics Changes - The demand and utilization environment in Q2 remained attractive across most geographies, although growth rates were not as high as the previous year [6][24] - 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 optimizing its portfolio [5][26] - The strategy includes enhancing patient safety and workflow efficiencies through new product developments and regulatory approvals [8][11] - The company is focused on mitigating tariff impacts and optimizing its manufacturing network to improve profitability [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and their impact on profitability, emphasizing the need for cost controls and price increases [20][30] - The outlook for Q3 and Q4 is positive, with expectations for sequential growth in consumables and IV systems [24][51] - The company is cautious about the evolving tariff landscape and its potential long-term implications [58] Other Important Information - The company has made significant progress in integrating its IT systems and consolidating its manufacturing network [15][31] - The joint venture is expected to continue benefiting the balance sheet and income statement [31] Q&A Session Summary Question: What assumptions have been made regarding tariffs, particularly for China? - The current guidance assumes tariffs at existing rates, with some benefits from pauses in tariff increases [38] Question: Is there anything outside of tariffs impacting the EBITDA outlook? - The primary impact on the EBITDA outlook is from tariffs, with no other significant factors affecting the guidance [39] Question: What is the demand profile for Duo and the infusion systems segment? - There is a positive outlook for both consumables and infusion systems, with installations of Duo underway [42][44] Question: How does the suspension of Baxter's no room pump sales affect the company? - While it may create some opportunities, the long-term view remains that all competitors will eventually return to the market [53] Question: What is the status of ongoing planning consolidation? - The move of infusion pumps to Costa Rica is complete, with other consolidations expected to be finalized within the next six to nine months [64] Question: Is the replacement cycle starting to contribute to revenue? - The replacement cycle is not yet significant, but discussions are beginning, with expectations for next year [71][72]