Financial Data and Key Metrics Changes - In Q2 2025, the company reported sales of $476 million, reflecting an 11% year-over-year growth on both a reported and organic basis [6][9] - Adjusted operating income grew 15% year-over-year, with adjusted earnings per share increasing 19% to $1.55 [6][10] - For the first half of 2025, sales increased by 9%, and adjusted operating profit rose by 14%, indicating a strong performance above market growth [6][21] Business Line Data and Key Metrics Changes - Cardio and vascular sales increased by 24% in Q2 2025, driven by new product ramps and strong customer demand [11] - Cardiac Rhythm Management and Neuromodulation sales grew by 2% in Q2 2025, with expectations for mid-single-digit growth for the full year [12] - Adjusted net income for Q2 2025 was $55 million, up 23% year-over-year, attributed to operational improvements and lower interest expenses [13] Market Data and Key Metrics Changes - The company expects sales growth in the mid-teens for Cardio and Vascular for the full year 2025, while CRM and Neuromodulation are projected to grow in the mid-single digits [11][12] - The company anticipates second-half sales growth of approximately 8% at the midpoint, with similar growth rates in Q3 and Q4 [19] Company Strategy and Development Direction - The company is focused on expanding margins through manufacturing and business excellence initiatives, alongside integrating tuck-in acquisitions [8] - The strategic outlook includes maintaining a leverage ratio within the target range of 2.5 to 3.5 times trailing four-quarter adjusted EBITDA [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained performance levels that will produce a premium valuation for shareholders [21] - The company has good visibility to customer demand and maintains a backlog of approximately $700 million, which supports its guidance for the year [19][75] Other Important Information - The adjusted effective tax rate for Q2 2025 was 19%, down from 20.7% in the prior year, with expectations for the full year to be between 18.5% and 19.5% [13] - The company experienced a foreign exchange headwind of $3 million in Q2 2025, primarily due to a weakening U.S. dollar [14] Q&A Session Summary Question: Full year organic growth guidance update - Management explained that while Q2 showed strong performance, the guidance for the second half remains at 8% due to typical customer demand shifts and tough comparisons from the previous year [25][28] Question: CRM and Neuromodulation growth outlook - Management indicated that the improvement in the full year outlook for CRM and Neuromodulation is driven by strong customer demand and a planned decline in a specific program that is expected to lessen in the second half [33][34] Question: Inventory management and tariffs - Management confirmed that inventory management has normalized and that the impact of tariffs on the business remains minimal, with a range of $1 million to $5 million expected [44][49] Question: Revenue pull forward and future performance - Management clarified that the 11% growth in Q2 included some pull forward of demand from Q3, but overall guidance for the year remains unchanged [60][63] Question: Strategic priorities under new CEO - The new CEO emphasized the continuation of existing strategies focused on growth markets, margin expansion, and tuck-in acquisitions [56][58] Question: Impact of tariffs on customer relationships - Management stated that while tariffs have minimal direct impact, they are actively working with customers to minimize any logistical challenges [95][97]