Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $536 million, representing a 2% organic growth but a -14% reported decline, with full-year organic growth at 5% [4] - Gross margins were above 40%, with EBITDA of $98 million and EPS of $1.91, reflecting a year-over-year decline in EBITDA due to deconsolidation and tariffs [5][16] - Adjusted diluted EPS for Q4 was $1.91, down 9% from $2.11 the previous year [17] Business Line Data and Key Metrics Changes - Consumables business grew 6% reported and 5% organic in Q4, with full-year growth of 7% reported and 6% organic [7][8] - IV systems business grew 3% reported and 1% organic, with LVPs showing low double-digit growth for the year [8][9] - Vital Care decreased 6% organically and 35% reported due to deconsolidation, remaining flat for the year [10] Market Data and Key Metrics Changes - The demand environment in Q4 was attractive across most geographies, with a notable flu spike in the U.S. towards year-end [6] - The capital environment remained stable, with investments being executed as planned [7] Company Strategy and Development Direction - The company aims to create a comprehensive infusion therapy company, focusing on operational stability and innovation [4][30] - Future growth is expected to be driven by volume increases in core infusion lines and niche markets, with a long-term goal of mid-single-digit growth [18][19] - The company is working on integrating manufacturing and IT systems to improve operational efficiency and profitability [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the capital environment and ongoing demand for their products [7][36] - The company anticipates improved free cash flow in 2026, driven by higher earnings and reduced spending on restructuring and integration [24][25] - Management acknowledged challenges from tariffs and interest rates but believes they can overcome these hurdles [27][32] Other Important Information - The company ended 2025 with $1.3 billion in debt and $308 million in cash, having paid down $303 million in principal during the year [18][25] - The company expects to reach a targeted leverage ratio of 2 times by early 2027, prioritizing debt repayment with free cash flow [25][26] Q&A Session Summary Question: Can you discuss the current customer environment for systems? - Management indicated that the capital environment has been stable, with deals being executed as expected [37] Question: What is the expected impact of new product clearances on sales? - Management stated that there has been no slowdown in sales due to pending clearances, and customers are engaged with future product roadmaps [41] Question: How is the company addressing tariff impacts? - Management confirmed ongoing structural changes to mitigate tariff impacts, with some benefits already seen in Q4 [52][53] Question: What is the market size and share for syringe pumps? - Management clarified that the syringe pump market is significantly smaller than LVPs, but they hold a higher market share in syringes [58][59] Question: What are the margins for the Vital Care business? - Management indicated that Vital Care likely operates below corporate gross margins, complicating potential divestiture discussions [63]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $533 million, representing a 5% organic growth but an 8% decline reported year over year due to the deconsolidation of IV solutions [5][6] - Adjusted EBITDA increased by 12% to $106 million compared to $95 million last year, while adjusted diluted EPS rose by 28% to $2.03 from $1.59 [18][21] - Gross margin for Q3 was 41%, slightly better than expectations, with improvements attributed to the deconsolidation of IV solutions and a one-time benefit from settling a liability [14][15] Business Line Data and Key Metrics Changes - The consumables business grew 8% reported and 7% organic, driven by new customer implementations and growth in niche markets [7][9] - The IV systems business experienced a 9% reported growth and 8% organic growth, with strong contributions from LVP pumps and dedicated sets [9][10] - The vital care segment saw a significant decline of 52% reported and 4% organic due to the deconsolidation of IV solutions [13] Market Data and Key Metrics Changes - The demand and utilization environment remained attractive across almost all geographies, although growth rates were not as high as the previous year [6] - 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 expanding its product portfolio [26][27] - The strategy includes enhancing patient safety and workflow efficiencies through new product developments and maintaining a competitive edge in the market [12][27] - The company is also focused on optimizing its balance sheet and reducing leverage over time, with a target of around two times levered net debt to EBITDA [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit growth for the consumables and IV systems businesses for the remainder of the year [7][10] - The company is increasing its full-year EBITDA guidance from $380 million-$390 million to $395 million-$405 million, and adjusted EPS guidance from $6.85-$7.15 to $7.35-$7.65 [21][22] - Management acknowledged challenges from tariffs and the absence of one-time benefits in future quarters but remains optimistic about overall performance [22][23] Other Important Information - The company has made significant progress in reducing debt, with $273 million repaid year to date [20] - Free cash flow for the quarter was $28 million, with expectations for improved cash flow generation as restructuring costs decrease [19][56] Q&A Session Summary Question: Sources of strength in consumables growth - Management identified several drivers including market share gains, successful customer implementations, and growth in niche markets like oncology and dialysis [33][34] Question: Expectations for consumables growth in Q4 - Management indicated that while they expect growth, it may not match the sequential lift seen from Q2 to Q3, maintaining a cautious outlook [37] Question: Traction of Duo and Solo infusion systems - Management confirmed that they are taking orders for Solo and noted ongoing discussions in the pump market, with installations still in early stages [38] Question: 2026 tariff exposure outlook - Management reiterated that they do not want to annualize the tariff impact and are actively working on mitigation strategies [41][42] Question: Future gross margin targets and earnings growth - Management discussed the potential for earnings growth through technology value, product mix, and financial leverage, while acknowledging the need to close the gap to their gross margin targets [44][45] Question: Updates on FDA warning letters - Management confirmed ongoing dialogue with the FDA and emphasized their focus on obtaining new product approvals [61][62] Question: Portfolio management within the vital care segment - Management stated they are exploring all available avenues for portfolio optimization but emphasized the importance of not engaging in value-destructive actions [64][66]