Financial Data and Key Metrics Changes - The company reported a growth of 3.5% in the first half of the year, with a normalized growth rate of about 2.5% after accounting for order timing [50][51] - For the second half, the company expects growth to normalize at about 2.5%, aligning with the full-year guidance of 2% to 3% [51][53] - The purification and filtration divestiture is expected to provide an annual earnings per share (EPS) benefit of 25% to 30%, with a significant portion realized in 2025 [18][19] Business Line Data and Key Metrics Changes - The MedSurge business experienced a headwind in Q2 but is expected to accelerate in the second half, particularly in advanced wound care [52][53] - The dental segment has launched three new products this year, leading to strong traction and anticipated accelerated growth in the latter half of the year [39][40] Market Data and Key Metrics Changes - The company is focusing on attractive markets for innovation, leveraging its capabilities in material and data science to drive growth [12][13] - The purification and filtration business was divested to strengthen the balance sheet and improve operating margins, simplifying the overall portfolio [18][19] Company Strategy and Development Direction - The company is undergoing a significant transformation in three concurrent phases: mission, talent, and culture; strategic alignment; and future transformation through portfolio rationalization [4][6] - The focus is on continuous improvement and accountability within the organization, with a strong emphasis on aligning resources with growth drivers [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the innovation engine, citing a strong alignment of R&D with strategic goals and the potential for new-to-the-world technologies [12][13] - The company anticipates a headwind from SKU rationalization in 2026, which will impact growth rates, but expects to see improvements in underlying business performance [58][60] Other Important Information - The company plans to retain the drinking water filtration business temporarily, with intentions to sell it later once operational efficiencies are established [22][23] - The management is focused on smaller tuck-in acquisitions in familiar markets to leverage existing infrastructure and minimize risk [30][31] Q&A Session Summary Question: Can you discuss the company's vision for the next five to ten years? - The company is focused on a significant transformation involving mission, talent, and culture, with a continuous improvement mindset [4][5] Question: What changes have been made in the MedSurge leadership team? - There has been a dramatic overhaul in leadership and alignment around growth driver areas, enhancing the focus on R&D and medical education [14][16] Question: How will the purification and filtration divestiture impact EPS? - The divestiture is expected to provide a significant EPS benefit, with most of the gains realized in the fourth quarter [19][20] Question: What are the expectations for pricing in 2025 and 2026? - The company expects pricing to be flat to plus 1%, focusing on sustainable volume growth rather than maximizing price [68][69]

Financial Data and Key Metrics Changes - The company reported a 3.5% growth in the first half of the year, with expectations of normalizing to about 2.5% growth due to order timing adjustments [48][49] - For the second half, the company anticipates a growth rate of approximately 1.5%, normalizing to about 2.5% as well, aligning with the full-year guidance of 2% to 3% [49][50] - The purification and filtration divestiture is expected to provide a 25% to 30% annual benefit, with a significant portion of the EPS benefit realized in the fourth quarter [17][19] Business Line Data and Key Metrics Changes - The MedSurge business experienced a headwind in Q2 but is expected to accelerate in the second half, particularly in advanced wound care [49][50] - The dental segment has launched three new products this year, leading to strong traction and expectations for accelerated growth in the latter half of the year [36][38] Market Data and Key Metrics Changes - The company is focusing on attractive markets for innovation, leveraging its capabilities in material science and data science to drive growth [12][13] - The dental market is seeing a transformation with new product launches that are expanding market share and improving patient experience [38][39] Company Strategy and Development Direction - The company is undergoing a significant transformation in three phases: focusing on mission, talent, and culture; strategic alignment; and future transformation through portfolio rationalization [4][6] - The company aims to optimize its portfolio continuously, evaluating whether assets belong with them or should be divested [23][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow guidance of $450 to $550 million despite a slow start in the first half due to timing issues [52][53] - For 2026, management anticipates tailwinds from commercial improvements and new product launches, while also acknowledging headwinds from SKU rationalization [55][56] Other Important Information - The company has made significant changes in leadership and talent within the MedSurge business to address past underperformance [14][15] - The partnership with Ensemble in revenue cycle management is expected to enhance the company's position in autonomous coding technology [42][46] Q&A Session Summary Question: How should we think about Q3 and Q4 in terms of cadence? - The company expects a normalization of growth rates in the second half, with specific improvements in advanced wound care and dental segments [49][50] Question: Can you talk about your confidence in achieving your free cash flow guidance? - Management is confident in meeting the guidance, with action plans in place to address the slow start in the first half [52][53] Question: What are your comments around valuations and the marketplace for tuck-in deals? - The company acknowledges that while attractive assets are not inexpensive, they will maintain a disciplined approach to acquisitions [35] Question: What are your expectations for pricing in 2025 and 2026? - The company expects pricing to be flat to plus 1%, focusing on sustainable volume growth rather than maximizing price [66][68]