ICU Medical (NasdaqGS:ICUI) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsBrian Bonnell - CFOJayson Bedford - Managing Director of Medical TechnologyJohn Mills - Managing PartnerLarry Solow - PartnerVivek Jain - CEO and ChairmanConference Call ParticipantsBrett Fishbin - VP and Senior Equity Research AnalystJason Bednar - Senior Research AnalystMike Matson - Senior AnalystOperatorGood day, and welcome to the ICU Medical, Inc., fourth quarter 2025 earnings conference call. All parti ...

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][17] - Adjusted gross margin for Q4 was 40.5%, with adjusted EBITDA decreasing by 7% from $106 million last year [15][17] - Free cash flow for Q4 was $44 million, contributing to a total of $100 million for the year, slightly better than guidance [18][25] Business Line Data and Key Metrics Changes - Consumables business grew 6% reported and 5% organic in Q4, with full-year growth at 7% reported and 6% organic [6][7] - IV systems business grew 3% reported and 1% organic, with the best quarter in pumps despite some installations being pulled into Q3 [7][8] - Vital Care decreased 6% organically and 35% reported due to deconsolidation, remaining flat for the year [9] Market Data and Key Metrics Changes - The demand environment in Q4 was strong across most geographies, with a notable flu spike in the U.S. towards year-end [5] - The capital environment remained stable, with investments being executed as planned [6] Company Strategy and Development Direction - The company aims to create a comprehensive infusion therapy company, focusing on operational stability and innovation to improve performance in vascular access [6][31] - The strategy includes modernizing the IV solutions business through a joint venture with Otsuka and enhancing product offerings with FDA-cleared devices [30][32] - Long-term goals include achieving mid-single-digit growth in consumables and infusion systems, while Vital Care is expected to remain flat to slightly down [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and expected benefits from completed integration projects, leading to better cash flow and margins [27][81] - The company anticipates challenges from tariffs and interest rates but believes it can overcome these hurdles to achieve original targets [28][33] Other Important Information - The company has made significant progress in integrating manufacturing sites and IT systems, which is expected to yield operational synergies [11][12] - The company plans to prioritize debt repayment with free cash flow generated in 2026, targeting a long-term leverage ratio of 2 times [26] Q&A Session Summary Question: Current environment for systems and customer decision-making - Management indicated that the capital environment is stable, with deals being executed as expected [39] Question: Impact of new product cycles and competitive landscape - Management noted that while competitive challenges exist, they are starting from a stronger position and expect to grow through existing headwinds [76] Question: Underlying volume trends in consumables - Management confirmed that underlying demand remains positive, despite some seasonal fluctuations [54] Question: Tariff mitigation efforts - Management stated that structural changes have been made to mitigate tariff impacts, with some benefits already seen in Q4 [57] Question: Potential sale of the critical care business - Management acknowledged the complexities involved in assessing the critical care business due to its integration with other operations [66]