Financial Data and Key Metrics Changes - Second quarter sales from continuing operations grew 4% on a reported basis and 1% on an operational basis, with adjusted earnings per share from continuing operations at $0.59, increasing 28% over the prior year [5][10][24] - Adjusted gross margins from continuing operations were 14.7%, a decrease of 170 basis points compared to the prior year [19] - Adjusted operating margin was 15.1%, improving 180 basis points compared to the prior year [21] Business Segment Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 1% in the quarter, with ITT division sales declining 1% to $1 billion [10][11] - Advanced Surgery sales totaled $296 million, growing 5% globally [14] - Healthcare Systems and Technologies (HST) sales were $767 million, increasing 2%, with Care and Connectivity Solutions (CCS) division sales rising 4% to $474 million [15] - Pharmaceutical segment sales totaled $612 million, increasing 1%, with injectables and anesthesia sales declining 4% [16][17] Market Data and Key Metrics Changes - U.S. patient admissions were slightly lower than anticipated, impacting demand for certain products [11] - International sales in CCS increased 7%, while frontline care sales declined 1% compared to the prior year [15][16] Company Strategy and Development Direction - The company aims to enhance operational effectiveness and improve performance, focusing on innovation and growth opportunities [6][30] - A strategic partnership with Visient was announced to ensure reliable access to IV fluids during supply disruptions [12] - The company is committed to maintaining a comprehensive IV Solutions portfolio and is optimistic about the recovery of hospital practices over time [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softness in demand for certain products and the impact of fluid conservation efforts on sales [5][11] - The company expects total sales growth of 6% to 7% on a reported basis for 2025, with operational sales growth revised to 3% to 4% [26][34] - Management remains confident in the fundamentals of the business and anticipates a return to normal practices in the healthcare sector [30][66] Other Important Information - The company has incurred negative free cash flows of $144 million year-to-date but generated $77 million of positive free cash flows in the second quarter [25] - The anticipated impact from tariffs is estimated at approximately $40 million in 2025, a reduction from previous estimates [32] Q&A Session Summary Question: Impact of NOVUM on sales and operating margin - Management confirmed no impact from NOVUM in the second quarter and expressed confidence in the platform despite a voluntary pause in shipments [42][44] Question: Guidance implications if NOVUM issues persist - The low end of guidance assumes no further shipments of NOVUM for the rest of the year, capturing potential downside risks [48][52] Question: Evolution of business trends throughout the quarter - Management noted that business trends worsened, particularly in U.S. injectables, and emphasized a more reserved approach for the second half of the year [62][66] Question: TSA income and stranded costs management - Management is on track to mitigate stranded costs and ensure that TSA roll-off does not outpace stranded cost reductions [71][73] Question: Revenue guide reduction specifics - Management did not provide specific numbers but indicated that the low end of guidance assumes no improvement in fluid conservation [78] Question: Long-term growth model and new CEO's impact - Management highlighted ongoing innovation and new product launches as key to returning to 4% to 5% revenue growth, with optimism for 2026 [83][88]

Financial Data and Key Metrics Changes - First quarter sales from continuing operations grew 5% on both a reported and operational basis, totaling $2.63 billion, exceeding previous guidance of 3% to 4% [8][13][34] - Adjusted earnings per share from continuing operations were $0.55, up 53% compared to the prior year, driven by favorable top line results and lower non-operational expenses [8][33] Business Line Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 6%, with strong growth in U.S. infusion systems [14][35] - Healthcare Systems and Technologies (HST) segment sales totaled $704 million, up 6%, driven by 14% growth in the U.S. for Care and Connectivity Solutions [19][20] - Pharmaceutical segment sales were $581 million, increasing 3%, with specialty injectables showing mid-single-digit growth [23] Market Data and Key Metrics Changes - The U.S. market showed strong recovery with hospitals beginning to rebuild inventory levels, particularly in IV Solutions, which is expected to improve as allocations are removed [17][22] - International sales performance was weaker, but capital orders picked up, indicating potential future growth [20] Company Strategy and Development Direction - The company is focused on leveraging its verticalized operating model to enhance innovation and drive profitable growth [6][8] - Strategic actions are being taken to mitigate the impact of global tariffs and optimize the supply chain [9][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic trajectory despite global macroeconomic volatility and uncertainty [9][10] - The company anticipates total sales growth of 7% to 8% for the full year 2025, with operational growth expected at 4% to 5% [34][42] Other Important Information - The search for a permanent CEO is active, with the board working with a leading search firm [10] - The company is committed to accelerating investments in innovation to redefine healthcare delivery [27] Q&A Session Summary Question: What actions are being taken to offset tariff headwinds? - Management is optimizing supply chains, negotiating with suppliers, and seeking exemptions while implementing targeted pricing strategies [46][50] Question: What is the outlook for the HST business recovery? - The HST segment showed strong performance with a healthy backlog and competitive wins, indicating positive momentum [52][54] Question: What impact do conservation programs have on IV Solutions? - Hospitals are expected to continue conservation efforts, but some are using more solutions than pre-hurricane levels, indicating a mixed recovery [60][62] Question: How is the company addressing potential pharmaceutical tariffs? - The company is proactively planning for potential tariff impacts and seeking exemptions, but the situation remains uncertain [66][68] Question: What is the outlook for operating margins in 2026? - The company remains committed to margin expansion, but the impact of tariffs and other factors will be evaluated as the situation develops [100]

Financial Data and Key Metrics Changes - First quarter sales from continuing operations grew 5% on both a reported and operational basis, totaling $2.63 billion, exceeding previous guidance of 3% to 4% [6][12] - Adjusted earnings per share from continuing operations were $0.55, up 53% compared to the prior year, driven by favorable top line results and lower non-operational expenses [27][33] - Adjusted gross margin from continuing operations was 41.8%, a decrease of 160 basis points year-over-year, impacted by higher planning and fulfillment costs [29] Business Line Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 6%, with strong growth in U.S. Infusion systems [13][14] - Healthcare Systems and Technologies (HST) segment sales totaled $704 million, increasing 6%, driven by 14% growth in the U.S. for Care and Connectivity Solutions [18][19] - Pharmaceutical segment sales were $581 million, increasing 3%, with injectables and anesthesia sales growing 4% [22] Market Data and Key Metrics Changes - The U.S. market showed strong recovery with hospitals beginning to rebuild inventory levels, particularly in IV Solutions, which is expected to improve as allocations are removed [16][62] - International procurement remains a part of operations, with ongoing impacts from U.S. and retaliatory tariffs affecting the supply chain [39][40] Company Strategy and Development Direction - The company is focused on leveraging its verticalized operating model to enhance agility and drive profitable growth [5] - Continued investments in innovation are prioritized to bring new products to market and redefine healthcare delivery [26] - The search for a permanent CEO is active, with the board working with a leading search firm to identify the right candidate [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the global macro environment and the uncertainty created by new tariffs, but remains positive about opportunities for sales growth and margin expansion [8][34] - The company expects total sales growth of 7% to 8% on a reported basis for the full year 2025, with operational growth of 4% to 5% [35][42] Other Important Information - The company is actively working on mitigating the impacts of tariffs, including optimizing supply chains and seeking exemptions [40] - Adjusted operating margin from continuing operations is expected to be between 16% to 16.5% for the full year [41] Q&A Session Summary Question: What actions are being taken to offset tariff headwinds? - Management is optimizing supply chains, negotiating with suppliers, and seeking exemptions while maintaining targeted pricing strategies [47][48] Question: How should we think about the sustainability of the HST business recovery? - The HST segment has shown strong order growth and competitive wins, with management optimistic about its future performance despite monitoring the capital environment [52][56] Question: What is the expected impact of IV Solutions on the business as hospitals return to normal inventory levels? - Hospitals are expected to continue conservation efforts, but some are using more solutions than pre-hurricane levels, indicating a mixed recovery [60][62] Question: Can you provide clarity on the potential impact of pharmaceutical tariffs? - The company is monitoring the situation closely, with a small exposure from the Clarus plant, and is proactive in scenario planning [66] Question: What are the expectations for operating margin expansion in 2026? - Management remains committed to margin expansion, but acknowledges that the tariff environment will influence future projections [100][102]

Financial Data and Key Metrics Changes - Revenue for Q4 was $622 million, representing a total company growth of 9% on a constant currency basis or 8% reported, aided by a temporary shortage in IV Solutions [9][10] - Adjusted EBITDA increased by 22% to $106 million compared to $86 million last year [27] - Adjusted diluted earnings per share for the quarter was $2.11, compared to $1.57 last year [25] Business Segment Data and Key Metrics Changes - Consumables business grew 6% both in constant currency and reported terms in Q4 [11] - IV Systems business grew 7% reported and 4% constant currency, marking the best absolute quarter in pumps [12] - Vital Care segment grew 16% on a constant currency and reported basis, primarily due to the national shortage in IV Solutions [13] Market Data and Key Metrics Changes - The broader demand and utilization environment in Q4 remained solid across almost every geography [10] - The capital environment is stable, with necessary investments being completed [10] Company Strategy and Development Direction - The company is preparing for a joint venture with Otsuka Pharmaceutical Factory, which is expected to enhance operational capabilities and customer service [14] - Focus on improving profitability through operational efficiencies and innovation in product offerings [44][50] - Plans to optimize the manufacturing network and logistics to achieve better gross margins [99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving healthy revenue growth in all differentiated product lines [16] - The company aims to improve free cash flow by completing quality remediation and integration activities [40] - Management acknowledged the challenges posed by currency fluctuations and inflation but remains focused on operational improvements [50] Other Important Information - The company expects the IV Solutions JV transaction to close in Q2 2025, which will impact financial reporting [29][30] - Anticipated reduction in adjusted revenue of $350 million and adjusted EBITDA of $25 million post-JV transaction [31] Q&A Session Summary Question: What is driving the growth in Consumables? - Management indicated that growth was driven by a combination of new installations, global growth, and pricing [60] Question: What was the EBITDA margin excluding IV Solutions in 2024? - Management did not disclose specific figures but suggested that it would not be materially different from the reported total [62] Question: What is the demand environment for capital equipment? - Management described the environment as normal, with necessary capital investments being made [80] Question: Can you elaborate on the expected growth in Consumables? - Management expects all four product lines to contribute to growth, with confidence in legacy ICU lines [122] Question: What are the drivers for achieving the $500 million EBITDA goal? - Management highlighted sustained revenue growth, gross margin improvements, and currency stabilization as key drivers [128]