Financial Data and Key Metrics Changes - Revenue for Q2 was $544 million, reflecting a 2% organic growth but a reported decline of 6% due to the impact of the joint venture [5][6] - Adjusted EBITDA was $100 million, with EPS at $2.1, and gross margins improved due to the joint venture [6][14] - Adjusted gross margin for Q2 was 40%, showing a three percentage point expansion year-over-year and sequentially [14][15] - Free cash flow was a net outflow of $8 million, influenced by higher tax payments and tariff payments [17][18] Business Line Data and Key Metrics Changes - Consumables business grew 4% organically and 3% reported, achieving record sales levels [7][8] - IV Systems business grew 2% organically and reported, driven by double-digit growth in LVP [9][10] - Vital Care segment reported a decline of 434% due to the deconsolidation of IV Solutions revenues [12][13] Market Data and Key Metrics Changes - The demand and utilization environment in Q2 remained attractive across most geographies, although growth rates were not as high as the previous year [6][24] - 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 optimizing its portfolio [5][26] - The strategy includes enhancing patient safety and workflow efficiencies through new product developments and regulatory approvals [8][11] - The company is focused on mitigating tariff impacts and optimizing its manufacturing network to improve profitability [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and their impact on profitability, emphasizing the need for cost controls and price increases [20][30] - The outlook for Q3 and Q4 is positive, with expectations for sequential growth in consumables and IV systems [24][51] - The company is cautious about the evolving tariff landscape and its potential long-term implications [58] Other Important Information - The company has made significant progress in integrating its IT systems and consolidating its manufacturing network [15][31] - The joint venture is expected to continue benefiting the balance sheet and income statement [31] Q&A Session Summary Question: What assumptions have been made regarding tariffs, particularly for China? - The current guidance assumes tariffs at existing rates, with some benefits from pauses in tariff increases [38] Question: Is there anything outside of tariffs impacting the EBITDA outlook? - The primary impact on the EBITDA outlook is from tariffs, with no other significant factors affecting the guidance [39] Question: What is the demand profile for Duo and the infusion systems segment? - There is a positive outlook for both consumables and infusion systems, with installations of Duo underway [42][44] Question: How does the suspension of Baxter's no room pump sales affect the company? - While it may create some opportunities, the long-term view remains that all competitors will eventually return to the market [53] Question: What is the status of ongoing planning consolidation? - The move of infusion pumps to Costa Rica is complete, with other consolidations expected to be finalized within the next six to nine months [64] Question: Is the replacement cycle starting to contribute to revenue? - The replacement cycle is not yet significant, but discussions are beginning, with expectations for next year [71][72]

Financial Data and Key Metrics Changes - Revenue for Q1 was $599 million, representing a total company growth of 10% on a constant currency basis or 8% reported, aided by the end of the national shortage in IV Solutions [6][7] - Adjusted EBITDA increased by 26% to $99 million compared to $79 million last year [14] - Adjusted diluted earnings per share for the quarter was $1.72 compared to $0.96 last year [14] - Adjusted gross margin for the quarter was 37%, in line with expectations [13] Business Segment Data and Key Metrics Changes - Consumables business grew 10% constant currency and 9% reported, driven by new global customer implementations and price improvements [9] - IV Systems business grew 8% constant currency and 6% reported, supported by good dedicated set utilization and earlier-than-expected hardware installations [10] - Vital Care segment grew 11% constant currency and 10% reported, with IV Solutions being the largest component of segment growth [11] Market Data and Key Metrics Changes - The broader demand and utilization environment in Q1 remained attractive across almost every geography, although not at the levels seen last year [8] - The capital environment is status quo, with necessary investments being completed [8] Company Strategy and Development Direction - The company is focused on consistent execution combined with meaningful innovation to refresh its portfolio, particularly in its pump businesses [22] - The formation of a joint venture with Otsuka Pharmaceutical Factory is expected to enhance product offerings and access to technology [12] - The company aims to ensure all activities continue to move forward in concert with increasing revenues, focusing on optimizing its manufacturing network and driving profitability [32] Management's Comments on Operating Environment and Future Outlook - Management anticipates direct tariff expenses in FY 2025 to be in the range of $25 million to $30 million, with most recognized in the latter half of the year [18] - The weakening of the U.S. dollar is expected to offset almost half of the direct tariff expense [19] - Management remains optimistic about maintaining the low end of the guidance range for adjusted EBITDA and gross margin despite tariff impacts [50][51] Other Important Information - The company has been actively working on quality remediation and compliance, particularly regarding its MedFusion and CAD product families [24][26] - The company is committed to ensuring safety and compliance, which has involved significant investments in quality system and product-related remediation activities [15][26] Q&A Session Summary Question: Can you elaborate on the growth drivers in consumables? - Management noted that oncology growth has returned strongly, and products supporting renal and home infusion markets have also seen acceleration [36] Question: Is the growth in consumables primarily driven by price? - Management clarified that the growth is largely due to a lower Q1 last year and continued strength from the previous year [38] Question: Are you seeing more contribution from Duo in Infusion Systems? - Management indicated that there have been very few Duo installations to date, with expectations for more in the second half of the year [39] Question: Can you clarify the tariff impact? - Management emphasized that the $25 million to $30 million figure should not be annualized and highlighted the significant impact from tariffs on Costa Rica [41][42] Question: What is the outlook for guidance amidst tariff and currency impacts? - Management confirmed the goal to hold at least the low end of the guidance range, acknowledging the challenges posed by tariffs and currency fluctuations [50][51]

Financial Data and Key Metrics Changes - Revenue for Q1 was $599 million, representing a total company growth of 10% on a constant currency basis or 8% reported, aided by the end of the national shortage in IV Solutions [5][6] - Adjusted EBITDA increased by 26% to $99 million compared to $79 million last year, with adjusted EPS at $1.72 compared to $0.96 last year [12][13] - Adjusted gross margin for the quarter was 37%, in line with expectations, while total adjusted operating expenses represented 23.1% of revenue, slightly below the original full-year guidance of 24% [12][13] Business Segment Data and Key Metrics Changes - Consumables business grew 10% constant currency and 9% reported, driven by new global customer implementations and price improvements [7][10] - IV Systems business grew 8% constant currency and 6% reported, supported by good dedicated set utilization and earlier-than-expected hardware installations [8][9] - Vital Care segment grew 11% constant currency and 10% reported, with IV Solutions being the largest component of segment growth [10] Market Data and Key Metrics Changes - The broader demand and utilization environment in Q1 remained attractive across almost every geography, although not at the levels seen last year [6] - The capital environment is stable, with necessary investments being completed [6] Company Strategy and Development Direction - The company is focused on consistent execution and meaningful innovation to refresh its portfolio, particularly in its pump businesses [22][24] - The formation of a joint venture with Otsuka Pharmaceutical Factory is expected to enhance product offerings and access to technology [10][11] - The company aims to optimize its manufacturing network and drive profitability through strategic initiatives [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recently implemented tariffs and the evolving global trade landscape, estimating direct tariff expenses for FY 2025 to be in the range of $25 million to $30 million [18][19] - The company remains committed to mitigating tariff impacts through various strategies, including cost controls and adjustments in incentive compensation [19][20] - Management expressed confidence in maintaining the low end of the guidance range for adjusted EBITDA and gross margin despite challenges [52][53] Other Important Information - The company has been actively working on quality remediation and compliance efforts, particularly related to its MedFusion and CAD product families [24][27] - The company is focused on ensuring safety and compliance while enhancing product quality, which has involved significant investments [27][28] Q&A Session Summary Question: What are the drivers behind the growth in consumables? - Management highlighted oncology growth and products supporting renal and home infusion markets as key drivers, with GPO activity and pricing changes contributing as well [37][38] Question: Is the growth in infusion systems attributed to Duo? - Management indicated that there have been very few Duo installations to date, with expectations for more in the second half of the year [41][42] Question: Can you clarify the tariff impact? - Management emphasized that the $25 million to $30 million tariff impact should not be annualized and detailed the geographic risks associated with it [43][44] Question: What is the outlook for gross margin and adjusted EBITDA? - Management confirmed the goal to hold at least the low end of the guidance range for gross margin and adjusted EBITDA, acknowledging the challenges posed by tariffs and currency fluctuations [52][53] Question: How is the reception of Plum Duo and Plum Solo from customers? - Management noted that while there is a strong incumbency advantage, there is potential for meaningful upgrade discussions as the installed base reaches the right time for upgrades [56][58]