Edwards Lifesciences Corporation Q2 FY2025 earnings call

• Product Group Performance: TAVR had double-digit sales growth, with global sales of $1.1 billion up 7.8%; TMTT saw sales of $133 million grow 57%; Surgical had global sales of $267 million up 6.8%. - Strategic Initiatives: Edwards has a sharpened focused strategy with anticipation of asymptomatic AS approval, expansion of EVOQUE launch, expected introduction of SAPIEN M3, and strategic entry into structural heart failure and aortic regurgitation. - Personnel Changes: Larry Wood is departing Edwards, and Dan Lippis will assume leadership of the TAVR franchise globally, with a smooth transition planned through early September.

TAVR: Second quarter global sales of $1.1 billion increased 7.8% over the prior year. Growth was comparable in the U.S. and OUS. On a global basis, Edwards' competitive position and pricing remains stable. TMTT: Second quarter sales of $133 million grew 57%, driven by the strength and differentiation of its portfolio of repair and replacement technologies. Surgical: Second quarter global sales of $267 million increased 6.8% over the prior year.

• Raised full year 2025 sales growth guidance to 9% to 10% and adjusted EPS guidance to the high end of the original range of $2.40 to $2.50. - Increased TAVR growth guidance to 6% to 7%, with sales guidance range for TAVR to $4.3 billion to $4.5 billion. - Projecting third quarter sales of $1.46 billion to $1.54 billion and adjusted earnings per share of $0.54 to $0.60. - Expect to close the acquisition of JenaValve during the third quarter.

• Tariffs: Modifications to tariffs or new tariffs could have a material impact on the company's future financial results and guidance. - JenaValve Acquisition: Uncertainty regarding the regulatory review process and its impact on the P&L.

Q: Vijay Kumar with Evercore ISI asked about back half margins and JenaValve impact.

A: Scott Ullem discussed that FX has both hurt gross profit margin rate but benefited EPS, tariff impact is less than expected, and they expect mid-20% operating margins for the second half due to JenaValve impact.

Q: Matthew Miksic with Barclays asked about Q3 seasonality, Japan, Rest of World, and TMTT growth.

A: Larry Wood and Bernard Zovighian discussed Q3 seasonality, Japan focus on share recapture, Rest of World growth, and for TMTT, growth is driven by therapies, geographies, and clinical data.

Q: Christopher Pasquale with Nephron Research asked about MCD and Europe access.

A: Larry Wood discussed that local MAC coverage of asymptomatic cases and Europe's varying reimbursement systems, with the need for NCD and guidelines to change patient management.