ICU Medical, Inc. Q4 FY2025 earnings call

• Received official closure of Smiths Medical broad FDA warning letter. • Making progress on new 510(k)s for Medfusion 5000 syringe pumps, CADD ambulatory pumps, and related LifeShield safety software. • Finished manufacturing integration of 2 large legacy Smiths Medical manufacturing sites, beginning to reap benefits as bridge inventory depletes. • Gone live with full order to cash conversion for Europe, and most of company on single modern ERP instance.

Revenue for Q4 was $536 million, total company growth 2% organic or -14% reported, full year 2025 5% organic growth. Gross margins 40%. Consumables business: Q4 grew 6% reported and 5% organic, record quarter, year growth 7% reported and 6% organic, three product lines at high single-digit levels. IV systems business: Q4 3% reported and 1% organic, best quarter in pumps, LVPs low double digits, syringe pumps high single digits, offset by ambulatory line negativity. Vital Care: Decreased 6% organic and 35% reported due to deconsolidation of IV solutions, flat sequentially and for year, harvesting low or negative profit SKUs.

• Full year 2026 consolidated organic revenue growth in low to mid-single-digit range, consumables growth driven by volume increases, infusion systems growth with accelerated LVP line from Plum Duo and Solo implementations offset by ambulatory line wind down. • Adjusted gross margin around 41%, improving throughout year. • Adjusted operating expenses as percentage of revenue approximately 25%. • Adjusted EBITDA range $400 million to $430 million, adjusted EPS range $7.75 to $8.45 per share. • Free cash flow expected to improve relative to 2025, weighted towards back half of year, prioritized towards debt paydown with long-term leverage target 2x.

Q: On systems, are customers actively making decisions, any pausing?

A: Capital environment stable, deals getting done, industry challenges known with some backup in refresh cycles.

Q: On syringe and ambulatory clearances, impact on sales?

A: No, customers interested in future road map, not slowing sales.

Q: Timing on clearances?

A: Received first pass review, normal back and forth, doing part and regulators doing theirs.

Q: Appetite for products after closing warning letter?

A: Some capital to put to work, better place to explore opportunities.

Q: On consumables, volume standpoint 6 weeks into year?

A: No impact on underlying demand, normal seasonality.

Q: Tariff exposures geographically, mitigation efforts?

A: Structurally mitigated, some favorability in Q4, benefits may come later.

Q: Syringe pump market size and share?

A: Smaller market than LVP, share higher on syringe.

Q: Vital Care EBIT/EBITDA margins, potential sale?

A: Likely below corporate gross margin, aim for neutral to earnings.

Q: Systems business growth potential, OEM wind down impact?

A: Good backlog, OEM wind down headwind but business still did well, stronger ASPs on Solo and Duo help.

Q: Margin improvement from consolidation, cash outlay?

A: Manufacturing synergization and logistics consolidations to be in run rate by end of year, free cash flow to improve.

Q: Systems business competitive position and refresh cycle?

A: Enough contracts in hand, well positioned for refresh of own installed base with modern offerings