TELEFLEX INC Q1 FY2025 earnings call

Management Statement and Operational Highlights

• Revenue Results: Q1 revenues $700.7 million, down 5% YOY GAAP and -3.8% adjusted constant currency, within prior guidance range. Revenues $2 million below midpoint due to EMEA softness, which recovered in April.
• Commercial and Clinical Updates:
  • AC3 Intra-Aortic Balloon Pump received FDA 510(k) clearance, entering full market release in Q2 2025.
  • Ringer Perfusion Balloon Catheter PBC Catheter IDE Study showed favorable preliminary results, supporting premarket application for coronary perforation indication.
  • QuikClot Control+ received FDA clearance for expanded indication to include all grades of internal and external bleeding.
• Strategic Updates:
  • Intention to separate Teleflex into 2 independent publicly traded companies to enhance shareholder value.
  • On track to close acquisition of BIOTRONIK Vascular Intervention business by end of Q3 2025, complementing Teleflex's interventional portfolio.

Segment Performance

• Geographic Segments:
  • Americas: Revenues $475.7 million, a 3.2% decrease year-over-year. Contribution: ~67.9% of total revenue.
  • EMEA: Revenues $151.2 million, a 2.8% decrease year-over-year. Contribution: ~21.6% of total revenue.
  • Asia: Revenues $73.8 million, a 9.7% decrease year-over-year. Contribution: ~10.5% of total revenue.
• Product Categories:
  • Vascular Access: Revenue $182.4 million, +1.9% YOY.
  • Interventional: Revenue $137.5 million, +3.2% YOY.
  • Anesthesia: Revenue $86.6 million, -8.6% YOY.
  • Surgical: Revenue $105.8 million, +2% YOY.
  • Interventional Urology: Revenue $71 million, -10.7% YOY.
  • OEM: Revenue $63.9 million, -26.8% YOY.
  • Other revenue: $53.5 million, +4.5% YOY.

Guidance

• 2025 adjusted constant currency revenue growth expected 1%-2%.
• Foreign exchange impact now $5 million (approx. 17 basis point headwind to GAAP revenue growth), revising reported revenue growth range to +1.3%-+2.3% ($3.086B-$3.117B).
• 2025 adjusted EPS range $13.20-$13.60 (previously $13.95-$14.35), impacted by ~$1.05 headwind from tariffs, partially offset by $0.30 benefit (share count, expense control, FX).
• 2025 gross margin expected 58.25%-59%, operating margin 24.6%-25%, net interest expense ~$75M, tax rate ~13.5%, shares outstanding ~44.9M.
• Q2 adjusted constant currency growth expected 0.5%-1.5% excluding ~$2M FX benefit.

Risks

• Tariffs: Uncertainty in tariff policy, ~$55M impact in 2025, with ~50% associated with China and ~35% with Mexico (non-USMCA compliant). Need for supply chain optimization and pricing adjustments to mitigate.
• Foreign Exchange: Impact on revenue and earnings.
• Supply Chain: OEM order rate and customer inventory management impacts.