Teleflex Incorporated Q4 FY2025 earnings call

• Stu stepped into interim CEO role in January, board is conducting CEO search with Spencer Stewart. - In December, signed definitive agreements to sell acute care, interventional urology, and OEM businesses, expected to close in second half of 2026, with net after-tax proceeds ~$1.8 billion. - 2026 adjusted EPS guidance $6.25 - $6.55, including $90 million stranded costs, and will be impacted by transition service and manufacturing service agreements, share repurchase, and debt repayment. - Continuing operations for second half of 2025 reviewed, with pro forma adjusted constant currency growth considered. - Restructuring plan approved to mitigate ~$50 million of stranded costs by mid-2028.

Vascular revenue in the second half of 2025 was $472.7 million, up 2.4% year-over-year, driven by growth in central access, hemostatic, and atomization products but offset by a tough prior-year comparison. Interventional revenue was $427.5 million, up 8.1% due to a broad interventional portfolio. Surgical revenue was $219.3 million, up 3.2% reflecting volume-based procurement in China with strong double-digit growth from most franchises.

• 2026 pro forma adjusted constant currency revenue growth expected 4.5% - 5.5%. - Adjusted EPS range $6.25 - $6.55. - 2026 adjusted operating margin ~19% including $90 million stranded costs, with transition service and manufacturing service agreements expected to fully offset stranded costs annually once divestitures close, underlying steady state adjusted operating margin expected ~23%. - Net interest expense expected ~$105 million in 2026. - Assumed 2026 tax rate ~13.5%, no share repurchases assumed in 2026 guidance but committed to executing $1 billion share repurchase and debt repayment upon divestiture closings.

• Uncertainty regarding tariffs, with additional tariffs of about $18 million in 2026 on top of prior year, and uncertainty around Supreme Court rulings and potential further tariff actions. - Uncertainty in timing and impact of strategic divestitures closing, which paces capital deployment. - Uncertainty in the CEO search process and finding the right leader with the right experience and capabilities.

Q: Mike Mattson asked about use of proceeds from divestitures, A: $1 billion for share repurchase, $800 million for debt repayment.

Q: Jason Bedford asked about 2026 growth and surgical growth, A: 4.7% pro forma adjusted constant currency growth in second half of 2025 is starting point, surgical growth driven by instrument portfolio and ligation with VBP impact in 2026.

Q: Bradley Bowers asked about stranded costs and tuck-in M&A, A: $90 million stranded costs in P&L, no significant M&A expected in 2026.

Q: Shigun Singh asked about 2027 and beyond and CEO search, A: 2027 and beyond expected to have improved margins, EPS, etc., CEO search focused on experienced, global, high-acuity hospital setting.

Q: Ravi Misra asked about tariffs and cost reduction, A: $90 million stranded costs, contemplated tariffs, uncertainty around tariff relief.

Q: Matthew O'Brien asked about 2026 earnings, A: Potential for significant earnings growth with restructuring benefits, share repurchase, debt repayment.

Q: Michael Pollack asked about Biotronic integration and R&D, A: Biotronic integration going well, R&D investment increased in interventional and vascular.

Q: Travis Steed asked about margins after TSA go away, A: Margin leverage expected from growth and cost-saving initiatives.

Q: Larry Beagleson asked about 2026 revenue confidence and phasing, A: Confidence in 2026 revenue growth due to sales synergy and step-up in integration and bag combining