ICU Medical, Inc.

Good afternoon, everyone, and welcome to today's ICU Medical Second Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question at any time, please press star 1. Also, please note that today's event is being recorded. I'd now like to turn the conference over to John Mills, ICR Managing Partner. Please go ahead.

Good afternoon, everyone. Thank you for joining us to discuss ICU Medical financial results. for the second quarter of 2026. On the call today representing ICU Medical is Vivek Jain, Chief Executive Officer and Chairman, and Brian Bonnell, Chief Financial Officer. We wanted to let everyone know that we have a presentation accompanying today's prepared remarks. To view the presentation, please go to our investor page and click on Events Calendar, and we'll be under the second quarter 2026 events. Before we start our prepared remarks, we want to touch upon any forward-looking statements made during the call including beliefs and expectations about the company's future results. Please be aware they are based on the best available information to management and assumptions that are reasonable. Such statements are not intended to be a representation of future results and are subject to risk and uncertainties. Future results may differ materially from management's current expectations. We refer all of you to the company's SEC filings for more detailed information on the risk and uncertainties that have a direct bearing on operating results and financial positions. Please note that during today's call, we will also discuss non-GAAP financial measures, including results on an adjusted basis. We believe these financial measures can facilitate a more complete analysis and greater transparency into ICU medical's ongoing results of operations, particularly when comparing underlying results from period to period. We've also included a reconciliation of these non-GAAP measures in today's release and provide as much detail as possible on any addendums that are added back. And with that, it is my pleasure to turn the call over to Vivek.

Thanks, John, and good afternoon, everyone. And we know it's again a busy earnings day, so I'll try to be brief. I'll walk through our Q2 revenue and earnings performance and provide some color on the businesses and then turn it over to Brian, who will recap the full Q2 results and detail our revised guidance for the year. After that, I'll come back with a few comments on our assessment of progress against our near and midterm financial goals that we've outlined for a while now. our mission of creating a comprehensive infusion therapy company and our capital allocation strategy. Revenue for Q2 was $548 million for total company growth of 6% on an organic basis or 1% reported. And as a reminder, the reported results for the last time are impacted by the mid-2025 creation of the Otsuka ICU Medical JV and the resulting deconsolidation of IV solutions from our income statement. Adjusted gross margins were 41%. adjusted EBITDA improved to $110 million, and adjusted EPS was $2.37. Organic free cash flow was strong, and when combined with tariff refunds, which are excluded from our P&L commentary today, we were able to repay $50 million of debt in the quarter and believe we're on track to hit our target of approximately two times leverage by the end of the year. The broader demand and utilization environment in Q2 continued to be stable, with volume in line with our guidance assumptions for the year. The capital environment is status quo, and it does appear investments that customers need to get done do get done. Certain currencies for us continue to be painful, particularly the Costa Rican Cologne and Mexican peso, where we have large production environments, as is the Japanese yen, where we still have a meaningful commercial business selling products made in North America. In terms of geographic mix in Q2, North America drove the growth, as the previously mentioned OEM wind down was recognized in international geographies. Getting into our businesses more specifically, our consumables business grew 6% in Q1 reported and 5% organic and was a record in absolute sales. Growth was balanced across all four product families and consumables and improved and all improved year over year. For the remainder of the year, we continue to believe the business will attain mid single digit growth. And please remember Q3 of 2025 was a healthy growth quarter for consumables last year. Our IV systems business grew 13% reported and 12% organic, and it was again a record quarter in pumps. Dedicated sets generally followed the same trend as consumables and capital sales and were strong through the quarter, offset by declines in the OEM revenues that will continue to impact growth rates for the remainder of the year. We did have some earlier than expected installations, which will come out later in the year. For Q3 in the near term, we would hold to our comments from the last call and expect organic growth to continue at or above the 6% rate. Just wrapping up the businesses, a vital care decreased 4% on an organic basis and decreased 32% reported due to the deconsolidation of IB solutions. But as expected, we did have sequential improvement and we expect stability for the balance of the year with the business down slightly for the year given the Q1 results. We wanted to jump right into the financials today. So I'll turn it over to Brian and then come back with some commentary to assess our financial performance and how it aligns with our strategic goals. Brian, over to you.