Stryker Corporation

Welcome to the third quarter 2025 striker earnings call. My name is Robbie, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question and answer session. This conference call is being recorded for replay purposes. Before we begin, I would like to remind you that the discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release that is an exhibit to Stryker's current report on Form 8-K filed today with the SEC. I will now turn the call over to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.

Welcome to Stryker's third quarter earnings call. Joining me today are Preston Wells, Stryker's CFO, and Jason Beach, Vice President of Finance and Investor Relations. For today's call, I will provide opening comments followed by Jason with the trends we saw during the quarter and some product updates. Preston will then provide additional details quarterly results, and guidance before opening the call to Q&A. Our third quarter results demonstrate our broad business strength and ongoing commitment to margin expansion. We delivered strong organic sales growth of 9.5% against last year's high 11.5% comparable. We also delivered double-digit adjusted EPS growth of 11.1% despite tariff headwinds, which picked up meaningfully versus Q2. Our organic sales growth was driven by widespread demand across our businesses and included high single-digit growth from med-surg and neurotechnology and double-digit growth from orthopedics. Geographically, our U.S. organic sales growth of 10.6% included double-digit organic growth from our vascular, trauma and extremities, neurocranial and instruments businesses, and high single-digit organic growth in hips, knees and endoscopy. We delivered 6.3% organic international sales growth with notable contributions from South Korea, Japan and emerging markets. We continue to view international markets as a significant opportunity for long-term growth and look forward to launching many products that have already demonstrated success in the United States. We completed two small acquisitions during the quarter. The first, Guard Medical's NP Seal products bring simplified solution for negative pressure wound treatment that strengthens our orthopedic instruments offerings. The second, Advanced Medical Balloons brings novel patient care products to our SAGE business. These acquisitions demonstrate our commitment to deals that deepen our portfolio and enhance growth. Backed by a healthy deal pipeline and strong balance sheet, we plan to stay active on the M&A front. We have good momentum exiting Q3 and expect a strong finish to the year. As a result, we are raising our full year 2025 output. We are firmly on track to deliver a second consecutive year of 100 basis points of adjusted operating margin expansion, backed by strong execution and conviction in the sustained growth and earnings power of our businesses. I would like to thank our teams for their dedication and passion in living our mission each and every day. With that, I will now turn the call over to Jason.

Thanks, Kevin. My comments today will focus on providing updates on the current environment, the integration of Inari, and a preview of Investor Day. Procedural volumes remained healthy in the third quarter, in line with our expectations. We anticipate continued strength in procedural volumes through the end of the year. Demand for our capital products was strong once again in the quarter, and we exited Q3 with an elevated backlog. With a steady hospital CapEx environment, we expect continued strength in our order book. We delivered our best ever Q3 for Mako installations, both in the US and worldwide. Mako continues to see high utilization rates, further bolstering our number one position in US hips and knees. In addition to Mako 4, our numerous recent product innovations continue to drive growth and interest in the marketplace. Notably, LifePak 35 launched in Europe at the end of the quarter. Next, the Inari integration continues to progress well. We continue to convert the business to our striker offense with the successful onboarding of our sales professionals. The Inari business delivered double-digit pro forma organic sales growth in the quarter, highlighting robust procedural growth in the teens, partially offset by destocking, which we continue to work through. Inari remains on track to deliver double digit pro forma sales growth in 2025 and approximately 590 million in sales for the 10 months this year as a part of Striker. Lastly, we look forward to hosting our upcoming investor day on November 13th, which will be webcast live on the investor relations page at striker.com. During the event, various leaders from across our businesses will discuss our long-term strategy and illustrate how we are built for growth. For our in-person attendees, we will conclude with a product fair that will showcase exciting products and innovations across our med-surg and neurotechnology and orthopedic businesses. Also, you will be able to interact with many of our leaders. With that, I will now turn the call over to Preston.