Teleflex Incorporated

At the end of the company's prepared remarks, we will conduct a question and answer session. Please note that this conference call is being recorded and we will be available on the company's website for replay shortly. Now I will turn the call over to Mr. Lawrence Kirsch, Vice President of Investor Relations and Strategy Development.

Good morning, everyone, and welcome to the Teleflex Incorporated First Quarter 2025 Earnings Conference Call. The press release and slides to accompany this call are available on our website at teleflex.com. As a reminder, a replay will be available on our website. Those wishing to access the replay can refer to our press release from this morning for details. Participating on today's call are Liam Kelly, Chairman, President, and Chief Executive Officer, and John Darin, Executive Vice President and Chief Financial Officer. Liam and John will provide prepared remarks, and then we will open the call to Q&A. Before we begin, I'd like to remind you that some of the matters discussed in the conference call will contain forward-looking statements regarding future events, as outlined in the slides posted to the investor relations section of the Teleflex website. We wish to caution you that such statements are in fact forward-looking in nature and are subject to risks and uncertainties and actual events or results may differ materially. The factors that could cause actual results or events to differ materially include, but are not limited to, factors referenced in our press release today, as well as our filings with the FCC, including our Form 10-K, which can be accessed on our website. Now, I'll turn the call over to Liam for his remarks.

Thank you, Larry, and good morning, everyone. On this morning's call, we will discuss the first quarter results, review strategic and commercial highlights, and provide an update on our financial guidance for 2025. For the first quarter, Teleflex revenues were $700.7 million, down 5% year over year on a gap basis, and a decline of 3.8% on adjusted constant currency basis. which was within the range of the minus 3% to minus 4% guidance provided during our quarter four earnings call. Revenues were $2 million below the midpoint of the range due to some softness in orders in EMEA, which has since recovered in April. First quarter adjusted earnings per share was $2.91, a 9.3% decrease year over year. Now, let's turn to a deeper dive into our first quarter revenue results. I will begin with a review of our geographic segment revenues for the first quarter. All growth rates that I refer to are on an adjusted constant currency basis, unless otherwise noted. America's revenues were $475.7 million, a 3.2% decrease year over year. Revenue growth in the quarter was in line with expectations and was impacted by OEM decline and continued challenges in the EUR-LIFT off the site of service. EMEA revenues of $151.2 million decreased 2.8% year over year. Strong performance in surgical and vascular access were primarily offset by anesthesia. We experienced lower than expected orders during the latter portion of the first quarter which have recovered in April. Turning to Asia, revenues were $73.8 million, a 9.7% decrease year over year and in line with our expectations. Revenue growth was impacted by the previously announced volume-based procurement in our China business. We expect sequential quarterly revenue improvement in our China business through the remainder of 2025. Let's now move to a discussion of our first quarter revenues by global product category. Commentary on global product category growth for the first quarter will also be on a year-over-year adjusted constant currency basis, starting with vascular access. Revenue increased 1.9% year-over-year to $182.4 million. The quarter was led by year-over-year growth in PICs, which increased at a double-digit rate and a solid performance in EZIO. We still expect our vascular access business to grow in the mid-single-digit range in 2025, driven by continued PIC growth and the return of the endurance catheter to the market. Moving to interventional. Revenue was $137.5 million. an increase of 3.2% year-over-year. During the quarter, performance was led by growth drivers such as uncontrolled and complex catheters. In the quarter, we continued to see robust demand for inter-Arctic balloon pumps, which grew at a strong double-digit rate in the Americas, offset by a tough year-over-year comp in Asia Pacific. Turning to anesthesia. Revenue decreased 8.6% year over year to $86.6 million. Among our largest product categories, endotracheal tubes and hemostatic products showed growth in the quarter and were primarily offset by a tough comp in military orders and pressure on airway products. In our surgical business, revenue was $105.8 million, an increase of 2% year over year. our underlying trends in our core surgical franchise continue to be solid, partially offset by the expected impact of volume-based procurement in China. For interventional urology, revenue was $71 million, representing a decrease of 10.7% year over year. While we saw strong double-digit growth for Barigel, we continue to experience pressure on NeuroLift, particularly in the office site of service. OEM revenue decreased 26.8% year over year to $63.9 million. Growth was in line with our expectations. The performance in the quarter was driven by the impact of the last customer contract discussed on our third quarter 2024 calls, with the remainder attributable to customer inventory management. As expected, the last customer contract impacted first quarter revenue by approximately $7 million with a balance from customer inventory management. In particular, as we progressed through the quarter, we began to see the expected improvement in order rates from our customers. validating our assumption of growth improvements quarter over quarter as we progress through the year and reach the anniversary of the loss of our customer contract in the third quarter of 2025. First quarter other revenue increased 4.5% to $53.5 million year over year. That completes my comments on the first quarter revenue performance. Turning to some commercial and clinical updates. In our interventional portfolio, we are pleased to announce that the AC3 range inter-ortic balloon pump has received 510K clearance from the FDA. The AC3 range inter-ortic balloon pump is a compact pump which combines the simple interface and proprietary algorithms of our flagship AC3 Optimus inter-ortic balloon pump to provide the same precisely timed support. The AC3 range is designed to provide reliable, ongoing, inter-artic balloon pump support across various patient transport modes, including commonly used ground and air ambulance vehicles. The AC3 range features a full-size helium tank, dual power options, and other features to support maneuverability. With the FDA clearance, the AC3 range will enter full market release in the United States and begin shipping to customers in the second quarter of 2025. Also, in our interventional business, we announced preliminary results for the Ringer perfusion balloon catheter or PBC catheter IDE study. Ringer PBC is a rapid exchange percutaneous transluminal coronary angioplasty catheter with a unique helical balloon. When inflated, the balloon approximates a hollow cylinder with a large central perfusion lumen, allowing for continuous coronary blood flow during prolonged inflations. The Ringer PBC study is a limited prospective multicenter single arm IDE study. undertaken at four sites in the United States, navigating the ringer PBC for the management of emergent coronary preparations that develop during percutaneous coronary intervention procedures. The study enrolled 30 participants and analysis was performed based upon intention to treat. The preliminary results were favorable. with a primary efficacy endpoint observed in 73% of participants, which required successful ringer delivery and inflation at the preparation site, control of blood leakage into surrounding tissue, and preservation of anti-grade coronary flow. The results also showed successful delivery of ringer in approximately 87% of participants and of those participants, control of blood leakage into surrounding tissue with perfusion was achieved in nearly 85% of cases. These results are intended to support a premarket application for a coronary perforation indication, which was recently submitted to the FDA. which was granted FDA breakthrough device designation, is currently indicated for balloon dilation of coronary artery or coronary bypass graft stenosis where the physician desires distal blood perfusion during balloon inflation for the purpose of improving myocardial perfusion. Finally, in our emergency medicine business, Quick Clack Control Plus has received FDA clearance for an expanded indication to include all grades of internal and external bleeding. Combined with its existing indications for severe and life-threatening bleeding, this expanded indication allows us to target more procedures where fast, effective control of bleeding could benefit patients, clinicians, and health systems. While our primary focus for this portfolio remains on trauma, the expanded indication will also support procedures in general surgery, gynecological surgery, orthopedic surgery, and other areas. We estimate that these additional clinical spaces add more than $150 million to our serviceable addressable market in the United States. Moving to strategic updates. On February 27th, we announced the intention to separate Teleflex into two independent, publicly traded companies. The separation is intended to enhance value for all Teleflex shareholders. By separating, each business will benefit from a more tailored strategic direction, a simplified operating model, a streamlined manufacturing footprint, and a capital allocation strategy aligned with the growth philosophy and objectives for each of the companies. We believe the proposed separation will offer investors more targeted and uniquely compelling long-term investment opportunities. We are confident that this separation will enable both companies to pursue their strategic objectives more effectively and create meaningful long-term value for our shareholders. As expected, following the announcement of the separation, we have received significant inbound third-party interest in acquiring NUCO. We will continue to be guided by the objective of maximizing shareholder value creation. Consistent with this objective and with full support and oversight of the board, management is continuing to actively explore all options, including the potential sale of NUCO in parallel with the potential spin. We will provide updates to the investment community on our progress as appropriate as we explore these parallel paths. We will remain focused on execution and continue to operate the RemainCo and NewCo businesses consistent with the long-term strategy, including investments in commercial growth and innovation. Moving to the acquisition of substantially all of Biotronix's vascular intervention business, which was also announced on February 27th, we remain on track to close the acquisition by the end of the third quarter of 2025, subject to customary closing conditions, including receipt of certain regulatory approvals. We continue to see a strong fit for the vascular interventions business with the legacy Teleflex interventional business. The acquisition will add a broad portfolio of therapeutic products to Teleflex's portfolio of interventional access products, driving an enhanced global presence in the cath lab. The Biotronic Vascular Intervention product portfolio complements the current Teleflex offering in the cath lab. Our existing complex PCI portfolio has products that are utilized in difficult coronary interventions and by adding the innovative products that we expect to acquire, we will be able to advance our technology offering with relevant coronary and peripheral interventions. We see significant opportunity to carve out niche markets in the coronary intervention space. For example, the combination of the recently launched Teleflex ringer catheter and the PK papyrus in the vascular interventional portfolio of Biotronic will provide a complete and unique solution for the acute and long-term treatment of vessel perforations during coronary procedures. The total addressable global market for treating coronary vessel perforation is estimated to be in excess of $80 million. We are also excited about the emerging potential for resorbable scaffold technologies and the ability to expand our current available procedure base. The vascular intervention business will also establish our global footprint in the fast-growing peripheral intervention market and provide a channel for Teleflex products that currently have a peripheral indication. The acquired business is rooted in robust research and development, clinical expertise, and global manufacturing capabilities, which we believe will further bolster Teleflex's innovation pipeline and position the company to participate in the emerging potential for absorbable scaffold technologies. That completes my prepared remarks. Now I'd like to turn the call over to John for a more detailed review of our first quarter financial results. John.