Teleflex Incorporated

Please stand by. Good morning, ladies and gentlemen, and welcome to the Teleflex second quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode. 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 will be available on the company's website for replay shortly. And 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 Second Quarter 2025 Irving's 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 teleplex 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 violence with the sec including our form 10k which can be accessed on our website now i will 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 second quarter results provide a strategic update review commercial highlights and conclude

with our updated financial guidance for 2025. Of note, year-over-year constant currency revenue growth is adjusted for the impact of the Italian measure, which was recorded in the second quarter of 2024. Our second quarter results demonstrate our continued progress as we work to drive operational excellence and enhance value creation across our business. Second quarter revenues were $780.9 million, an increase of 4.2% year over year on a GAAP basis and up 1% on an adjusted constant currency basis. This result exceeded the high end of our previous $769 million to $777 million guidance. Second quarter adjusted earnings per share were $3.73. a 9.1% increase year over year. Now, let's turn to a deeper dive into our second quarter revenue results. I will begin with a review of our geographic segment revenues for the second quarter. All growth rates that I refer to are on an adjusted constant currency basis, unless otherwise noted. America's revenues were $525.7 million, a 2% increase year-over-year and in line with expectations. Revenue growth in the quarter was driven by strength in intra-Arctic balloon pumps and was partially offset by OEM declines and continued challenges in Eurolift. EMEA revenues of $166.2 million decreased 2.1% year-over-year, and were a bit softer than expected. During the quarter, we saw strength in our interventional business, which was offset by our anesthesia business, including a tough year-over-year comp in military orders. Turning to Asia, revenues were $89 million, a 1.2% increase year-over-year, and in line with our expectations. Revenue growth was driven by strength in Southeast Asia, India, and Japan, which were partially offset by the previously announced volume-based procurement dynamics affecting our China business. As expected, we saw sequential revenue improvement in China during the second quarter and expect continued improvement through the remainder of 2025. Now let's move to a discussion of our second quarter revenues by global product category. Commentary on global product category growth for the second quarter will also be on a year-over-year adjusted constant currency basis. Starting with Bascular Access, revenue increased 1.4% year-over-year to $185.5 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. Looking forward, we expect acceleration in growth in the second half of the year. Moving to interventional. Revenue was $170 million, an increase of 19.3% year-over-year. The strong performance for the quarter was led by growth drivers such as inter-artic balloon pumps and catheters, uncontrolled complex catheters, and right heart catheters. Turning to anesthesia, revenues decreased 7.6% year-over-year to $96.4 million. Among our largest product categories, hemostatic products and LMA single-use masks delivered growth in the quarter but were primarily offset by a tough comp in military orders and pressure on airway products. In our surgical business, revenue was $114 million, an increase of 1.4% year over year. Underlying trends in our core surgical franchise continue to be solid, partially offset by the expected impact of volume-based procurement in China. Our North America surgical business, which is not impacted by volume-based procurement, grew mid-single digits in the quarter. For interventional urology, revenue was $76.4 million, representing a decrease of 8.3% year-over-year. While we saw strong double-digit growth for Barigel, we continued to experience pressure on Urolift. In line with our expectations, OEM revenue decreased 12.4% year over year to 78.7 million dollars the second quarter was impacted by the previously disclosed last customer contract and continued customer inventory management as expected we saw sequential revenue improvement during the second quarter and continue to anticipate increased revenue contribution in the second half of 2025 versus the first half of the year Second quarter other revenues increased 3.5% to $59.9 million year over year. The performance was driven by urology care, in particular intermittent catheters. That completes my comments on the second quarter revenue performance. Moving to a strategic update. We are actively taking steps to unlock value within our business. As part of this, we continue to progress the separation of Teleflex that we announced in February. Once separated, each business will be best positioned for the future with more focused strategic direction, simplified operating models, streamlined manufacturing footprint, and individually tailored capital allocation strategies aligned with their respective growth philosophy and objectives. At the same time, we are also pursuing in parallel a potential sale of NUCO. As we discussed on our first quarter earnings call, we have received a significant number of inbound expressions of interest in acquiring NUCO. Since then, and in line with our commitment to maximize value for our shareholders, our board and management have been actively evaluating a potential sale of NUCO. By way of a progress update, we have had preliminary meetings with many potential buyers. We continue to be impressed by the quantity and quality of interested parties. We will provide updates to the investment community on our progress as we move along the parallel path, as appropriate. Importantly, our guiding principles continue to focus on maximizing shareholder value through this process. should a sale be consummated we currently intend to utilize proceeds to balance pay down of debt and return capital to shareholders we will continue to act in the best interest of our company and shareholders as we move through this process turning to our capital allocation strategy on june 30th which marks the start of our third quarter We were pleased to complete the acquisition of substantially all of the bachelor intervention business of Biotronic for a net initial upfront cash payment of 704 million euros. The Teleflex interventional portfolio has long been a cornerstone of growth and innovation within our company. With the opportunity to drive sustainable revenue growth and improve margins, The vascular intervention acquisition is a key part of our value creation strategy that will enable us to further build upon this strong foundation. We expect our combined interventional business to generate $800 million-plus in annual revenues. The acquired product portfolio includes a broad suite of vascular intervention devices, such as drug-coated balloons, drug-eluting stents, covered stents, balloon and self-expanding bare metal stents, and balloon catheters. We believe this acquisition will enhance our global presence in the cath lab, expand our suite of innovative technologies, and improve patient care. The acquisition of the vascular intervention business will also provide Teleflex with the opportunity to invest in and expand the clinical trial program for free cells. a serolimus-eluting resorbable metallic scaffold technology. Freesalve's combination of temporary scaffolding with drug delivery is anticipated to address the current trend in interventional cardiology and endovascular procedures towards leaving behind less permanent hardware. We also see Freesalve's potential to address the limitations of previous polymeric resorbable scaffolds, achieving more rapid absorption, thinner struts, and metallic mechanical performance. Presol received its CE mark in February of 2024 and is indicated for treatment of de novo coronary artery lesions. The European Pivotal Biomag-2 study is currently ahead of schedule with more than 800 patients enrolled out of the 2,000 patients total. We plan to initiate the Biomag-3 U.S. pivotal study in the coming months. The U.S. study design is complete, and in partnership with the Scientific Steering Committee, we are initiating recruitment of leading interventional cardiology programs and investigators from across the United States. As noted on our July 1st press release announcing the closing of the acquisition, We expect the acquired products to generate revenues of 177 million euros or $204 million in the second half of 2025. Specifically, we expect acquisition revenue of 86 and 91 million euros in the third and fourth quarters respectively. Beginning in 2026, we expect sales of the acquired products to deliver annual constant currency revenue growth of 6% or better. Also noted in our July 1st announcement, excluding non-recurring purchase accounting items and other acquisition and integration related costs, we expect the transaction to be approximately 10 cents accretive to our adjusted area per share in the first year of ownership and to be increasingly accretive thereafter. turning to some commercial and clinical updates, starting with our vascular business. We recently announced findings from a new multinational study reporting efficacy of arachlorhexidine-impregnated CBCs among ICU patients. The study's analysis demonstrated a statistically significant reduction in CLABSIs of 70.5% in patients receiving the impregnated antimicrobial catheters. Even though this cohort of patients had longer average length of ICU stay and device utilization ratios indicating frequent and extended use, infections still remained significantly lower. This underscores the potential benefit of the antimicrobial technology even in high-risk patients. The use of chlorhexidine-impregnated CBCs was associated with a lower incidence of infection-causing pathogens, including gram-negative and gram-positive bacteria and fungi. Moving to our surgical business. We continue to expand our foundation of clinical data that supports the use of the Titan SGS stapler as safe and effective for patients undergoing laparoscopic sleeve gastrectomy. In May, we announced the publication of a retrospective study comprising of 257 patients from 2016 and 2023 who underwent sleeve gastrectomy. The study showed that one year post-procedure compared to traditional surgical staplers, fewer patients in the Titan SGS stapler cohort reported having GERD, and fewer patients in the Titan SGS stapler cohort developed de novo GERD, both of which were statistically significant. Additionally, more patients in the Titan SGS stapler cohort who had GERD prior to the procedure saw resolution of this condition compared to patients in the traditional surgical stapler cohort. Notably, the improvements in GERD outcomes linked to the Titan SGS stapler were achieved without a significant difference in weight loss at one year between the two cohorts. This study also showed that the Titan SGS stapler enabled a shorter average hospital length of stay compared with traditional surgical staplers. As the only stapler to provide a 23-centimeter staple line, the industry's longest continuous staple cut line, the Titan SGS stapler is designed to provide an ideal tubular surgical sleeve anatomy that is a consistent shape, free of kinks, twists, or spirals, improving the potential to resolve GERD and nausea. We will continue to focus on supporting the Titan SGS stapler with expanded clinical data. On the reimbursement front, the Centers for Medicare and Medicaid Services released its 2026 proposed rule for reimbursement of Urolift and Baragel in the physician office and ASC hospital outpatient care settings. Overall, the proposed rules for 2026, if enacted largely as outlined, would be a positive for the reimbursement environment. That completes my prepared remarks. Now, I would like to turn the call over to John for a more detailed review of our second quarter financial results. John?