Teleflex Incorporated

Good morning, ladies and gentlemen, and welcome to the Teleflex first quarter 2026 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. You may begin.

Good morning, everyone, and welcome to the Teleflex Incorporated first quarter 2026 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 Stuart Randall, interim president and chief executive officer, and John Darin, executive vice president and chief financial officer. Stu 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 SEC, including our Form 10-K, which can be accessed on our website. Now, I'll turn the call over to Stu for his remarks.

Thank you, Larry, and good morning, everyone. Before I review the first quarter 2026 results, I will provide an update on our strategic objectives and our commitment to maximize long-term shareholder value. Teleflex has made demonstrable progress optimizing its portfolio and positioning the company for the meaningful opportunities ahead of us. In July 2025, we completed the acquisition of Biotronics' vascular intervention business expanding our coronary intervention portfolio, and establishing a global footprint in the fast-growing peripheral intervention market. In December 2025, we announced agreements to sell the acute care, interventional urology, and OEM businesses as part of our overall transformation plan, creating a more focused medical technologies leader with a higher forward revenue CAGR, greater exposure to core critical care and high acuity hospital markets, and a more focused portfolio across vascular access, interventional, and surgical. These strategic divestitures remain on track to close in the second half of 2026. On OEM, we reached an important milestone in March when the Hart-Scott-Rodina waiting period expired. We are focused on completing the remaining closing conditions with the target of closing in the third quarter of 2026. Separately in March, Teleflex and the buyer of the acute care and interventional urology businesses Each received a second request for additional information from the U.S. Federal Trade Commission. We are cooperating with the FTC and continue to expect that transaction to close in the second half of 2026. We remain committed to using the proceeds from the divestitures on the share repurchase program of up to $1 billion and to reduce debt by $800 million, reflecting our disciplined approach to capital allocation and our focus on enhancing shareholder value and financial flexibility. We now expect to begin opportunistic share repurchases in the open market during the second quarter of this year ahead of the previously anticipated timing of following the completion of the strategic divestitures. This action reflects our confidence in the value of the business, the progress we are making on our transformation plan, and our commitment to disciplined capital allocation and long-term shareholder value creation. Teleflex is also making progress on its strategic priorities. which include driving durable performance and building a clear financial profile through improved margins, lower interest expense, and stronger adjusted earnings per share over time. In the first quarter, we met or exceeded our internal expectations for revenues, margins, and adjusted EPS. Proforma adjusted constant currency growth increased 5.1%, while adjusted operating margin was 18.1%. We've remained focused on closing the sale transactions and delivering on our financial objectives for 2026, as well as building further momentum to drive sustainable growth and operating leverage. As previously announced, we launched a multiyear restructuring plan that is expected to achieve approximately $50 million in annual pre-tax cost savings upon completion in mid-2028. Restructuring activities, which are on track, began in the first quarter of 2026, and savings are expected to accelerate in the second half of the year. In April, Teleflex announced governance changes, including the nomination of Michael J. Tokich, former Senior Vice President and Chief Financial Officer of Staris, to the Board of Directors, as well as the intent to establish a new Growth and Operating Committee of the Board. These actions reflect our continued focus on strong governance, thoughtful oversight, and long-term performance. Additionally, we announced that Dr. Stephen Klausko and John Heinmiller will conclude their respective terms on the Board at our upcoming Annual Stockholders Meeting. Dr. Klasko recently accepted a new significant healthcare leadership role, and Mr. Heinmuller is pursuing other professional interests. On behalf of the board, I want to thank Steve and John for the meaningful contributions and dedication to Teleflex over their many years of service, and wish them well in their future endeavors. Effective following the annual meeting, Andrew Krakauer, who currently serves as the chair of the board's comp committee, will succeed Steve as chair of the board. Andy has served as the director of Teleflex since 2018. He previously served as CEO and board member of Cantel Medical Corporation from 2009 to 2016, which was an NYSE listed provider of infection control products and services during his tenure. Taken together, these actions reflect a more focused portfolio, stronger governance, disciplined capital allocation, and a clear path to value creation. We believe they position Teleflex to deliver improved execution and stronger long-term performance. Finally, I want to welcome Jason Weidman as Teleflex's next president and CEO, effective June 8. Jason is a proven medical technology leader with more than 25 years of industry experience and a strong track record of building and scaling businesses globally. His deep medical technology expertise and proven track record of driving growth, innovation, and operational execution make him well suited to lead Teleflex through its next chapter and help accelerate the opportunities ahead. It has been an honor to lead Teleflex as interim president and CEO, and I look forward to continuing to support the company as a member of the board. Now moving to our first quarter continuing operations results and updated financial guidance for 2026. All growth rates that I referred to on a year-over-year pro forma adjusted constant currency basis unless otherwise noted. Pro forma adjusted constant currency growth for 2026 excludes the impact of foreign exchange The Italian payback measure in the second half of 2025 of $9 million and the impact of approximately $14 million in continuing operations product revenue that was discontinued at the end of 2025 due to a strategic realignment. But it includes revenue generated by the acquired investment intervention business for the prior full year period. All comments are related to the continuing operations for the first quarter of 2026. For the first quarter, Telflex revenues were $548.3 million, up 32.3% year over year on a gap basis, and an increase of 5.1% on a pro forma adjusted constant currency basis. In the quarter, we demonstrated strong execution, and to a lesser extent, also benefited from some timing of orders in our surgical instrument portfolio. First quarter adjusted earnings per share was $1.39, a 3.5% decrease year over year. Early in the second quarter, we were notified that two third-party product suppliers had initiated a recall for certain components included in some of our vascular and interventional kits. We have identified actions to return our products to market and have a remediation program underway. We have included the necessary estimated cost provision within our first quarter results to remediate our current product stock. Although the actions for the remediation may result in some elevated backorders at the end of the second quarter, we do not currently believe that there will be a significant impact on our full year 2026 revenue guidance as we continue to focus on serving the needs of our customers. Now let's turn to a deeper dive into our first quarter revenue performance. I will begin with the review of our revenues by global product category for the first quarter. Starting with vascular revenue increased 4.8% year-over-year to $236.8 million, was primarily driven by growth in our hemostatic products in our central venous and other access portfolio. Moving to interventional, revenue was 204.7 million, an increase of 3%. Performance for the quarter was driven by intraosseous, right heart catheters, and complex catheters. We are continuing our integration of the vascular intervention business, which closed early in the third quarter of 2025. In the first quarter, the sales forces of the legacy teleplex interventional and vascular intervention businesses were combined. As expected, we have experienced some disruption from the integration and restructuring activities, but we continue to anticipate improving momentum in the second half of the year based on our expanded presence and cross-selling opportunities in the cath lab. As part of our commitment to increasing R&D investment for innovative new technologies, we continue to advance our clinical study for the FreeSolve drug-eluting resorbable magnesium scaffold technology. FreeSolve's combination of temporary scaffolding with drug delivery is anticipated to address the current trend in interventional cardiology and endovascular procedures towards leaving nothing behind. Recruitment for the Biomag2 study, which is a European pivotal trial for Freesolve, continues to outpace our assumption for the study, positioning us for a late 2027 data readout. We intend to expand our regulatory pathway for Freesolve and additional geographies including the initiation of the Biomek 3 pivotal trial in the U.S. during 2026. In our surgical business, revenue was $106.8 million, an increase of 9.9%, which was primarily driven by strong performance in our ligation clip and some timing of orders in our instrument portfolio. Instrument orders can be lumpy quarter to quarter. We anticipate some moderation of growth in the second quarter. That completes my comments on the first quarter revenue performance. Now I'd like to turn the call over to John for a more detailed review of our financial results. John.