Teleflex Incorporated

Good morning, ladies and gentlemen, and welcome to the Teleflex second 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 we'll turn the call over to Mr. Lawrence Kirsch, Vice President of Investor Relations and Strategy Development. Please go ahead.

Good morning everyone and welcome to the Teleflex Incorporated second 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 Jason Weidman, President and Chief Executive Officer, and John Deren, Executive Vice President and Chief Financial Officer. Jason 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 filings with the SEC, including our Form 10-K, which can be accessed on our website. Now, I'll turn the call over to Jason for his remarks.

Thank you, Larry, and good morning, everyone. Let me begin by saying it's been a great start to my time at Teleflex. Over the past two months, I've really focused on learning our business, our products, and our organization. This has meant considerable time visiting many of our sites around the globe, meeting with employees across the organization, engaging with customers and physicians, and reviewing the company's portfolio, operating priorities and long-term growth opportunities. While it's still early, a couple of things have stood out immediately to me. Our employees are fantastic. They're dedicated, there's real pride and belief in what we do for patients and they're eager to build on our accomplishments and drive execution. Second is the strength of Teleflex's underlying businesses. We have great products with market leading positions in many important categories, strong brands and a substantial global commercial footprint. My initial observations have also reinforced my belief that there is substantial opportunity ahead for Teleflex and that we have the right foundation to capture this potential. We remain focused on executing key initiatives underway, including completing the announced divestitures, deploying the proceeds through our committed debt reduction and share repurchase initiative, and mitigating stranded costs associated with the divestitures. Taken together, these actions will create a more focused portfolio, give us greater exposure to core critical care and high acuity hospital markets, and further strengthen Teleflex's financial and strategic flexibility in its next phase of growth. The divestitures and capital allocation plan reflect a thoughtful and proactive approach to value creation, but realizing our full potential will require continued deliberate action and consistent execution across the company. As I step into this role, my top priority is to thoroughly assess the business and to develop the strategic and operational plan that focuses our resources on the areas where we see the greatest opportunities for sustainable growth, innovation, and operational leverage, with the objective of maximizing value for our shareholders. While this review is ongoing, like most medical device companies, the focus will center on operational rigor and predictability across the organization, accelerating growth and innovation-driven platforms, and ensuring disciplined and balanced capital deployment. I look forward to partnering with the leadership team and our employees to build upon the strong foundation that's already in place and continue advancing Teleflex's transformation into a more focused medical technologies leader with durable long-term growth. Now I'd like to transition to the second quarter highlights. Our overall pro forma adjusted constant currency growth was 4.7% while adjusted operating margin was 19.6%. We delivered better than expected revenue, adjusted margin, and adjusted EPS with excellent performance in the vascular and surgical businesses in particular. At the same time, interventional performance fell short of our expectations as the integration associated with the VI acquisition is taking longer than anticipated. As John will discuss, we have updated our full year revenue outlook to reflect a more tempered expectation for interventional growth while maintaining our adjusted operating margin outlook and increasing our adjusted EPS guide. We've previously emphasized that 2026 would be a transition year for Teleflex as we become a stronger, more focused company for the future. To that end, I'm pleased to share that we're making significant progress on our strategic transformation and our commitment to maximizing shareholder value. In December of 2025, we announced agreements to sell the acute care, interventional urology and OEM businesses as part of our overall transformation plan. As announced early this week, we have successfully closed the OEM divestiture, which resulted in proceeds of approximately $1.5 billion in estimated after-tax proceeds of $1.25 billion. The OEM strategic divestiture generates the majority of the proceeds from the planned strategic divestitures and will fund both debt reduction and share repurchase. John will get into more details on the use of proceeds from the OEM close and capital allocation in a few minutes. Turning to the acute care and interventional urology divestiture, we remain confident in closing the transaction. As previously disclosed, the FTC issued a second request in March seeking additional information in connection with its review of the transaction. Both parties are working cooperatively with the FTC. The strategic divestiture is currently anticipated to be completed in the fourth quarter of 2026, although the timing is dependent on the regulatory approval process and remaining steps to complete the transaction. As I focus on durable future growth, driving innovation is a key priority for Teleflex. I am excited about the new product opportunities we are developing, and over the past several quarters, We have deliberately increased our R&D investment with R&D expense at 7.9% of sales in the first half of 2026. As I look ahead, we will focus on effectively allocating capital to new R&D opportunities that fortify our existing product portfolio, leverage our call points, and are accretive to our long-term growth profile. Importantly, we have had a number of exciting new product innovation developments recently, including the late July BLA approval from the FDA for EasyPlaz freeze-dried plasma, as well as the achievement of important clinical trial milestones for Freeze-All, our novel drug-eluting, resorbable magnesium scaffold. EasyPlaz, which will expand the emergency medicine portfolio in our vascular business, represents a novel solution to administering plasma to critically injured patients in combat and in free hospital settings. Approved for the treatment of adults with uncontrolled bleeding resulting from traumatic injuries when plasma is required and other plasma products are not available, EasyPlaz is the first freeze-dried plasma licensed by the FDA. EasyPlaz uses an innovative, flexible plastic bag technology that enables quick and efficient reconstitution of freeze-dried plasma. It fills an unmet need by enabling the transfusion of plasma in situations where it is critically needed, including on the battlefield or on air and road ambulances, where the use of traditional plasma products is limited by logistical and operational challenges. Turning to the future for the interventional business and as part of our commitment to increasing R&D investment in innovative technologies, we continue to advance our clinical study program with a highly differentiated Freesolve drug-eluting resorbable magnesium scaffold technology. Freesolve pairs temporary scaffolding with drug delivery to target a long-sought goal in interventional cardiology and is anticipated to address the rapidly growing trend in coronary and endovascular procedures towards treatments that leave nothing behind. During the second quarter, we announced several milestones from the Freesolve clinical program. Four-year follow-up data from the single-arm Biomag-1 study were presented in May at the Paris course of revascularization, demonstrating sustained long-term performance in a favorable long-term safety profile of Freesolve. We also announced the completion of patient enrollment ahead of schedule for the Biomag-2 study, which is the first randomized control trial for Freesolve run outside of the United States. This positions us for a late 2027 data readout. Finally, We commenced the BioMag 3 randomized pivotal trial in the US with the first patient procedures completed in June at the MedStar Washington Hospital Center. While this comprehensive clinical program is still in its early phases, we are encouraged by the data to date and excited about the optionality that Resolve provides us in the future. In summary, taken together, all of these updates and actions reflect a more focused portfolio, disciplined capital allocation, and Innovation Progression. We believe they position Teleflex to deliver improved execution and stronger long-term performance. We are building a clear financial profile and path to value creation through improved adjusted margins, lower interest expense and stronger adjusted earnings per share over time. 2026 remains a transition year for the company and our transformation is well underway with tangible milestones being met. including the close of the OEM strategic divestiture and return of capital to shareholders. As we continue to execute on our priorities, we expect a meaningful step up in our financial performance in 2027 and beyond. Now let's move on to our second quarter continuing operations detailed results and updated financial guidance for 2026. All growth rates that I refer to are 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 $9 million Italian payback measure recorded in the second half of 2025, 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 includes revenue generated by the acquired vascular intervention business for the prior full year period. All comments relate to continuing operations for the second quarter of 2026. For the second quarter, Teleflex revenues were 570.3 million, up 28.9% year over year on a gap basis and up 4.7% on a pro forma adjusted constant currency basis. In the quarter, Our revenue performance reflected strong execution in our vascular and surgical businesses, partially offset by the performance of our interventional business, which was impacted by integration and restructuring activities related to the VI business. Second quarter adjusted earnings per share was $1.76, a 1.7% increase year over year and ahead of our expectations. Now let's take a deeper dive into our second quarter revenue performance. I will begin with a review of our revenues by global product category for the second quarter. Starting with vascular, revenue was $246.3 million, an increase of 8% year over year, primarily driven by growth in our hemostatic products and in our central access portfolio. In our surgical business, revenue was $112.1 million, an increase of 9.2%, which was primarily driven by strong performance in ligation clips, our instrument portfolio, and Skin Stapling. Moving to interventional, revenue was $211.9 million, a decrease of 1%. While several categories, including hemostatic products, right heart catheters, intraosseous, and complex catheters outperformed, growth was softer than expected in the quarter, reflecting ongoing integration and restructuring activities associated with the VI acquisition. Although 2026 was always expected to be a transition year, The integration in the quarter was slower than anticipated, reflecting several transition factors that we expect to be temporary. We are making progress on mitigation actions to address the primary drivers of these temporary impacts, and we remain confident in the long term strategic and financial prospects for this business. That said, while the original plan contemplated that the integration would be largely completed towards the middle of 2026, We believe it is prudent to extend the timeline for full integration through the second half of 2026, given some of the lingering transition issues still impacting the business. I've spent the last 20 years of my career working in the interventional space, and that experience gives me real conviction in the opportunity ahead for Teleflex. At a high level, the legacy Teleflex interventional and acquired vascular intervention business fit together very well. and with highly complimentary product portfolios in geographic strengths. I believe that these are the right assets for Teleflex to expand its presence in interventional coronary and peripheral procedures. Drilling down a bit more, we have great products, a broad portfolio that includes specialty devices that physicians rely on and appreciate. I see meaningful opportunities to gain share, expand geographically and bring new products to market. including through our innovation pipeline which features differentiated products like freeze-offs. As we actively work through the 2026 transition year, my focus is on positioning the business for success in 2027 and beyond. My broader review is ongoing, but my immediate priorities are clear. Complete the integration associated with the VI acquisition and position Teleflex for improved growth as we continue the overall transformation of our business. That completes my comments on the second quarter revenue performance. Now I'd like to turn the call over to John for a more detailed review of our financial results. John?