• Revenue: $700.7 million, down 5% year-over-year on a GAAP basis; 3.8% decline on adjusted constant currency basis.
• Adjusted Earnings Per Share (EPS): $2.91, a 9.3% decrease year-over-year.
• Americas Revenue: $475.7 million, a 3.2% decrease year-over-year.
• EMEA Revenue: $151.2 million, a 2.8% decrease year-over-year.
• Asia Revenue: $73.8 million, a 9.7% decrease year-over-year.
• Vascular Access Revenue: $182.4 million, a 1.9% increase year-over-year.
• Interventional Revenue: $137.5 million, a 3.2% increase year-over-year.
• Anesthesia Revenue: $86.6 million, an 8.6% decrease year-over-year.
• Surgical Revenue: $105.8 million, a 2% increase year-over-year.
• Interventional Urology Revenue: $71 million, a 10.7% decrease year-over-year.
• OEM Revenue: $63.9 million, a 26.8% decrease year-over-year.
• Other Revenue: $53.5 million, a 4.5% increase year-over-year.
• Adjusted Gross Margin: 60.4%, a 70 basis point decrease year-over-year.
• Adjusted Operating Margin: 24.7%, a 190 basis point decrease year-over-year.
• Net Interest Expense: $16.6 million, down from $21 million in the prior year period.
• Adjusted Tax Rate: 14.5%, up from 13.2% in the prior year period.
• Cash Flow from Operations: $73.3 million, down from $112.8 million in the prior year period.
• Cash and Cash Equivalents: $317.5 million at the end of the first quarter.
• Net Leverage: Approximately 1.8x at quarter end.
• Accelerated Share Repurchase Program: Completed with over 2.2 million shares repurchased at an average price of $135.23.
• 2025 Revenue Guidance: Adjusted constant currency growth of 1% to 2%; reported revenue growth of 1.3% to 2.3%.
• 2025 Adjusted EPS Guidance: $13.20 to $13.60.

• Warning! GuruFocus has detected 4 Warning Sign with EG.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Teleflex Inc (NYSE:TFX) reported first quarter revenues of $700.7 million, which was within the guidance range provided during the previous earnings call.
• The Vascular Access segment saw a revenue increase of 1.9% year-over-year, driven by double-digit growth in PICCs and solid performance in EZ-IO.
• The Interventional segment experienced a 3.2% year-over-year revenue increase, with strong demand for intra-aortic balloon pumps in the Americas.
• The AC3 Range Intra-Aortic Balloon Pump received 510(k) clearance from the FDA, with full market release in the United States expected in the second quarter of 2025.
• Teleflex Inc (NYSE:TFX) announced the intention to separate into two independent publicly traded companies, aiming to enhance shareholder value and strategic focus.

Negative Points

• First quarter revenues declined by 5% year-over-year on a GAAP basis, with adjusted earnings per share decreasing by 9.3% year-over-year.
• The OEM segment experienced a significant revenue decrease of 26.8% year-over-year, impacted by customer contract losses and inventory management.
• The Interventional Urology segment saw a 10.7% year-over-year revenue decline, with continued pressure on the UroLift business.
• Adjusted gross margin decreased by 70 basis points year-over-year, primarily due to macroeconomic factors affecting labor and raw materials costs.
• The company faces a $55 million impact from tariffs enacted since the previous guidance, with ongoing efforts to mitigate this exposure.

Q & A Highlights

Q: Given the supply chain issues, have you seen any increased demand on the OEM side, and do you plan to expand in the Vascular segment after acquiring Biotronik? A: Liam Kelly, CEO, noted that demand in OEM has picked up, but it's too early to attribute this to supply chain changes. The focus will be on integrating Biotronik and exploring strategic growth in the cath lab, which will be a key area for Teleflex.

Q: Can you elaborate on the $55 million tariff impact and potential mitigation strategies? A: John Deren, CFO, explained that the $55 million impact is based on current tariffs without mitigation. Strategies include leveraging USMCA exemptions, optimizing supply chains, and potentially increasing prices. Some mitigation efforts are already in place, contributing to a $0.30 offset in EPS.

Q: Is there a preference for selling NewCo versus spinning it off, and what is the timeline? A: Liam Kelly, CEO, stated that the decision will be based on maximizing shareholder value. The company is exploring both options and will update the investment community as the process progresses. The separation is targeted for mid-2026.

Q: How is the Interventional Urology segment performing, particularly UroLift and Palette? A: Liam Kelly, CEO, mentioned that Interventional Urology is performing as expected, with Palette showing strong double-digit growth. UroLift faces challenges in the U.S. office setting but is growing in APAC. The company anticipates improvement post-reimbursement changes.

Q: What is the outlook for the OEM business, given the recent challenges? A: Liam Kelly, CEO, indicated that the OEM business is expected to improve sequentially throughout the year. The first quarter was the low point due to customer contract losses and inventory management, but order rates have picked up, suggesting a positive outlook.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.