Teleflex Incorporated : Q1 (Q1 2026 Teleflex Incorporated Earnings Call Presentation)

Published: 2026-05-07 07:36:10 ET TFX

Published on 05/07/2026 at 07:36 am EDT

‌Teleflex Incorporated

‌Conference Call Logistics

The release, accompanying slides, and replay webcast are available online at https://www.teleflex.com (click on Investors)

An audio replay of the call will be available beginning at 11:00 am Eastern Time on May 7, 2026 either on the Teleflex website or by telephone.

The call can be accessed by dialing

(all other locations).

The confirmation code is 69028.

‌Today's Speakers

Interim President and CEO

and Strategy Development

TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Note on Forward-Looking Statements

This presentation contains forward-looking statements, including, but not limited to, our forecasted 2026: GAAP, pro forma adjusted revenue and pro forma adjusted constant currency revenue growth, GAAP and adjusted operating margin and GAAP and adjusted earnings per share and, in each case, our estimates with respect to the items expected to impact those forecasted results; statements regarding our expectations with respect to the timing for closing of the sales of our Acute Care, Interventional Urology and OEM businesses (which we refer to as the "Strategic Divestitures"); statements regarding our planned uses of the net proceeds from the Strategic Divestitures, including, without limitation, with respect to the paydown of debt and the repurchase of shares our outstanding common stock; our expectation that we will be able to begin repurchasing shares of our common stock in the second quarter of 2026; statements regarding projected costs, savings and timing with respect to restructuring activities related to the Strategic Divestitures; our expectation that the transition services and manufacturing services agreements to be entered into in connection with the Strategic Divestitures will offset stranded costs on an annualized basis; our expectation that our 2027 results will provide a more representative view of our standalone, steady-state financial profile; our expectation that our Interventional business will continue to experience momentum in the second half of 2026 based on our expanded presence in cath labs and cross-selling opportunities; our expectation that our Surgical business will experience some moderation in growth in the second quarter of 2026; and other matters which inherently involve risks and uncertainties which could cause actual results to differ from those projected or implied in the forward-looking statements. Any forward-looking statements contained herein are based on our management's current beliefs and expectations, but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or company actions to differ materially from what is expressed or implied by these statements. These risks and uncertainties are identified and described in more detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. We expressly disclaim any obligation to update these forward-looking statements, except as otherwise explicitly stated by us or as required by law or regulation. You should not place undue reliance on these statements or the scientific data presented.

Note on Non-GAAP Financial Measures

This presentation refers to certain non-GAAP financial measures, including, but not limited to, pro forma adjusted revenue, pro forma adjusted constant currency revenue growth, adjusted diluted earnings per share, adjusted gross and operating margins and adjusted tax rate. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Tables reconciling these non-GAAP financial measures to the most comparable GAAP financial measures are contained within this presentation and the appendices at the end of this presentation.

Additional Notes

This document contains certain highlights with respect to our first quarter 2026 results and developments and does not purport to be a complete summary thereof. Accordingly, we encourage you to read our Earnings Release for the quarter ended March 31, 2026 located in the investor section of our website at https://www.teleflex.com and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the Securities and Exchange Commission.

Unless otherwise noted, the following slides reflect continuing operations.

4 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Executive Overview

‌Governance Updates

Governance enhancements

Michael J. Tokich (former CFO, STERIS plc) nominated to Board

Plan to establish new Growth & Operating Committee

Actions underscore commitment to strong governance, thoughtful oversight, and long-term performance

Planned Board transitions

Dr. Stephen Klasko and John Heinmiller to conclude their respective Board terms at upcoming annual stockholders meeting

Andrew Krakauer to succeed as Chair following Annual Meeting

Current Board Compensation Committee Chair; director of Teleflex since 2018

Former CEO of Cantel Medical

CEO appointment

Jason Weidman named President & CEO, effective June 8

25+ years of medtech experience with almost two decades at Medtronic

Proven track record in driving growth, innovation, and operational execution

Stuart Randle, Interim CEO, to remain on Board, ensuring continuity and support during transition

‌Q1'26 Continuing Operations Highlights

Performance Summary

2026 Financial Guidance

Q1'26 pro forma adjusted constant currency revenue grew 5.1%

year-over-year

Q1'26 adjusted gross margin of 61.4% and adjusted operating margin of 18.1%

Q1'26 adjusted EPS of $1.39, a 3.5% decrease year-over-year

Maintaining pro forma adjusted constant currency revenue growth guidance range of 4.50% to 5.50%

Maintaining adjusted diluted EPS from continuing operations guidance of $6.25 to $6.55

Note: See tables appearing in this presentation and the appendices hereto for reconciliations of non-GAAP financial information.

TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Q1'26 Global Product Commentary of Continuing Operations

Vascular

$236.8

Reported rev. growth: 8.1% Pro forma adj. const. curr. rev. growth: 4.8%

In Q1'26 growth was primarily driven by growth in our hemostatic products and in our central venous and other access portfolio

Interventional

$204.7

Reported rev. growth: 104.4% Pro forma adj. const. curr. rev. growth: 3.0%

Surgical

$106.8

Reported rev. growth: 12.4% Pro forma adj. const. curr. rev. growth: 9.9%

The performance for Q1'26 was driven by intraosseous, right heart catheters, and complex catheters

As expected, growth during the quarter was impacted by further integration of the Biotronik Vascular Intervention business

Continue to anticipate improving momentum in the second half of 2026 based on our expanded presence in cath labs and cross-selling opportunities

Q1'26 growth was primarily driven by our ligation clip, and some timing of orders in our instrument portfolio

Instrument orders can be lumpy quarter to quarter, and we anticipate some moderation of growth in Q2'26

Note: See tables appearing in this presentation and the appendices hereto for reconciliations of non-GAAP financial information. Pro forma adjusted constant currency revenue growth is as compared to the prior year period.

8 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Q1'26 Global Product Category Revenue Review

Three Months Ended March 31, 2026

Reported Revenue

March 31, 2026

Adjustment

Pro Forma Adjusted Revenue

Reported Revenue

March 30, 2025

Adjustment

Pro Forma Adjusted Revenue

Reported Revenue Growth

% Increase / (Decrease)

Currency Impact Adjustment

Impact

Pro Forma Adjusted Constant Currency Revenue Growth

Vascular

$236.8

$219.1

8.1%

3.3%

4.8%

Interventional1

204.7

100.2

92.6

192.8

104.4%

3.1%

98.3%

3.0%

Surgical2

106.8

95.0

(0.5)

94.5

12.4%

3.1%

(0.6)%

9.9%

Consolidated1

$548.3

$414.3

$92.1

$506.4

32.3%

3.2%

24.0%

5.1%

Note: See tables appearing in this presentation and the appendices hereto for reconciliations of non-GAAP financial information.

Adjustments are inclusive of Vascular Intervention pro forma and discontinued product adjustments

Adjustments are inclusive of discontinued product adjustments

9 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Financial Overview

‌Q1'26 Financial Review of Continuing Operations

Gross Margin

2025

SG&A Expense

(% of Sales)

2026

2025 61.7%

2026 56.1%

2025 36.9%

2026 41.2%

2025 6.1%

2026 8.1%

66.1%

61.4%

(470)

bps

The year-over-year adjusted gross margin decline was primarily driven by the following:

the adverse impact of tariffs

quality remediation charges primarily associated with third-party supplier disruption

higher logistics and distribution costs

the addition of the Vascular Intervention acquisition, which has a slightly lower gross margin than the corporate average

The year-over-year adjusted SG&A expense % of sales decline was driven by the following:

cost containment initiatives

partially offset by the negative impact of foreign exchange rates

2025 37.0%

2026 35.2%

2025 5.9%

2026 8.0%

R&D Expense

(% of Sales)

The year-over-year adjusted R&D expense % of sales increase was driven by the following:

higher R&D expenses associated primarily with the Vascular Intervention acquisition

Operating Margin

2025

2026

Earnings per Share

2025

2026

(510)

23.2%

18.1%

bps

$1.44

$1.39

2025

2026

$1.14

The year-over-year adjusted operating margin decline was driven by the following:

2025 18.3%

2026 3.7%

year-over-year gross margin pressure

higher operating expenses associated with the acquisition of the Vascular Intervention business as well as increased R&D investment

partially offset by the positive impact of foreign exchange rates

The year-over-year adjusted earnings per share decrease was driven by the following:

tariffs and higher interest expense

partially offset by higher revenue and adjusted operating income, including the impact of the Vascular Intervention acquisition and higher R&D spending, and lower share count

Note: See appendices for reconciliations of non-GAAP financial information.

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‌2026 Financial Guidance

Revenue

Maintaining 2026 GAAP revenue from continuing operations growth range of 14.4% to 15.4% year-over-year

Maintaining 2026 pro forma adjusted constant currency revenue growth range of 4.5% to 5.5%

Earnings Per Share

Maintaining 2026 GAAP EPS from continuing operations range of $2.90 to $3.20

Maintaining 2026 Adjusted diluted EPS from continuing operations range of $6.25 to $6.55

Note: See tables appearing in this presentation and the appendices hereto for reconciliations of non-GAAP financial information.

‌2026 Guidance Considerations

Pro Forma Adj. CC Revenue Growth

Excludes foreign exchange, Italian payback matter, and discontinued products

Includes Vascular Intervention revenue for the first half of 2025

Adjusted Earnings Per Share

Assumes:

~19.0% adjusted operating margin

Annualized impact of $90 million in stranded costs

$105M of interest expense

Refinancing of $500M in debt (4.625% Senior Notes due 2027)

No incremental debt paydown with net proceeds from sale transactions

~13.5% tax rate

No material change in share count vs. 2025

No incremental share repurchase from net proceeds from sale transactions

Note: See tables appearing in this presentation and the appendices hereto for reconciliations of non-GAAP financial information.

‌2026 Financial Guidance - Future Opportunities

Adjusted Operating Margin

$90m stranded costs impacting 2026 adjusted operating margin

TS/MS agreements expected to offset stranded costs on an annualized basis

Announced restructuring programs to result in ~$50 million of pre-tax savings on an annualized basis upon completion in mid-2028, which will contribute to mitigating stranded costs

Debt Paydown

Intend to pay down ~$800 million in debt, including debt associated with the Vascular Intervention acquisition, funded with net proceeds from the sale transactions

Share Repurchase

$1 billion share repurchase authorization primarily funded with net proceeds from the sale transactions, now expected to commence in Q2'26

‌2026 Financial Guidance of Continuing Operations Summary

2026 Guidance

Low

High

GAAP Revenue Growth

14.4%

15.4%

Impact of Vascular Intervention Pro Forma

10.0% 10.0%

Impact of Discontinued Product

(0.7)%

Impact of Italian Payback Measure

(0.5)% (0.5)%

Base Year Adjustment (GAAP Versus Pro Forma Adjusted)

0.4%

Impact of Foreign Exchange Rate Fluctuations

0.7% 0.7%

Pro Forma Adjusted Constant Currency Revenue Growth

4.5%

5.5%

Adjusted Operating Margin

~19%

Adjusted EPS

$6.25

$6.55

Adjusted EPS % Growth

(10.5)%

(6.2)%

Note: See appendices for reconciliations of non-GAAP financial information.

15 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Forecasted 2026 Pro Forma Adjusted Revenue From Continuing Operations Reconciliation

2026 Guidance

2025

2026 Guidance

Low

High

GAAP revenue

$1,992.7 $2,280

$2,300

Vascular Intervention pro forma adjustment

199.0 -

Discontinued product adjustment

(14.3) -

Italian payback measure adjustment

(9.0) -

Pro forma adjusted revenue

$2,168.4 $2,280

$2,300

Note: See appendices for reconciliations of non-GAAP financial information.

16 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Key Takeaways

Teleflex is in the midst of a transformation that is intended to optimize our portfolio, create a more focused medical technologies leader and position our company for meaningful value creation opportunities going forward. We continue to make progress on the pillars of our strategic plan, which are expected to catalyze a strong financial profile beginning in 2027.

We are pleased with our Q1'26 performance, with pro forma adjusted constant currency growth of 5.1% year-over-year tracking towards our 2026 pro-forma constant currency growth guidance of 4.5% to 5.5%. In addition, the Q1'26 performance is aligned with our mid-single-digit growth profile aspirations and represents a strong reflection of the stable growth potential of our go-forward business.

We continue to expect our two strategic divestitures to close in the second half of 2026, including an expectation for the OEM sale transaction to be completed in Q3'26. We remain committed to return significant capital to shareholders through our $1 billion share repurchase program, while also reducing debt to enhance our financial flexibility and support future growth and value creation. In fact, we have announced that the Company now expects to begin opportunistic share repurchases in the open market during Q2'26 rather than waiting for the close of the first strategic divestiture.

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‌Thank You!

18 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Appendices

‌Non-GAAP Financial Measures

The presentation to which these appendices are attached and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure:

Pro forma adjusted revenue. This non-GAAP measure is based upon net revenues, adjusted to (i) exclude products discontinued in the year ended December 31, 2025 due to a strategic realignment; and (ii) give effect to our acquisition of the Vascular Intervention business from BIOTRONIK SE & Co. KG as if it had occurred on January 1, 2025.

Pro forma adjusted constant currency revenue growth. This non-GAAP measure is based upon net revenues, adjusted to exclude, depending on the period presented, the items described in Pro forma adjusted revenue and to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends.

Note: Pro forma adjusted revenue and pro forma adjusted constant currency revenue growth give effect to, among other things, our acquisition of the Vascular Intervention business from BIOTRONIK SE & Co. KG as if it had occurred on January 1, 2025. The pro forma information is presented for informational purposes only and is not necessarily indicative of the historical results that would have occurred under our ownership and management, nor the results that may be obtained in the future.

20 TELEFLEX EARNINGS CONFERENCE CALL 5/7/2026

‌Non-GAAP Financial Measures

Adjusted diluted earnings per share. This non-GAAP measure is based upon diluted earnings per share from continuing operations, the most directly comparable GAAP measure, adjusted to exclude, depending on the period presented, the impact of (i) restructuring and optimization charges; (ii) impairment charges; (iii) acquisition, integration and divestiture related items; (iv) separation costs; (v) Italian payback measure; (vi) costs incurred in connection with our implementation of a new global ERP solution and related IT transition costs; (vii) certain costs associated with the registration of medical devices under the European Union Medical Device Regulation; (viii) intangible amortization expense; and (ix) tax adjustments. Management does not believe that any of the excluded items are indicative of our underlying core performance or business trends.

Adjusted gross profit and margin. These measures exclude, depending on the period presented, the impacts of (i) restructuring and optimization charges; (ii) acquisition, integration and divestiture related items, (iii) intangible amortization expense, and (iv) Italian payback measure.

Adjusted operating profit and margin. These measures exclude, depending on the period presented, the impact of (i) restructuring and optimization charges; (ii) impairment charges; (iii) acquisition, integration and divestiture related items; (iv) separation costs; (v) Italian payback measure; (vi) costs incurred in connection with our implementation of a new global ERP solution and related IT transition costs; (vii) certain costs associated with the registration of medical devices under the European Union Medical Device Regulation; (viii) and intangible amortization expense.

Adjusted tax rate. This measure is the percentage of the Company's adjusted taxes on income from continuing operations to its adjusted income from continuing operations before taxes. Adjusted taxes on income from continuing operations excludes, depending on the period presented, the impact of tax benefits or costs associated with (i) restructuring and optimization charges;

(ii) impairment charges; (iii) acquisition, integration and divestiture related items; (iv) separation costs; (v) Italian payback measure; (vi) costs incurred in connection with our implementation of a new global ERP solution and related IT transition costs; (vii) certain costs associated with the registration of medical devices under the European Union Medical Device Regulation; (viii) intangible amortization expense; and (ix) tax adjustments.

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‌Non-GAAP Adjustments

The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached:

Restructuring and optimization charges - Restructuring and optimization charges include expenses associated with discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies, integrate acquired businesses and optimize product portfolios through targeted optimization efforts. These changes include qualified restructuring costs (which may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement), restructuring related (which may include accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of a restructuring program) and product line exit charges.

Impairment charges - Impairment charges, including those related to goodwill, and other assets occur if, due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity, but could have a material adverse effect on our reported financial results.

Acquisition, integration and divestiture related items - Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions. These charges may include, among other things, professional, consulting and other fees; systems integration costs; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; temporary financing costs directly associated with the transaction, such as bridge loan financing fees, ticking fees, and similar charges, and the impact of derivative instruments executed to hedge foreign currency exposure or other risks associated with the purchase price. Divestiture related activities involve specific business or asset sales. Depending primarily on the terms of a divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities.

Separation costs - These are expenses related to the Strategic Divestitures, including activities to prepare the businesses for divestiture and maintain continuity through the separation process. These charges and costs do not represent normal and recurring operating expenses, will be inconsistent in amounts and frequency, and are not expected to recur after the transaction and related transition services agreements and other arrangements negotiated in connection with the Strategic Divestitures have been completed.

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‌Non-GAAP Adjustments

Italian payback measure - The Italian payback measure is a law that requires suppliers of medical devices to the Italian National Healthcare System to make payments to the Italian government if medical device expenditures in a given year exceed regional expenditure ceilings established for that year. As a result of a ruling from the Italian courts, we recognized a decrease in our reserves during the year ended December 31, 2024, of which $13.8 million related to prior years when including discontinued operations and $6.2 million on a continuing operations basis. In August 2025, the Italian Parliament enacted a modification to the previously enacted legislation that reduced the payment amounts due from the affected companies, including Teleflex, to approximately 25% of the amounts originally invoiced for the years 2015 through 2018. As a result of the modification in the legislation, along with an adjustment to our calculation of the reserves related to years 2019 through 2025, we recognized a $23.7 million decrease in our reserve (and corresponding increase to revenue for the year ended December 31, 2025), of which $20.1 million pertains to prior periods when including discontinued operations and $9.0 million on a continuing operations basis. The amounts do not represent normal adjustments to revenue and are nonrecurring in nature, making it difficult to contribute to a meaningful evaluation of our period over period operating performance.

Other - These are discrete items that occur sporadically and can affect period-to-period comparisons.

European medical device regulation - The European Union ("EU") has adopted the EU Medical Device Regulation ("MDR"), which replaces the existing Medical Devices Directive ("MDD") and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance. The MDR requirements became effective in May 2021, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until December 2027 for highest-risk devices and December 2028 for lower-risk devices, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices. As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD).

Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions.

ERP implementation - These adjustments represent direct and incremental costs incurred in connection with our implementation of a new global enterprise resource planning ("ERP") solution and related IT transition costs. An implementation of this scale is a significant undertaking and will require substantial time and attention of management and key employees. The associated costs do not represent normal and recurring operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance.

Tax adjustments - These adjustments represent the impact of the expiration of applicable statutes of limitations for prior year returns, the resolution of audits, the filing of amended returns with respect to prior tax years and/or tax law or certain other discrete changes affecting our deferred tax liability.

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‌Appendix A1 - Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data)

Three Months Ended March 31, 2026

Revenue

Gross margin

SG&A (1)

R&D (1)

Operating margin (2)

(Loss) Income before income taxes

Income tax expense

Effective income tax rate

Diluted (loss) earnings per share from continuing operations

GAAP Basis

$548.3

56.1%

41.2%

8.1%

3.7%

$(3.8)

$1.0

(26.4)%

$(0.11)

Restructuring and optimization charges (A) -

0.6

(1.4)

5.0

28.0

4.4

0.54

Acquisition, integration and divestiture -

1.4

(1.0)

2.4

13.0

3.1

0.22

ERP implementation -

(0.7)

0.7

3.9

0.7

0.07

MDR -

(0.1)

0.1

0.4

0.01

Intangible amortization expense -

3.3

(2.9)

6.2

33.9

4.6

0.66

Adjustments total -

5.3

(6.0)

(0.1)

14.4

79.2

12.8

1.50

Adjusted basis $548.3

61.4%

35.2%

8.0%

18.1%

$75.4

$13.8

18.3%

$1.39

Adjustments