ICU Medical's Q1 2025: Unpacking Contradictions in Plasma Collection, Tariff Exposure, and Infusion Systems Growth

Plasma collection market position and strategic growth, tariff exposure and impact, infusion systems market share and growth are the key contradictions discussed in ICU Medical's latest 2025Q1 earnings call.



Revenue Growth and Segment Performance:
- ICU Medical reported revenue of $599 million for Q1 2025, up 10% on a constant currency basis and 8% reported, with strong growth across all reporting segments.
- The growth was driven by the end of the national shortage of IV Solutions, new global customer implementations, price improvements, and rapid niche market growth in consumables.

Profitability and Cash Flow:
- Adjusted EBITDA was $99 million and adjusted EPS was $1.72 for Q1 2025. The company generated healthy cash flow and repaid almost $250 million in principal year-to-date.
- These results were supported by strong cash generation, the creation of a joint venture that provided net proceeds, and ongoing initiatives to expand gross margins.

Tariff and Currency Impact:
- ICU Medical anticipates $25 million to $30 million in direct expense from tariffs in FY 2025, offset somewhat by currency fluctuations that would benefit by around half of the tariff exposure.
- The company is exploring various mitigation strategies to reduce tariff exposure, including reevaluating the supply chain and achieving USMCA compliance.

Product Innovation and Quality Initiatives:
- ICU Medical has made significant investments in its pump businesses, with both Plum Duo and Plum Solo receiving FDA clearances.
- The company is focused on obtaining new 510(k) clearances for its Medfusion and CADD product families to maintain compliance and ensure modernized software and components.