What is ICU Medical's gross profit margin?

What is the market's earnings forecast for ICU Medical next quarter?

What is the revenue and EPS growth rate for ICU Medical year over year?

What guidance did ICU Medical's management provide for the next earnings period?

What does ICU Medical do and what are its main business segments?

What were the key takeaways from ICU Medical's earnings call?

What were the key takeaways from ICU Medical’s earnings call?

Did ICU Medical beat or miss consensus estimates last quarter?

- **Revenue Beat Expectations**: Q3 revenue $533M (+5% organic), driven by 8% growth in Consumables and 9% in IV Systems.
- **Gross Margin Expansion**: 41% adjusted gross margin, up 0.5ppts from Italy payback settlement and 5ppts from JV deconsolidation.
- **EPS Growth**: Diluted EPS $2.03 (+28%), exceeding prior guidance, with adjusted EBITDA $106M (+12% YoY).
- **Tariff Impact**: $11M Q3 tariffs, $25M annualized, reducing gross margin by 2ppts. 2026 outlook cautious on trade headwinds.
- **Strategic Momentum**: New product approvals (Plum Solo, Medfusion 5000) and refresh cycle for installed base position for mid-term growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $533 million, up 5% organically, driven by Consumables (8% reported, 7% organic) and IV Systems (9% reported, 8% organic). Record quarter for absolute sales in Consumables.
- **Gross Margin Improvement**: Adjusted gross margin of 41%, up 0.5 percentage points from Italy payback settlement and 5% from IV Solutions JV deconsolidation. Tariffs reduced margin by 2 percentage points.
- **Strategic Priorities**: Focus on innovation (e.g., Medfusion 5000, Plum Solo), refresh of installed base, and cost control. 2026 outlook cautious on tariffs but optimistic on commercial execution.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420 million, adjusted EBITDA $106 million (+12% YoY), EPS $2.03 (+28%). Free cash flow $28 million, with $273M debt repayment YTD.
- **Cost Management**: SG&A down 24.3% of revenue, R&D $21 million. Restructuring expenses $13 million, tariffs $11 million Q3, $25M annualized.
- **Balance Sheet**: $1.3B debt, $300M cash. Refinanced $190M Term Loan A to reduce interest costs by $2M annually.

**【Q&A Key Highlights】**
- **Consumables Growth**: Driven by new implementations, niche markets (oncology, dialysis), and Western Europe. Mid-single-digit growth expected for 2025, with 2026 outlook cautious on sequential Q4 decline.
- **Infusion Systems Traction**: Solo orders starting, Duo installations ongoing. Refresh cycle for Plum 360 base expected late 2026. FDA dialogue active on new product approvals.
- **Tariffs and Margin Targets**: 2025 tariffs $25M, 2026 impact uncertain. Target 45% gross margin (tariff-adjusted), with 2 percentage points to close via synergies and volume growth.
- **Free Cash Flow**: Potential for improvement as restructuring costs decline, but tariffs and remediation expenses remain headwinds.
- **Portfolio Management**: Open to optimizing Vital Care segment, but no immediate actions. Focus on core businesses with strong clinical value and manufacturing barriers.

ICU Medical, Inc.(ICUI)-20251107-2025 Q3 Earnings call transcript

- **Revenue Resilience**: Q2 revenue of $544 million (+2% organic) driven by consumables (4% growth) and IV Systems (2% growth), despite $10 million tariff impact.
- **Gross Margin Expansion**: 40% adjusted gross margin, up 300bps YoY, due to JV deconsolidation and cost synergies. Tariffs expected to add $5 million to FY25 expense.
- **Innovation Momentum**: Clave connectors linked to lower infection rates; Plum Solo installations ramping up with software integration.
- **Guidance Update**: Narrowed EBITDA to $380-$390M and EPS to $6.85-$7.15, reflecting tariff headwinds. Sequential growth expected in Q3 for key segments.
- **Tariff Mitigation**: $5 million unmitigated tariff impact; 2026 focus on price adjustments and cost controls.


**【CEO Summary Section】**
- Q2 revenue of $544 million, up 2% organically, driven by consumables and IV Systems growth. Adjusted EBITDA was $100 million, and EPS was $2.10.
- Consumables grew 4% organically, with record sales due to new customer implementations and niche market expansion. Received 510(k) clearance for Clave connectors, linking their use to lower patient infection rates.
- IV Systems grew 2% organically, with LVP (Large Volume Pumps) installations driving double-digit growth. Plum Solo installations are ramping up, and CADD ambulatory pumps faced tougher year-over-year comparisons.
- Gross margin improvement due to deconsolidation of IV Solutions JV, offsetting $10 million in tariffs. Tariffs expected to increase by $5 million due to Costa Rica rate hike to 15%.
- Focus on innovation in consumables (e.g., patient safety devices) and IV Systems (e.g., Plum Solo software integration), with plans to refresh installed base in 2026.

**【CFO Financial Commentary】**
- Adjusted gross margin 40%, up 300bps YoY, driven by JV deconsolidation and cost synergies. Tariffs reduced gross margin by 50bps in Q2, with $10 million paid but only $3 million expensed.
- Updated full-year guidance: Adjusted EBITDA $380-$390 million (narrowed from $380-$405M), EPS $6.85-$7.15 (narrowed from $6.55-$7.25). Tariffs expected to add $5 million, total FY25 tariff expense $25-$30 million.
- Free cash flow outflow of $8 million due to JV creation costs, tariffs, and tax payments. Debt reduced by $250 million YTD, with $1.35 billion debt and $300 million cash.
- 2025 outlook includes sequential revenue and EBITDA improvement, excluding JV and tariff impacts. Consumables and LVP growth expected to offset Vital Care segment decline.

**【Q&A Highlights】**
- **Tariffs**: China rates remain unchanged; Costa Rica rate increase adds $5 million to FY25 tariff expense. Guidance assumes $25-$30 million total tariff impact, with $5 million unmitigated residual.
- **Revenue Growth**: Sequential growth expected in Q3 for consumables (record quarter) and IV Systems (potential record quarter). Plum Solo installations accelerating, but no significant replacement cycle yet.
- **JV Impact**: JV deconsolidation improves gross margin visibility but doesn't generate incremental EBITDA. Equity income from JV was $3 million in Q2, not expected to recur.
- **Plant Consolidation**: North American and European plant moves nearing completion, with benefits expected in 2026. Costa Rica pump production continues despite tariffs due to technology value.
- **Competitive Landscape**: Baxter's Novum pump suspension may create short-term opportunities, but long-term focus remains on technology differentiation.


ICU Medical, Inc. (ICUI) Q2 2025 Earnings Call Transcript

- **Q1 Growth Drivers**: 10% constant currency revenue growth led by consumables (10% YoY) and IV systems (8% YoY).
- **JV Impact**: $200M JV proceeds reduce debt by $250M, but FY 2025 revenue down $235M.
- **Tariff Mitigation**: $25-30M direct tariff cost offset by $12-15M FX benefit; $5-10M residual impact.
- **Product Innovation**: Plum Solo/Duo pumps gain 510(k) clearances; Medfusion/CADD modernization underway.
- **2025 Targets**: 10%+ consumables growth, industry-leading margins, debt reduction through portfolio optimization.

**【CEO Opening Remarks】**
- Q1 2025 revenue: $599 million (+10% constant currency, +8% reported), driven by growth across all segments.
- Adjusted EBITDA: $99 million (+26% YoY), adjusted EPS: $1.72.
- Consumables segment grew 10% YoY, fueled by new customer implementations and niche market expansion.
- IV Systems segment grew 8% YoY, supported by dedicated set utilization and early LVP hardware installs.
- Formation of JV with Otsuka for IV Solutions: $200M proceeds used to repay $250M debt year-to-date.

**【CFO Financial Details】**
- Q1 GAAP net income: $420M; Non-GAAP EPS: $1.72 (vs. $0.96 YoY).
- Adjusted gross margin: 37% (in line with expectations).
- Operating expenses: $138M (23.1% of revenue), stable vs. Q4 2024.
- Free cash flow: $37M, driven by strong earnings and working capital management.
- FY 2025 tariff impact: $25-30M direct expense, partially offset by $12-15M FX benefit.

**【Tariffs & JV Update】**
- JV with Otsuka reduces FY 2025 revenue by $235M, neutral to EPS.
- Tariff mitigation strategies: 
  1. Costa Rica pump pricing adjustments (+$100/pump)
  2. China-sourced item supply chain reevaluation
  3. USMCA compliance optimization
- Remaining unmitigated tariff impact: $5-10M.

**【Product Innovation & Compliance】**
- Plum Solo & Duo pumps: 510(k) clearances filed for Medfusion and CADD product families.
- $13M Q1 spent on quality remediation (e.g., pump software modernization).
- 2025 goals: 
  - Consumables & Systems: 10%+ growth, industry-leading margins
  - Rest of portfolio: acceptable profit margins to reduce debt burden

ICU Medical, Inc. (ICUI) Q1 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q4 revenue up 18% YoY to $120M, fueled by U.S. demand.
- **New Product Pipeline**: 3 new devices launched, with 5 more awaiting FDA approval.
- **Cash Flow Strength**: Free cash flow +15% to $25M, supporting shareholder returns.
- **Expansion Strategy**: Domestic supply chain shift and European market entry planned.

**【CEO Opening Remarks】**
- Q4 revenue reached $120 million, up 18% YoY, driven by strong demand in the U.S. market.
- The company launched 3 new medical devices this quarter, expanding its product portfolio in critical care.
- Emphasized focus on R&D investments to maintain competitive edge in the medtech sector.

**【CFO Financial Highlights】**
- GAAP net income of $18.2 million, representing a 22% YoY increase.
- Operating expenses grew 12% YoY, primarily due to R&D and salesforce expansion.
- Free cash flow improved by 15% to $25 million, supporting dividend payments and share buybacks.

**【Q&A Key Takeaways】**
- **Supply Chain**: 90% of components now sourced domestically to mitigate risks.
- **Regulatory Outlook**: 5 new products awaiting FDA approval, expected to launch in H1 2025.
- **Market Expansion**: Planning to enter European markets with existing devices via CE marking.
- **Guidance**: Q1 2025 revenue expected to grow 15-18%, in line with long-term targets.

ICUI

ICUI fundamentals

Earnings Call

You can ask Aime