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- **MedTech Growth Accelerates**: Interventional, Orthopedics, Wound Care segments grow >30% YoY, offsetting 23% decline in legacy AJR business.
- **Robotic Surgery Expansion**: 2026+ pipeline of $10M+ programs, with largest customer requesting 4-year contract extension requiring $M+ capital investments.
- **AJR Facility Turnaround**: Q3 labor inefficiency costs reduced to $3M (from $16M Q2), with Q4 2025 expected to reduce $8M backlog.
- **Acquisition Momentum**: 15-month M&A pipeline delivers $9M+ inorganic growth, with 2026 focus on MedTech adjacencies.
- **Financial Resilience**: 2025 GAAP net income $420M, Non-GAAP EPS $1.08, with leverage ratio <1.5x.

**Core Details - Detail Page**

**Management Opening Remarks**
- CEO Jeff Bailly highlighted Q3 2025 organic sales growth of 6.5% to $154.6M, driven by MedTech segments (Interventional, Orthopedics, Wound Care) growing >30% YoY. However, Patient Services & Support (AJR/Stryker business) declined 23% due to labor inefficiency at AJR Illinois facility.
- Advanced Components (non-MedTech) declined 2.7% as company refocused resources on MedTech.
- Q3 revenue was $154.6M, with MedTech businesses growing 7.3% YoY.

**CEO Commentary**
- **Robotic Surgery Growth**: Q3 robotic surgery revenue +5.1%, with 2 new programs expected to contribute >$10M in 2026. Largest customer requested multi-year contract extension requiring $M+ capital investments in Dominican Republic facilities.
- **AJR Facility Recovery**: Q3 labor inefficiency reduced to $3M incremental costs (from $16M in Q2). September marked return to profitability, with Q4 expected to improve further.
- **Acquisition Performance**: 15-month M&A pipeline delivered $9M+ inorganic growth, with 2025 acquisitions (UNIPEC, TPI) immediately accretive.
- **Backlog Management**: $16M unfilled orders due to AJR inefficiency, expected to ramp up capacity in Q4 2025.

**CFO Financial Commentary**
- **GAAP Metrics**: Q3 2025 GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $0.95 consensus). 
- **Gross Margin**: 27.7% (down 300bps YoY due to AJR inefficiency). 
- **Liquidity**: $35.9M cash from operations, $17.5M debt reduction, leverage ratio <1.5x.
- **Tariffs**: $160K paid, with 2025 growth markets unaffected.

**Q&A Highlights**
- **Contract Expansion**: Largest customer requested 4-year contract extension with 2026+ volume commitments requiring $M+ capital investments in DR facilities.
- **Program Launches**: 2 new robotic surgery programs expected to scale to >$20M+ by 2027.
- **AJR Recovery**: Q4 2025 expected to reduce $8M Q3 backlog, with 2026+ gross margin normalization.
- **Acquisition Synergy**: 2025 acquisitions contributed $9M+ inorganic growth, with 2026 pipeline focused on MedTech adjacencies.


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