ICU Medical (ICUI) 47th Annual Raymond James Institutional Investor Conference summary

Business Overview and Market Position

• Operates as a global MedTech provider focused on infusion and IV therapy, with core segments in consumables and systems, serving over 100 countries and generating $2.1 billion in revenue, with most profits and two-thirds of revenue from North America.

• Maintains leading US market positions in consumables, infusion pumps, IV connectors, and sets, with a strong global installed base and clinically preferred products.

• 87-88% of sales are single-use disposables and software, supporting resilient, sticky demand.

• Market is consolidated with high regulatory barriers, leading to long product cycles and strong incumbency.

• Employs 14,000 people worldwide.

Strategic Evolution, Innovation, and Growth Drivers

• Grew from a $200 million parts supplier to a $2.1 billion company through acquisitions, including Hospira (defensive), Smiths Medical (offensive, 2022), and a JV with Otsuka, expanding from IV components to a full infusion therapy portfolio.

• Innovation is incremental in consumables and more substantial in systems, with new product launches like Plum Duo/Solo and Medfusion 5000 expected to drive a multi-year refresh cycle and share gains.

• Investment of over $100 million in pump modernization, targeting upgrade and replacement cycles, with new product cycles pending FDA approval to unify device interfaces and software.

• Continued investment in software and hardware platforms enables deeper clinical integration, improved workflows, and future-ready connectivity.

• Clinical studies support better outcomes with key products, driving adoption and cross-selling, especially in home infusion and biologics markets.

Financial Performance and Outlook

• Recent share price around $150, equity value $3.8 billion, enterprise value $4.8 billion as of February 2026, net debt just under $1 billion, and leverage at 2.4x.

• Reports non-GAAP trailing 12-month revenue of $2.1 billion, with both consumables and systems growing 5-7% annually and guidance reflecting continued growth.

• Gross margins hit a low of 34% post-acquisition but are targeted to exceed 41% this year, 43% next year, and 45% pre-tariffs, with expansion driven by supply chain consolidation, pricing, and product mix.

• Tariffs and integration costs have impacted margins, but these are expected to decline by end of Q2, with restructuring and quality remediation costs also being reduced.

• Free cash flow is expected to improve as gross margins rise and below-the-line costs decrease, enabling potential capital returns as leverage declines.