ICU Medical (ICUI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $596.5 million, up 8.6% year-over-year, with growth across Consumables, Infusion Systems, and Vital Care segments.

• Adjusted EBITDA was $91.3 million, down from $98.1 million last year; adjusted EPS was $1.56, down from $1.88.

• GAAP net loss widened to $21.4 million, or $(0.88) per share, due to higher restructuring and integration costs.

• Gross margin was 34.8%, slightly down from 35.0% in Q2 2023, impacted by lower manufacturing absorption and FX effects.

• Operating cash flow for the first half of 2024 was $127.7 million, up from $39.8 million in the prior year.

Financial highlights

• Total revenues for the first six months of 2024 were $1.16 billion, up 4.0% year-over-year.

• Adjusted gross margin for Q2 was 36.6%, slightly above plan, driven by higher disposables mix and supply chain synergies.

• Operating expenses rose to $199.7 million in Q2 2024, up from $189.6 million in Q2 2023, mainly due to higher SG&A and restructuring costs.

• Adjusted SG&A expense was $117 million; adjusted R&D was $23 million.

• Interest expense, net, was $23.8 million in Q2 2024, slightly lower than $24.1 million in Q2 2023.

Outlook and guidance

• FY 2024 adjusted EBITDA guidance narrowed to $345–$365 million from $330–$370 million.

• Adjusted EPS guidance raised to $4.95–$5.35 from $4.40–$5.10, including a $0.15 tax benefit.

• Full-year adjusted revenue growth expected in the low to mid-single digits; gross margin guidance increased to ~36%.

• Capital expenditures for 2024 expected at $85–$100 million, weighted to the second half.

• FY 2024 GAAP net loss guidance improved to $(118)M–$(108)M from prior $(127)M–$(110)M.