Merit Medical Systems (MMSI) Canaccord Genuity's 46th Annual Growth Conference summary

Strategic planning and guidance

• Current strategic plan (CGI) is on track to meet 5%-7% organic CAGR revenue, 20%-22% margin, and $400M+ cumulative free cash flow by year-end.

• Next three-year strategic plan is in development, with a likely announcement on the Q4 call; leadership is evaluating whether to retain previous key targets.

• Portfolio review is ongoing, with a focus on identifying core strengths and potential for further strategic divestitures or pruning of non-core assets.

• Leadership transition has enabled a thorough review and collaborative approach to future planning.

• Execution on current goals remains the top priority before rolling out the next plan.

Portfolio management and growth initiatives

• Recent divestitures, such as DualCap, reflect a targeted, surgical approach to portfolio optimization, focusing on small, non-core assets.

• Ongoing SKU rationalization may be complemented by selective sales of product lines, but no large-scale divestitures are planned.

• Investments and acquisitions have strengthened platforms in oncology, endoscopy, and renal therapies.

• Endoscopy segment grew 29% year-over-year, driven by both acquisitions and new product launches.

• OEM segment rebounded with new customer agreements and stocking, supporting confidence in mid to high single-digit growth for the second half.

Margin expansion and operational efficiency

• Operating margin has improved by 850 basis points, with potential to reach 950 basis points at the high end of guidance.

• Margin gains are attributed to pricing, mix, automation, facility moves, and ongoing operational improvements.

• Continuous focus on efficiency, automation, and logistics is expected to drive further incremental improvements.

• The company aims to maintain a perpetual improvement mindset, applying lessons from previous initiatives.