Strata Critical Medical (SRTA) UBS Global Healthcare Conference summary

Strategic transition and platform

• Divested the passenger business about a year before the conference and shifted focus to transplant services, adding surgical recovery and perfusion capabilities, including normothermic regional perfusion (NRP).

• U.S. donation-after-circulatory-death (DCD) transplants have grown ~15% annually; technology and regulation are enabling this donor category.

• Built an integrated, open infrastructure layer on a cardiac perfusion base serving hundreds of U.S. hospitals; acquisitions and organic expansion add clinicians and local coverage.

• A network of ~20 aviation hubs, local surgeons and distributed equipment supports 24/7 operations; ~25% of DCD cases may be dry runs, making local deployment a cost-saving advantage.

Growth, customer value and industry dynamics

• Growth in DCD donations and NRP adoption is increasing recovery complexity and demand for third-party recovery services; an acquisition added strategically located surgeons in Florida and California.

• OPO retainer contracts can cover NRP and surgical recovery across service areas; management cited ~50% more usable organs from donors processed through NRP.

• Management expects fewer OPOs through consolidation and views higher accountability and standards as positive; decertification and voluntary consolidation have deepened its OPO relationships.

• Local staffing lets surgeons spend more time in operating rooms and increases recovery capacity; new devices expected in 2027 should give transplant centers more options, including potentially lower-cost solutions.

• Device strategy is to support multiple technologies through skilled operators, hub-based storage and flexible logistics rather than favoring a particular device or modality.

Financial outlook and capital allocation

• The 13% medium-term organic margin target set at Investor Day was achieved in the latest quarter; clinical services typically carry higher margins than logistics, supporting mix-driven expansion.

• SG&A was roughly flat over the prior four quarters as revenue scaled; future SG&A growth is expected to be mostly inflationary, with operating leverage anticipated to continue.

• FY2026 free-cash-flow conversion is expected at 60%, within the prior 60%–70% target range, and is expected to move toward the high end going forward.

• Capital deployment priorities include acquisitions that extend geographic reach and strengthen customer value; management cited an upcoming earnout payment and an undrawn revolver as available capacity.