Teleflex (TFX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $700.7 million, down 5% year-over-year on a GAAP basis and 3.8% on an adjusted constant currency basis; adjusted EPS was $2.91, a 9.3% decrease year-over-year, while GAAP EPS rose to $2.07 from $0.33, reflecting lower revenue, margins, and higher tax rate, partially offset by lower interest expense and share count.

• Announced intention to separate into two independent public companies, with significant third-party interest in acquiring NewCo; separation targeted for mid-2026.

• Acquisition of Biotronik's vascular intervention business for €760 million remains on track to close by end of Q3 2025, with related financing and hedging arrangements in place.

• Completed $300 million accelerated share repurchase, buying 2.2 million shares at $135.23 average price, exhausting the $500 million buyback program.

• Ongoing restructuring and footprint realignment, with estimated aggregate charges up to $46 million for 2024 initiatives.

Financial highlights

• Americas revenue: $475.7 million, down 3.7% year-over-year; EMEA: $151.2 million, down 5.3%; Asia: $73.8 million, down 12.4%.

• Vascular access revenue up 1.9% to $182.4 million; interventional up 3.2% to $137.5 million; anesthesia down 8.6% to $86.6 million; surgical up 2% to $105.8 million; interventional urology down 10.7% to $71 million; OEM down 26.8% to $63.9 million.

• GAAP gross margin was 55.6% (down from 56.4%); adjusted gross margin was 60.4% (down 70 bps year-over-year); adjusted operating margin was 24.7% (down 190 bps year-over-year).

• Net income from continuing operations was $95.1 million, up from $15.7 million in Q1 2024; net cash from operating activities was $73.3 million, down from $112.8 million year-over-year.

• Cash and equivalents at quarter-end were $317.5 million; inventories increased to $644.0 million from $600.1 million at year-end 2024.

Outlook and guidance

• 2025 adjusted constant currency revenue growth expected at 1–2%; reported revenue growth guidance raised to 1.28%–2.28% ($3.086B–$3.117B) due to improved FX outlook.

• 2025 adjusted EPS guidance lowered to $13.20–$13.60 from $13.95–$14.35, mainly due to tariffs; GAAP EPS guidance lowered to $6.51–$6.91.

• Tariffs expected to have a $55 million impact in 2025, mainly affecting cost of goods sold; mitigation strategies underway.

• 2025 gross margin expected at 58.25%–59%, with 180 bps of the 200 bps reduction due to tariffs; operating margin guidance for 2025 is 24.6%–25%.

• Q2 2025 adjusted constant currency revenue growth expected at 0.5%–1.5%.