Teleflex (TFX) Q4 2025 earnings summary

Executive summary

• 2025 marked a year of transformation with strategic divestitures of Acute Care, Interventional Urology, and OEM businesses, generating $2.03 billion in proceeds and $1.8 billion after-tax expected in 2H 2026.

• The company is transitioning to a more focused, higher-growth organization, prioritizing portfolio optimization, operational momentum, and innovation in Vascular, Interventional, and Surgical segments.

• Interim CEO is in place while the board searches for a permanent CEO with global, high-growth, hospital-focused experience.

• 2026 is positioned as a transition year, with proceeds from divestitures to be used for $1 billion in share repurchases and ~$800 million in debt repayment.

• A multi-year restructuring plan aims for $48–$52 million in annual pre-tax savings, to be completed by mid-2028.

Financial highlights

• 2025 adjusted EPS was $6.98, up 8.7% year-over-year, with adjusted gross margin at 63.7% and adjusted operating margin at 22.7%.

• 2025 pro forma adjusted constant currency revenue grew 4.7% year-over-year in 2H 2025.

• GAAP revenue from continuing operations for 2025 was $1,992.7 million, a 17.2% increase year-over-year.

• Cash and equivalents at year-end 2025 were $402.7 million, up from $285.3 million at year-end 2024.

• Depreciation, amortization, and deferred financing charges for 2025 totaled $182.4 million, up from $164.9 million in 2024.

Outlook and guidance

• 2026 adjusted EPS guidance is $6.25–$6.55, with GAAP EPS guidance at $2.90–$3.20, reflecting $90 million in stranded costs and excluding benefits from transition agreements, share repurchases, and debt repayment.

• 2026 pro forma adjusted constant currency revenue growth expected at 4.5%–5.5%, in line with 4.7% growth in 2H 2025.

• 2026 adjusted operating margin expected at ~19%, with R&D investment at ~8% of sales and a ~13.5% tax rate.

• No incremental share repurchases or debt paydown from sale proceeds are assumed in 2026 guidance.

• Significant EPS uplift expected in 2027 and beyond as stranded costs are offset, debt is repaid, and share repurchases are executed.