Q2 2026 Teleflex Inc Earnings Call

August 6, 2026

Operator 2: Please stand by. Good morning, ladies and gentlemen, welcome to the Teleflex Q2 2026 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode. At the end of the company's prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and will be available on the company's website for replay shortly. Now I'll turn the call over to Mr. Lawrence Keusch, Vice President of Investor Relations and Strategy Development. Please go ahead.

Operator: Good morning, ladies and gentlemen, welcome to the Teleflex Q2 2026 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode. At the end of the company's prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and will be available on the company's website for replay shortly. Now I'll turn the call over to Mr. Lawrence Keusch, Vice President of Investor Relations and Strategy Development. Please go ahead.

Speaker #3: Good morning, everyone, and welcome to the call are available on our website at teleflex.com. As a reminder, a replay will be available on our website.

Lawrence Keusch: Good morning, everyone, and welcome to the Teleflex Incorporated Q2 2026 earnings conference call. The press release and slides to accompany this call are available on our website at teleflex.com. As a reminder, a replay will be available on our website. Those wishing to access the replay can refer to our press release from this morning for details. Participating on today's call are Jason Weidman, President and Chief Executive Officer, and John Deren, Executive Vice President and Chief Financial Officer. Jason and John will provide prepared remarks, then we will open the call to Q&A. Before we begin, I'd like to remind you that some of the matters discussed in the conference call will contain forward-looking statements regarding future events, as outlined in the slides posted to the investor relations section of the Teleflex website.

Speaker #3: Officer. Jason and John will provide prepared remarks, and then we will open the call to Q&A. Before we begin, I'd like to remind you that some of the matters discussed in the conference call will regarding future events as outlined in the slides posted to the Investor Relations section of the Teleflex website.

Speaker #3: We wish to caution you that such statements are, in fact, forward-looking in nature, and are subject to risks and uncertainties and actual events or results may differ materially.

Lawrence Keusch: We wish to caution you that such statements are in fact forward-looking in nature and are subject to risks and uncertainties. Actual events or results may differ materially. The factors that could cause actual results or events to differ materially include, but are not limited to, factors referenced in our press release today, as well as our filings with the SEC, including our Form 10-K, which can be accessed on our website. Now, I'll turn the call over to Jason for his remarks.

Speaker #3: The factors that could cause actual results or events to differ materially include but are not limited to: factors referenced in our press release today as well as our filings with the SEC, including our Form 10-K, which can be accessed on our website.

Speaker #3: Now, I'll turn the call over to Jason for his remarks.

Jason Weidman: Thank you, Larry. Good morning, everyone. Let me begin by saying it's been a great start to my time at Teleflex. Over the past two months, I've really focused on learning our business, our products, and our organization. This has meant considerable time visiting many of our sites around the globe, meeting with employees across the organization, engaging with customers and physicians, and reviewing the company's portfolio, operating priorities, and long-term growth opportunities. While it's still early, a couple of things have stood out immediately to me. Our employees are fantastic. They're dedicated, there's real pride and belief in what we do for patients, and they're eager to build on our accomplishments and drive execution. Second is the strength of Teleflex's underlying businesses. We have great products with market-leading positions in many important categories, strong brands, and a substantial global commercial footprint.

Speaker #4: employees across the organization, engaging with customers and physicians, and reviewing the company's portfolio, operating priorities, and long-term growth Participating opportunities. While it's still early, a couple of things have stood out immediately to me.

Speaker #4: Our employees are fantastic. They're dedicated, there's real pride and belief in what we do for patients, and they're eager to build on our accomplishments and drive execution.

Speaker #4: Second is the strength of Teleflex's underlying businesses. We have great products with market-leading positions in many important categories, strong brands, and a substantial global commercial footprint.

Speaker #4: My initial observations have also reinforced my belief that there is substantial opportunity ahead for Teleflex and that we have the right foundation to capture this potential.

Jason Weidman: My initial observations have also reinforced my belief that there is substantial opportunity ahead for Teleflex, that we have the right foundation to capture this potential. We remain focused on executing key initiatives underway, including completing the announced divestitures, deploying the proceeds through our committed debt reduction and share repurchase initiatives, mitigating stranded costs associated with the divestitures. Taken together, these actions will create a more focused portfolio, give us greater exposure to core critical care and high acuity hospital markets, further strengthen Teleflex's financial and strategic flexibility in its next phase of growth. The divestitures and capital allocation plan reflect a thoughtful and proactive approach to value creation, realizing our full potential will require continued deliberate action and consistent execution across the company.

Speaker #4: We remain focused on executing key initiatives underway, including completing the announced divestitures, deploying the proceeds through our committed debt reduction and share repurchase initiatives, and mitigating stranded costs associated with the divestitures.

Speaker #4: Taken together, these actions will create a more focused portfolio, give us greater exposure to core critical care and high acuity hospital markets, and further strengthen Teleflex's financial and strategic flexibility in its next phase of growth.

Speaker #4: The divestitures and capital allocation plan reflect a thoughtful and proactive approach to value creation, but realizing our full potential will require continued deliberate action and consistent execution across the company.

Speaker #4: As I step into this role, my top priority is to thoroughly assess the business and to develop the strategic and operational plan that focuses our resources on the areas where we see the greatest opportunities for sustainable growth, innovation, and operational leverage, with the objective of maximizing value for our shareholders.

Jason Weidman: As I step into this role, my top priority is to thoroughly assess the business and to develop the strategic and operational plan that focuses our resources on the areas where we see the greatest opportunities for sustainable growth, innovation, and operational leverage with the objective of maximizing value for our shareholders. While this review is ongoing, like most medical device companies, the focus will center on operational rigor and predictability across the organization, accelerating growth in innovation-driven platforms, and ensuring disciplined and balanced capital deployment. I look forward to partnering with the leadership team and our employees to build upon the strong foundation that's already in place and continue advancing Teleflex's transformation into a more focused medical technologies leader with durable long-term growth. Now I'd like to transition to the Q2 highlights. Our overall pro forma adjusted constant currency growth was 4.7%, while adjusted operating margin was 19.6%.

Speaker #4: While this review is ongoing, like most medical device companies, the focus will center on operational rigor and predictability across the organization, accelerating growth and innovation-driven platforms, and ensuring disciplined and balanced capital deployment.

Speaker #4: I look forward to partnering with the leadership team and our employees to build upon the strong foundation that's already in place and continue advancing Teleflex's transformation into a more focused medical technologies leader with durable long-term growth.

Speaker #4: Now I'd like to transition to the second quarter highlights. Our overall pro forma adjusted constant currency growth was 4.7%, while adjusted operating margin was 19.6%.

Speaker #4: We delivered better-than-expected revenue, adjusted margin, and adjusted EPS, with excellent performance in the vascular and surgical businesses in particular. At the same time, interventional performance fell short of our expectations as the integration associated with the VI acquisition is taking longer than anticipated.

Jason Weidman: We delivered better-than-expected revenue, adjusted margin, and adjusted EPS with excellent performance in the vascular and surgical businesses in particular. At the same time, interventional performance fell short of our expectations as the integration associated with the BI acquisition is taking longer than anticipated. As John will discuss, we have updated our full-year revenue outlook to reflect a more tempered expectation for interventional growth while maintaining our adjusted operating margin outlook and increasing our adjusted EPS guidance. We've previously emphasized that 2026 would be a transition year for Teleflex as we become a stronger, more focused company for the future. To that end, I'm pleased to share that we're making significant progress on our strategic transformation and our commitment to maximizing shareholder value. In December of 2025, we announced agreements to sell the acute care, interventional urology, and OEM businesses as part of our overall transformation plan.

Speaker #4: As John will discuss, we have updated our full-year revenue outlook to reflect a more tempered expectation for interventional growth while maintaining our adjusted operating margin outlook and increasing our adjusted EPS guidance.

Speaker #4: We've previously emphasized that 2026 would be a transition year for Teleflex, as we become a stronger, more focused company for the future. To that end, I'm pleased to share that we're making significant progress on our strategic transformation and our commitment to maximizing shareholder value.

Speaker #4: In December of 2025, we announced agreements to sell the Acute Care, Interventional Urology, and OEM businesses as part of our overall transformation plan. As announced early this week, we have successfully closed the OEM divestiture, which resulted in proceeds of approximately $1.5 billion and estimated after-tax proceeds of $1.25 billion.

Jason Weidman: As announced early this week, we have successfully closed the OEM divestiture, which resulted in proceeds of approximately $1.5 billion and estimated after-tax proceeds of $1.25 billion. The OEM strategic divestiture generates the majority of the proceeds from the planned strategic divestitures and will fund both debt reduction and share repurchase. John will get into more details on the use of proceeds from the OEM close and capital allocation in a few minutes. Turning to the acute care and interventional urology divestiture, we remain confident in closing the transaction. As previously disclosed, the FTC issued a second request in March seeking additional information in connection with its review of the transaction. Both parties are working cooperatively with the FTC.

Speaker #4: The OEM strategic divestiture generates the majority of the proceeds from the planned strategic divestitures and will fund both debt reduction and share repurchase. John will get into more details on the use of proceeds from the OEM close, and capital allocation in a few minutes.

Speaker #4: Turning to the Acute Care and Interventional Urology divestiture, we remain confident in closing the transaction. As previously disclosed, the FTC issued a second request in March seeking additional information in connection with its review of the transaction.

Speaker #4: Both parties are working cooperatively with the FTC. The strategic divestiture is currently anticipated to be completed in the fourth quarter of 2026, although the timing is dependent on the regulatory approval process and remaining steps to complete the transaction.

Jason Weidman: The strategic divestiture is currently anticipated to be completed in the Q4 of 2026, although the timing is dependent on the regulatory approval process and remaining steps to complete the transaction. As I focus on durable future growth, driving innovation is a key priority for Teleflex. I am excited about the new product opportunities we are developing. Over the past several quarters, we have deliberately increased our R&D investment with R&D expense at 7.9% of sales in the H1 of 2026. As I look ahead, we will focus on effectively allocating capital to new R&D opportunities that fortify our existing product portfolio, leverage our call points, and are accretive to our long-term growth profile.

Speaker #4: As I focus on durable future growth, driving innovation is a key priority for Teleflex. I am excited about the new product opportunities we are developing, and over the past several quarters, we have deliberately increased our R&D investment, with R&D expense at $7.9% of sales in the first half of 2026.

Speaker #4: As I look ahead, we will focus on effectively allocating capital to new R&D opportunities that fortify our existing product portfolio, leverage our call points, and our accretive to our long-term growth profile.

Speaker #4: Importantly, we have had a number of exciting new product innovation developments recently, including the late July BLA approval from the FDA for easy plas, freeze-dried plasma, as well as the achievement of important clinical trial milestones for Fresol, our novel drug-eluting resorbable magnesium scaffold.

Jason Weidman: Importantly, we have had a number of exciting new product innovation developments recently, including the late July BLA approval from the FDA for EZ-PLAS freeze-dried plasma, as well as the achievement of important clinical trial milestones for Freesolve, our novel drug-eluting resorbable magnesium scaffold. EZ-PLAS, which will expand the emergency medicine portfolio in our vascular business, represents a novel solution to administering plasma to critically injured patients in combat and in pre-hospital settings. Approved for the treatment of adults with uncontrolled bleeding resulting from traumatic injuries when plasma is required and other plasma products are not available, EZ-PLAS is the first freeze-dried plasma licensed by the FDA. EZ-PLAS uses an innovative, flexible plastic bag technology that enables quick and efficient reconstitution of freeze-dried plasma.

Speaker #4: Easy plas, which will expand the emergency medicine portfolio in our vascular business, represents a novel solution to administering plasma to critically injured patients in combat and in pre-hospital settings.

Speaker #4: Approved for the treatment of adults with uncontrolled bleeding, resulting from traumatic injuries when plasma is required and other plasma products are not available, easy plas is the first freeze-dried plasma licensed by the FDA.

Speaker #4: Easy plas uses an innovative flexible plastic bag technology that enables quick and efficient reconstitution of freeze-dried plasma. It fills an unmet need by enabling the transfusion of plasma in situations where it is critically needed, including on the battlefield or on air and road ambulances.

Jason Weidman: It fills an unmet need by enabling the transfusion of plasma in situations where it is critically needed, including on the battlefield or on air and road ambulances, where the use of traditional plasma products is limited by logistical and operational challenges. Turning to the future for the interventional business, as part of our commitment to increasing R&D investment in innovative technologies, we continue to advance our clinical study program with a highly differentiated Freesolve drug-eluting resorbable magnesium scaffold technology. Freesolve pairs temporary scaffolding with drug delivery to target a long-sought goal in interventional cardiology, and is anticipated to address the rapidly growing trend in coronary and endovascular procedures towards treatments that leave nothing behind. During Q2, we announced several milestones from the Freesolve clinical program.

Speaker #4: Where the use of traditional plasma products is limited by logistical and operational challenges. Turning to the future for the interventional business, and as part of our commitment to increasing R&D investment in innovative technologies, we continue to advance our clinical study program for the highly differentiated Fresolv drug-eluting resorbable magnesium scaffold technology.

Speaker #4: Fresolv pairs temporary scaffolding with drug delivery to target a long-sought goal in interventional cardiology, and is anticipated to address the rapidly growing trend in coronary and endovascular procedures towards treatments that leave nothing behind.

Speaker #4: During the second quarter, we announced several milestones from the Fresolv clinical program. Four-year follow-up data from the single-arm Biomag-1 study were presented in May at the Paris Course of Revascularization, demonstrating sustained long-term performance in a favorable long-term safety profile of Fresolv.

Jason Weidman: 4-year follow-up data from the single-arm BIOMAG-I study were presented in May at the Paris Course on Revascularization, demonstrating sustained long-term performance in a favorable long-term safety profile of Freesolve. We also announced the completion of patient enrollment ahead of schedule for the BIOMAG-II study, which is the first randomized controlled trial for Freesolve run outside of the US. This positions us for a late 2027 data readout. Finally, we commenced the BIOMAG-III randomized pivotal trial in the US, with the first patient procedures completed in June at the MedStar Washington Hospital Center. While this comprehensive clinical program is still in its early phases, we are encouraged by the data to date and excited about the optionality that Freesolve provides us in the future. In summary, taken together, all of these updates and actions reflect a more focused portfolio, disciplined capital allocation, and innovation progression.

Speaker #4: We also announced the completion of patient enrollment ahead of schedule for the Biomag-2 study, which is the first randomized controlled trial for Fresolv run outside of the United States.

Speaker #4: This positions us for a late 2027 data readout. Finally, we commenced the Biomag-3 randomized pivotal trial in the US with the first patient procedures completed in June, at the MedStar Washington Hospital Center.

Speaker #4: While this comprehensive clinical program is still in its early phases, we are encouraged by the day-to-day and excited about the optionality that Fresolv provides us in the future.

Speaker #4: In summary, taken together, all of these updates and actions reflect a more focused portfolio, disciplined capital allocation, and innovation progression. We believe they position Teleflex to deliver improved execution and stronger long-term performance.

Jason Weidman: We believe they position Teleflex to deliver improved execution and stronger long-term performance. We are building a clear financial profile and path to value creation through improved adjusted margins, lower interest expense, and stronger adjusted earnings per share over time. 2026 remains a transition year for the company. Our transformation is well underway with tangible milestones being met, including the close of the OEM strategic divestiture and return of capital to shareholders. As we continue to execute on our priorities, we expect a meaningful step-up in our financial performance in 2027 and beyond. Now let's move on to our Q2 continuing operations detailed results and updated financial guidance for 2026. All growth rates that I refer to are on a year-over-year pro forma adjusted constant currency basis, unless otherwise noted.

Speaker #4: We are building a clearer financial profile and path to value creation through improved adjusted margins, lower interest expense, and stronger adjusted earnings per share over time.

Speaker #4: 2026 remains a transition year for the company, and our transformation is well underway, with tangible milestones being met, including the close of the OEM strategic divestiture and return of capital to shareholders.

Speaker #4: As we continue to execute on our priorities, we expect a meaningful step-up in our financial performance in 2027 and beyond. Now, let's move on to our second quarter continuing operations detailed results and updated financial guidance for 2026.

Speaker #4: All growth rates that I referred to are on a year-over-year pro forma adjusted constant currency basis unless otherwise noted. Pro forma adjusted constant currency growth for 2026 excludes the impact of foreign exchange, the $9 million Italian payback measure recorded in the second half of 2025, and the impact of approximately $14 million in continuing operations product revenue that was discontinued at the end of 2025 due to a strategic realignment.

Jason Weidman: Pro forma adjusted constant currency growth for 2026 excludes the impact of foreign exchange, the $9 million Italian payback measure recorded in H2 2025, and the impact of approximately $14 million in continuing operations product revenue that was discontinued at the end of 2025 due to a strategic realignment. It includes revenue generated by the acquired Vascular Intervention business for the prior full year period. All comments relate to continuing operations for Q2 2026. For Q2, Teleflex revenues were $570.3 million, up 28.9% year-over-year on a GAAP basis and up 4.7% on a pro forma adjusted constant currency basis. In the quarter, our revenue performance reflected strong execution in our Vascular and Surgical businesses, partially offset by the performance of our Interventional business, which was impacted by integration and restructuring activities related to the VI business.

Speaker #4: But includes revenue generated by the acquired vascular intervention business for the prior full year period. All comments relate to continuing operations, with a second quarter of 2026.

Speaker #4: For the second quarter, Teleflex revenues were $570.3 million up $28.9% year-over-year on a gap basis and up 4.7% on a pro forma adjusted constant currency basis.

Speaker #4: In the quarter, our revenue performance reflected strong execution in our vascular and surgical businesses. Partially offset by the performance of our interventional business, which was impacted by integration and restructuring activities related to the VI business.

Speaker #4: Second quarter adjusted earnings per share was $1.76, a 1.7% increase year-over-year, and ahead of our expectations. Now let's take a deeper dive into our second quarter revenue performance.

Jason Weidman: Q2 adjusted earnings per share was $1.76, a 1.7% increase year-over-year and ahead of our expectations. Now let's take a deeper dive into our Q2 revenue performance. I will begin with a review of our revenues by global product category for Q2. Starting with Vascular. Revenue was $246.3 million, an increase of 8% year-over-year, primarily driven by growth in our hemostatic products and in our central access portfolio. In our Surgical business, revenue was $112.1 million, an increase of 9.2%, which was primarily driven by strong performance in ligation clips, our instrument portfolio, and skin stapling. Moving to Interventional, revenue was $211.9 million, a decrease of 1%. While several categories, including hemostatic products, right heart catheters, intraosseous, and complex catheters, outperformed, growth was softer than expected in the quarter, reflecting ongoing integration and restructuring activities associated with the VI acquisition.

Speaker #4: I will begin with a review of our revenues by global product category for the second quarter. Starting with vascular, revenue was $246.3 million and increase of 8% year-over-year, primarily driven by growth in our hemostatic products and in our central access portfolio.

Speaker #4: In our surgical business, revenue was $112.1 million, an increase of 9.2%, which was primarily driven by strong performance in ligation clips, our instrument portfolio, and skin stapling.

Speaker #4: Moving to interventional, revenue was $211.9 million, a decrease of 1%. While several categories including hemostatic products, right heart catheters, intraosseous, and complex catheters outperformed, growth was softer than expected in the quarter, reflecting ongoing integration and restructuring activities associated with the VI acquisition.

Speaker #4: Although 2026 was always expected to be a transition year, the integration in the quarter was slower than anticipated, reflecting several transition factors that we expect to be temporary.

Jason Weidman: Although 2026 was always expected to be a transition year, the integration in the quarter was slower than anticipated, reflecting several transition factors that we expect to be temporary. We are making progress on mitigation actions to address the primary drivers of these temporary impacts, and we remain confident in the long-term strategic and financial prospects for this business. That said, while the original plan contemplated that the integration would be largely completed towards the middle of 2026, we believe it is prudent to extend the timeline for full integration through H2 2026, given some of the lingering transition issues still impacting the business. I've spent the last 20 years of my career working in the Interventional space, and that experience gives me real conviction in the opportunity ahead for Teleflex.

Speaker #4: We are making progress on mitigation actions to address the primary drivers of these temporary impacts and we remain confident in the long-term strategic and financial prospects for this business.

Speaker #4: That said, while the original plan contemplated that the integration would be largely completed towards the middle of 2026, we believe it is prudent to through the second half of 2026, given some of the lingering transition issues still impacting the business.

Speaker #4: I've spent the last 20 years of my career working in the interventional space, and that experience gives me real conviction in the opportunity ahead for Teleflex.

Speaker #4: At a high level, the legacy Teleflex interventional and acquired vascular intervention business fit together very well. And with highly complementary product portfolios in geographic strengths.

Jason Weidman: At a high level, the legacy Teleflex Interventional and acquired Vascular Intervention business fit together very well and with highly complementary product portfolios and geographic strengths. I believe that these are the right assets for Teleflex to expand its presence in Interventional coronary and peripheral procedures. Drilling down a bit more, we have great products, a broad portfolio that includes specialty devices that physicians rely on and appreciate. I see meaningful opportunities to gain share, expand geographically, and bring new products to market, including through our innovation pipeline, which features differentiated products like Freesolve. As we actively work through the 2026 transition year, my focus is on positioning the business for success in 2027 and beyond. My broader review is ongoing, but my immediate priorities are clear: complete the integration associated with the VI acquisition and position Teleflex for improved growth as we continue the overall transformation of our business.

Speaker #4: I believe that these are the right assets for Teleflex to expand its presence in interventional coronary and peripheral procedures. Drilling down a bit more, we have great products, a broad portfolio that includes specially devices that physicians rely on and appreciate.

Speaker #4: I see meaningful opportunities to gain share, expand geographically, and bring new products to market. Including through our innovation pipeline, which features differentiated products like Fresolf.

Speaker #4: As we actively work through the 2026 transition year, my focus is on positioning the business for success in 2027 and beyond. My broader review is ongoing, but my immediate priorities are clear.

Speaker #4: Complete the integration associated with the VI acquisition and position Teleflex for improved growth as we continue the overall transformation of our business. That completes my comments on the second quarter revenue performance.

Jason Weidman: That completes my comments on the Q2 revenue performance. Now I'd like to turn the call over to John for a more detailed review of our financial results. John?

Speaker #4: Now, I'd like to turn the call over to John for a more detailed review of our financial results. John?

Speaker #2: Thanks, Jason, and good morning. All results that I speak to will be on a continuing operations basis for 2026. Through the reclassification to discontinued operations, historical continuing operations reflect the impact of stranded costs in all periods presented.

John Deren: Thanks, Jason, and good morning. All results that I speak to will be on a continuing operations basis for 2026. Through the reclassification to discontinued operations, historical continuing operations reflect the impact of stranded costs in all periods presented. Given Jason's previous discussion of revenue, I'll begin with margins. For the Q2 of 2026, adjusted gross margin was 61.7%. The 280 basis point decrease year-over-year was primarily due to the adverse impact of tariffs and the addition of the Vascular Intervention business, which has a slightly lower gross margin than the corporate average. Of note, there were no recognition of IEEPA tariff refunds in the Q2. Q2 2026 adjusted operating margin was 19.6%. The 520 basis point decrease reflects year-over-year gross margin pressure and higher operating expenses associated with the acquired Vascular Intervention business, as well as increased R&D investment.

Speaker #2: Given Jason's previous discussion of revenue, I'll begin with margins. For the second quarter of 2026, adjusted gross margin was $61.7%. The $280 basis point decrease year-over-year was primarily due to the adverse impact to tariffs and the addition of the vascular intervention business, which has a slightly lower gross margin than the corporate average.

Speaker #2: Of note, there was no recognition of IEPA tariff refunds in the second quarter. Second quarter 2026 adjusted operating margin was 19.6%. The 520 basis point decrease reflects year-over-year gross margin pressure and higher operating expenses associated with the acquired Vascular Intervention business, as well as increased R&D investment.

Speaker #2: Adjusted net interest expense totaled $26.5 million for the second quarter, as compared to $20.3 million in the prior period. The year-over-year increase is primarily due to the borrowings used to finance the vascular intervention acquisition and a portion of the open market share repurchases in the second quarter of 2026, partially offset by lower interest rates.

John Deren: Adjusted net interest expense totaled $26.5 million for the Q2 as compared to $20.3 million in the prior period. The year-over-year increase is primarily due to the borrowings used to finance the Vascular Intervention acquisition and a portion of the open market share repurchases in the Q2 of 2026, partially offset by lower interest rates. Our adjusted tax rate for the Q2 of 2026 was 9.9%, as compared to 14.1% in the prior period. The year-over-year decrease is primarily due to the beneficial tax provisions included in the One Big Beautiful Bill Act, increased utilization of US tax credits, and favorable jurisdictional mix in the quarter. At the bottom line, Q2 adjusted EPS was $1.76, representing a 1.7% increase year-over-year.

Speaker #2: Our adjusted tax rate for the second quarter of 2026 was 9.9% as compared to 14.1% in the prior period. The year-over-year decrease is tax provisions included in the One Big Beautiful Bill Act, increased utilization of US tax credits, and favorable jurisdictional mix in the quarter.

Speaker #2: At the bottom line, second quarter adjusted earnings per share was $1.76, representing a 1.7% increase year-over-year. The year-over-year increase was primarily due to a lower share count and tax rate and to a lesser extent higher adjusted operating income partially offset by tariffs and higher interest expense.

John Deren: The year-over-year increase was primarily due to a lower share count and tax rate, to a lesser extent, higher adjusted operating income, partially offset by tariffs and higher interest expense. At the end of the Q2, our cash and cash equivalents and restricted cash equivalents balance was $316.9 million as compared to $402.7 million as of year-end 2025. Net leverage at the end of the quarter was approximately 2.8x, up slightly from the Q1, primarily driven by borrowings to fund the share repurchases completed during the Q2. Pro forma net leverage for the OEM strategic divestiture was approximately 1.9x. Turning to our capital allocation strategy. We remain committed to returning cash to shareholders under our previously announced $1 billion share repurchase authorization while reducing debt by $800 million.

Speaker #2: At the end of the second quarter, our cash and cash equivalents and restricted cash equivalents balance was $316.9 million, as compared to $402.7 million as of year-end 2025.

Speaker #2: Net leverage at the end of the quarter was approximately $2.8 times up slightly from the first quarter, primarily driven by borrowings to fund the share repurchases completed during the second quarter.

Speaker #2: Pro forma net leverage for the OEM strategic divestiture was approximately 1.9 times. Turning to our capital allocation strategy, we remain committed to returning cash to shareholders under our previously announced $1 billion share repurchase authorization.

Speaker #2: By reducing debt by $800 million. To accelerate the return of capital shareholders during the second quarter, we repurchased approximately $1.9 million shares of our common stock for $250 million through open market transactions at an average share price of $130.85.

John Deren: To accelerate the return of capital to shareholders, during Q2, we repurchased approximately 1.9 million shares of our common stock for $250 million through open market transactions at an average share price of $130.85. With the close of the OEM strategic divestiture, I am pleased to announce that we intend to commence an additional $250 million accelerated share repurchase on 7 August. The remaining net proceeds from the OEM strategic divestiture were primarily used to pay off the $700 million Term Loan A-2 associated with the acquisition of the Vascular Intervention business. We will replenish funds deployed for the $250 million share repurchase that was completed during Q2. Turning now to our financial guidance framework.

Speaker #2: With the close of the OEM strategic divestiture, I am pleased to announce that we intend to commence an additional $250 million accelerated share repurchase on August 7th.

Speaker #2: The remaining net proceeds from the OEM strategic divestiture were primarily used to pay off the $700 million term loan A2 associated with the acquisition of the vascular intervention business.

Speaker #2: And we will replenish funds deployed for the $250 million share repurchase that was completed during the second quarter. Turning now to our financial guidance framework.

Speaker #2: As we previously indicated, 2026 results include a number of transient factors related to our strategic divestitures that will impact our near-term results. Which we expect to be mitigated with the close of both transactions.

John Deren: As we previously indicated, 2026 results include a number of transient factors related to our strategic divestitures that will impact our near-term results, which we expect to be mitigated with the close of both transactions. Therefore, we anticipate 2027 will be more reflective of the underlying business, ultimately building a clearer financial profile with significant improvements in adjusted margins, interest expense, and adjusted earnings per share. As previously announced, we have also launched a multi-year restructuring plan that is expected to achieve approximately $50 million in annual pre-tax cost savings upon completion in mid-2028. The restructuring activities, which are on track, began in Q1 2026, and our guidance continues to assume savings from these activities will accelerate in H2. We are also identifying further cost reduction opportunities and remain committed to mitigating the stranded costs associated with the strategic divestitures.

Speaker #2: Therefore, we anticipate 2027 will be more reflective of the underlying business, ultimately building a clearer financial profile with significant improvements in adjusted margins, interest expense, and adjusted earnings per share.

Speaker #2: As previously announced, we have also launched a multi-year restructuring plan that is expected to achieve approximately $50 million in annual pre-tax cost savings upon completion in mid-2028.

Speaker #2: The restructuring activities which are on track began in the first quarter of 2026 and our guidance continues to assume savings from these activities will accelerate in the second half of the year.

Speaker #2: We are also identifying further cost reduction opportunities and remain committed to mitigating the stranded costs associated with this strategic divestitures. With that context, I will review items that will impact our 2026 results.

John Deren: With that context, I will review items that will impact our 2026 results. First, our assumptions for 2026 continue to reflect the impact of stranded costs partially offset by TS agreements associated with the recent close of the OEM strategic divestiture. Of note, the TS and MS agreements associated with acute care and interventional urology strategic divestitures are more expansive than those for OEM due to the buyer requiring more support, which will drive adjusted margin expansion in 2027 as we offset stranded costs. Second, the exact timing of the closing of the acute care and interventional urology strategic divestiture will pace our ability to deploy additional capital during the remainder of 2026. Third, our 2026 adjusted gross margin assumption does not reflect any benefit from IEEPA tariff refunds.

Speaker #2: First, our assumptions for 2026 continue to reflect the impact of stranded costs partially offset by TS agreements associated with the recent close of the OEM strategic divestiture.

Speaker #2: Of note, the TS and MS agreements associated with the acute care and interventional urology strategic divestitures are more expansive than those for OEM, due to the buyer requiring more support. This will drive adjusted margin expansion in 2027 as we offset stranded costs.

Speaker #2: Second, the exact timing of the closing of the acute care and interventional urology strategic divestiture will pace our ability to deploy additional capital during the remainder of 2026.

Speaker #2: Third, our 2026 adjusted gross margin assumption does not reflect any benefit from IEPA tariff refunds. As we look forward to 2027 and beyond, we anticipate that, in combination with the impacts of the TS and MS agreements and our efforts to further mitigate stranded costs and right-size the organization, this will result in a significant increase in our adjusted operating income, adjusted margins, and adjusted EPS.

John Deren: As we look forward to 2027 and beyond, we anticipate our capital deployment actions, in combination with the impacts of the TS and MS agreements and our efforts to further mitigate stranded costs and right size the organization, will result in a significant increase in our adjusted operating income, adjusted margins, and adjusted EPS. Moving to an update on our 2026 guidance. Please note that our 2026 guidance is provided on a continuing operations basis and excludes the acute care, interventional urology, and OEM businesses. We now expect pro forma adjusted constant currency revenue growth for 2026 to be in a range of 3.5% to 4.5%, as compared to 4.5% to 5.5% previously.

Speaker #2: Moving to an update on our 2026 guidance. Please note that our 2026 guidance is provided on a continuing operations basis and excludes the acute care interventional urology and OEM businesses.

Speaker #2: We now expect proforma adjusted costs and currency revenue growth for 2026 to be in a range of 3.5% to 4.5% as compared to 4.5% to 5.5% previously.

Speaker #2: The updated guidance reflects the performance in the first half of 2026, the extended timeline for the integration of the interventional business, and our expectations for the vascular and surgical business for the second half of the year.

John Deren: The updated guidance reflects the performance in H1 2026, the extended timeline for the integration of the Interventional business, and our expectations for the Vascular and Surgical business for H2 of the year. Turning to adjusted earnings per share, we now expect an increased range of $6.90 to $7.20 in 2026, versus our previous guidance of $6.25 to $6.55. Our guidance includes the Q2 results, our updated expectations for H2 2026, including the benefit of the Q2 share repurchase activity and lower net interest expense. Our adjusted EPS guidance does not include any benefit from the proceeds resulting from the Acute Care and Interventional Urology strategic divestiture, and the anticipated positive impact from additional share repurchases in H2 2026, including the $250 million ASR referenced earlier in my remarks.

Speaker #2: Turning to adjusted earnings per share, we now expect an increased range of $6.90 to $7.20 in 2026 versus our previous guidance of $6.25 to $6.55.

Speaker #2: Our guidance includes the second quarter results and our updated expectations for the second half of 2026, including the benefit of the second quarter share repurchase activity and lower net interest expense.

Speaker #2: Our adjusted EPS guidance does not include any benefit from the proceeds resulting from the acute care and interventional urology strategic divestiture and the anticipated positive impact from additional share repurchases in the second half of 2026, including the $250 million ASR referenced earlier in my remarks.

Speaker #2: Also, for the avoidance of doubt, our adjusted EPS guidance does not assume a benefit from tariff refunds at this time. We will recognize the tariff refund upon full confirmation from the U.S. government.

John Deren: Also, for the avoidance of doubt, our adjusted EPS guidance does not assume a benefit of tariff refunds at this time. We will recognize the tariff refund upon full confirmation from the US government. We anticipate these actions will result in meaningfully lower share count and significantly reduced interest expense in 2027 and beyond. Taken together, we expect share repurchase and balance sheet de-leveraging activities will contribute to significantly higher adjusted EPS beginning in 2027. Additionally, for modeling purposes, you should consider the following. The impact of foreign exchange for 2026 is still expected to be approximately $14 million tailwind to our pro forma adjusted constant currency revenue growth. We continue to expect our 2026 adjusted operating margin to be approximately 19%. As previously discussed, after addressing stranded costs, we believe our steady state margin profile will be approximately 23%.

Speaker #2: We anticipate these actions will result in meaningfully lower share count and significantly reduced interest expense in 2027 and beyond. Taken together, we expect share repurchase and balance sheet deleveraging activities will contribute to significantly higher adjusted EPS beginning in 2027.

Speaker #2: Additionally, for modeling purposes, you should consider the following: The impact of foreign exchange for 2026 is still expected to be approximately a $14 million tailwind to our pro forma adjusted costs and currency revenue growth.

Speaker #2: We continue to expect our 2026 adjusted operating margin to be approximately 19%. As previously discussed, after addressing stranded costs, we believe our steady state margin profile will be approximately 23%.

Speaker #2: Looking forward, we see opportunities to improve upon that steady state operating margin through operating leverage associated with revenue growth and other cost saving initiatives.

John Deren: Looking forward, we see opportunities to improve upon that steady state operating margin through operating leverage associated with revenue growth and other cost-saving initiatives. Moving to assumptions below the line. For net interest expense, we now expect approximately $85 million for the full year 2026, as compared to the previous assumption of approximately $105 million. The change in outlook primarily reflects the $700 million debt reduction associated with our recent close of the OEM strategic divestiture, as well as the opportunities to optimize our near-term borrowings. We now expect our adjusted tax rate to be approximately 12.25% in 2026, as compared to approximately 13.5% previously. Finally, we expect shares outstanding to approximate 43.3 million, which excludes any benefit from the announced $250 million ASR. That concludes my prepared remarks. I would now like to turn the call back to Jason for closing commentary.

Speaker #2: Moving to assumptions below the line. For net interest expense, we now expect approximately $85 million for the full year 2026 as compared to the previous assumption of approximately $105 million.

Speaker #2: The change in outlook primarily reflects the $700 million debt reduction associated with our recent close of the OEM strategic divestiture, as well as the opportunities to optimize our near-term borrowings.

Speaker #2: We now expect our adjusted tax rate to be approximately 12.25% in 2026, as compared to approximately 13.5% previously. Finally, we expect shares outstanding to approximate 43.3 million, which excludes any benefit from the announced $250 million ASR.

Speaker #2: That concludes my prepared remarks. I would now like to turn the call back to Jason for closing commentary.

Speaker #1: Thanks, John. In closing, I will highlight our three key takeaways from the second quarter of 2026. First, Teleflex had a very solid second quarter, delivering better-than-expected revenue, adjusted margins, and adjusted EPS.

Jason Weidman: Thanks, John. In closing, I will highlight our three key takeaways from the Q2 2026. First, Teleflex had a very solid Q2, delivering better-than-expected revenue, adjusted margins, and adjusted EPS. We expect continued solid performance in Vascular and Surgical in H2 2026, albeit at a more moderate growth rate than the H1, alongside extended timelines to full Interventional integration. We have reduced our pro forma adjusted constant currency revenue growth guidance to reflect these dynamics, with the low end of the range contemplating no improvement in Interventional revenues versus the Q2 for the remainder of the year, in addition to typical Q3 seasonality. Second, we are committed to returning significant capital to shareholders. Accelerated share repurchase and debt reduction in the H1 are driving an increase in adjusted earnings per share guidance.

Speaker #1: We expect continued solid performance in Vascular and Surgical in the second half of 2026, albeit at a more moderate growth rate than the first half.

Speaker #1: Alongside, extended timelines to full interventional integration. We have reduced our proforma adjusted constant currency revenue growth guidance to reflect these dynamics. With the low end of the range, contemplating no improvement in interventional revenues versus the second quarter for the remainder of the year in addition to typical third quarter seasonality.

Speaker #1: Second, we are committed to returning significant capital to shareholders. Accelerated share repurchase and debt reduction in the first half are driving an increase in adjusted earnings per share guidance.

Speaker #1: The recently completed OEM strategic divestiture fuels additional repurchases and debt reduction going forward. Third, we are continuing to successfully execute on our transformation to a more streamlined portfolio which will position us for acceleration in 2027 and beyond.

Jason Weidman: The recently completed OEM strategic divestiture fuels additional repurchases and debt reduction going forward. Third, we are continuing to successfully execute on our transformation to a more streamlined portfolio, which will position us for acceleration in 2027 and beyond. We expect meaningful increases in adjusted operating margin and adjusted earnings per share in 2027. Additionally, recent positive innovation milestones with EZ-PLAS and Freesolve highlight our increased focus on future growth opportunities. That concludes my prepared remarks. Now I'd like to turn the call back to the operator for Q&A.

Speaker #1: We expect meaningful increases in adjusted operating margin and adjusted earnings per share in 2027. Additionally, recent positive innovation milestones with EasyPlas and FreeSolve highlight our increased focus on future growth opportunities.

Speaker #1: That concludes my prepared remarks. Now I'd like to turn the call back to the operator for Q&A.

Speaker #3: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. If you're using a speakerphone, make sure that your mute function is turned off to allow your signal to reach our equipment.

Operator 2: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you're using a speakerphone, make sure that your mute function is turned off to allow your signal to reach our equipment. We ask that you limit yourself to one question and one follow-up. If you would like to ask additional questions, we invite you to add yourself to the queue again by pressing star one. Our first question comes from the line of Vik Chopra of BMO Capital Markets. Your line is open.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you're using a speakerphone, make sure that your mute function is turned off to allow your signal to reach our equipment. We ask that you limit yourself to one question and one follow-up. If you would like to ask additional questions, we invite you to add yourself to the queue again by pressing star one. Our first question comes from the line of Vik Chopra of BMO Capital Markets. Your line is open.

Speaker #3: We ask that you limit yourself to one question and one follow-up. If you would like to ask additional questions, we invite you to add yourself to the queue again by pressing star 1.

Speaker #3: Now, first question comes from a line of Vic Chopra of BMO Capital Markets. Your line is open.

Speaker #4: Hey, good morning, and thank you for taking the question. Two for me.

Ravi Misra: Hey, good morning, and thank you for taking the question. Two for me.

Vik Chopra: Hey, good morning, and thank you for taking the question. Two for me.

Speaker #3: Sorry, Vic. Just one moment. I'll get you back. Your line dropped off here. We'll take the next one, and I'll get you back in line, Vic.

Operator 2: Sorry, Vik. Just one moment. I'll get you back. Your line dropped off here. We'll take the next one. I'll get you back in line, Vik. Your next question comes from the line of Jayson Bedford of Raymond James & Associates. Your line is open.

Operator: Sorry, Vik. Just one moment. I'll get you back. Your line dropped off here. We'll take the next one. I'll get you back in line, Vik. Your next question comes from the line of Jayson Bedford of Raymond James & Associates. Your line is open.

Speaker #3: Your next question comes from a line of Jason Bedford of Raymond James and Associates. Your line is open.

Speaker #4: Good morning and thanks for taking the question. Maybe just first for Jason, Jason, you're walking into a situation here where the strategy through transformative deals is largely set.

Jayson Bedford: Good morning, thanks for taking the question. First for Jason. Jason, you're walking into a situation here where the strategy through transformative deals is largely set. Are there any pieces of the strategy that make you uncomfortable? If you can point out any areas of opportunity that maybe were not clear when you stepped into the role.

Speaker #4: Are there any pieces of the strategy that make you uncomfortable? And if you can point out any areas of opportunity that maybe were not clear when you stepped into the role.

Speaker #1: Yeah, thanks, Jason, for the question. Actually, one of the things that really attracted me to Teleflex, as I was looking from the outside, was this transformational strategy.

Jason Weidman: Thanks, Jason, for the question. One of the things that really attracted me to Teleflex as I was looking from the outside was this transformational strategy. I thought that it was the right approach to provide better focus for the business. As I've come in, I remain confident in that strategy. There is nothing that stuck out to me in these first two months that make me think that we're on the wrong path. Obviously, we need to determine what the long-term path is beyond that. I'm in the middle of that, what I would call my comprehensive assessment of the entire organization. Over the coming months here, we'll put together the long-term operational and strategic plan to really drive long-term durable growth and shareholder value.

Speaker #1: I thought that it was the right approach to provide better focus for the business. And as I've come in, I remain confident in that strategy.

Speaker #1: There is nothing that stuck out to me in these first two months that makes me think that we're on the wrong path. Obviously, we need to determine what the long-term path is beyond that.

Speaker #1: So I'm in the middle of that, what I would call my comprehensive assessment of the entire organization. And over the coming months here, we'll put together the long-term operational and strategic plan to really drive long-term durable growth.

Speaker #1: And shareholder value.

Speaker #4: Okay. And then just maybe as my follow-up, can you elaborate a bit more on the VI integration issues? What is the issue and what needs to happen to fully integrate the business?

Jayson Bedford: As my follow-up, can you elaborate a bit more on the VI integration issues? What is the issue, and what needs to happen to fully integrate the business?

Speaker #1: Yeah, great question. So the first thing I want to emphasize here is that this is absolutely not a product issue. So with the coming together of these two portfolios, the legacy Teleflex interventional portfolio and the Biotronic VI portfolio, they really fit beautifully together.

Jason Weidman: Great question. The first thing I want to emphasize here is that this is absolutely not a product issue. With the coming together of these two portfolios, the legacy Teleflex interventional portfolio and the BIOTRONIK VI portfolio, they really fit beautifully together. I think all of you guys know that I spent the last 20 years in the interventional business, so I know this space well. What I can tell you is that when I took this role, I got countless numbers of messages, text messages, and emails from KOLs in the space that basically said, Wow, you have a great bag. We're excited to see what you do with it at Teleflex. This isn't a product issue. What it is simply is just integration transitions that are continuing, that are transient, that we need to work through.

Speaker #1: And I think all of you guys know that I spent the last 20 years in the interventional business, so I know this space well.

Speaker #1: And what I can tell you is that when I took this role, I got countless numbers of messages, text messages, and emails from KOLs in the space that basically said, "Wow, you have a great bag.

Speaker #1: We're excited to see what you do with it at Teleflex." So this isn't a product issue. What it is simply is just integration transitions that are continuing, that are transient, that we need to work through.

Speaker #1: And I would primarily point to three areas. The first would be order-to-cash transitions. The second would be distributor transitions. And the third would be Salesforce transitions.

Jason Weidman: I would primarily point to three areas. The first would be order-to-cash transitions, the second would be distributor transitions, and the third would be salesforce transitions. All of these are manageable. If I start and go into a bit more detail from the OTC perspective. Anytime you change an ordering system for a customer, no matter how smooth your internal transfer goes, and it was smooth for us, it's a change for the customer. There's an opportunity for disruption and confusion with them. That's what we are going through right now. We've identified where we have customer confusion and any lingering issues, and we're systematically working our way through those.

Speaker #1: All of these are manageable. So if I start and go into a bit more detail from the OTC perspective, so anytime you change an ordering system for a customer, no matter how smooth your internal transfer goes, and it was smooth for us, it's a change for the customer.

Speaker #1: And so there's an opportunity for disruption and confusion with them. And so that's what we are going through right now. We've identified where we have customer confusion and any lingering issues, and we're systematically working our way through those.

Speaker #1: What I can tell you is that the vast majority of our OTC transitions happened in Q2. And so that gives us a real good line of sight into how we can work through any of those lingering customer confusions.

Jason Weidman: What I can tell you is that the vast majority of our OTC transitions happened in Q2, that gives us a real good line of sight into how we can work through any of those lingering customer confusions. The second is really about distributor transitions. Anytime you move from one distributor to another, there's often a timing issue. Your original distributors start working down their inventory, they stop buying, and you haven't yet got to the point of the rebuy or the startup buys for your new distributors. Obviously, we're closely tracking all of those transitions from distributor to distributor and making sure we drive to completion of those. The final area is really about salesforce transitions.

Speaker #1: The second is really about distributor transitions. Anytime you move from one distributor to another, there's often a timing issue. So your original distributors start working down their inventory, so they stop buying, and you haven't yet gotten to the point of the rebuy or the startup buys for your new distributors.

Speaker #1: So, obviously, we're closely tracking all of those transitions from distributor to distributor, and making sure we drive to completion of those. The final area is really about Salesforce transitions.

Speaker #1: When you bring two Salesforces together, there's obviously going to be some territory realignment. And so you end up with some reps that have new customers.

Jason Weidman: When you bring two sales forces together, there's obviously going to be some territory realignment, you end up with some reps that have new customers. You end up with reps that have new products to sell. In some cases, we found that we didn't have the right reps to sell this combined bag, we have open positions. We have a very comprehensive plan in place to make sure we have enhanced training as well as to make sure we have a very clear hiring plan. We're already making really good progress against that hiring plan. Again, I'd say all of these are transient issues related to the integration, and we have this really strong foundation of really great products. Trust me, I wouldn't be here if I didn't think that there was great opportunity in the interventional business.

Speaker #1: You end up with reps that have new products to sell. And in some cases, we found that we didn't have the right reps to sell this combined bag.

Speaker #1: And so we have open positions. And in place to make sure we have enhanced training as well as to make sure we have a very clear hiring plan and we're always and we're already making really good progress against that hiring plan.

Speaker #1: And so we have open positions. And in place to make sure we have enhanced training as well as to make sure we have a very clear hiring plan and we're always and we're already so we have a very comprehensive plan these are transient issues.

Speaker #1: Related to the integration, and we have this really strong foundation of really great products and trust me, I wouldn't be here if I didn't think that there was great opportunity in the interventional business.

Speaker #3: Our next question comes from a line of Vic Chopra of BMO Capital Markets. Your line is open.

Operator 2: Our next question comes from the line of Vik Chopra of BMO Capital Markets. Your line is open.

Operator: Our next question comes from the line of Vik Chopra of BMO Capital Markets. Your line is open.

Speaker #4: Hey, good morning. Jason, you've had about two months to assess the business. I'm curious how quickly you expect to communicate the outcome of your strategic review and should we invest sorry, should we expect a formal long-range plan?

Vik Chopra: Hey, good morning. Jason, you've had about two months to assess the business. I'm curious how quickly you expect to communicate the outcome of your strategic review, and should we expect a formal long-range plan? I had a quick follow-up, please.

Speaker #4: And then I had a quick follow-up, please.

Speaker #1: Yeah, thanks for the thanks for the question, Vic. Obviously, as I said, a couple of minutes ago here, one of my biggest priorities is really to fully assess the business and put together that long-range plan.

Jason Weidman: Yeah. Thanks for the question, Vik. Obviously, as I said a couple minutes ago here, one of my biggest priorities is really to fully assess the business and put together that long-range plan. I'm only two months in, I need a little bit more time. I would expect that I'll have more to say and a little more color on opinions of future direction here by the next earnings call.

Speaker #1: I would I'm only two months in, so I need a little bit more time. I would expect that I'll have more to say in a little more color on opinions of future direction here.

Speaker #1: By the next earnings call.

Speaker #4: Okay, great. And a quick follow-up on Biotronic. I'm curious what level of confidence you have that the current timeline reflects the full extent of the delay.

Vik Chopra: Okay, great. A quick follow-up on BIOTRONIK. I'm curious what level of confidence you have that the current timeline reflects the full extent of the delay. Thank you.

Speaker #4: Thank you.

Speaker #1: Yeah, yeah. I think that when we look at the as I said, the main causes of the integration delay we have mitigations in place, and we're already seeing progress in those in each of those factors.

Jason Weidman: Yeah. I think that when we look at, as I said, the main causes of the integration delay, we have mitigations in place, and we're already seeing progress in each of those factors. We have pretty good confidence, or really good confidence, that we should be able to work through that by the end of the year. Our guidance also reflects that.

Speaker #1: So we have pretty good confidence or really good confidence that we will we should be able to work through that by the end of the year.

Speaker #1: And thus, our guidance also reflects that.

Speaker #3: Our next question comes from a line of Patrick Wood of UBS. Your line is open.

Operator 2: All right, next question comes from the line of Patrick Wood of UBS. Your line is open.

Operator: All right, next question comes from the line of Patrick Wood of UBS. Your line is open.

Speaker #5: Amazing. Thank you so much for taking it. I'll do two quick ones up front. Just looking and thinking about the business, I know it's obviously only been a few months for you.

Patrick Wood: Amazing. Thank you so much for taking it. I'll do two quick ones up front. Just looking and thinking about the business, I know it's obviously only been a few months for you. The guide implies ever so slightly more conservative H2, I think +3% or so. Is there any reason in your mind that midterm, this shouldn't be a business that can grow 4% or so? Is there anything that we might be missing, whether it's procedure environment or anything like that would preclude 4% plus as a reasonable midterm benchmark?

Speaker #5: But the guide implies ever so slightly more conservative second half, I think like plus 3% or so. Is there any reason in your mind that midterm this shouldn't be a business that can grow 4% or so?

Speaker #5: Is there anything that we might be missing whether it's procedure environment or anything like that that would preclude 4% plus as a reasonable midterm benchmark?

Speaker #1: Yeah, thanks for the question, Patrick. I don't think there's anything major that you're missing here. And let me go back to the guidance and be really clear.

Jason Weidman: Yeah. Thanks for the question, Patrick. I don't think there's anything major that you're missing here. Let me go back to the guidance and be really clear. As we look at this revised adjusted revenue growth guidance of 3.5% to 4.5%, this is for the full year and for all of RemainCo, and we're not going to guide on individual businesses. That said, the entire reduction in that guidance from previous guidance is due to this integration slowdown in interventional.

Speaker #1: So we as we look at this revised adjusted revenue growth guidance of three and a half to four and a half percent, this is for the full year and for all of Romenko.

Speaker #1: And we're not going to guide on individual businesses. That said, the entire reduction in that guidance from previous guidance is due to this integration slowdown in interventional.

Speaker #3: Our next question comes from a line of Matthew Taylor of Jefferies. Your line is open.

Operator 2: All right, next question comes from the line of Matthew Taylor of Jefferies. Your line is open.

Operator: All right, next question comes from the line of Matthew Taylor of Jefferies. Your line is open.

Speaker #4: Hey, good morning, and thanks for taking the questions. This is Mike Sarcon on for Matt Taylor. I guess just a follow-up there. On the guide, I think in the prepared commentary, you mentioned maybe some more moderate growth expectations in the back half of the year for Vascular and Surgical as well.

Michael Sarcone: Hey, good morning, and thanks for taking the questions. This is Michael Sarcone for Matt Taylor. I guess just to follow up there on the guide. I think in the prepared commentary, you mentioned maybe some more moderate growth expectations in the H2 of the year for vascular and surgical as well. Can you just kind of square that away and elaborate there versus your response to the last question around-

Speaker #4: Can you just kind of square that away and elaborate there versus your response to the last question? Around this guide.

Jason Weidman: Yeah, sure

Michael Sarcone: this guide down?

Speaker #1: Sure. Sure, no problem. So again, the reduction in the guide is solely due to what we see in interventional. That said, we did provide some additional color in the prepared remarks to give you confidence in our ability to get to the lower end of the range.

Jason Weidman: Sure, no problem. Again, the reduction in the guide is solely due to what we see in interventional. That said, we did provide some additional color in the prepared remarks to give you confidence in our ability to get to the lower end of the range. That was that the low end of the range really contemplates no growth in interventional for the remainder of the year. It take that Q2 revenue that we had in interventional and assume that that's what it would be for the remainder of the year with just some additional seasonality in Q3. For the other two businesses, for vascular and surgical, we expect them to continue to perform really solidly. They've been growing at a high single-digit rate through the H1 of the year, which is fantastic, but these are not high single-digit growth markets.

Speaker #1: And that was that the low end of the range really contemplates no growth in interventional for the remainder of the year. And so take that Q2 revenue that we had in interventional and assume that that's what it would be for the remainder of the year with just some additional seasonality in Q3.

Speaker #1: For the other two businesses, vascular and surgical, we expect them to continue to perform really solidly. They've been growing at a high single-digit rate through the first half of the year, which is fantastic.

Speaker #1: But these are not high single-digit growth markets. So if we look at vascular, for instance, we did see with some of our major distributors that inventories creeped up a little bit in H1.

Jason Weidman: If we look at vascular, for instance, we did see with some of our major distributors that inventories creeped up a little bit in H1. We would expect that eventually that's going to normalize. If I turn to the surgical business, when we get to H2 of this year, we just frankly face tougher comps. If you look at H2 of last year, that's when we started to see some of the strength in the instrument portfolio.

Speaker #1: So we would expect that eventually that's going to normalize. If I turn to the surgical business, when we get to the second half of this year, we just frankly faced tougher comps.

Speaker #1: So if you look at H2 of last year, that's when we started to see some of the strength in the instrument portfolio.

Speaker #4: Got it. That's helpful. Thank you. And maybe just can you comment on whether or not you've seen any impact from ACA subsidy expiration and just kind of patient demand and utilization?

Michael Sarcone: Got it. That's helpful. Thank you. Maybe just can you comment on whether or not you've seen any impact from ACA subsidy expiration and just kind of patient demand and utilization?

Jason Weidman: No, we haven't seen any impact from that.

Speaker #1: No. That we haven't seen any impact from that.

Speaker #3: Our next question comes from a line of Jason Bednar of Piper Sandler. Your line is open.

Operator 2: All right, next question comes from the line of Jayson Bedford of Piper Sandler. Your line is open.

Operator: All right, next question comes from the line of Jayson Bedner of Piper Sandler. Your line is open.

Speaker #6: Hey, good morning. Thanks for taking the questions. Jason, I want to go back and double-click on those three buckets you stepped through earlier, impacting the revenue outlook.

Vik Chopra: Hey, good morning. Thanks for taking the questions. Jason, I want to go back and double-click on those three buckets you stepped through earlier impacting the revenue outlook. The first two, OTC and the distributor dynamics, those to me sound pretty manageable, very controllable. It's the last one, the sales force piece that I'd love to get your thoughts around that just being fully resolved by year-end. As you know, some of those roles are still open and in med tech, we've all seen that it usually takes a little bit of time on ramp up. Just given where we are middle of the year, just your comfort or confidence around addressing that sales force piece.

Jayson Bednar: Hey, good morning. Thanks for taking the questions. Jason, I want to go back and double-click on those three buckets you stepped through earlier impacting the revenue outlook. The first two, OTC and the distributor dynamics, those to me sound pretty manageable, very controllable. It's the last one, the sales force piece that I'd love to get your thoughts around that just being fully resolved by year-end. As you know, some of those roles are still open and in med tech, we've all seen that it usually takes a little bit of time on ramp up. Just given where we are middle of the year, just your comfort or confidence around addressing that sales force piece.

Speaker #6: The first two, OTC and the distributor dynamics, those to me sound pretty manageable—very controllable. It's the last one, the Salesforce piece, that I'd love to get your thoughts around, just being fully resolved by your end.

Speaker #6: Some of those rows are still open, and we might in med tech, we've all seen that it usually takes a little bit of time on ramp-up.

Speaker #6: So just given where we are in the middle of the year, just your comfort or confidence around addressing that Salesforce piece.

Speaker #1: Yeah, I think that's a great question. I'm confident we can get through the hiring plan. I'm confident, with our current reps, we can get through the enhanced training that we need to do.

Jason Weidman: Yeah, I think that's a great question. I'm confident we can get through the hiring plan. I'm confident with our current reps we can get through the enhanced training that we need to do. As you know, in these spaces, typically it takes a good six months or so to get a rep up to speed. I would assume that our ramp up is not going to be a step up, but a ramp up, exactly like you're saying.

Speaker #1: But as you know, in these spaces, typically it takes a good six months or so to get a rep up to speed. So I would assume that our ramp-up is not going to be a step-up, but a ramp-up, exactly like you're saying.

Speaker #6: All right. All right, helpful. And then I don't mean to ignore all the heavy lifting here in 2026, but a lot of us are understandably trying to hone in also on where growth goes for '27, where EPS heads for '27.

Vik Chopra: All right. Helpful. I don't mean to ignore all the heavy lifting here in 2026, but a lot of us are understandably trying to hone in also on where growth goes for 2027, where EPS heads for 2027. Just based on the margin normalization, capital deployment, all the things that are in play, it's not hard to see EPS move to something that's like $11.25 or $11.50 in that neighborhood for next year. Jason, I know I'm kind of first call here, just love to get your reaction to that.

Jayson Bednar: All right. Helpful. I don't mean to ignore all the heavy lifting here in 2026, but a lot of us are understandably trying to hone in also on where growth goes for 2027, where EPS heads for 2027. Just based on the margin normalization, capital deployment, all the things that are in play, it's not hard to see EPS move to something that's like $11.25 or $11.50 in that neighborhood for next year. Jason, I know I'm kind of first call here, just love to get your reaction to that.

Speaker #6: And just based on the margin normalization, capital deployment, all the things that are in play, it's not hard to see EPS move to something that's like 11, 25, or 11.50 in that neighborhood for next year.

Speaker #6: Jason, I know kind of first call here, just love to get your reaction to that.

Speaker #1: Well, look, I'm going to I'll pass that one to John to talk about what our expectations are on the EPS. But yeah, go ahead, John.

Jason Weidman: Well, look, I'll pass that one to John to talk about what our expectations are on the EPS. Yeah, go ahead, John.

Speaker #6: Yeah, so obviously, we're

John Deren: Yeah. We are not ready to guide 2027 yet. I appreciate your thoughts, I don't know that I can confirm or deny your modeling, I would tell you that with a 23% op margin from where we sit today, your numbers don't sound unreasonable.

Speaker #2: I'm not ready to guide for 2027 yet. I appreciate your thoughts, and I can't really confirm or deny your modeling, but I would tell you that with a 23% operating margin, from where we sit today, your numbers don't sound unreasonable.

Speaker #3: Our next question comes from Lawrence Bagelson of Wells Fargo. Your line is open.

Operator 2: Our next question comes from the line of Larry Biegelsen of Wells Fargo. Your line is open.

Operator: Our next question comes from the line of Lawrence Biegelsen of Wells Fargo. Your line is open.

Speaker #4: Hey, good morning. This is Nathan Tray back on for Larry. Jason, CMS is changing the requirement for NTAP and TPT. Breakthrough designation no longer eliminates the need to show a clinical advance to receive enhanced reimbursement.

Nathan Treybeck: Hey, good morning. This is Nathan Treybeck on for Larry. Jason, CMS is changing the requirement for NTAP and TPT. Breakthrough designation no longer eliminates the need to show a clinical advance to receive enhanced reimbursement. How does this impact Freesolve and where you might be able to price it?

Speaker #4: How does this impact free solve and where you might be able to price it?

Speaker #1: Well, as you know, with those rules, it just eliminated the shortcut that you did not have to show superiority with if you had breakthrough device designation.

Jason Weidman: Well, as you know, with those rules, it just eliminated the shortcut that you did not have to show superiority if you had breakthrough device designation. We are aware that that goes away and that that pathway goes away. At the same time, we've got a lot of different scenarios we're looking at for Freesolve in the long term. Certainly we're looking at different measures of which we could also attempt to show that there could potentially be long-term superiority of that device. Regardless of where that NTAP or TPT ends up, we think that if this plays out clinically in the randomized trials, this is a great opportunity no matter what.

Speaker #1: And so we are aware that that goes away and that that pathway goes away. At the same time, and we've got a lot of different scenarios we're looking at for free solve in the long term.

Speaker #1: And certainly, we're looking at different measures of which we could also attempt to show that there could potentially be long-term superiority of that device.

Speaker #1: But regardless, this is regardless of where that NTAP or TPT ends up, we think that if this plays out clinically in the randomized trials, this is a great opportunity no matter what.

Speaker #4: Great. And I do want to ask on Orcyro. What percentage of interventional revenue is it today? And is it declining at a similar rate to the overall DES market?

Nathan Treybeck: Great. I did want to ask on Orsiro, what percentage of interventional revenue is it today? Is it declining at a similar rate to the overall DES market? Do you think you can change the trajectory for that product?

Speaker #4: And do you think you can change the trajectory for that product?

Speaker #1: So the first thing I would say is we're not going to get in guide and specific or talk about growth rates of specific product lines.

Jason Weidman: The first thing I would say is we're not going to get in guide in specific or talk about growth rates of specific product lines. That's just not something we're going to do. I can speak generally about the DES market, which is, I would call it approximately flat. Pricing is usually counteracting the PCI growth that's happening worldwide. What I would say about Orsiro is that it's got a pretty low share position, not because it's not a great product, but it just hasn't had the commercial bandwidth across the globe to really go after it. I do think that there's actually opportunity for us to outperform the market over time with this product. There's 70,000 patients studied with Orsiro. It's a good product. It has amazing data versus XIENCE, and I'm excited to see what we can do with it.

Speaker #1: That's just not something we're going to do. I can speak generally about the DES market, which is, I would call it, approximately flat. So pricing is usually counteracting the PCI growth that's happening worldwide.

Speaker #1: And what I would say about Orcyro is that it's got a pretty low share position, not because it's not a great product, but it just hasn't had the commercial bandwidth across the globe to really go after it.

Speaker #1: And so I do think that there's actually opportunity for us to outperform the market over time with this product. There are 70,000 patients studied with ORCryo.

Speaker #1: It's a good product. It has amazing data versus science. And I'm excited to see what we can do with it.

Speaker #3: Our next question comes from a line of Mike Matson of Needham and Company. Your line is open.

Operator 2: Our next question comes from the line of Mike Matson of Needham & Company. Your line is open.

Operator: Our next question comes from the line of Mike Matson of Needham & Company. Your line is open.

Speaker #4: Yeah, thanks. So I want to start with one on EasyPlaz. I appreciate the commentary there, but I didn't really hear much about the market opportunity.

Mike Matson: Yeah, thanks. I wanted to start with one on EZ-PLAS. You appreciate the commentary there, but I didn't really hear much about the market opportunity. I think in the past, you talked about it being about a $100 million potential market in the US. What about the timing of the launch and potential sales ramp?

Speaker #4: I think in the past, you talked about it being about 100 million potential market in the US. And then what about the timing of the launch and potential sales ramp?

Speaker #1: Yeah, great question. So first, let me start with just saying that I'm really, really pleased with this landmark approval. And I think that it really demonstrates Teleflex's expanded commitment to innovation.

Jason Weidman: Yeah, great question. First let me start with just saying that I'm really, really pleased with this landmark approval, and I think that it really demonstrates Teleflex's expanded commitment to innovation. This is something the company has been working on for more than a decade, and it is certainly not an easy project or an easy innovation. Now we ended up as the first and only freeze-dried plasma that's licensed by the FDA. Really wanted to complement the team on that before addressing your question. Look, with EZ-PLAS, what I want to make clear is that our first and immediate priority here is the government and military market here in the United States. There's a lot of work that needs to be done there.

Speaker #1: This is something that the company has been working on for more than a decade. And it is certainly not an easy project or an easy innovation.

Speaker #1: And so now we ended up as the first in only freeze-dried plasma that's licensed by the FDA. So I really wanted to compliment the team on that before addressing your question.

Speaker #1: So look, with EasyPlaz, what I want to make clear is that our first and immediate priority here is the government and military market here in the United States.

Speaker #1: And there's a lot of work that needs to be done there. So the next steps for that are procurement solicitation with the Department of War.

Jason Weidman: The next steps for that are procurement solicitation with the Department of War, we have to negotiate contract, we sign a contract and start to actually commercially deliver product. Now, we're actively engaged in those conversations, and they're going well. In 2026, I would anticipate that any revenue we get from EZ-PLAS would be immaterial, but in 2027, it will be a contributor. In terms of the long-term market, I am aware that in the past, many years ago, the company had described this as a $100 million opportunity. As you can imagine as being new to the role, I want to reassess how and our ability to go after new segments and what that total market opportunity can be. I would say we're still in the middle of that.

Speaker #1: Then we have to negotiate contract, then we sign a contract and start to actually commercially deliver product. Now, we're actively engaged in those conversations and they're going well.

Speaker #1: In 2026, I would anticipate that any revenue we get from EasyPlaz would be immaterial. But in 2027, it will be a contributor. In terms of the long-term market, I am aware that in the past many years ago, the company had described this as a 100 million dollar opportunity.

Speaker #1: As you can imagine, as being new to the role, I want to reassess how and our ability to go after new segments and what that total market opportunity can be.

Speaker #1: And I would say we're still in the middle of that. And so I would say it would be premature for me to comment on the total market opportunity over time.

Jason Weidman: I would say it would be premature for me to comment on the total market opportunity over time.

Speaker #4: Okay, understand. And then in terms of free solve and the biomag 2 trial, which you're expecting results, I think, late next year, what sort of at stake with the trial?

Mike Matson: Okay. Understand. In terms of Freesolve and the BIOMAG-II trial, which you're expecting results, I think, late next year-

Jason Weidman: Yes

Mike Matson: What's sort of at stake with that trial? Is it safe to assume that if the results are positive, that that's going to allow you to see sales kind of ramp more aggressively outside the US where it is on the market in Europe and other places?

Speaker #4: So is it safe to assume that if the results are positive, that that's going to allow you to see sales kind of ramp more aggressively outside the US where it is on the market in Europe and other places?

Speaker #1: Yeah, great question. So as we think about free solve outside the United States, you're exactly right. It's not a sales ramp is not an approval issue.

Jason Weidman: Yeah, great question. As we think about Freesolve outside the United States, you're exactly right. A sales ramp is not an approval issue. It's really a data issue or a lack of data and a guidelines issue. We have really great single-arm data so far with BIOMAG-I, which I would say is hypothesis generating. We hear great things from physicians that the device performs similarly to a conventional DES. The results in that single-arm study look like a conventional DES, but obviously, we need to see it in a randomized fashion. We did, as you said, we finished enrollment in BIOMAG-II, which is about 2,000 patients randomized versus XIENCE. We finished that ahead of schedule, so we will have a readout next year. That should take care of this data question.

Speaker #1: It's really a data issue or a lack of data and a guidelines issue. And so we do not we have really great single-arm data so far with biomag 1, which I would say is hypothesis generating.

Speaker #1: We hear great things from physicians that the device performs similarly to a conventional DES. The results in that single-arm study look like a conventional DES.

Speaker #1: But obviously, we need to see it in a randomized fashion. And so we did, as you said, we finished enrollment in biomag 2, which is about 2,000 patients randomized versus science.

Speaker #1: We finished that ahead of schedule, so we will have a readout next year. And so that should take care of this data question. We're anxious to see that and to really see how this performs versus DES.

Jason Weidman: We're anxious to see that and to really see how this performs versus DES. Beyond that, I mentioned there's also a guideline issue. The major guidelines outside the US in cardiology are the ESC guidelines, European Society of Cardiology guidelines. Right now those guidelines state that you should only use bioabsorbable scaffolds in a clinical trial setting. Even as we get through, knock on wood, positive data next year, we'll still have to work with ESC to make sure the guidelines get updated. Positive data should allow that to happen.

Speaker #1: And then in terms though, but beyond that, I mentioned there's also a guideline issue. So the major guidelines outside the US in cardiology are the ESC guidelines, European Society of Cardiology guidelines.

Speaker #1: And right now, those guidelines state that you should only use bioabsorbable scaffolds in a clinical trial setting. So even as we get through, knock on wood, positive data next year, we'll still have to work with ESC to make sure the guidelines get updated.

Speaker #1: But positive data should allow that to happen.

Speaker #3: Our next question comes from a line of Anthony Petrone of Mizuho Financial Group. Your line is open.

Operator 2: Our next question comes from the line of Anthony Petrone of Mizuho Financial Group. Your line is open.

Operator: Our next question comes from the line of Anthony Petrone of Mizuho Financial Group. Your line is open.

Speaker #4: Thanks. And welcome, Jason. Pleasure to meet over the phone and hope you're doing well, John. One on procedure volumes, just broader question, and one on capital allocation.

Anthony Petrone (Mizuho Financ: Welcome, Jason. Pleasure to meet over the phone.

Jason Weidman: Thank you.

Anthony Petrone (Mizuho Financ: Hope you're doing well, John. One on procedure volumes, just broader question and one on capital allocation. All three segments could be used as a proxy for procedure volumes. Your vascular organic is eight, your surgical is nine, and obviously interventional, you have the organic growth down 1%. To what extent can you give us a little bit on US procedure volumes? There's been some noise out there. HCA had inpatient admissions down. Some of the med tech companies are not seeing impact, some of them are. What is the view from the Teleflex vantage point as it relates to US procedure volumes into the back end of the year? I'll have a follow-up on capital.

Speaker #4: All three segments could be used as a proxy for procedure volumes. Vascular, organic is eight. Your surgical is nine. And obviously, interventional, you have the organic growth down 1%.

Speaker #4: To what extent can you give us a little bit on US procedure volumes? There's been some noise out there. HCA had inpatient admissions down.

Speaker #4: Some of the med tech companies are not seeing impacts; some of them are. So, what is the view from the Teleflex vantage point as it relates to U.S. procedure volumes into the back end of the year? And I'll have a follow-up on capital.

Speaker #1: Yeah, sure. So I mean, just in short, similar to what I said before, is we're not really seeing any impact of procedure volumes. We don't think that that's what's been driving the performance of our businesses.

Jason Weidman: Yeah, sure. Just in short, similar to what I said before, is we're not really seeing any impact of procedure volumes. We don't think that that's what's been driving the performance of our businesses.

Speaker #4: And maybe on capital allocation, 250 million ASR, I think the prior target was a billion overall. So you did 250 in a first-year purchase, a 250 post the OEM divestiture for an ASR.

Anthony Petrone (Mizuho Financ: Maybe on capital allocation, $250 million ASR. I think the prior target was $1 billion overall. You did $250 million in a first share repurchase, $250 million post the OEM divestiture for an ASR, and instead there is debt buyback. Maybe just a recap on capital allocation. What will be the steady diet of share repurchases versus debt service? Of course, M&A was part of the Teleflex DNA. What are your thoughts, Jason, on M&A? Thanks.

Speaker #4: And instead, there's debt buyback. So maybe just to recap on capital allocation, what will be the steady diet of shared purchases versus debt service?

Speaker #4: And of course, M&A was part of the Teleflex DNA. What are your thoughts, Jason, on M&A? Thanks.

Speaker #1: Yeah, sure. So at a high level, we remain committed to the billion-dollar share repurchase. The 800 million in debt reduction. So as you said, we completed the 250 million share buyback in Q2.

Jason Weidman: Yeah, sure. At a high level, we remain committed to the $1 billion share repurchase and the $800 million in debt reduction. As you said, we completed the $250 million share buyback in Q2, the first $250 million. We announced the next $250 million ASR here to start tomorrow. The remaining $500 million will likely use the proceeds from the acute care and interventional urology divestiture when that closes. From a debt reduction standpoint, we've paid down $700 million with the OEM proceeds. That was some debt that we incurred from the BIOTRONIK acquisition. Then we'll pay down the additional $100 million here of debt that we committed to by the remainder of the year.

Speaker #1: The first $250 million, we announced. The next $250 million ASR here is to start tomorrow. And then the remaining $500 million—we'll likely use the proceeds from the acute care and interventional urology divestiture when that closes.

Speaker #1: From a debt reduction standpoint, we've paid down 700 million with the OEM proceeds. From and that was some debt that we incurred from the biotronic acquisition.

Speaker #1: And then we'll pay down the additional 100 here of debt that we committed to by the remainder of the year. In terms of your question on acquisitions, the first thing I would say is that we've got a lot on our plate right now that we need to execute to.

Jason Weidman: In terms of your question on acquisitions, the first thing I would say is we've got a lot on our plate right now that we need to execute to, and that's what our focus is on. We need to make sure both of these divestitures get done. We need to make sure that we fully integrate BIOTRONIK. Then we'll work from there. Generally, my philosophy, though, on acquisitions is that I would like these. Anything we look at would need to be tuck-in acquisitions to the businesses that we will have here in RemainCo. I'm not interested, at least in the short to midterm, on anything that would be transformational.

Speaker #1: And that's what our focus is on. We need to make sure both of these divestitures get done. We need to make sure that we fully integrate Biotronik, and then we'll work from there.

Speaker #1: But generally, my philosophy though on acquisitions is that I would like these anything we look at would need to be tucked in acquisitions to the businesses that we will have here and remain co.

Speaker #1: I'm not interested at least in the short to mid-term on anything that would be transformational.

Speaker #3: Our next question comes from a line of Ravi Mizra of Truist Securities. Your line is open.

Operator 2: Our next question comes from the line of Ravi Misra of Truist Securities. Your line is open.

Operator: Our next question comes from the line of Ravi Misra of Truist Securities. Your line is open.

Speaker #5: Hi, thanks for taking the questions. Also relaying my congratulations and nice to start working with you, Jason, over the coming quarters. Just I guess my two, I'll ask them upfront.

Ravi Misra: Hi. Thanks for taking the questions. Also relaying my congratulations, and nice to start working with you, Jason, over the coming quarters. Just I guess mine, too, I'll ask them upfront. Can you talk maybe a little bit about Pantera Lux, kind of what's going on in the DCB ISR space? One of your competitors has been delivering pretty gangbusters growth in that segment. I just want to understand how you're viewing the opportunity there. Second, just I guess on the vascular strength. There's growth acceleration despite some of the supplier headwinds that were mentioned. You kind of talked about the ordering patterns here. Can you maybe point us to, John, what kind of a stabilized end market looks like for this segment? Thanks. Appreciate the time.

Speaker #5: Can you talk maybe a little bit about Pantera, Lux, kind of what's going on in the DCB/ISR space? One of your competitors has been delivering pretty gangbusters growth in that segment.

Speaker #5: So just want to understand how you're viewing the opportunity there. And then second, just I guess, on the vascular strength, there's growth acceleration despite some of the supplier headwinds that were mentioned.

Speaker #5: You kind of talked about the mortaring patterns here. Can you maybe point us to, John, what a stabilized end market looks like for this segment?

Speaker #5: Thanks. Appreciate the time.

Speaker #1: Yep. So first question on DCB, yes, there's been DCB has been a great growth opportunity particularly in the coronary space over the last couple of years.

Jason Weidman: Yeah. First question on DCB. Yes, DCB has been a great growth opportunity, particularly in the coronary space over the last couple of years. We see this as a growth segment for us within our interventional business, and we see more opportunity around the world. We are looking at the different options for us to get our DCBs into the United States and to Japan. Because of some contractual items on these products, the Lux platform, it's not necessarily straightforward. We're still trying to work through what our different options are. Let's see. The other question was just about the vascular segment and ordering patterns and where we saw the market stabilizing. We had really strong business in our performance in our vascular business in H1.

Speaker #1: We see this is a growth segment for us within our interventional business. We see more opportunity around the world. We are looking at the different options for us to get our DCBs into the United States and to Japan.

Speaker #1: Because of some contractual items on these products, the Lux platform, it's not necessarily straightforward. And so we're still trying to work through what our different options are.

Speaker #1: Let's see. So the other question was just about the vascular segment and oh yeah, and ordering patterns and where we saw the market stabilizing.

Speaker #1: So again, so we had really strong business in our H1. In particular, in the second quarter, I'll call out that our team did a fantastic job of managing the lidocaine recall, which we thought could have been a negative for us in the quarter with a backorder.

Jason Weidman: In particular, in Q2, I'll call out that our team did a fantastic job of managing the lidocaine recall, which we thought could have been a negative for us in the quarter with a back order. Our team really managed through that in a great way. As I mentioned, though, as we track the inventories of the major distributors, they've creeped up a little bit. We would expect them to normalize a little bit in the back end. At the end of the day, this is a mid-single-digit growth market.

Speaker #1: But our team really, really managed to do that in a great way. As I mentioned, though, as we track the inventories of the major distributors, they've crept up a little bit.

Speaker #1: And so we would expect them to normalize a little bit in the back end. At the end of the day, this is a mid-single digit growth market.

Speaker #3: Our next question comes from a line of Michael Pollack of Wolf. Your line is open.

Operator 2: Our next question comes from the line of Michael Polark of Wolfe. Your line is open.

Operator: Our next question comes from the line of Michael Polark of Wolfe. Your line is open.

Speaker #5: Hey, good morning. Follow-up on the biotronic integration update. I'm just curious on the revenue call it disruption side. Is it legacy biotronic or is it legacy Teleflex or is it both?

Michael Polark: Hey, good morning. Follow-up on the BIOTRONIK integration update. I'm just curious on the revenue, call it disruption side. Is it legacy BIOTRONIK or is it legacy Teleflex, or is it both? Is there a geographic area that stands out more, Europe or U.S.?

Speaker #5: And is there a geographic area that stands out more? Europe or US?

Speaker #1: So look, we don't get into product line details, but I think it's safe to say that the legacy or the biotronic VI acquisition revenue base was disproportionately impacted through the integration.

Jason Weidman: Look, we don't get into product line details, but I think it's safe to say that the BIOTRONIK VI acquisition revenue base was disproportionately impacted through the integration struggles.

Speaker #1: Struggles.

Speaker #5: And then a question on tariff refunds. I heard John not received, none in the guide. Helpful. There are some companies that are reporting receipt of such refunds in the second quarter.

Michael Polark: Question on tariff refunds. I heard John none received, none in the guide. Helpful. There are some companies that are reporting receipt of such refunds in Q2. Why haven't you seen them? Do you expect them to come in Q3?

Speaker #5: So why haven't you seen them? Do you expect them to come in the third quarter?

Speaker #1: Yeah. So actually. I'm sorry.

Jason Weidman: Yeah. Actually we-

Michael Polark: Can you-

Jason Weidman: I'm sorry.

Speaker #5: Can you help us think about how you would treat those if and when they do come? Thank you.

Michael Polark: Can you help us think about how you would treat those if and when they do come? Thank you.

Speaker #1: Yeah. So we did see some refunds in this quarter, but they were not they were one somewhat split between remaining co and new co.

Jason Weidman: Yeah. We did see some refunds in this quarter, but they were one, somewhat split between RemainCo and NewCo, so between DO and CO. They also related to 2025. Our non-GAAP policy will only recognize into earnings things related to 2026. With that said, the only opportunity for 2026 refunds is approximately about $15 million that hit in Q1 and Q2. When we do see those refunds come in, that amount would come back into earnings. I can't really speak to timing because it's a little unsure. We have submitted all the refunds, but that amount will come back into earnings, that $15 million. Right now, in total, we expect somewhere in the neighborhood, in cash, of about $39 million in refunds to Teleflex.

Speaker #1: So between DO and CO, and they're also related to 2025. So our non-GAAP policy will only recognize into earnings things related to 2026. With that said, the only opportunity for 2026 refunds is approximately $15 million that hit in Q1 and Q2.

Speaker #1: So, when we do see those refunds come in, that amount would come back into earnings. I can't really speak to timing because it's a little unsure.

Speaker #1: We have submitted all the refunds. But that amount will come back into earnings, that 15 million dollars. Right now, in total, we expect somewhere in the neighborhood in cash of about 39 million dollars in refunds to Teleflex.

Speaker #1: So.

Speaker #3: Our next question comes from a line of Travis Steed of Bank of America. Your line is open.

Operator 2: Our next question comes from the line of Travis Steed of Bank of America. Your line is open.

Operator: Our next question comes from the line of Travis Steed of Bank of America. Your line is open.

Speaker #6: Hey, thanks for taking the question. Just maybe as a new CEO, I'd love to have you talk about kind of your philosophy on creating shareholder value and there's a lot of strategic and financial interest going on in med tech and there's standalone ways to do that and other ways to do it.

Travis Steed: Hey, thanks for taking the question. Just maybe, as the new CEO, I'd love to have you talk about kind of your philosophy on creating shareholder value. There's a lot of strategic and financial interest going on in med tech, and there's standalone ways to do that and other ways to do it. As a new CEO coming in and, obviously a kind of a new path here for Teleflex, would just kind of love to have you talk a little bit about kind of your philosophy in particular on shareholder value creation?

Speaker #6: But as a new CEO coming in and obviously a new kind of a new path here for Teleflex, would just kind of love to have you talk a little bit about kind of your philosophy in particular on shareholder value creation.

Speaker #1: Yeah. Thanks, Travis. So right now, I've got a lot to learn. In this new job and in this new business. And so I've really been focusing on learning as much as I can.

Jason Weidman: Yeah. Thanks, Travis. Right now, I've got a lot to learn, in this new job and in this new business. I've really been focusing on learning as much as I can. Like I said, the priorities have been to learn, to focus on the execution of these big things that we've got to move, the divestitures, the integration, et cetera, and then to develop that strategic approach here on what we're going to do in the long term. Again, I remain committed to what Teleflex has already put in place with the share repurchase and the debt paydown. I'm also very committed to innovation and believe in organic R&D to drive shareholder value. If you look at what we've done here at Teleflex in H1, we're getting close to 8% of revenue for R&D as opposed to historical levels at 6%.

Speaker #1: And like I said, the priorities have been to learn, to really to focus on the execution of these big things that we've got to move, the divestitures, the integration, etc.

Speaker #1: And then to develop that strategic approach here on what we're going to do in the long term. So again, I remain committed to what Teleflex has already put in place with the share repurchase and the debt paydown.

Speaker #1: I'm also very committed to innovation and believe in organic R&D to drive shareholder value and if you look at what we've done here at Teleflex in the first half, we're getting close to 8% of revenue for R&D as opposed to historical levels at 6%.

Speaker #1: But as I think about exactly how I want to approach capital allocation in any changes in the long-term beyond that, I'd ask that you give me a little bit more time.

Jason Weidman: As I think about exactly how I want to approach capital allocation and any changes in the long term beyond that, I'd ask that you give me a little bit more time. I want the time to really fully assess every aspect of the business first.

Speaker #1: I want the time to really fully assess every aspect of the business first.

Operator 2: That is all the time we have for questions today. I will now turn the comments back over to Lawrence Keusch for closing remarks.

Speaker #3: And that is all the time we have for questions today. I will now turn to comments back over to Mr. Lawrence Kirsch for closing remarks.

Operator: That is all the time we have for questions today. I will now turn the comments back over to Lawrence Keusch for closing remarks.

Speaker #7: Thank you, JL and thank you to everyone who joined us on the call today. This concludes the Teleflex Incorporated second quarter 2026 earnings conference call.

Lawrence Keusch: Thank you, JL, and thank you to everyone who joined us on the call today. This concludes the Teleflex Incorporated Q2 2026 Earnings Conference Call.

Operator 2: You may now disconnect.

Operator: You may now disconnect.

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