Teleflex (TFX) investor relations material

Executive summary

• Q1 2026 revenue from continuing operations reached $548.3 million, up 32.3% year-over-year and 5.1% on a pro forma adjusted constant currency basis, driven by the BIOTRONIK Vascular Intervention acquisition and higher sales volumes.

• Adjusted EPS for Q1 2026 was $1.39, a 3.5% decrease year-over-year; GAAP diluted EPS was $(0.11), down from $1.14 in the prior year.

• Strategic divestitures of Acute Care, Interventional Urology, and OEM businesses are underway, expected to close in the second half of 2026, with proceeds allocated to a $1 billion share repurchase and $800 million debt reduction.

• Multi-year restructuring plan targeting $50 million in annual pre-tax cost savings by mid-2028 is underway.

• Leadership transition announced: Jason Weidman to become CEO effective June 8, 2026, with board governance changes and new committee formation.

Financial highlights

• Q1 2026 consolidated reported revenue was $548.3 million, up 32.3% year-over-year; pro forma adjusted constant currency revenue up 5.1%.

• Adjusted gross margin was 61.4%, down from 66.1% in Q1 2025, mainly due to tariffs, quality remediation, logistics, and acquisition mix; GAAP gross margin was 56.1%.

• Adjusted operating margin was 18.1%, down from 23.2% year-over-year; GAAP operating margin was 8.1%.

• Adjusted net interest expense rose to $24 million from $17 million due to acquisition financing; total interest expense was $25.7 million.

• Cash and equivalents at quarter-end were $329.6 million; net leverage was approximately 2.5x.

Outlook and guidance

• 2026 GAAP revenue growth guidance maintained at 14.4% to 15.4%, with a 0.7% positive FX impact; pro forma adjusted constant currency revenue growth expected at 4.5%–5.5%.

• 2026 adjusted EPS guidance is $6.25–$6.55, excluding benefits from share repurchases and debt repayment; GAAP EPS guidance is $2.90–$3.20.

• Adjusted operating margin for 2026 expected at ~19%, with underlying steady-state margin estimated at 23% post-stranded cost mitigation.

• Net interest expense for 2026 expected to be ~$105 million; tax rate at 13.5%.

• Significant EPS and margin improvement anticipated in 2027 after divestitures and cost actions.