Teleflex Q3 Earnings Call Highlights

Key Points

• Teleflex raised its 2026 adjusted EPS outlook to $7.50–$7.75 from $6.90–$7.20, including a $0.31-per-share tariff-refund benefit; its revenue-growth forecast remains 3.5%–4.5%. Third-quarter adjusted EPS rose 39.2% to $2.63.
• The planned sale of Acute Care and Interventional Urology to Intersurgical is still targeted for year-end, but could slip into 2027 pending regulatory review. Teleflex said it remains confident in the deal and expects adjusted operating margin to reach about 23% in the first year after closing.
• Interventional returned to modest growth as integration of the Vascular Intervention acquisition progressed, with about 90% of customers moved to Teleflex’s ordering platform. Management is targeting further sequential improvement in the fourth quarter, while Vascular and Surgical also posted growth.

Teleflex NYSE: TFX raised its 2026 adjusted earnings outlook after reporting higher third-quarter earnings and a return to growth in its Interventional business, although the company said a planned divestiture could close later than expected.

The medical device company reported revenue from continuing operations of $567.8 million, up 0.2% from a year earlier on a GAAP basis and 3% on a pro forma adjusted constant currency basis. Adjusted earnings per share rose 39.2% to $2.63, helped by higher sales volume, lower interest expense and share count, and a tariff refund.

Teleflex now expects full-year adjusted earnings per share of $7.50 to $7.75, up from its prior range of $6.90 to $7.20. The outlook includes a $0.31-per-share benefit from refunds of 2026 payments related to International Emergency Economic Powers Act, or IEEPA, tariffs. The company maintained its forecast for pro forma adjusted constant currency revenue growth of 3.5% to 4.5%.

Chief Financial Officer John Deren said the earnings forecast includes share repurchases through the date of the call but assumes no additional buybacks or benefit from proceeds of the planned Acute Care and Interventional Urology divestiture.

Divestiture Timing Remains Uncertain

Chief Executive Officer Jason Weidman said Teleflex remains confident it will complete the sale of its Acute Care and Interventional Urology businesses to Intersurgical. The companies are targeting a year-end close, but the transaction could slip into 2027 because it remains subject to regulatory review.

The Federal Trade Commission issued a second request in March, and its review is focused on a small area of product overlap with the buyer, Weidman said. Intersurgical is working on a remedy, with Teleflex providing support.

Deren said the company remains confident that adjusted operating margin will reach approximately 23% in the first 12 months after the divestiture closes, as manufacturing and transition service fees help offset stranded costs. Teleflex expects its 2026 adjusted operating margin to be approximately 20%, including the tariff refund.

Management declined to provide formal 2027 guidance on the call. Deren said the company remained optimistic about its earnings potential but wanted to get through the fourth quarter and close the transaction before issuing a forecast.

Interventional Integration Makes Progress

Interventional revenue increased 0.2% to $210.3 million on a pro forma adjusted constant currency basis, improving from the second quarter despite disruption related to the integration of the acquired Vascular Intervention business. Weidman said the acquired business had performed worse than the legacy Interventional portfolio because of the integration issues.

Approximately 90% of Vascular Intervention customers had moved to the Teleflex ordering platform by the end of the quarter, Weidman said. He added that 87% of the acquired business’s indirect distribution had transitioned under Teleflex’s control, while open sales territories had fallen about 63% from their peak.

Weidman said new sales representatives typically take about six months to become productive. Rather than setting a completion date for the integration, he described the process as one of continuous improvement and said the company was targeting modest sequential improvement in Interventional in the fourth quarter.

The other two businesses posted stronger growth. Vascular revenue rose 4.6% to $243.5 million, while Surgical revenue increased 5.1% to $114 million, both on a pro forma adjusted constant currency basis.

Margins and Capital Allocation

Third-quarter adjusted gross margin increased 450 basis points to 66.8%, including a 290-basis-point benefit from the tariff refund. Adjusted operating margin rose 300 basis points to 25%. The refund reduced adjusted cost of sales by $16.5 million, Deren said.

Deren expects a step-up in research and development spending in the fourth quarter, including startup costs for the BIOMAG-III study of the company’s Freesolve scaffold. He also expects additional investment across the portfolio.

Since July 1, Teleflex has repurchased approximately $350 million of stock, including $250 million through a completed accelerated share repurchase program. As of Nov. 5, $400 million remained available under its current authorization. The company also paid off a $700 million term loan during the quarter and reduced a portion of its revolving debt.

EZPLAZ Seen as Long-Term Opportunity

Weidman said Teleflex estimates a long-term U.S. market opportunity of at least $200 million for EZPLAZ, its FDA-licensed freeze-dried plasma product. The company expects revenue from EZPLAZ to be immaterial in 2026, contribute in 2027 and grow modestly in the first several years.

The U.S. government and military are the initial priority and are expected to account for most of the company’s manufacturing capacity in the near term, Weidman said. He cautioned that commercial delivery still requires procurement and contract steps, and that substantially increasing production will take a multiyear effort.

On Freesolve, Weidman said the company completed enrollment in its European BIOMAG-LL study and received FDA breakthrough device designation. The BIOMAG-II trial is expected to produce a data readout in late 2027, while the U.S. pivotal BIOMAG-III trial is underway.

About Teleflex (NYSE:TFX)

Teleflex Incorporated is a global medical technology company that develops, manufactures and markets specialty medical devices. Its products are designed to support healthcare professionals in critical care and procedural settings, including vascular access, interventional cardiology and radiology, anesthesia, respiratory care, emergency medicine, surgical applications and urology.

The company's portfolio includes catheters, access and closure devices, airway-management products, surgical instruments, pain-management devices and other technologies used in hospitals and outpatient facilities.

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