Teleflex Reports $3.05 Billion Revenue for Fiscal Year 2024, Plans Strategic Separation

Teleflex Incorporated reported a net revenue of $3.05 billion for the fiscal year ending December 31, 2024, marking a 2.4% increase from $2.97 billion in 2023. The growth was primarily driven by a $51.4 million contribution from price increases and a $43 million rise in sales of new products. However, the company faced challenges, including a decline in sales from its UroLift product line and increased reserves related to the Italian payback measure, which partially offset revenue gains. Gross profit for the year was $1.70 billion, reflecting a gross margin of 55.9%, up from 55.4% in the previous year, attributed to price increases and cost improvement initiatives.

In terms of profitability, Teleflex experienced a significant goodwill impairment charge of $240 million related to its Interventional Urology North America reporting unit, primarily due to lower-than-expected sales forecasts. This impairment, along with a pension settlement charge of $132.7 million, contributed to a decrease in operating profit, which fell to $918.2 million from $946.1 million in 2023. Selling, general, and administrative expenses rose to $995.3 million, driven by increased operating costs from the acquired Palette business and higher IT expenses related to a new ERP system.

Strategically, Teleflex announced plans to create a new, independently traded public company comprising its Urology, Acute Care, and OEM businesses, with the separation expected to be completed by mid-2026. This move follows the acquisition of Palette Life Sciences and the planned acquisition of BIOTRONIK's Vascular Intervention business for €760 million, which is anticipated to enhance Teleflex's interventional product portfolio. The company also initiated several restructuring programs aimed at optimizing operations and reducing costs, with expected annual savings of $9 million to $14 million once fully implemented.

Operationally, Teleflex employed approximately 14,100 individuals as of December 31, 2024, with a significant portion of its workforce based outside the U.S. The company reported a 4% increase in net revenues from its Asia segment, driven by higher sales volumes and new product introductions, while the EMEA segment saw a 5.4% revenue increase. However, the Americas segment's operating profit decreased by 6.1%, reflecting challenges in sales volumes and increased operational costs. Looking ahead, Teleflex anticipates continued pressure from macroeconomic factors, including inflation and supply chain disruptions, which may impact future performance.