Teleflex Reports $700.7 Million Revenue, Plans Acquisition of Vascular Intervention Business

Teleflex Incorporated reported a net revenue of $700.7 million for the three months ended March 30, 2025, a decrease of 5.0% compared to $737.8 million in the same period last year. The decline was primarily attributed to a $43.6 million drop in sales volumes of existing products, particularly in the OEM product category and UroLift product line, alongside unfavorable foreign currency exchange fluctuations. However, the company noted a partial offset from increased sales of new products. Gross profit also fell to $389.4 million, down from $416.1 million, resulting in a gross margin of 55.6%, a decrease of 80 basis points from the prior year.

In terms of operational efficiency, Teleflex managed to reduce selling, general, and administrative expenses to $222.7 million from $242.8 million, largely due to favorable foreign currency exchange rates and lower costs associated with the anticipated acquisition of the Vascular Intervention business from BIOTRONIK. Research and development expenses slightly decreased to $36.4 million from $37.3 million, reflecting lower costs related to European Union Medical Device Regulations. The company also incurred restructuring charges of $4.8 million, up from $2.7 million, primarily related to strategic actions for creating a new, independently traded public company.

Teleflex's balance sheet showed total assets of $7.16 billion as of March 30, 2025, compared to $7.10 billion at the end of 2024. The company reported a total current asset increase, driven by higher inventory levels, which rose to $644.0 million from $600.1 million. Total liabilities increased to $3.07 billion, up from $2.82 billion, largely due to an increase in long-term borrowings, which rose to $1.81 billion from $1.56 billion. The company’s equity decreased to $4.10 billion from $4.28 billion, reflecting the impact of share repurchases and other comprehensive losses.

Strategically, Teleflex announced its intention to acquire the Vascular Intervention business from BIOTRONIK for an initial cash payment of €760 million, expected to close in the third quarter of 2025. This acquisition is anticipated to enhance Teleflex's interventional product portfolio. Concurrently, the company has entered into a delayed draw term loan facility to finance this acquisition. Additionally, Teleflex is planning a separation of its Urology and Acute Care businesses into a new public company, targeting completion by mid-2026, contingent upon various approvals.

Looking ahead, Teleflex anticipates that its cash flow from operations, along with available cash and credit facilities, will support its operational needs, including the financing of the upcoming acquisition and managing the impacts of newly implemented tariffs. The company remains focused on optimizing its product portfolio and enhancing operational efficiencies to drive sustainable growth.