ICU Medical’s second quarter results met Wall Street’s revenue expectations and significantly exceeded consensus profit estimates, yet the market reacted negatively. Management attributed the challenging year-over-year sales decline to the deconsolidation of the IV Solutions business and ongoing tariff headwinds. CEO Vivek Jain noted that while the consumables segment achieved record sales and the IV Systems segment saw strong demand for new installations, tariff costs and the shifting product mix weighed on results. The company’s cautious tone reflected persistent external pressures, particularly as tariffs on production in Costa Rica increased.
Is now the time to buy ICUI? Find out in our full research report (it’s free).
ICU Medical (ICUI) Q2 CY2025 Highlights:
- Revenue: $543.6 million vs analyst estimates of $539.7 million (8.9% year-on-year decline, 0.7% beat)
- EPS (GAAP): $1.43 vs analyst estimates of -$0.47 (significant beat)
- Adjusted EBITDA: $100.3 million vs analyst estimates of $90.8 million (18.5% margin, 10.5% beat)
- EPS (GAAP) guidance for the full year is $7 at the midpoint, beating analyst estimates by 443%
- EBITDA guidance for the full year is $392.5 million at the midpoint, above analyst estimates of $387.5 million
- Operating Margin: 4.9%, in line with the same quarter last year
- Market Capitalization: $2.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From ICU Medical’s Q2 Earnings Call
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Jayson Tyler Bedford (Raymond James) questioned the extent to which tariffs, beyond Costa Rica, were considered in guidance. CFO Brian Bonnell clarified that China tariffs remain at current rates, and incremental exposure is now included in forecasts.
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Jayson Tyler Bedford (Raymond James) asked if anything besides tariffs impacted the narrowing of EBITDA guidance. Bonnell replied, “It essentially comes down to just tariffs,” indicating no other material factors.
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Michael Stephen Matson (Needham & Company) sought clarification on whether sequential growth was expected for total revenue or only certain segments. CEO Vivek Jain emphasized that consumables and systems are the prime growth engines, with record quarters anticipated.
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William Korner (KeyBanc Capital Markets) probed whether tariff expenses should be annualized for future years. Jain advised against annualizing 2025 tariffs, noting some implementations will be repriced over time to offset costs.
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Charles S. Strauzer (CJS Securities) asked about the status of plant consolidations and future benefits. CEO Jain said the Costa Rica move is complete, with two more consolidations nearing completion and benefits expected to materialize next year.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be closely monitoring (1) the pace of regulatory approvals and customer adoption for ICU Medical’s new infusion pumps and software platforms, (2) the company’s ability to offset persistent tariff headwinds through pricing and cost actions, and (3) progress on finalizing manufacturing consolidations and optimizing the Vital Care portfolio. Execution on these fronts will be key to sustaining revenue growth and margin improvement.
ICU Medical currently trades at $113.59, down from $130.21 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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