Teleflex’s first quarter results for 2025 prompted a negative market reaction, as revenues declined year over year and the company acknowledged persistent headwinds across multiple business segments. Management attributed the performance to continued challenges in its Original Equipment Manufacturer (OEM) business—driven by lost contracts and customer inventory management—alongside softness in UroLift and ongoing volume-based procurement pressures in China. CEO Liam Kelly noted, “The quarter evolved largely as expected,” but also cited the impact of macroeconomic factors and unfavorable product mix on margins.
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Teleflex (TFX) Q1 CY2025 Highlights:
- Revenue: $700.7 million vs analyst estimates of $699 million (5% year-on-year decline, in line)
- Adjusted EPS: $2.91 vs analyst estimates of $2.88 (0.9% beat)
- Adjusted EBITDA: $200 million vs analyst estimates of $189.4 million (28.5% margin, 5.6% beat)
- Adjusted EPS guidance for the full year is $13.40 at the midpoint, missing analyst estimates by 4.9%
- Operating Margin: 17.9%, up from -0.6% in the same quarter last year
- Constant Currency Revenue fell 3.8% year on year (3.8% in the same quarter last year)
- Market Capitalization: $5.27 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 Teleflex’s Q1 Earnings Call
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Patrick Wood (Morgan Stanley) asked whether OEM order improvement reflected supply chain shifts; CEO Liam Kelly responded that demand pickup was mostly base demand, not yet onshoring, but expected sequential improvement.
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Michael Sarcone (Jefferies) pressed for details on tariff mitigation timing and EPS impact; CFO John Deren detailed ongoing supply chain, USMCA, and pricing strategies but cautioned against providing specific EPS offsets at this stage.
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Jayson Bedford (Raymond James) questioned whether NewCo could be sold in parts or only as a whole; Kelly stated all options remain open, guided by maximizing shareholder value, and the process is running in parallel to a spin.
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Craig Bijou (Bank of America) asked about Interventional Urology performance and UroLift’s outlook; Kelly said Palette continues to grow strongly, while UroLift remains pressured in the U.S. but is gaining traction in APAC.
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Richard Newitter (Truist Securities) inquired about confidence in China’s recovery and potential product tariff exemptions; Kelly explained that the worst of China’s volume-based procurement impacts are likely past and expressed hope for medical device exemptions from tariffs.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will closely monitor (1) the pace and effectiveness of tariff mitigation initiatives, including supply chain adjustments and pricing actions, (2) progress on the proposed separation and potential sale of NewCo assets, and (3) integration milestones for the BIOTRONIK Vascular Intervention acquisition. Additional focus will be on the recovery trajectories for OEM and China segments and the commercial traction of new products.
Teleflex currently trades at $119.15, down from $136.94 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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