ICU Medical Inc. (ICUI) reported fourth‑quarter 2025 results on February 19, 2026, with revenue of $540.7 million, a 14.5% year‑over‑year decline. GAAP gross profit reached $203.0 million, giving a 38% gross margin that is higher than the 36% margin reported in Q4 2024. The company posted a GAAP net loss of $15.7 million, or $0.64 per diluted share, while adjusted diluted earnings per share were $1.91, beating the consensus estimate of $1.68–$1.69 by $0.22–$0.23.
Revenue fell short of some analyst expectations but surpassed others. Consensus estimates ranged from $530.9 million to $530.6 million, which the company beat, yet a few analysts had projected $541.20 million to $541.245 million, meaning the actual figure missed those higher estimates. The mixed outlook reflects the impact of the Otsuka ICU Medical joint venture, which deconsolidated the IV Solutions business and reduced revenue from that segment, while organic growth of 2% in Q4 and 5% for the full year helped offset the decline.
GAAP gross margin improvement to 38% was driven by a higher mix of high‑margin consumables and infusion systems, while the lower‑margin IV Solutions segment was removed from the income statement after the joint‑venture split. Adjusted gross margin of 40.5% in Q4 was in line with the 40%‑41% range guidance given in the Q3 call, indicating that cost‑control initiatives and pricing power are translating into better profitability.
The GAAP net loss of $15.7 million was largely attributable to integration costs from the Smiths Medical acquisition and one‑time charges related to the acquisition. Despite the loss, the company continues to reduce debt, having paid down $303 million of principal in 2025, and maintains a target leverage ratio of 2×.
For FY 2026, ICU Medical guided for GAAP net income of $26 million to $44 million, adjusted EBITDA of $400 million to $430 million, and adjusted earnings per share of $7.75 to $8.45. The adjusted EPS guidance represents a substantial increase from the Q4 2025 adjusted EPS of $1.91 and signals management’s confidence in margin expansion and debt reduction, while the cautious net‑income outlook reflects ongoing tariff headwinds and integration costs.
CEO Vivek Jain said the results were “generally in line with our expectations.” CFO Brian Bonnell noted that the adjusted gross margin of 40.5% was “in line with the guidance we provided on the Q3 call of 40% to 41%.” Management highlighted that “reported comparisons continue to be affected by the mid‑2025 creation of the Otsuka ICU Medical joint venture and the resulting deconsolidation of the IV Solutions business from the company’s income statement.” They also expect “the gross margin rate to improve throughout the year as we complete the manufacturing consolidation and supply chain integration projects and begin to realize the benefits with the gross margin rate as we exit the year higher than the 41% average.”
Market reaction was muted; the stock traded flat or slightly lower after the announcement, reflecting investors’ weighing of the EPS beat against the revenue miss and the headwinds from tariffs, integration costs, and the IV Solutions deconsolidation.
The results demonstrate that ICU Medical is managing costs and improving margins, but revenue decline and external headwinds remain challenges. The FY 2026 guidance indicates cautious optimism, with a focus on margin expansion and debt reduction while navigating tariff impacts and integration costs.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.