Earnings release
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ICU Medical Announces Second Quarter 2026 Results and Updates its Fiscal Year 2026 Guidance Exhibit 99.1 SAN CLEMENTE , Calif . , August 6 , 2026 ( GLOBE NEWSWIRE ) -- ICU Medical , Inc. ( Nasdaq : ICUI ) , a leader in the development , manufacture and sale of innovative medical products , today announced financial results for the quarterly period ended June 30 , 2026 . Second Quarter 2026 Results The following year - over - year results reflect the strategic divestiture of the IV Solutions business on May 1 , 2025. Second quarter 2026 GAAP revenue increased 1 % year - over - year ; however , excluding the impact of the IV Solutions divestiture and foreign currency , non - GAAP organic revenue increased 6 % . Second quarter 2026 GAAP revenue was $ 551.7 million , as compared to $ 548.9 million in the same period in the prior year . GAAP gross profit for the second quarter of 2026 was $ 235.1 million , as compared to $ 208.1 million in the same period in the prior year . GAAP gross margin for the second quarter of 2026 was 43 % , as compared to 38 % in the same period in the prior year . GAAP net income for the second quarter of 2026 was $ 19.1 million , or $ 0.76 per diluted share , as compared to GAAP net income of $ 35.3 million , or $ 1.43 per diluted share , for the second quarter of 2025. Adjusted diluted earnings per share for the second quarter of 2026 was $ 2.37 as compared to $ 2.10 for the second quarter of 2025. Adjusted EBITDA was $ 110.0 million for the second quarter of 2026 as compared to $ 100.3 million for the second quarter of 2025 . Adjusted EBITDA and adjusted diluted earnings per share are measures calculated and presented on the basis of methodologies other than in accordance with GAAP . Please refer to the Use of Non - GAAP Financial Information following the financial statements herein for further discussion and reconciliations of these measures to GAAP measures . Vivek Jain , ICU Medical's Chief Executive Officer , said , " Second quarter results were ahead of our expectations for Infusion Systems and generally in line with expectations for the remainder of the business . " Revenues by product line for the three and six months ended June 30 , 2026 and 2025 were as follows ( in millions ) : Product Line Consumables Infusion Systems Vital Care * Total ** Three months ended June 30 , Six months ended June 30 , 2026 2025 $ Change 2026 2025 $ 289.3 $ 189.0 73.4 273.1 $ 167.7 108.0 16.2 $ 21.3 ( 34.6 ) 567.6 $ 368.6 $ Change 539.4 $ 334.0 28.2 34.6 145.7 280.2 ( 134.5 ) $ 551.7 $ 548.8 $ 2.9 $ 1,081.9 $ 1,153.6 $ ( 71.7 ) * On May 1 , 2025 , we disposed of our IV Solutions business which was included within our Vital Care product line . Vital Care includes contract manufacturing revenue of $ 3.8 million and $ 8.2 million for the three and six months ended June 30 , 2026 , respectively , as compared to $ 5.3 million and $ 10.5 million for the three and six months ended June 30 , 2025 , respectively . ** Totals may differ from the income statement due to the rounding of product lines . Fiscal Year 2026 Guidance For Fiscal Year 2026 the Company is updating its estimates of GAAP net income from a range of $ 26 million to $ 44 million to a range of $ 73 million to $ 83 million and GAAP diluted earnings per share from a range of $ 1.03 to $ 1.74 to a range of $ 2.89 to $ 3.29 . The Company is updating the estimate of its full year 2026 guidance of Adjusted EBITDA from a range of $ 400 million to $ 430 million to a range of $ 415 million to $ 435 million and diluted earnings per share from a range of $ 7.75 to $ 8.45 to a range of $ 8.60 to $ 9.00 . Conference Call The Company will host a conference call to discuss its second quarter financial results , today at 4:30 p.m. ET ( 1:30 p.m. PT ) . The call can be accessed at ( 800 ) 420-1459 , conference ID " ICUMED " . The conference call will be simultaneously available by
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webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on Event Calendar andclicking on the Webcast icon and following the prompts. The webcast will also be available by replay. About ICU Medical ICU Medical (Nasdaq: ICUI) is a global leader in infusion systems, infusion consumables and high-value critical care products used in hospital, alternate siteand home care settings. Our team is focused on providing quality, innovation and value to our clinical customers worldwide. ICU Medical is headquartered inSan Clemente, California. More information about ICU Medical can be found at www.icumed.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. Such statements contain words such as“aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,”“predict,” “project,” “should,” “target,” “will,” “would” or the negative thereof or comparable terminology and may include (without limitation) informationregarding the Company's expectations, goals and intentions regarding the future and financial outlook for 2026. These forward-looking statements are basedon management's current expectations, estimates, forecasts and projections about the Company and assumptions management believes are reasonable, all ofwhich are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements.These risks and uncertainties include, but are not limited to: risks from doing business in foreign countries, including related to tariffs and other barriers totrade; the Company’s ability to compete successfully, including with larger international companies and established local companies; decreased demand forthe Company's products; costs related to product development; cost volatility or potential loss of supply of raw materials due to our dependence on single andlimited source third-party suppliers; ability to achieve operating efficiencies; risks related to significant sales through our distributors; inflation and foreigncurrency exchange rates; impacts from global macroeconomic and geopolitical conditions, including from escalated conflicts in the Middle East andassociated disruptions to shipping and increased oil costs; healthcare costs and reimbursement levels; disruptions at the FDA and other governmentalagencies; damage at the Company’s manufacturing or supply facilities; risks associated with the IV Solutions joint venture and the Smiths Medicalintegration; risks associated with the timing and resolution of the 2025 warning letter; risks related to protection of our information technology systems andcompliance with privacy laws and regulations; risks related to our intellectual property; and the other important factors described under “Risk Factors” in theCompany's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our subsequent filings with the SEC. Forward-looking statementscontained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-lookingstatements, whether as a result of new information, future events or otherwise unless required by law.
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ICU MEDICAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(In thousands) June 30,2026 December 31,2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 298,299 $ 307,963 Accounts receivable, net of allowance for doubtful accounts 183,531 180,515 Inventories 607,421 615,859 Prepaid expenses and other current assets 121,657 86,217 TOTAL CURRENT ASSETS 1,210,908 1,190,554 PROPERTY, PLANT AND EQUIPMENT, net 446,798 451,817 OPERATING LEASE RIGHT-OF-USE ASSETS 38,610 54,470 GOODWILL 1,484,384 1,499,754 INTANGIBLE ASSETS, net 567,665 633,559 DEFERRED INCOME TAXES 25,569 25,891 OTHER ASSETS 63,435 62,877 INVESTMENTS IN UNCONSOLIDATED AFFILIATES 133,913 131,586 TOTAL ASSETS $ 3,971,282 $ 4,050,508 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 149,165 $ 154,374 Accrued liabilities 322,489 315,337 Current portion of long-term debt 18,750 18,750 Income tax payable 7,960 10,400 TOTAL CURRENT LIABILITIES 498,364 498,861 LONG-TERM DEBT 1,212,449 1,265,917 OTHER LONG-TERM LIABILITIES 70,994 89,536 DEFERRED INCOME TAXES 12,227 37,756 INCOME TAX LIABILITY 25,397 34,613 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY: Convertible preferred stock, $1.00 par value; Authorized — 500 shares; Issued and outstanding — none — — Common stock, $0.10 par value; Authorized — 80,000 shares; Issued —25,186 and 24,688 shares at June 30, 2026 and December 31, 2025,respectively, and outstanding — 25,007 and 24,688 shares at June 30, 2026 and December 31, 2025, respectively 2,519 2,469 Additional paid-in capital 1,475,974 1,465,118 Treasury stock, at cost (23,415) (22) Retained earnings 740,109 690,890 Accumulated other comprehensive loss (43,336) (34,630) TOTAL STOCKHOLDERS' EQUITY 2,151,851 2,123,825 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,971,282 $ 4,050,508
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ICU MEDICAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(In thousands, except per share data) Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 TOTAL REVENUES $ 551,683 $ 548,866 $ 1,081,908 $ 1,153,568 COST OF GOODS SOLD 316,630 340,802 640,629 735,395 GROSS PROFIT 235,053 208,064 441,279 418,173 OPERATING EXPENSES: Selling, general and administrative 151,922 159,392 306,488 316,625 Research and development 22,702 21,867 43,982 45,158 Restructuring, strategic transaction and integration 21,302 16,218 38,103 32,915 TOTAL OPERATING EXPENSES 195,926 197,477 388,573 394,698 INCOME FROM OPERATIONS 39,127 10,587 52,706 23,475 INTEREST EXPENSE, net (15,747) (20,549) (32,241) (42,580) OTHER (EXPENSE) INCOME, net (236) 1,818 (1,296) 55 GAIN ON SALE OF BUSINESS — 41,823 — 41,823 INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OFUNCONSOLIDATED AFFILIATES 23,144 33,679 19,169 22,773 (PROVISION) BENEFIT FOR INCOME TAXES (7,070) (1,178) 27,644 (5,748) NET INCOME FROM CONSOLIDATED COMPANIES 16,074 32,501 46,813 17,025 EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES 3,013 2,837 2,406 2,837 NET INCOME $ 19,087 $ 35,338 $ 49,219 $ 19,862 NET INCOME PER SHARE Basic $ 0.76 $ 1.43 $ 1.98 $ 0.81 Diluted $ 0.76 $ 1.43 $ 1.96 $ 0.80 WEIGHTED AVERAGE NUMBER OF SHARES Basic 25,000 24,645 24,884 24,593 Diluted 25,044 24,708 25,132 24,746
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ICU MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six months endedJune 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 49,219 $ 19,862 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 99,640 99,110 Noncash lease expense 8,136 9,308 Stock compensation 25,881 26,636 Loss on disposal of property, plant and equipment and other assets 1,983 1,753 Debt issuance costs amortization 1,574 3,482 Undistributed equity in earnings of unconsolidated affiliates (2,406) (2,837) Gain on sale of business — (41,823) Other 13,471 8,037 Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (7,562) 16,691 Inventories 4,625 (29,213) Prepaid expenses and other current assets (16,461) (9,208) Other assets (2,936) (5,682) Accounts payable (4,909) 14,382 Accrued liabilities (5,895) (19,835) Income taxes, including excess tax benefits and deferred income taxes (45,301) (28,125) Net cash provided by operating activities 119,059 62,538 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (29,813) (34,317) Proceeds from the sale of business — 209,464 Deposit received for the sale of a business 2,000 — Proceeds from sale of assets 22 42 Intangible asset additions (3,555) (4,541) Net cash (used in) provided by investing activities (31,346) 170,648 CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayments of long-term debt (54,688) (247,750) Proceeds from exercise of stock options 490 5,972 Payments on finance leases (1,297) (885) Tax withholding payments related to net share settlement of equity awards (38,862) (8,688) Net cash used in financing activities (94,357) (251,351) Effect of exchange rate changes on cash (3,020) 9,624 NET DECREASE IN CASH AND CASH EQUIVALENTS (9,664) (8,541) CASH AND CASH EQUIVALENTS, beginning of period 307,963 308,566 CASH AND CASH EQUIVALENTS, end of period $ 298,299 $ 300,025
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Use of Non-GAAP Financial Information This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance withGAAP. There are material limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not becomparable to similarly titled non-GAAP financial measures used by other companies, including peer companies. Our management believes that the non-GAAP data provides useful supplemental information to management and investors regarding our performance and facilitates a more meaningful comparisonof results of operations between current and prior periods. We use non-GAAP financial measures in addition to and in conjunction with GAAP financialmeasures to analyze and assess the overall performance of our business, in making financial, operating and planning decisions, and in determining executiveincentive compensation. The non-GAAP financial measures as shown in the tables below, exclude special items because they are highly variable or unusual and impact year-over-yearcomparisons. For the three months ended June 30, 2026 and 2025, special items include the following: Contract manufacturing: We manufacture certain products or product components in accordance with manufacturing services agreements. We do not includethe contract revenue in our adjusted revenue, or any gross profit impact in our adjusted gross profit as the commercial relationship under these types ofagreements are originally negotiated contemporaneously with a business combination or other transactions and are not indicative of normal markettransactions. Stock compensation expense: Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period ofseveral years. The value of our restricted stock awards is determined using the grant date stock price, which may not be indicative of our operationalperformance over the expense period. Additionally, in order to establish the fair value of performance-based stock awards, which are currently an element ofour ongoing stock-based compensation, we are required to apply judgment to estimate the probability of the extent to which performance objectives will beachieved. Based on the above factors, we believe it is useful to exclude stock-based compensation in order to better understand our operating performance. Intangible asset amortization expense: We do not acquire businesses or capitalize certain patent costs on a predictable cycle. The amount of purchase priceallocated to intangible assets and the term of amortization can vary significantly and are unique to each acquisition. Capitalized patent costs can varysignificantly based on our current level of development activities. We believe that excluding amortization of intangible assets provides the users of ourfinancial statements with a consistent basis for comparison across accounting periods. Restructuring, strategic transaction and integration: We incur restructuring and strategic transaction charges that result from events, which arise fromunforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAPfinancial statements, these unique transactions may limit the comparability of our ongoing operations with prior and future periods. Settlements: Occasionally, we are involved in contract renegotiations or other events that may result in one-time settlements. We exclude these settlements asthey have no direct correlation to the operation of our ongoing business. Quality system and product-related remediation: We exclude certain quality system and product-related remediation charges in determining our non-GAAPfinancial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normaloperating performance. Noncash release of loss on contract provision: We provide certain services under fixed priced arrangements in accordance with a transition servicesarrangement. We do not include the loss on contract provision or subsequent release net of the related interest accretion as a result of providing those servicesin our non-GAAP financial measures as the agreement was negotiated contemporaneously with a disposition and is not indicative of a normal markettransaction. The loss provision and subsequent release is a non-recurring noncash adjustment that if included may limit the comparability of our ongoingoperations with prior and future periods. Gain on sale of business: We exclude any non-cash gains/losses on the sale of a business in determining our non-GAAP financial measures as the inclusionmay limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.
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Tariff Refunds: We exclude certain IEEPA tariff refunds in determining our non-GAAP financial measures because these regulatory adjustments areinfrequent, non-operational items that may limit the comparability of our ongoing operations with prior and future periods. From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing usefulinformation to investors and management. In addition to the above special items, Adjusted EBITDA additionally excludes the following items from net income: Depreciation expense: We exclude depreciation expense in deriving adjusted EBITDA because companies utilize productive assets of different ages and thedepreciable lives can vary significantly resulting in considerable variability in depreciation expense among companies. Interest, net: We exclude interest in deriving adjusted EBITDA as interest can vary significantly among companies depending on a company's level of incomegenerating instruments and/or level of debt. Taxes: We exclude taxes in deriving adjusted EBITDA as taxes are deemed to be non-core to the business and may limit the comparability of our ongoingoperations with prior and future periods and distort the evaluation of our normal operating performance. Adjusted Diluted EPS excludes from diluted EPS, net of tax, the special items listed above. The tax effect on the special items is calculated using the specifictax rate applied to each adjustment based on the nature of the item/or the tax jurisdiction in which the item has been recorded. Additionally, adjusted dilutedEPS may exclude the income tax impact of certain non-recurring discrete tax items that are not reflective of income tax expense/benefit incurred as a result ofcurrent period earnings/ loss, as well as the impact of certain deferred tax valuation allowances when assessed against non-GAAP profitability. We also present Free cash flow as a non-GAAP financial measure as management believes that this is an important measure for use in evaluating overallcompany financial performance as it measures our ability to generate additional cash flow from business operations. Free cash flow should be considered inaddition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of ourliquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to thefact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, webelieve it is important to view free cash flow as supplemental to our entire statement of cash flows. We also present organic revenue growth as a non-GAAP financial measure as management believes that this measure provides a more representative view ofthe Company's underlying growth trajectory by excluding the impact of revenue from non-arm's length transactions, the impact of foreign currency and therevenue associated with acquisitions and divestitures. We calculate constant currency revenue by translating current period foreign currency revenue at priorperiod comparable exchange rates and we calculate the constant currency growth percentages by dividing the current period constant currency revenue by theprior year comparable period revenue. The following tables reconcile our non-GAAP financial measures for the periods presented:
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(In thousands) Adjusted EBITDA Three months endedJune 30, 2026 2025 GAAP net income $ 19,087 $ 35,338 Non-GAAP adjustments: Interest, net 15,747 20,549 Stock compensation expense 11,870 14,457 Depreciation and amortization expense 49,614 49,665 Restructuring, strategic transaction and integration 21,302 16,218 Settlements 30 150 Quality system and product-related remediation 5,890 5,706 Gain on sale of business — (41,823) Noncash release of loss on contract provision (1,120) (717) Gross profit on contract manufacturing (575) (412) Tariff refunds (18,888) — Provision for income taxes 7,070 1,178 Total non-GAAP adjustments 90,940 64,971 Adjusted EBITDA $ 110,027 $ 100,309
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(In thousands, except percentages and per share data) The Company’s U.S. GAAP results for the three months ended June 30, 2026 included special items which impacted the U.S. GAAP measures asfollows: Totalrevenues Grossprofit Selling,general andadministrative Researchanddevelopment Restructuring,strategictransactionandintegration Incomefromoperations Interestexpense,net Income beforeincome taxesand equity inincome ofunconsolidatedaffiliates Provisionfor incometaxes Net incomefromconsolidatedcompanies Equity inearnings ofunconsolidatedaffiliated Netincome(loss) Dilutedearnings(loss)incomepershare Reported (GAAP) $551,683 $235,053 $ 151,922 $ 22,702 $ 21,302 $39,127 $(15,747) $ 23,144 $ (7,070) $ 16,074 $ 3,013 $19,087 $ 0.76 Reported percent oftotal revenues or(percent of income(loss) before incometaxes and equity inearnings ofunconsolidatedaffiliates) 43 % 28 % 4 % 4 % 7 % (3)% 4 % 30.5 % 3 % Contractmanufacturing (3,799) (575) — — — (575) — (575) 141 (434) — (434) (0.02) Stock compensationexpense — 1,850 (9,249) (771) — 11,870 — 11,870 (2,879) 8,991 — 8,991 0.36 Amortizationexpense — 1,265 (31,722) — — 32,987 — 32,987 (8,200) 24,787 — 24,787 0.99 Restructuring,strategic transactionand integration — — — — (21,302) 21,302 — 21,302 (5,049) 16,253 — 16,253 0.65 Settlements — — (30) — — 30 — 30 (7) 23 — 23 — Quality system andproduct-relatedremediation — 5,890 — — — 5,890 — 5,890 (1,265) 4,625 — 4,625 0.18 Noncash release ofloss on contractprovision — — 1,120 — — (1,120) 318 (802) 196 (606) — (606) (0.02) Tariff refunds — (18,888) — — — (18,888) (710) (19,598) 4,802 (14,796) — (14,796) (0.59) Tax benefit fromdiscrete reserverelease and valuationallowance* — — — — — — — — 1,548 1,548 — 1,548 0.06 Tax benefit fromequity in loss ofunconsolidatedaffiliates — — — — — — — — 738 738 (738) — — Adjusted (Non-GAAP)** $547,884 $224,595 $ 112,041 $ 21,931 $ — $90,623 $(16,139) $ 74,248 $(17,045) $ 57,203 $ 2,275 $59,478 $ 2.37 Adjusted percent oftotal revenues or(percent of (loss)income beforeincome taxes andequity in loss ofunconsolidatedaffiliates for benefit(provision) forincome taxes) 41 % 20 % 4 % — % 17 % (3)% 14 % 23.0 % 10 % ______________________ * The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets, as well as, the tax benefit on the release of income tax reserves in foreign jurisdictions for tax years which are no longer subject to an assessment from the local taxing authorities. The valuation allowance wasrecorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. loss position on a GAAP basis asof June 30, 2026. However, based on the same assessment, including, predominantly, our being, in a three-year cumulative U.S. income position on a non-GAAP basis, which excludes the impact ofour non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expense for the valuation allowancewas added back to our calculation of non-GAAP annual effective tax rate. Tax reserves were released as a result of the expiration of statute of limitations which resulted in a discrete tax benefit forGAAP purposes. This tax benefit is excluded from our non-GAAP annual effective tax rate to the extent it is not related to on-going business operations.** Amounts may not foot due to rounding.
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)(In thousands, except percentages and per share data) The Company’s U.S. GAAP results for the three months ended June 30, 2025 included special items which impacted the U.S. GAAP measures asfollows: Totalrevenues Grossprofit Selling,general andadministrative Researchanddevelopment Restructuring,strategictransactionandintegration Incomefromoperations Interestexpense,net Gain onsale ofbusiness Income beforeincome taxesand equity inearnings ofunconsolidatedaffiliates Provisionforincometaxes Net incomefromconsolidatedcompanies Equity inearnings ofunconsolidatedaffiliated Netincome Dilutedearningspershare Reported(GAAP) $548,866 $208,064 $ 159,392 $ 21,867 $ 16,218 $10,587 $(20,549) $41,823 $ 33,679 $(1,178) $ 32,501 $ 2,837 $35,338 $ 1.43 Reportedpercent of totalrevenues (orpercent of(loss) incomebefore incometaxes forbenefit(provision) forincome taxes) 38 % 29 % 4 % 3 % 2 % (4)% 8 % 6 % 3.5 % 6 % Contractmanufacturing (5,293) (412) — — — (412) — — (412) 101 (311) — (311) (0.01) Stockcompensationexpense — 1,851 (11,990) (616) — 14,457 — — 14,457 (3,511) 10,946 — 10,946 0.44 Amortizationexpense — 1,038 (31,690) — — 32,728 — — 32,728 (8,068) 24,660 — 24,660 1.00 Depreciationexpensereduction -assets held forsaleclassification — (1,074) — — — (1,074) — — (1,074) 263 (811) — (811) (0.03) Restructuring,strategictransactionand integration — — — — (16,218) 16,218 — — 16,218 (3,973) 12,245 — 12,245 0.50 Settlements — — (150) — 150 — — 150 (37) 113 — 113 — Quality systemand product-relatedremediation — 5,706 — — — 5,706 — — 5,706 (1,268) 4,438 — 4,438 0.18 Gain on saleof business — — — — — — — (41,823) (41,823) 10,247 (31,576) — (31,576) (1.28) Noncashrelease of losson contractprovision — — 717 — — (717) 247 — (470) 115 (355) — (355) (0.01) Tax expensefrom valuationallowance* — — — — — — — — — (2,699) (2,699) — (2,699) (0.11) Tax expensefrom equity inearnings ofunconsolidatedaffiliates — — — — — — — — — 695 695 (695) — — Adjusted(Non-GAAP)** $543,573 $215,173 $ 116,279 $ 21,251 $ — $77,643 $(20,302) $ — $ 59,159 $(9,313) $ 49,846 $ 2,142 $51,988 $ 2.10 Adjustedpercent of totalrevenues (orpercent of(loss) incomebefore incometaxes forprovision forincome taxes) 40 % 21 % 4 % — % 14 % (4)% — % 11 % 15.7 % 9 % _____________* The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets. Thevaluation allowance was recorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. lossposition on a GAAP basis as of June 30, 2025. However, based on the same assessment, including, predominantly, our being, in a three-year cumulative U.S. income position on a non-GAAP basis,which excludes the impact of our non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expensefor the valuation allowance was added back to our calculation of non-GAAP annual effective tax rate.** Amounts may not foot due to rounding
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)(In thousands, except percentages) Reconciliation of GAAP revenue growth to Non-GAAP organic revenue growth: Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 Consumables GAAP revenue $ 289,276 $ 273,133 $ 567,551 $ 539,359 Consumables GAAP revenue growth 6 % 4 % 5 % 7 % Foreign currency impact (1,952) (8,766) Non-GAAP organic revenue $ 287,324 $ 273,133 $ 558,785 $ 539,359 Non-GAAP organic revenue growth 5 % 3 % 4 % 7 % Infusion Systems GAAP revenue $ 188,998 $ 167,696 $ 368,602 $ 333,996 Infusion Systems GAAP revenue growth 13 % 2 % 10 % 4 % Foreign currency impact (924) (4,559) Non-GAAP organic revenue $ 188,074 $ 167,696 $ 364,043 $ 333,996 Non-GAAP organic revenue growth 12 % 2 % 9 % 5 % Vital Care GAAP revenue $ 73,409 $ 108,036 $ 145,755 $ 280,213 Vital Care GAAP revenue growth (32)% (37)% (48)% (17)% MSA Revenue (3,799) (5,293) (8,250) (10,504) Non-GAAP adjusted revenue 69,610 102,743 137,505 269,709 Non-GAAP adjusted revenue growth (32)% (34)% (49)% (12)% Less: Revenue from divested business (30,028) (119,522) Foreign currency impact 99 (1,302) Non-GAAP organic revenue $ 69,709 $ 72,715 $ 136,203 $ 150,187 Non-GAAP organic revenue growth (4)% (4)% (9)% 5 % Total GAAP revenue $ 551,683 $ 548,866 $ 1,081,908 $ 1,153,568 Total GAAP revenue growth 1 % (8)% (6)% (1)% MSA Revenue (3,799) (5,293) (8,250) (10,504) Non-GAAP adjusted revenue 547,884 543,573 1,073,658 1,143,064 Non-GAAP adjusted revenue growth 1 % (6)% (6)% 1 % Less: Revenue from divested business (30,028) (119,522) Foreign currency impact (2,777) (14,627) Non-GAAP organic revenue $ 545,107 $ 513,545 $ 1,059,031 $ 1,023,542 Non-GAAP organic revenue growth 6 % 2 % 3 % 6 % _____________________________________________ We manufacture certain products or product components in accordance with manufacturing services agreements. We do not include thecontract revenue in our adjustedrevenue as the commercial relationship under these types of agreements are originally negotiated contemporaneously with a businesscombination or other transactions and (3) (3) (1) (2) (3) (1) (2) (3) (1)
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are not indicative of normal market transactions. For businesses divested, non-GAAP organic revenue growth excludes prior period revenue associated with the divested business for the samelengthof time they were not owned by the company in the current year. The divested business prior period revenue in this line item does not includeMSA revenue, which is excluded on a separate line.We exclude the impact of foreign exchange rate changes to show a constant currency comparison of our underlying business performance. (2) (3)
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)(In thousands) Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 Net cash provided by operating activities $ 80,150 11,211 $ 119,059 $ 62,538 Purchase of property, plant and equipment (18,511) (19,696) (29,813) (34,317) Proceeds from sale of assets 21 — 22 42 Free cash flow $ 61,660 $ (8,485) $ 89,268 $ 28,263
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ICU MEDICAL, INC. AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)(In thousands) Net Leverage Ratio Calculation Net Debt As of June 30, 2026 Current portion of long-term debt $ 18,750 Long-Term Debt 1,212,449 Total GAAP Long-Term Debt 1,231,199 Add: Unamortized Debt Issuance Costs/Discounts 8,614 Less: Cash and cash equivalents (298,299) Net Debt (Non-GAAP) $ 941,514 Represents unamortized debt issuance costs and original issue discounts deducted from the carrying value of long-term debton the Condensed Consolidated Balance Sheets in accordance with U.S. GAAP. Management adds back these costs to presenttotal contractual principal obligations outstanding when evaluating debt leverage. TTM AdjustedEBITDA As of June 30, 2026 GAAP net income $ 30,089 Non-GAAP adjustments: Interest, net 72,692 Stock compensation expense 55,003 Depreciation and amortization expense 201,273 Restructuring, strategic transaction and integration 71,693 Settlements 1,596 Quality system and product-related remediation 38,070 Asset write-offs and similar charges 887 Gain on sale of business (2,969) Noncash release of loss on contract provision (4,392) Gross profit on contract manufacturing (1,292) Tariff refunds (18,888) Provision for income taxes (30,955) Total non-GAAP adjustments 382,718 TTM Adjusted EBITDA $ 412,807 Net Leverage Ratio Net Debt $ 941,514 Divided by: TTM Adjusted EBITDA $ 412,807 Net Leverage Ratio 2.28 x (1) (1)
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ICU MEDICAL, INC. AND SUBSIDIARIESFiscal Year 2026Outlook (Unaudited)(In millions, except per share data) Low End ofGuidance High End ofGuidance GAAP net income $ 73 $ 83 Non-GAAP adjustments: Interest, net 65 65 Stock compensation expense 50 50 Depreciation and amortization expense 203 203 Restructuring, strategic transaction and integration 52 52 Quality and regulatory initiatives and remediation 25 25 Noncash release of loss on contract provision (4) (4) Gross profit on contract manufacturing (2) (2) Tariff refunds (19) (19) Benefit for income taxes (28) (18) Total non-GAAP adjustments $ 342 $ 352 Adjusted EBITDA $ 415 $ 435 GAAP income per share $ 2.89 $ 3.29 Non-GAAP adjustments: Stock compensation expense 1.98 1.98 Amortization expense 5.28 5.28 Restructuring, strategic transaction and integration 2.06 2.06 Quality and regulatory initiatives and remediation 0.99 0.99 Noncash release of loss on contract provision (0.12) (0.12) Gross profit on contract manufacturing (0.08) (0.08) Tariff refunds (0.79) (0.79) Tax benefit from discrete reserve release and valuation allowance (1.33) (1.33) Estimated income tax impact from adjustments (2.28) (2.28) Adjusted earnings per share $ 8.60 $ 9.00 CONTACT:ICU Medical, Inc. Brian Bonnell, Chief Financial Officer(949) 366-2183ICR, Inc.John Mills, Partner(646) 277-1254