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1. Company Snapshot

1.a. Company Description

ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy and critical care applications worldwide.The company's infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; SwabCap and SwabTip disinfecting caps; Tego hemodialysis connectors; ClearGuard HD, an antimicrobial barrier cap for hemodialysis catheters; and ChemoClave and ChemoLock closed system transfer devices, as well as Diana hazardous drug compounding system for the preparation of hazardous drugs.It also provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options.


The company offers infusion pumps under the Plum 360 and LifeCare PCA brands; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform that connects smart pumps to hospital's electronic health records, asset tracking systems, and alarm notification platforms; and related professional services.It also provides critical care products, such as Cogent 2-in-1 and CardioFlo hemodynamic monitoring systems; TDQ and OptiQ cardiac output monitoring catheters; TriOx venous oximetry catheters; Transpac blood pressure transducers; and SafeSet closed blood sampling and conservation systems.The company sells its products to acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities.


ICU Medical, Inc.was founded in 1984 and is headquartered in San Clemente, California.

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1.b. Last Insights on ICUI

ICU Medical's recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $2.03 per share, surpassing the Zacks Consensus Estimate of $1.54 per share. The company's strong financial results and growth prospects have garnered attention from analysts, with a consensus recommendation of "Moderate Buy" from six brokerages. Additionally, institutional investors such as AlphaQuest LLC and KLP Kapitalforvaltning AS have increased their stakes in the company. Management's participation in upcoming conferences, including the Piper Sandler 37th Annual Healthcare Conference, may further enhance visibility.

1.c. Company Highlights

2. ICU Medical's Q4 Earnings: A Strong Finish to 2025

ICU Medical reported revenue of $536 million for Q4 2025, representing 2% organic growth, while the full-year revenue grew 5% organically. The company's gross margins were above 40%, and EBITDA came in at $98 million. EPS was $1.91, beating estimates of $1.68. The consumables business grew 5% organically, driven by volume increases, while the IV systems business grew 1% organically. Vital Care, however, decreased 6% on an organic basis due to the deconsolidation of IV solutions.

Publication Date: Feb -24

📋 Highlights
  • Q4 Revenue & EBITDA Performance: $536M revenue (2% organic growth in Q4, 5% full-year), $98M EBITDA, and $1.91 EPS.
  • 2026 Financial Guidance: EBITDA of $400M–$430M, EPS of $7.75–$8.45, and 41% adjusted gross margin with 25% operating expenses to revenue.
  • Tariffs & Divestiture Impact: $40–50M unanticipated tariffs and $25M IV Solutions divestiture reduced 2026 EBITDA below $500M target.
  • Free Cash Flow & Debt Strategy: 2026 free cash flow improvement prioritized for debt paydown, aiming for 2x leverage ratio within half a turn.
  • Product & Regulatory Progress: FDA warning letter closed, 510(k) approvals for Medfusion 5000 and CADD pumps; Infusion Systems growth driven by LVP and competitive wins.

Guidance for 2026

The company expects consolidated organic revenue growth in the low to mid-single-digit range for 2026. Consumables growth is expected to be driven by volume increases and higher growth markets for oncology and other niche categories. Infusion Systems guidance reflects accelerated growth in the LVP line driven by competitive wins. Adjusted gross margin for 2026 is expected to be around 41%, and adjusted operating expenses as a percentage of revenue are expected to be approximately 25%.

Valuation Metrics

With a P/E Ratio of 550.67, the stock appears to be richly valued. However, the EV/EBITDA ratio of 14.52 suggests that the company's enterprise value is reasonable relative to its EBITDA. The Net Debt / EBITDA ratio of 3.01 indicates that the company still has some deleveraging to do, but it is making progress. The company's guidance for 2026 implies an EBITDA range of $400 million to $430 million, which is still short of the $500 million target due to unanticipated tariffs and the divestiture of IV Solutions.

Operational Highlights

The company's Infusion Systems business has a complete platform solution that will anchor the segment for the next 10-plus years. The consumables business is expected to create niche markets and expand capacities in the core business. The company is working to exit the remediation phase by the end of 2027 and expects to see benefits from manufacturing synergization and logistics consolidations. With a solid backlog and a new product cycle, the company feels well-positioned for 2026.

Outlook

Analysts estimate next year's revenue growth at 4.4%, which is in line with the company's guidance. With a strong finish to 2025 and a solid outlook for 2026, ICU Medical is well-positioned to deliver on its long-term targets. However, the company's high P/E Ratio suggests that the stock may be fully valued, and investors will need to monitor progress on deleveraging and margin expansion to justify the current valuation.

3. NewsRoom

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SHAREHOLDER ALERT: Purcell & Lefkowitz LLP Announces Shareholder Investigation of ICU Medical, Inc. (NASDAQ: ICUI)

Mar -25

Source: prnewswire.com

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Victory Capital Management Inc. Purchases 53,619 Shares of ICU Medical, Inc. $ICUI

Mar -10

Source: defenseworld.net

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ICU Medical to Participate in Upcoming Investor Conferences

Feb -23

Source: globenewswire.com

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ICU Medical, Inc. (ICUI) Q4 2025 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

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ICU Medical (ICUI) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -20

Source: zacks.com

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ICU Medical (ICUI) Q4 Earnings and Revenues Surpass Estimates

Feb -19

Source: zacks.com

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ICU Medical Announces Fourth Quarter 2025 Results and Provides Fiscal Year 2026 Guidance

Feb -19

Source: globenewswire.com

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Bryce Point Capital LLC Takes $586,000 Position in ICU Medical, Inc. $ICUI

Feb -10

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.78%)

6. Segments

Consumables

Expected Growth: 2.5%

ICU Medical's Consumables segment growth is driven by increasing demand for infusion therapy and critical care products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on product innovation, such as its needlefree connector technology, and cost savings initiatives contribute to the 2.5% growth rate.

Vital Care

Expected Growth: 2.8%

Vital Care's 2.8% growth is driven by increasing demand for infusion therapy, rising hospital-acquired infection rates, and an aging population requiring critical care. Additionally, ICU Medical's strategic acquisitions and product innovations, such as the MedNet safety software, have expanded Vital Care's market share and enhanced its product offerings.

Infusion Systems

Expected Growth: 3.2%

ICU Medical's Infusion Systems segment growth of 3.2% is driven by increasing demand for safe and efficient infusion therapies, particularly in the oncology and pediatrics markets. Additionally, the company's strategic acquisitions and product innovations, such as the MedNet safety software, have expanded its market share and enhanced its product offerings.

7. Detailed Products

Infusion Systems

ICU Medical's Infusion Systems provide a comprehensive range of infusion pumps, software, and accessories for the safe and efficient delivery of medications and fluids to patients.

IV Solutions

ICU Medical's IV Solutions offer a wide range of intravenous fluids, electrolytes, and medications for patient care.

Critical Care Products

ICU Medical's Critical Care Products include a range of medical devices and consumables for critical care patients, such as vascular access devices and hemodynamic monitoring systems.

Medication Management

ICU Medical's Medication Management solutions provide automated medication dispensing systems and software for safe and efficient medication management.

Needlefree Connectors

ICU Medical's Needlefree Connectors provide a safe and convenient way to connect and disconnect IV lines, reducing the risk of needlestick injuries.

8. ICU Medical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ICU Medical, Inc. has a diversified product portfolio, which reduces the threat of substitutes. The company's products are specialized and have limited substitutes, making it difficult for customers to switch to alternative products.

Bargaining Power Of Customers

ICU Medical, Inc. has a large customer base, which reduces the bargaining power of individual customers. However, the company's customers are large hospitals and healthcare systems, which can still exert some bargaining power.

Bargaining Power Of Suppliers

ICU Medical, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's suppliers are primarily contract manufacturers and raw material suppliers, which are easily replaceable.

Threat Of New Entrants

ICU Medical, Inc. operates in a highly regulated industry, which creates barriers to entry for new entrants. The company's established relationships with customers and its strong brand recognition also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

ICU Medical, Inc. operates in a highly competitive industry, with several established players competing for market share. The company's products are highly differentiated, but the industry is characterized by frequent product launches and intense marketing efforts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.72%
Debt Cost 7.55%
Equity Weight 56.28%
Equity Cost 7.55%
WACC 7.55%
Leverage 77.70%

11. Quality Control: ICU Medical, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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DENTSPLY SIRONA

A-Score: 4.2/10

Value: 7.3

Growth: 1.6

Quality: 2.8

Yield: 7.0

Momentum: 1.0

Volatility: 5.3

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Masimo

A-Score: 3.7/10

Value: 4.9

Growth: 4.1

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 5.3

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Envista

A-Score: 3.5/10

Value: 4.7

Growth: 1.2

Quality: 5.1

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

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ICU Medical

A-Score: 3.5/10

Value: 4.8

Growth: 4.4

Quality: 3.3

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

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Azenta

A-Score: 3.3/10

Value: 5.1

Growth: 4.4

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

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Cooper

A-Score: 3.2/10

Value: 2.6

Growth: 2.0

Quality: 5.8

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

124.57$

Current Price

124.57$

Potential

-0.00%

Expected Cash-Flows