ICUI

ICU Medical is a mid-cap medical-device maker (infusion systems, IV consumables, critical care) that is mid-restructuring after the 2022 Smiths Medical acquisition saddled it with debt. FY2025 revenue of $2.23B fell 6.3% YoY — but that decline is partly explained by the April 2025 divestiture of the IV Solutions business to Otsuka, the proceeds of which funded a $200M Term Loan A prepayment. Total 2025 prepayments reached $290M, cutting long-term debt 17.4% to $1.27B and refinancing the rest through the October 2025 Amendment No. 2 (new $750M Term Loan A and $500M revolver, both maturing in 2030). Net income swung positive to $732K from a $118M loss — technically a turnaround, but a 0.0% net margin is not a thesis.

The quality of the business is mixed. Gross margin at 36.8% is respectable for med-tech but operating margin of just 1.9% shows that SG&A, D&A ($201M) and tariff costs are eating nearly all the gross profit. Management disclosed $33.6M of incremental 2025 reciprocal tariffs ($25.7M expensed) tied to its Costa Rica manufacturing base — and the July 2025 hike to 15% on Costa Rican imports plus a pending Section 232 medical-consumables investigation are direct, quantifiable headwinds into 2026. Operating cash flow of $180M (down 11.9%) against $88M capex still yields ~$92M in free cash, which is the real story here — earnings are noisy, but the company self-funds capex and debt service.