Company: ICUI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000883984-25-000030
Chunk: 93

Company: ICU MEDICAL INC/DE
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 93
---
.7)%Impact of foreign currency exchange rate changes(1.4)— Vital Care on a constant currency basis (non-GAAP)$106.6 $280.2 $ Change in constant currency$(64.4)$(56.1)% Change in constant currency(37.7)%(16.7)%

Vital Care revenue decreased for the three and six months ended June 30, 2025, as compared to the same periods in the prior year, primarily due to lower IV Solutions sales resulting from the sale of a controlling ownership interest in our IV Solutions business on May 1, 2025 (see Note 4: Assets Held For Sale and Disposal of Business to our accompanying condensed consolidated financial statements).

43

Gross Margins 

    For the three and six months ended June 30, 2025, gross margins were 37.9% and 36.3%, respectively, as compared to 34.8% and 33.8% for the three and six months ended June 30, 2024, respectively. The increases in gross margin for the three and six months ended June 30, 2025, as compared to the same periods in the prior year, were primarily driven by the impact of the sale of a 60% interest of our IV Solutions business on May 1, 2025, a lower margin business. Gross margin also increased as a result of price increases, higher production levels, the impact of foreign exchange, lower supply chain costs and the realization of integration synergies. These improvements were partially offset by an increase in tariff costs.

Selling, General and Administrative (“SG&A”) Expenses 

    The following table summarizes our total SG&A Expenses (in millions, except percentages):

Three months ended June 30,Six months ended June 30,20252024$ Change% Change20252024$ Change% ChangeSG&A$159.4 $159.5 $(0.1)(0.1)%$316.6 $317.2 $(0.6)(0.2)%

SG&A expenses slightly decreased for the three months ended June 30, 2025, as compared to the same period in the prior year, primarily due to a decrease of $2.6 million in depreciation and amortization expense, $2.4 million in compensation costs, and $1.7 million in dealer fees, which when combined with other smaller category increases, were mostly offset by an