LivaNova PLC ((LIVN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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LivaNova’s recent earnings call painted a picture of robust growth and strategic challenges. The company reported strong organic revenue growth, particularly in the cardiopulmonary and epilepsy segments, alongside improved financial metrics. Despite facing hurdles such as component supply constraints and adverse currency impacts, LivaNova has raised its full-year guidance, signaling a positive outlook for the future.
Strong Organic Revenue Growth
LivaNova achieved an impressive 13% organic revenue growth in the third quarter of 2025. This growth was primarily driven by the cardiopulmonary business and solid performance in the epilepsy segment across all regions, showcasing the company’s ability to capitalize on its core strengths.
Cardiopulmonary Segment Performance
The Cardiopulmonary segment stood out with a 16% increase in revenue compared to the same period last year. Notably, the Heart-lung machine revenue surged by over 20%, highlighting the segment’s significant contribution to the company’s overall growth.
Epilepsy Segment Growth
The epilepsy segment also demonstrated positive momentum, with a 6% revenue increase from the previous year. Growth was particularly strong in Europe and the Rest of World regions, which saw a 12% rise, while U.S. epilepsy revenue grew by 5% year-over-year.
Improved Financial Metrics
LivaNova’s financial health improved, with adjusted operating income rising to $80 million from $64 million in the third quarter of 2024. Additionally, adjusted diluted earnings per share increased to $1.11 from $0.90, reflecting the company’s enhanced profitability.
Component Supply Challenges
Despite strong demand for its products, the cardiopulmonary segment is experiencing limitations due to third-party component supply constraints. This challenge is hindering rapid expansion, particularly for the Oxygenator product line.
Foreign Exchange and Tariffs Impact
Unfavorable currency changes and tariffs have negatively affected LivaNova’s adjusted gross margin, which decreased from 70% in the third quarter of 2024 to 69%. These external factors continue to pose challenges to the company’s financial performance.
PCBA Conversion Costs
The ongoing investment in printed circuit board assembly conversion is expected to increase costs in the fourth quarter, potentially impacting earnings. This strategic move, while costly, is aimed at long-term efficiency gains.
Updated 2025 Guidance
LivaNova has revised its full-year 2025 guidance, now forecasting revenue growth between 8.5% and 9.5% on a constant currency basis and between 9.5% and 10.5% on an organic basis. The company anticipates adjusted diluted earnings per share to be in the range of $3.80 to $3.90, reflecting confidence in its strategic direction.
In summary, LivaNova’s earnings call highlighted a strong quarter with significant growth in key segments and improved financial metrics. Despite facing external challenges, the company’s raised guidance underscores its positive outlook and strategic resilience.