Key Takeaways Avanos Medical sees growth from SNS and PMR, with strong demand in enteral feeding and RFA.AVNS boosts portfolio via Nexus deal, divestitures and exit of underperforming segments.Avanos Medical faces tariff costs, FX risks, and weaker surgical pain and GAME READY performance.Avanos Medical, Inc. (AVNS) is well-poised for growth in the coming quarters, courtesy of its impressive product line. The optimism, led by a decent fourth-quarter fiscal 2025 performance and continued robust product perfo ...

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Avanos Medical, Inc. to determine if the company's directors breached their fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is being conducted on behalf of Avanos Medical's shareholders [1]. - Shareholders interested in more information about their rights and options can contact Purcell & Lefkowitz LLP [2]. - The law firm specializes in representing shareholders who are victims of securities fraud and breaches of fiduciary duty [3].

Group 1 - The company has focused on execution and streamlined its business through a cost takeout initiative implemented in December [1] - A significant amount of time has been spent addressing tariffs, particularly concerning syringe products manufactured in China [2] - The company plans to cease production in China by June and has successfully transitioned syringe production to Mexico and Cambodia, indicating progress ahead of schedule [2]

Avanos Medical Conference Call Summary Company Overview - **Company**: Avanos Medical (NYSE: AVNS) - **Date**: March 11, 2026 - **Speakers**: CEO David Pacitti, CFO Scott Galovan Key Points Industry and Company Focus - Avanos Medical operates in the medical technology sector, focusing on Pain Management & Recovery and Specialty Nutrition segments [8][15] - The company is transitioning production of syringe products from China to Mexico and Cambodia, aiming to mitigate tariff impacts [8][18] Financial Performance and Guidance - The company exceeded revenue estimates and was at the high end of EPS guidance for 2025, indicating strong momentum going into 2026 [21][26] - Guidance for 2026 includes mid-single-digit growth, with higher expectations for Specialty Nutrition and low- to mid-single digits for Pain Management [26][27] - Anticipated additional tariff costs of $12 million for 2026, but the company expects to offset this through pricing strategies and cost savings [27][81] Strategic Initiatives - Avanos Medical has divested underperforming assets, including hyaluronic acid and Game Ready rental business, while acquiring Nexus Medical to enhance its Specialty Nutrition portfolio [9][19] - The company aims for synergistic acquisitions, primarily in Specialty Nutrition, with a target of one acquisition per year [19][30] Specialty Nutrition Segment - Specialty Nutrition is the primary growth driver, with three parts: NICU, long-term feeding, and short-term feeding businesses [37] - NICU business, including NeoMed and Nexus, is expected to grow mid- to high-single digits, with Nexus projected for double-digit growth [37][45] - The company is focusing on expanding guided tube placement technology, which is under-penetrated in the market [38][51] Pain Management Segment - RF ablation is experiencing strong growth, with double-digit growth rates and a competitive three-tier product portfolio [11][62] - The company is monitoring the surgical pain pump market closely, with potential partnerships to enhance market presence [59][60] Product Development and R&D - Avanos Medical is restructuring its R&D approach, outsourcing certain projects to enhance product development efficiency [64][65] - Upcoming product launches include a next-generation MIC-KEY feeding tube and innovations in RF ablation and feeding pumps [65][75] Tariff Mitigation and Market Conditions - The company is nearing the end of its tariff challenges related to syringe production, with production now in Mexico and Cambodia [8][78] - Ongoing global events may impact shipping and raw material costs, but no new tariff issues are anticipated [79][80] Long-term Vision - The company has set a long-term financial target of reaching $1 billion in revenue by 2030, with a focus on organic growth and strategic acquisitions [28][30] Additional Insights - The NICU market is viewed as a strong brand with limited competition, providing opportunities for further growth through acquisitions and product expansion [47][49] - The company is exploring adjacent areas in NICU, such as breast milk management and AI tools for nutrition delivery [53][55] This summary encapsulates the key insights from the Avanos Medical conference call, highlighting the company's strategic direction, financial performance, and market opportunities.

Core Viewpoint - Avanos Medical, Inc. will participate in the 2026 Citizens Life Sciences Conference, highlighting its commitment to addressing significant healthcare needs through innovative medical device solutions [1]. Group 1: Company Overview - Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior medical device solutions to help patients transition from hospital to home [1]. - The company is headquartered in Alpharetta, Georgia, and aims to reduce opioid use while facilitating patient recovery post-surgery [1]. - Avanos Medical holds leading market positions in multiple categories across its product portfolio, which includes recognized brands marketed globally [1]. Group 2: Conference Participation - The CEO, Dave Pacitti, and CFO, Scott Galovan, will participate in a fireside chat at the conference on March 11 at approximately 1:05 p.m. Eastern Time [1]. - A webcast of the conference presentation will be available on the Investors section of the Avanos Medical website and will be archived for future access [1].

Key Takeaways AVNS beat Q4 EPS and revenue estimates, but shares fell nearly 10% yesterday.Avanos Medical's SNS sales rose 8.7%, led by enteral feeding and neonate solutions growth.AVNS guides 2026 sales of $700-$720M and EPS of 90 cents to $1.10 amid tariff headwinds.Avanos Medical, Inc. (AVNS) reported fourth-quarter 2025 adjusted earnings per share (EPS) from continuing operations of 29 cents, down 32.6% year over year. However, the bottom line beat the Zacks Consensus Estimate of 24 cents by 20.8%.GAAP ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-36440 Avanos Medical, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I.R.S. Employ ...

Core Insights - Avanos Medical reported strong performance in 2025, with net sales of $701 million and adjusted diluted EPS of $0.94, exceeding revised guidance [4][8] - The Specialty Nutrition Systems (SNS) business grew over 8% organically, driven by strong performance in enteral feeding segments [1][7] - The company anticipates 2026 net sales between $700 million and $720 million, with adjusted diluted EPS guidance of $0.90 to $1.10 [8][19] Financial Performance - For Q4 2025, Avanos reported net sales of approximately $181 million, with organic sales in strategic segments rising 3.4% year over year [3] - Adjusted EBITDA for the full year was $87 million, with an adjusted gross margin of 54.6% and adjusted SG&A at 42% of revenue [2] - The company generated $21 million in free cash flow for Q4 and $43 million for the full year, exceeding expectations [17] Business Segments - The short-term enteral feeding portfolio was highlighted as a key growth driver, achieving double-digit organic growth globally [9] - Pain Management's radiofrequency ablation (RFA) business also delivered double-digit growth, supported by generator capital sales [9] - The Nexus neonatal acquisition contributed $5 million in revenue for 2025 and is expected to grow at a double-digit rate in 2026 [7][16] Tariff Impact and Mitigation - Management expects a $30 million tariff impact in 2026, a $12 million increase from 2025, primarily related to China [6][13] - The company plans to exit China syringe sourcing by June 2026, shifting production to Mexico and Cambodia [14] - Avanos has secured tariff exemptions for certain products produced in Mexico, which will help mitigate the impact of tariffs [15] Strategic Initiatives - Avanos undertook several portfolio-shaping moves in 2025, including divesting its hyaluronic acid business and exiting the rental portion of the Game Ready business [16] - The integration of Nexus Medical has been successful, enhancing the neonatal sales channel [16] - The company is focused on improving operating efficiency and mitigating tariff impacts as part of its strategic priorities [5]

Financial Data and Key Metrics Changes - The company reported full year net sales of $701 million, exceeding the revised guidance range following Q3 [4] - Adjusted diluted earnings per share for the year was $0.94, finishing at the high end of the earnings guidance range [4] - For Q4, net sales were approximately $181 million, with adjusted diluted earnings per share of $0.29 and adjusted EBITDA of $28 million [11] Business Line Data and Key Metrics Changes - Specialty Nutrition Systems portfolio grew over 8% organically compared to the prior year, with strong demand in long-term and short-term enteral feeding products [6][15] - Pain Management & Recovery portfolio saw normalized organic sales up 2.3%, driven by strong performance in the radiofrequency ablation business [8][16] - The Game Ready portfolio experienced a slight decline year-over-year but maintained similar revenue levels throughout 2025 [9][17] Market Data and Key Metrics Changes - The Specialty Nutrition Systems segment's operating profit was 19%, down 100 basis points year-over-year due to tariff impacts [16] - The Pain Management & Recovery segment's operating profit improved to 4%, a 270 basis point increase compared to the previous year [17] - The hyaluronic acid injections and IV therapy product lines reported a decline of over 35% due to the divestiture of the HA business [18] Company Strategy and Development Direction - The company is focused on five strategic imperatives: accelerating organic growth, managing tariff impacts, realizing operating efficiencies, improving or divesting underperforming assets, and acquiring synergistic businesses [10] - The company is executing a China exit strategy, aiming to have all syringe manufacturing operations out of China by June 2026 [12][21] - The integration of Nexus Medical into the neonatal portfolio is progressing well, with expectations for double-digit growth in 2026 [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for continued growth in 2026, despite anticipated tariff impacts [19][23] - The company expects net sales in the range of $700 million to $720 million for 2026, with mid to high single-digit growth in the Specialty Nutrition Systems segment [20] - Management highlighted the importance of tariff mitigation strategies and expects gross margin improvements in the second half of 2026 [19][35] Other Important Information - The company generated $43 million of free cash flow for the full year, higher than anticipated [19] - Capital expenditures for 2026 are expected to be around $25 million, slightly lower than 2025 [22] - The annual effective tax rate is anticipated to be about 29% [22] Q&A Session Summary Question: Insights on tariffs and 2026 outlook - Management estimates a $30 million impact from tariffs in 2026, with a significant portion related to China [27][29] - The company is confident in exiting China by June and delivering products from Mexico and Cambodia [28] Question: Revenue guidance and organic growth rates - Organic growth is expected to be around 5% at the consolidated level, with mid to high single digits for Specialty Nutrition Systems and low to mid single digits for Pain Management & Recovery [38] Question: Operating leverage and cost-saving initiatives - Management expressed high confidence in continuing to drive efficiency and cost management in 2026 [39][40] - R&D spending will remain consistent, with a shift towards more external projects [43] Question: Performance of Specialty Nutrition Systems and Nexus - Demand for the Specialty Nutrition Systems portfolio remains high, with Nexus performing better than expected [45][46]

Financial Data and Key Metrics Changes - The company reported full year net sales of $701 million, exceeding the revised guidance range following Q3 [4] - Adjusted diluted earnings per share for the year was $0.94, finishing at the high end of the earnings guidance range [4] - For Q4, net sales were approximately $181 million, with adjusted diluted earnings per share of $0.29 and adjusted EBITDA of $28 million [11] Business Line Data and Key Metrics Changes - Specialty Nutrition Systems portfolio grew over 8% organically compared to the prior year, with strong demand for long-term enteral feeding products [6][15] - The short-term enteral feeding portfolio posted double-digit organic growth globally, driven by the U.S. CORTRAK offering [7][15] - Pain Management & Recovery portfolio saw normalized organic sales up 2.3%, with the radiofrequency ablation business delivering double-digit organic growth [8][16] Market Data and Key Metrics Changes - The neonatal solutions business delivered above-market performance, growing over 6% compared to the prior year [15] - The company experienced sustained growth in its RFA generator capital sales, contributing to above-market growth [8][16] - The surgical pain business was down year-over-year due to delays in the implementation of the NOPAIN Act [9][16] Company Strategy and Development Direction - The company is focused on five strategic imperatives: accelerating organic growth, managing tariff impacts, realizing operating efficiencies, improving or divesting underperforming assets, and acquiring synergistic businesses [10] - The company is executing a China exit strategy, aiming to have all syringe manufacturing operations out of China by June 2026 [12][21] - The integration of Nexus Medical into the neonatal portfolio is progressing well, with expectations for continued double-digit growth [13][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued mid-single-digit organic sales growth in strategic segments for 2026, despite expected tariff expenses [19] - The company expects gross margin improvement to begin in the second half of 2026, following tariff mitigation strategies [20][34] - Management expressed confidence in the company's position for continued growth and the execution of strategic imperatives [23] Other Important Information - The company generated $43 million of free cash flow for the full year, higher than anticipated [19] - The balance sheet remains strong with $90 million in cash and $100 million in debt as of December 31 [18] - The company expects capital expenditures in the range of $25 million for 2026, slightly lower than 2025 [22] Q&A Session Summary Question: Insights on tariffs and 2026 outlook - Management estimates a $30 million impact from tariffs in 2026, with a significant portion related to China [27][29] - The company is confident in exiting China by June and delivering products from Mexico and Cambodia [28] Question: Revenue guidance and organic growth rates - The consolidated organic growth rate is expected to be around 5%, with mid to high single digits for Specialty Nutrition Systems and low to mid single digits for Pain Management & Recovery [37] Question: Operating leverage and cost-saving initiatives - Management is confident in continuing to drive efficiency in 2026, with a focus on both R&D and SG&A [38][39] - Cost containment measures are expected to offset additional tariff expenses [42] Question: Performance of Specialty Nutrition Systems and Nexus - Demand for the Specialty Nutrition Systems portfolio remains high, with Nexus performing better than expected [44][45]