Core Insights - Solventum (SOLV) has launched the 3M Clarity precision grip attachments for Clarity aligners, marking a significant advancement in aligner technology by addressing challenges in clear aligner treatments [1][2] - Despite the launch, SOLV's shares fell 3.1% on November 14, continuing a month-long downtrend, with a 1.7% decline since its IPO on April 1, 2024, while the industry declined by 11.2% and the S&P 500 gained 14.6% during the same period [2] Innovative Features of Clarity Attachments - The Clarity precision grip attachments eliminate the technique-sensitive and time-consuming attachment creation process, reducing variability in treatment [4] - These attachments are stain-resistant due to a blend of inorganic filler and organic resin, ensuring they remain discreet and aesthetically pleasing throughout treatment [5] - Clarity attachments simplify the clinical process by minimizing the risk of "composite flash," making the attachment process faster and less prone to error, leading to greater predictability in treatment outcomes [6] - The 3D printing manufacturing approach allows for customization to fit each patient's unique tooth anatomy [7] Market Potential and Future Development - The global clear aligners market was valued at approximately $3.8 billion in 2023 and is expected to exceed $28.15 billion by 2032, growing at a CAGR of 25.2% [8] - Key drivers for clear aligners demand include the rising prevalence of malocclusion, technological advancements, increased healthcare spending, and growing aesthetic demands in developing nations [9] - Solventum is pursuing regulatory approvals for Clarity attachments in other global markets and plans to enhance its product line with further advances in 3D printing and material science [7]

Clarity Precision Grip Attachments are fully cured, pre-loaded and precisely resemble the digital treatment plan after bonding ST. PAUL, Minn., Nov. 14, 2024 /PRNewswire/ -- This month, Solventum (NYSE: SOLV), formerly 3M Health Care, officially launched an anticipated innovation in aligner treatment, 3M™ Clarity™ Precision Grip Attachments. Available exclusively with 3M™ Clarity™ Aligners, Clarity Precision Grip Attachments are designed to solve one of the biggest challenges with aligner treatment – creati ...

Financial Data and Key Metrics Changes - For Q3 2024, sales reached $2.1 billion, reflecting a 30 basis point increase on an organic basis and a 40 basis point increase in reported growth, slightly exceeding expectations due to order timing in the U.S. [32] - Gross margins were 57.3%, down 100 basis points year-over-year but up 180 basis points sequentially, including approximately 100 basis points of one-time benefits [38] - Adjusted operating income was $475 million, translating to an operating margin of 22.8%, ahead of expectations [40] - Earnings per share (EPS) for the quarter was $1.64, surpassing expectations [41] - Free cash flow generated in Q3 was $75 million, bringing the year-to-date total to $712 million [42] Business Line Data and Key Metrics Changes - The MedSurg segment generated $1.2 billion in sales, a 1% organic increase, driven by growth in antimicrobial IV site management solutions [34] - The Dental segment reported $313 million in revenue, a decline of 3.9%, attributed to challenging market conditions and tough year-over-year comparisons [35] - The Health Information Systems segment contributed $326 million, a 1.5% increase, benefiting from growth in the revenue cycle management platform [36] - The Purification and Filtration segment saw $238 million in sales, a slight decline of 0.3%, impacted by decreases in drinking water filtration and dialysis membranes [37] Market Data and Key Metrics Changes - Foreign exchange impacts were approximately neutral for the quarter, with price remaining flat and volume slightly favorable [33] - The company anticipates foreign currency to be a headwind in Q4, with an expected unfavorable impact of approximately 50 basis points for the full year [44] Company Strategy and Development Direction - The company is focused on a phased approach to transform the business, with Phase 1 emphasizing stabilization and separation, Phase 2 targeting long-range growth potential, and Phase 3 involving portfolio optimization [13][17][26] - The strategy includes selecting faster growth markets and growth driver initiatives to enhance scale and share [18][20] - Recent product launches in various segments are seen as critical to driving future growth, with a focus on increasing capacity and commercial structure to support adoption [21][22][23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made since the spin-off from 3M, noting that revenue growth remains below market but is expected to improve with ongoing investments [28] - The company raised its full-year organic sales growth guidance to the upper half of the range of flat to 1% and increased EPS guidance to $6.50 to $6.65 [44][45] - Management acknowledged the challenges ahead, including the annualization of costs post-spin and the need for continued investment in operations [53][54] Other Important Information - The company paid down $200 million of debt during the quarter, demonstrating a commitment to maintaining an investment-grade rating [10][43] - The implementation of new ERP systems is ongoing, with initial successes in four countries and plans for global rollout [30][96] Q&A Session Summary Question: Q4 EPS guidance and implications for 2025 EPS - Management noted that Q4 EPS guidance reflects one-time benefits in Q3 that will not recur, impacting Q4 performance [50][52] - 2025 EPS guidance is not yet provided, but management indicated that costs from the spin-off will pressure margins [53][54] Question: Portfolio management and dilution considerations - Management has not communicated specific portfolio management updates yet, but any decisions will consider shareholder value [58][59] Question: Timeline on Transition Services Agreements (TSAs) - Management stated that TSAs are in place for two to twelve years, with updates expected as timelines approach [61] Question: Market dynamics in the Dental segment - Management acknowledged market softness but emphasized that their portfolio is less impacted than competitors [72] Question: Drivers of gross margin changes - Management explained that gross margin fluctuations are due to one-time benefits and the impact of the 3M supply agreement [77] Question: ERP transition progress - Management highlighted the importance of ERP systems for the business and noted initial successes and challenges in implementation [96][100] Question: Exposure to China and potential tariff impacts - Management clarified that only about 5% of revenue comes from China, and tariffs are not expected to have a major impact [105] Question: Demand in the purification business amid IV shortages - Management reported no falloff in demand for dialysis filtration and indicated capacity constraints could be addressed [107]

| --- | --- | --- | |---------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | © Solventum 2024. All rights reserved. Q3 FY24 earnings presentation November 7, 2024 | | | Forward-looking statements and use of document Forward-looking statements This presentation contains forward-looking information about Solventum's financial results and estimates and business prospects that involve substantial risks and uncertainties. In parti ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, Par Value $.01 Per Share SOLV New York Stock Exchange Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐ Common Stock, $0.01 par value per share 172,754,070 shares UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PU ...

Solventum (SOLV) reported third-quarter 2024 adjusted earnings per share of $1.64, which beat the Zacks Consensus Estimate of $1.38 by 18.1%. The bottom line declined 42.9% year over year.GAAP EPS in the quarter was 70 cents, down 73.7% from the year-ago quarter’s level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenue DetailsThe company reported revenues of $2.08 billion, up 0.4% reportedly from the prior-year recorded number. Organically, sales were up 0.3%. The metric beat ...

Financial Performance - Reported sales for Q3 2024 increased by 0.4% to $2.082 billion, with organic sales growth of 0.3%[1] - GAAP Earnings Per Share (EPS) was $0.70, while adjusted EPS reached $1.64[2] - Generated $169 million in cash from operations, with free cash flow amounting to $76 million[2] - Operating income was reported at $275 million, with an operating income margin of 13.2%[2] - Total net sales for Q3 2024 reached $2,082 million, a slight increase of 0.4% compared to $2,074 million in Q3 2023[19] - Net income for Q3 2024 was $122 million, significantly lower than $460 million in Q3 2023, representing a decrease of 73.5%[19] - Operating income for Q3 2024 decreased to $275 million, a decline of 45.5% from $504 million in Q3 2023[19] - For the nine months ended September 30, 2024, total net sales were $6,179 million, a marginal increase of 0.3% compared to $6,161 million in the same period of 2023[23] - The company reported a diluted EPS of $5.28 for the nine months ended September 30, 2024, down from $7.50 in the same period of 2023, a decrease of 29.3%[40][41] Segment Performance - Organic sales growth was primarily driven by the MedSurg and Health Information Systems segments, with MedSurg segment sales at $1.182 billion, reflecting a 1.0% increase[4] - MedSurg segment reported net sales of $1,182 million with an operating income of $243 million, resulting in an operating margin of 20.6%, compared to $1,180 million and $307 million (26.0% margin) in the prior year[27] - Dental Solutions segment generated net sales of $313 million and an operating income of $72 million, with a margin of 23.0%, down from $331 million and $114 million (34.4% margin) year-over-year[27] - Health Information Systems achieved net sales of $326 million and an operating income of $105 million, with a margin of 32.2%, compared to $321 million and $114 million (35.5% margin) in the previous year[27] - Purification and Filtration segment reported net sales of $238 million and an operating income of $20 million, with an operating margin of 8.4%, down from $242 million and $48 million (19.8% margin) in the same quarter last year[27] - Total business segment operating income for the three months ended September 30, 2024, was $440 million, a decrease from $583 million in the same period of 2023[27] Cash Flow and Guidance - The company raised its full-year 2024 guidance for organic sales growth to the upper half of 0% to +1.0%[6] - Adjusted EPS guidance for 2024 is now set at $6.50 to $6.65, an increase from the previous range of $6.30 to $6.50[6] - Free cash flow guidance for 2024 has been raised to a range of $750 million to $850 million, up from $700 million to $800 million[6] - The company reported a net cash provided by operating activities of $966 million for the nine months ended September 30, 2024, down from $1,368 million for the same period in 2023[22] - Free cash flow for the nine months ended September 30, 2024, was $76 million, down from $427 million in the same period of 2023, a decline of 82.2%[46] Expenses and Margins - The decline in GAAP and adjusted operating income margin was attributed to lower gross margins and increased operating expenses[3] - Gross profit for Q3 2024 was $1,165 million, down from $1,209 million in Q3 2023, reflecting a decrease of 3.6%[19] - Gross margin for the nine months ended September 30, 2024, improved to 56.2%, compared to 57.4% in the prior year, indicating a decrease of 1.2 percentage points[40][41] - Operating income for the nine months ended September 30, 2024, was $900 million, up from $1,286 million in the same period of 2023, reflecting a decline of 30%[40][41] - Operating margin for the nine months ended September 30, 2024, was 14.6%, down from 20.9% in the same period of 2023, a decrease of 6.3 percentage points[40][41] - Corporate and Unallocated expenses totaled $(165) million for the three months ended September 30, 2024, compared to $(79) million in the same period of 2023[27] Assets and Liabilities - Cash and cash equivalents increased to $772 million in Q3 2024, up from $194 million in Q3 2023[21] - Total assets rose to $14,745 million in Q3 2024, compared to $13,943 million in Q3 2023, marking an increase of 5.8%[21] - Total liabilities increased to $11,553 million in Q3 2024, a substantial rise from $2,277 million in Q3 2023[21] Research and Development - Research and development expenses for Q3 2024 were $189 million, slightly up from $180 million in Q3 2023[19] Restructuring and Amortization - The company incurred $261 million in amortization of acquisition-related intangible assets for the nine months ended September 30, 2024[40] - Restructuring costs for the nine months ended September 30, 2024, amounted to $13 million, compared to $38 million in the same period of 2023[40][41]

Reported sales increased 0.4% to $2.082 billion; organic sales increased 0.3% GAAP Earnings Per Share (EPS) of $0.70; adjusted EPS1 of $1.64 Generated $169 million in cash from operations; free cash flow1 of $76 million Raises full-year 2024 organic sales growth, adjusted EPS and free cash flow guidanceST. PAUL, Minn., Nov. 7, 2024 /PRNewswire/ -- Solventum (NYSE: SOLV) today reported financial results for the third quarter ended September 30, 2024."We have now delivered consecutive quarters of outperforma ...

Solventum (SOLV) is scheduled to release third-quarter 2024 results on Nov. 7, after market close. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 6.85%. SOLV delivered a trailing four-quarter average earnings surprise of 15.7%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.SOLV Q3 EstimatesCurrently, the consensus estimate for revenues is pegged at $2.05 billion. The consensus mark for earnings is pinned at $1.38 per share.Factors to NoteS ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or o 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: 001-41968 SOLVENTUM CORPORATION (Exact name of registrant as specified in its charter) Delaware 92-2008 ...