Owens & Minor(US:OMI)2025-10-30 20:10Financial Performance - Third quarter 2025 revenue was $697.3 million, a 1.5% increase from $686.8 million in Q3 2024[4] - Adjusted net income from continuing operations for Q3 2025 was $19.9 million, down 29.4% from $28.2 million in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $92.2 million, a decrease of 14.4% compared to $107.7 million in Q3 2024[4] - The company reported a net loss of $150.3 million in Q3 2025, compared to a net loss of $12.8 million in Q3 2024[11] - For the first nine months of 2025, net revenue was $2.05 billion, up 3.4% from $1.99 billion in the same period of 2024[12] - The company reaffirmed its 2025 revenue guidance of between $2.76 billion and $2.82 billion[5] - Adjusted EPS for 2025 is expected to range between $1.02 and $1.07[5] - Total net loss for the nine months ended September 30, 2025, was $1,044,316 thousand, a substantial increase from a net loss of $66,570 thousand in the same period of 2024[16] - Basic loss per common share for the three months ended September 30, 2025, was $(1.94), compared to $(0.17) for the same period in 2024[17] - Adjusted net income for Q3 2025 was $19,863,000, compared to $28,235,000 in Q3 2024[24] - The adjusted earnings per share (EPS) for Q3 2025 was $0.25, down from $0.36 in Q3 2024[24] Cash Flow and Assets - The total assets as of September 30, 2025, were $4.04 billion, down from $4.66 billion at the end of 2024[13] - Current liabilities increased to $2.47 billion as of September 30, 2025, compared to $1.85 billion at the end of 2024[13] - The company experienced a net cash used in operating activities of $172,520 thousand for the three months ended September 30, 2025, compared to cash provided by operating activities of $27,307 thousand in 2024[15] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $46,166 thousand, down from $75,090 thousand at the end of the same period in 2024[16] - Cash provided by financing activities for the nine months ended September 30, 2025, was $305,574 thousand, compared to cash used of $224,507 thousand in 2024[16] Operational Highlights - The company is focusing on home-based care and has signed a nationwide preferred provider partnership agreement[2] - Operating income for Q3 2025 was reported at $26,470,000, a decrease from $31,079,000 in Q3 2024, while adjusted operating income was $58,124,000 compared to $69,433,000 in the same period[22] - The company incurred acquisition-related charges and intangible amortization of $29,229,000 in Q3 2025, up from $14,855,000 in Q3 2024[24] - Exit and realignment charges for Q3 2025 were $660,000, significantly lower than $13,515,000 in Q3 2024[24] - The company recorded a goodwill impairment charge of $106,389 thousand and a loss on classification to held for sale of $771,640 thousand during the nine months ended September 30, 2025[16] Future Outlook and Strategic Initiatives - Future outlook projects a revenue growth of 8-10% for the next fiscal year, driven by new product launches[39] - The company is investing $50 million in R&D for new technologies aimed at enhancing supply chain efficiency[39] - Market expansion efforts include entering three new international markets, expected to contribute an additional $100 million in revenue[39] - Owens & Minor completed the acquisition of a smaller competitor, which is anticipated to increase market share by 5%[39] - The company plans to launch two new product lines in Q2 2024, targeting a market size of $500 million[39] - Cost-saving initiatives are projected to reduce operational expenses by 3% over the next year[39] - The company has set a goal to achieve carbon neutrality by 2030, aligning with sustainability strategies[39]