Henry Schein(US:HSIC)2025-11-04 11:15Financial Performance - Q3 2025 GAAP diluted EPS was $0.84, up from $0.78 in Q3 2024; non-GAAP diluted EPS was $1.38, compared to $1.22 in Q3 2024[5] - Total net sales for Q3 2025 reached $3.3 billion, a 5.2% increase compared to Q3 2024, driven by 3.3% internal sales growth, 0.7% from acquisitions, and 1.2% from foreign currency exchange[6] - The company raised its 2025 non-GAAP diluted EPS guidance to $4.88 to $4.96, reflecting a year-over-year growth of 3% to 5%[15] - Adjusted EBITDA for Q3 2025 was $295 million, compared to $268 million in Q3 2024[8] - Net income attributable to Henry Schein, Inc. for Q3 2025 was $101 million, compared to $99 million in Q3 2024, showing a 2% increase[33] - Year-to-date net income for 2025 reached $316 million, compared to $302 million in the same period of 2024[52] - Year-to-date Adjusted EBITDA for 2025 totaled $810 million, compared to $791 million in 2024, indicating a growth of about 2.4%[52] Sales Growth - Total net sales for the first nine months of 2025 were $9.7 billion, a 2.8% increase compared to the same period in 2024[8] - Global Technology sales increased by 9.7% in Q3 2025, reflecting accelerated adoption of cloud-based software and new revenue cycle management solutions[6] - Global Dental Distribution merchandise sales increased by 4.6% in Q3 2025 compared to Q3 2024, indicating consistent growth across U.S. and international markets[8] - Total Global Distribution and Value-Added Services sales for Q3 2025 were $8,247 million, a 1.4% increase from $8,058 million in Q3 2024[44] - Medical segment sales in the U.S. rose by 3.2% to $3,117 million in Q3 2025[44] - Global Specialty Products sales increased by 2.3% to $1,122 million in Q3 2025[44] Shareholder Actions - The company repurchased approximately 3.3 million shares of common stock for a total of $229 million during Q3 2025[9] - The board approved an amendment allowing KKR to increase its ownership in HSIC stock up to 19.9%[12] Assets and Liabilities - Total current assets increased to $4,395 million as of September 27, 2025, compared to $3,983 million at the end of December 2024[36] - Total assets grew to $11,097 million as of September 27, 2025, up from $10,218 million at the end of December 2024[36] - Total liabilities increased to $6,197 million as of September 27, 2025, compared to $5,381 million at the end of December 2024[36] - Cash and cash equivalents at the end of Q3 2025 were $136 million, compared to $126 million at the end of Q3 2024[38] Operating Income and Expenses - Operating income for Q3 2025 increased to $164 million, compared to $157 million in Q3 2024, representing a 4.5% growth[33] - Interest expense increased to $38 million in Q3 2025 from $34 million in Q3 2024[52] - Restructuring costs for Q3 2025 were $34 million, down from $48 million in Q3 2024, showing a reduction of approximately 29.2%[52] - Costs associated with shareholder advisory matters and select value creation consulting costs amounted to $10 million in Q3 2025[52] - Depreciation and amortization expenses for Q3 2025 were $80 million, an increase from $74 million in Q3 2024[52] Value Creation Initiatives - Value creation initiatives are expected to deliver over $200 million in operating income improvements over the next few years[5]