Cencora(US:COR)2025-11-05 11:33Financial Performance - Fourth quarter revenue was $83.7 billion, a 5.9% year-over-year increase, while fiscal year 2025 revenue reached $321.3 billion, up 9.3% year-over-year[1] - Fourth quarter GAAP diluted EPS was $(1.75), a decrease from $0.02 in the prior year, while adjusted diluted EPS increased 15.0% to $3.84[1][4] - Gross profit for the fourth quarter was $3.0 billion, an 18.5% increase year-over-year, with gross profit margin rising to 3.53%[4] - Fiscal year 2025 adjusted diluted EPS was $16.00, a 16.3% increase from the previous year[13] - Total revenue for Fiscal Year 2025 was $321.3 billion, representing a 9.3% increase from $293.96 billion in Fiscal Year 2024[32] - Gross profit for Fiscal Year 2025 was $11.48 billion, a 15.8% increase from $9.91 billion in Fiscal Year 2024[32] - Operating income for Fiscal Year 2025 was $2.63 billion, reflecting a 20.8% increase from $2.18 billion in Fiscal Year 2024[32] - Net income attributable to Cencora, Inc. for Fiscal Year 2025 was $1.55 billion, a 3.0% increase from $1.51 billion in Fiscal Year 2024[32] - Basic earnings per share for Fiscal Year 2025 increased to $8.02 from $7.60 in Fiscal Year 2024, representing a 5.5% growth[32] - Adjusted non-GAAP earnings per share for the fiscal year ended September 30, 2025, was $16.00, up from the previous year[43] - Cencora, Inc. reported total revenue of $321.33 billion for the fiscal year ended September 30, 2025, representing a 9.3% increase from $293.96 billion in 2024[52] - Operating income for Cencora, Inc. increased by 20.8% to $2.63 billion in 2025, compared to $2.18 billion in 2024[52] - U.S. Healthcare Solutions revenue grew by 9.7% to $290.98 billion in 2025, while International Healthcare Solutions revenue increased by 6.1% to $30.37 billion[52] Expenses and Impairments - Operating expenses in the fourth quarter were $2.9 billion, a 24.1% increase year-over-year, primarily due to a $723.9 million goodwill impairment charge[4] - The company reported a $723.9 million impairment of assets, including goodwill, impacting overall profitability[37] - The company incurred a $113.5 million impairment of an equity investment and a $35.5 million loss on the divestiture of non-core businesses during the fiscal year[34] - The company reported net cash used in investing activities of $4,977.3 million in 2025, significantly higher than $618.1 million in 2024, indicating increased investment activity[57] Guidance and Future Projections - The company raised its long-term guidance expectations, reflecting confidence in its growth strategy and market position[2] - Fiscal Year 2026 revenue guidance is projected to grow by 5% to 7%, with actual revenue for Fiscal 2025 at $321.3 billion[18] - Adjusted operating income for Fiscal Year 2026 is expected to increase by 8% to 10%, compared to $4.2 billion in Fiscal 2025[18] - Adjusted diluted earnings per share for Fiscal Year 2026 is forecasted to be between $17.45 and $17.75, up from $16.00 in Fiscal 2025[18] - The U.S. Healthcare Solutions Segment is anticipated to grow by 5% to 7%, with actual revenue of $285.0 billion in Fiscal 2025[18] - The International Healthcare Solutions Segment is expected to grow by 6% to 8%, with actual revenue of $28.3 billion in Fiscal 2025[18] Investments and Capital Expenditures - The company announced a $1 billion investment plan through 2030 to enhance its U.S. distribution network and increase capacity[14] - The company reported capital expenditures of $668.0 million for the fiscal year 2025, compared to $487.2 million in 2024, reflecting a 37.1% increase[57] Shareholder Returns - The quarterly dividend was increased by 9% to $0.60 per share, payable on December 1, 2025[15] Cash Flow and Debt - Net cash provided by operating activities increased to $3,875.1 million in 2025 from $3,484.7 million in 2024, reflecting a rise of 11.2%[57] - The company experienced a net debt borrowing of $3,195.7 million in 2025, contrasting with a repayment of $385.5 million in 2024[57] - Cash, cash equivalents, and restricted cash at the end of fiscal year 2025 totaled $4,394.5 million, up from $3,297.9 million in 2024, marking an increase of 33.4%[57] - Adjusted free cash flow for the fiscal year 2025 was $2,970.8 million, calculated as net cash provided by operating activities minus capital expenditures[62] Segment Performance - U.S. Healthcare Solutions revenue was $75.8 billion in the fourth quarter, a 5.7% increase, while International Healthcare Solutions revenue was $7.9 billion, up 7.6%[8][10] - Operating income for U.S. Healthcare Solutions segment increased by 21.8% to $3.57 billion in 2025[52]