Core Insights - Cardinal Health has launched its new Consumer Health Logistics Center, which spans 350,000 square feet in Groveport, Ohio [1] Company Overview - The new facility is part of Cardinal Health's strategy to enhance its logistics capabilities in the consumer health sector [1]

Summary of Cardinal Health's 2025 Investor Day Company Overview - **Company**: Cardinal Health (CAH) - **Event**: 2025 Investor Day held on June 12, 2025 Key Industry Insights - **Healthcare Industry Role**: Cardinal Health positions itself as a crucial link in the healthcare supply chain, connecting manufacturers to patients through a complex distribution network [7][31] - **Market Trends**: The aging population and ongoing healthcare innovations are driving demand in the healthcare sector, providing a "rising tide" of volume for the industry [32] Core Business Strategies - **Core Distribution Focus**: The company emphasizes strengthening its core distribution business, which is foundational for future growth and profitability [19][20] - **Specialty Solutions Growth**: Specialty solutions remain the highest growth priority, with a focus on organic and inorganic investments in this segment [21][50] - **Investment in Automation**: Cardinal Health is investing in automation to enhance distribution efficiency and capacity, which is critical for meeting customer needs [13][40] Financial Performance and Guidance - **Earnings Growth**: The company raised its fiscal 2025 EPS guidance and confirmed a long-term EPS growth target of 12-14% for fiscal years 2026-2028 [27][55] - **Capital Deployment**: Over the past two years, Cardinal Health has returned nearly $3 billion to shareholders while also increasing capital expenditures by over 50% compared to four to five years ago [25][24] Specialty Solutions and Partnerships - **Specialty Alliance Formation**: The formation of the Specialty Alliance aims to enhance capabilities in gastroenterology, urology, and oncology, leveraging existing infrastructure and expertise [41][90] - **Managed Service Organizations (MSOs)**: The company is expanding its MSO platforms to support independent physicians, providing back-office support and enhancing care delivery [92] Innovations and Technology - **New Distribution Centers**: Cardinal Health is launching a new flagship distribution center with advanced automation technology to improve service levels and efficiency [40][69] - **Technology Investments**: Significant investments in technology infrastructure, including a new ordering platform (Vantas HQ), are aimed at improving customer experience and operational efficiency [70] Market Position and Competitive Advantage - **Diverse Customer Base**: The company serves a wide range of customers, including independent pharmacies, health systems, and specialty practices, allowing it to adapt to various market needs [64][65] - **Strategic Sourcing**: Strong relationships with brand manufacturers and partnerships with CVS enhance product availability and cost efficiency, contributing to profitable growth [66] Future Outlook - **Growth Opportunities**: Cardinal Health anticipates significant growth in its specialty segment, with expectations of doubling the number of supported products in the next three years [98][106] - **Resilience in Cash Flow**: The company has demonstrated strong cash flow resilience, with a consistent upward trend over long periods, indicating robust operational performance [36][37] Conclusion - **Commitment to Innovation**: Cardinal Health is focused on continuous improvement and innovation to meet evolving customer and patient needs, positioning itself for sustained growth in the healthcare industry [34][55]

Financial Performance and Outlook - The company is targeting a 12% to 14% non-GAAP EPS CAGR [22, 72, 325, 369]. - The company expects to generate approximately $9 billion in adjusted free cash flow (FCF) [19]. - The company is raising FY25 EPS guidance to $8.15 - $8.20 [22, 311]. - The company provides FY26 EPS guidance for ~13% growth [22, 328]. - The company anticipates generating $10B+ in total adjusted free cash flow over the next 3 years [347]. Segment Performance and Strategy - Pharma segment profit growth is expected to be 8% CAGR [19]. - Other segment profit growth is expected to be 10% CAGR [19]. - Specialty is now over $40B in revenue, growing at a 14% CAGR over the last 3 years [104]. - GMPD delivered $92M of segment profit in FY24, a ~$240M increase over FY23 [278]. - The company is investing over $150M in NPHS over the next three years [53].