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Owens & Minor Reports Second Quarter 2025 Financial Results Classified Products & Healthcare Services Segment as Discontinued Operations Continuing Operations, Patient Direct, Showed Solid Performance and Growth RICHMOND

Key Takeaway: Owens & Minor, Inc. reported its financial results for the second quarter of 2025, indicating a loss from continuing operations and a classification of its Products & Healthcare Services segment as discontinued operations due to an impending sale. The Patient Direct segment showed solid performance, leading the company to position itself as a pure-play entity in this space. While there are positive expectations for future growth in the Patient Direct area, significant financial losses and ongoing uncertainties related to the divestiture raise concerns about the company's outlook.

Market Sentiment Analysis

POSITIVE FACTORS

  • Patient Direct segment showed solid performance and growth.
  • Company is transitioning into a focused, pure-play Patient Direct business.
  • CEO expressed excitement about future opportunities.

CONCERNS & RISKS

  • Reported significant losses from continuing operations and discontinued operations.
  • High transaction breakage fees and acquisition-related charges impacted finances.
  • Uncertainty regarding the successful completion and terms of the divestiture.

Full Press Release Details

Owens & Minor Reports Second Quarter 2025 Financial Results
Classified Products & Healthcare Services Segment as Discontinued Operations
Continuing Operations, Patient Direct, Showed Solid Performance and Growth
RICHMOND, VA August 11, 2025 Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the second quarter ended
June 30, 2025. In connection with a likely sale of the Company s Products & Healthcare Services segment, the results herein, unless otherwise noted, reflect the Company s continuing operations which primarily represent what
was previously the Patient Direct segment and certain functional operations.
We are in the final stages of our robust process for the divestiture
of the Products & Healthcare Services segment, and, as a result, have classified this segment as discontinued operations. We are looking forward to concluding the sale of the business and working with a buyer who has the vision and greater
flexibility to better support our customers and long-term growth, said Ed Pesicka, Owens & Minor s Chief Executive Officer.
Mr. Pesicka concluded, I am excited about the opportunities ahead as we transition into a focused, pure-play Patient Direct business. Building on
the momentum gained since we entered the Patient Direct space eight years ago, and supported by favorable demographic trends and meaningful scale, we are confident in our ability to lead as the market continues to evolve.
Second Quarter Results(1)
($ in millions, except per share data) 2Q25 2Q24 YTD 2025 YTD 2024
Revenue $ 681.9 $ 660.4 $ 1,355.8 $ 1,298.2
Loss from continuing operations, net of tax, GAAP $ (83.8 ) $ (6.7 ) $ (87.6 ) $ (20.1 )
Adj. net income from continuing operations, Non-GAAP $ 20.5 $ 19.3 $ 43.7 $ 21.9
Adj. EBITDA, Non-GAAP $ 96.6 $ 91.1 $ 192.7 $ 160.3
Loss from continuing operations, net of tax per common share, GAAP $ (1.09 ) $ (0.09 ) $ (1.14 ) $ (0.26 )
Adj. net income from continuing operations per share, Non-GAAP $ 0.26 $ 0.25 $ 0.55 $ 0.28
2025 Continuing Operations Financial Outlook
Company will provide its 2025 financial outlook for continuing operations during its earnings conference call this morning at 8:30 a.m. EDT.
Investor Conference Call for Second Quarter 2025 Financial Results
Owens & Minor will host a conference call for investors and analysts on Monday, August 11, 2025, at 8:30 a.m. EDT. Participants may access the
call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested
stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Owens & Minor website available at
investors.owens-minor.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
This release is intended to be
disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC s Fair Disclosure Regulation. This release contains certain
looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in
this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2025 financial results, Owens & Minor s ability to successfully complete the sale of the P&HS
business in any specific transaction on favorable terms or at all, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including
our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the
forward-looking statements. Investors should refer to Owens & Minor s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, including
the section captioned Item 1A. Risk Factors, as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or
furnished to the SEC, for a discussion of certain known risk factors that could cause the Company s actual results to differ materially from its current estimates. These filings are available at www.owens-minor.com. Given these risks and
uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. Owens & Minor specifically disclaims any
obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products
and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria ,
Byram and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers
comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care . For more information about
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
Three Months Ended June 30,
2025 2024
Net revenue $ 681,917 $ 660,401
Operating costs and expenses:
Cost of net revenue 357,315 344,372
Selling, general and administrative expenses 267,853 269,919
Transaction breakage fee 80,000
Acquisition-related charges and intangible amortization 13,918 13,761
Exit and realignment charges, net 2,541 15,427
Total operating costs and expenses 721,627 643,479
Operating (loss) income (39,710 ) 16,922
Interest expense, net 26,009 25,588
Transaction financing fees, net 18,288
Other expense, net 942 816
Loss from continuing operations before income taxes (84,949 ) (9,482 )
Income tax benefit (1,127 ) (2,740 )
Loss from continuing operations, net of tax (83,822 ) (6,742 )
Loss from discontinued operations, net of tax (785,236 ) (25,171 )
Net loss $ (869,058 ) $ (31,913 )
Basic loss per common share
Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 )
Loss from discontinued operations, net of tax (10.21 ) (0.33 )
Net loss $ (11.30 ) $ (0.42 )
Diluted loss per common share
Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 )
Loss from discontinued operations, net of tax (10.21 ) (0.33 )
Net loss $ (11.30 ) $ (0.42 )
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
Six Months Ended June 30,
2025 2024
Net revenue $ 1,355,801 $ 1,298,244
Operating costs and expenses:
Cost of net revenue 711,957 682,623
Selling, general and administrative expenses 530,223 540,132
Transaction breakage fee 80,000
Acquisition-related charges and intangible amortization 37,374 28,050
Exit and realignment charges, net 16,166 23,547
Total operating costs and expenses 1,375,720 1,274,352
Operating (loss) income (19,919 ) 23,892
Interest expense, net 50,223 50,997
Transaction financing fees, net 18,288
Other expense, net 1,917 1,701
Loss from continuing operations before income taxes (90,347 ) (28,806 )
Income tax benefit (2,715 ) (8,671 )
Loss from continuing operations, net of tax (87,632 ) (20,135 )
Loss from discontinued operations, net of tax (806,408 ) (33,664 )
Net loss $ (894,040 ) $ (53,799 )
Basic loss per common share
Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 )
Loss from discontinued operations, net of tax (10.46 ) (0.44 )
Net loss $ (11.60 ) $ (0.70 )
Diluted loss per common share
Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 )
Loss from discontinued operations, net of tax (10.46 ) (0.44 )
Net loss $ (11.60 ) $ (0.70 )
Condensed Consolidated Balance Sheets (unaudited)
(dollars in thousands)
June 30, 2025 December 31, 2024
Assets
Current assets
Cash and cash equivalents $ 38,258 $ 27,572
Accounts receivable, net 196,379 218,270
Inventories 69,227 67,581
Other current assets 104,011 82,240
Current assets of discontinued operations 1,890,638 1,625,354
Total current assets 2,298,513 2,021,017
Patient service equipment and other fixed assets, net 259,301 249,283
Operating lease assets 120,188 126,928
Goodwill 1,228,140 1,228,140
Intangible assets, net 194,924 210,056
Other assets, net 53,479 89,539
Noncurrent assets of discontinued operations 731,193
Total assets $ 4,154,545 $ 4,656,156
Liabilities and equity
Current liabilities
Accounts payable $ 357,037 $ 359,927
Accrued payroll and related liabilities 52,508 73,678
Current portion of long-term debt 383,000 42,866
Other current liabilities 421,739 294,685
Current liabilities of discontinued operations 1,460,239 1,080,896
Total current liabilities 2,674,523 1,852,052
Long-term debt, excluding current portion 1,594,745 1,798,393
Operating lease liabilities, excluding current portion 80,982 89,466
Deferred income taxes, net 345 19,436
Other liabilities 84,960 72,551
Noncurrent liabilities of discontinued operations 237,894
Total liabilities 4,435,555 4,069,792
Total (deficit) equity (281,010 ) 586,364
Total liabilities and equity $ 4,154,545 $ 4,656,156
Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
Three Months Ended June 30,
2025 2024
Operating activities:
Net loss $ (869,058 ) $ (31,913 )
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization 59,399 63,879
Goodwill impairment charge 106,389
Loss on classification to held for sale 649,140
Share-based compensation expense 8,061 6,735
Deferred income tax benefit (6,068 ) (5,370 )
Changes in operating lease right-of-use assets and lease liabilities (41 ) 2,627
Gain from sale and dispositions of patient service equipment and other fixed assets (3,969 ) (12,257 )
Changes in operating assets and liabilities:
Accounts receivable, net 30,262 6,845
Inventories 119,013 (87,665 )
Accounts payable (12,344 ) 150,445
Net change in other assets and liabilities (48,236 ) 20,100
Other, net 5,062 2,723
Cash provided by operating activities 37,610 116,149
Investing activities:
Additions to patient service equipment and other fixed assets (67,879 ) (44,382 )
Proceeds from sale of patient service equipment and other fixed assets 18,120 17,488
Additions to computer software (1,658 ) (1,418 )
Other, net (1,500 ) (6,858 )
Cash used for investing activities (52,917 ) (35,170 )
Financing activities:
Borrowings under amended Receivables Financing Agreement 462,300
Repayments under amended Receivables Financing Agreement (528,000 )
Borrowings under Revolving Credit Facility 853,200
Repayments under Revolving Credit Facility (815,700 )
Repayments of debt (7,750 )
Repurchase of common stock (5,153 )
Other, net (648 ) (4,790 )
Cash provided by (used for) financing activities 31,699 (78,240 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,259 (64 )
Net increase in cash, cash equivalents and restricted cash 17,651 2,675
Cash, cash equivalents and restricted cash at beginning of period 59,436 270,794
Cash, cash equivalents and restricted cash at end of period (1) $ 77,087 $ 273,469
Supplemental disclosure of cash flow information:
Income taxes paid, net $ 5,333 $ 2,875
Interest paid $ 38,358 $ 52,608
Noncash investing activity:
Unpaid purchases of patient service equipment and other fixed assets at end of period $ 73,437 $ 76,373
Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
Six Months Ended June 30,
(in thousands) 2025 2024
Operating activities:
Net loss $ (894,040 ) $ (53,799 )
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization 120,552 137,974
Goodwill impairment charge 106,389
Loss on classification to held for sale 649,140
Share-based compensation expense 14,989 13,601
Deferred income tax benefit (12,308 ) (9,029 )
Changes in operating lease right-of-use assets and lease liabilities 14,411 3,766
Gain from sale and dispositions of patient service equipment and other fixed assets (9,322 ) (27,876 )
Changes in operating assets and liabilities:
Accounts receivable, net 141,875 (68,118 )
Inventories (155,576 ) (123,077 )
Accounts payable 145,324 203,371
Net change in other assets and liabilities (124,712 ) (19,517 )
Other, net 5,822 5,891
Cash provided by operating activities 2,544 63,187
Investing activities:
Additions to patient service equipment and other fixed assets (123,576 ) (90,379 )
Proceeds from sale of patient service equipment and other fixed assets 35,004 67,026
Additions to computer software (10,635 ) (4,829 )
Other, net (1,910 ) (8,858 )
Cash used for investing activities (101,117 ) (37,040 )
Financing activities:
Borrowings under amended Receivables Financing Agreement 667,300
Repayments under amended Receivables Financing Agreement (667,300 )
Borrowings under Revolving Credit Facility 1,630,184
Repayments under Revolving Credit Facility (1,495,184 )
Repayments of debt (12,375 )
Repurchase of common stock (6,656 )
Other, net (3,867 ) (12,545 )
Cash provided by (used for) financing activities 124,477 (24,920 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,801 (682 )
Net increase in cash, cash equivalents and restricted cash 27,705 545
Cash, cash equivalents and restricted cash at beginning of period 49,382 272,924
Cash, cash equivalents and restricted cash at end of period $ 77,087 $ 273,469
Supplemental disclosure of cash flow information:
Income taxes paid, net $ 5,458 $ 5,240
Interest paid $ 65,845 $ 70,819
Noncash investing activity:
Unpaid purchases of patient service equipment and other fixed assets at end of period $ 73,437 $ 76,373
Net Loss Per Common Share (unaudited)
thousands, except per share data)
Three Months Ended June 30,
2025 2024
Loss from continuing operations, net of tax $ (83,822 ) $ (6,742 )
Loss from discontinued operations, net of tax (785,236 ) (25,171 )
Net loss $ (869,058 ) $ (31,913 )
Weighted average shares outstanding - basic 76,935 76,727
Dilutive shares
Weighted average shares outstanding - diluted 76,935 76,727
Basic loss per common share
Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 )
Loss from discontinued operations, net of tax (10.21 ) (0.33 )
Net loss $ (11.30 ) $ (0.42 )
Diluted loss per common share:
Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 )
Loss from discontinued operations, net of tax (10.21 ) (0.33 )
Net loss $ (11.30 ) $ (0.42 )
Share-based awards for the three months ended June 30, 2025 and 2024 of
approximately 2.5 million and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
Net Loss Per Common Share (unaudited)
thousands, except per share data)
Six Months Ended June 30,
2025 2024
Loss from continuing operations, net of tax $ (87,632 ) $ (20,135 )
Loss from discontinued operations, net of tax (806,408 ) (33,664 )
Net loss $ (894,040 ) $ (53,799 )
Weighted average shares outstanding - basic 77,102 76,526
Dilutive shares
Weighted average shares outstanding - diluted 77,102 76,526
Basic loss per common share
Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 )
Loss from discontinued operations, net of tax (10.46 ) (0.44 )
Net loss $ (11.60 ) $ (0.70 )
Diluted loss per common share:
Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 )
Loss from discontinued operations, net of tax (10.46 ) (0.44 )
Net loss $ (11.60 ) $ (0.70 )
Share-based awards for the six months ended June 30, 2025 and 2024 of approximately 2.2 million
and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in thousands, except per share data)
following table provides a reconciliation of reported operating (loss) income, net loss from continuing operations, net of tax and net loss from continuing operations per share to non-GAAP measures used by
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Operating (loss) income, as reported (GAAP) $ (39,710 ) $ 16,922 $ (19,919 ) $ 23,892
Acquisition-related charges and intangible amortization (1) 13,918 13,761 37,374 28,050
Transaction breakage fee (2) 80,000 80,000
Exit and realignment charges, net (3) 2,541 15,427 16,166 23,547
Litigation and related charges (5) 121 6,678 391 6,678
Operating income, adjusted (non-GAAP) (Adjusted Operating Income) $ 56,870 $ 52,788 $ 114,012 $ 82,167
Operating (loss) income as a percent of net revenue (GAAP) (5.82 )% 2.56 % (1.47 )% 1.84 %
Adjusted operating income as a percent of net revenue (non-GAAP) 8.34 % 7.99 % 8.41 % 6.33 %
Loss from continuing operations, net of tax, as reported (GAAP) $ (83,822 ) $ (6,742 ) $ (87,632 ) $ (20,135 )
Pre-tax adjustments:
Acquisition-related charges and intangible amortization (1) 13,918 13,761 37,374 28,050
Transaction breakage fee (2) 80,000 80,000
Exit and realignment charges, net (3) 2,541 15,427 16,166 23,547
Transaction financing fees, net (4) 18,288 18,288
Litigation and related charges (5) 121 6,678 391 6,678
Other (6) 424 430 848 861
Income tax benefit on pre-tax adjustments (9) (10,987 ) (10,248 ) (21,719 ) (17,133 )
Income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net Income) $ 20,483 $ 19,306 $ 43,716 $ 21,868
Loss from continuing operations, net of tax per common share, as reported (GAAP) $ (1.09 ) $ (0.09 ) $ (1.14 ) $ (0.26 )
After-tax adjustments:
Acquisition-related charges and intangible amortization (1) 0.12 0.13 0.34 0.26
Transaction breakage fee (2) 1.04 1.04
Exit and realignment charges, net (3) 0.02 0.15 0.14 0.21
Transaction financing fees, net (4) 0.17 0.17
Litigation and related charges (5) 0.06 0.06
Other (6) 0.01
Income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) $ 0.26 $ 0.25 $ 0.55 $ 0.28
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
The following tables provide
reconciliations of net loss from continuing operations, net of tax and total debt to non-GAAP measures used by management.
Three Months Ended June 30,
2025 2024
Loss from continuing operations, net of tax, as reported (GAAP) $ (83,822 ) $ (6,742 )
Income tax benefit (1,127 ) (2,740 )
Interest expense, net 26,009 25,588
Acquisition-related charges and intangible amortization (1) 13,918 13,761
Transaction breakage fee (2) 80,000
Exit and realignment charges, net (3) 2,541 15,427
Transaction financing fees, net (4) 18,288
Litigation and related charges (5) 121 6,678
Other depreciation and amortization (7) 35,422 34,764
Stock compensation (8) 4,861 3,914
Other (6) 424 430
Adjusted EBITDA (non-GAAP) $ 96,635 $ 91,080
Six Months Ended June 30,
2025 2024
Loss from continuing operations, net of tax, as reported (GAAP) $ (87,632 ) $ (20,135 )
Income tax benefit (2,715 ) (8,671 )
Interest expense, net 50,223 50,997
Acquisition-related charges and intangible amortization (1) 37,374 28,050
Transaction breakage fee (2) 80,000
Exit and realignment charges, net (3) 16,166 23,547
Transaction financing fees, net (4) 18,288
Litigation and related charges (5) 391 6,678
Other depreciation and amortization (7) 70,758 71,230
Stock compensation (8) 8,952 7,743
Other (6) 848 861
Adjusted EBITDA (non-GAAP) $ 192,653 $ 160,300
June 30, 2025 March 31 2025 December 31, 2024
Total debt, as reported (GAAP) $ 1,977,745 $ 1,938,429 $ 1,841,259
Cash and cash equivalents (38,258 ) (29,710 ) (27,572 )
Net debt (non-GAAP) $ 1,939,487 $ 1,908,719 $ 1,813,687
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
The following tables provide
reconciliations of capital expenditures to a non-GAAP measure used by management.
Three Months Ended June 30,
2025 2024
Capital expenditures, as reported (GAAP) $ 69,537 $ 45,800
Capital expenditures from discontinued operations (10,366 ) (3,456 )
Capital expenditures from continuing operations 59,171 42,344
Proceeds from sale of patient service equipment and other fixed assets, as reported (18,120 ) (17,488 )
Proceeds from sale of patient service equipment and other fixed assets from discontinued operations
Proceeds from sale of patient service equipment and other fixed assets from continuing operations (18,120 ) (17,488 )
Net capital expenditures from continuing operations (non-GAAP) (Net Capex) $ 41,051 $ 24,856
Six Months Ended June 30,
2025 2024
Capital expenditures, as reported (GAAP) $ 134,211 $ 95,208
Capital expenditures from discontinued operations, as reported (26,918 ) (11,150 )
Capital expenditures from continuing operations 107,293 84,058
Proceeds from sale of patient service equipment and other fixed assets, as reported (35,004 ) (67,026 )
Proceeds from sale of patient service equipment and other fixed assets from discontinued operations 33,500
Proceeds from sale of patient service equipment and other fixed assets from continuing operations (35,004 ) (33,526 )
Net capital expenditures from continuing operations (non-GAAP) (Net Capex) $ 72,289 $ 50,532
following items have been excluded in our non-GAAP financial measures:
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with
U.S. generally accepted accounting principles (GAAP). In general, the measures exclude items and charges that (i) management does not believe reflect Owens & Minor, Inc. s (the Company) core business and relate more to
strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP
financial measures internally to evaluate the Company s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation.
Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in
assessing the effects of items and events on its financial and operating results and in comparing the Company s performance to that of its competitors. However, the non-GAAP financial measures used by the
Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in
accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.
Jackie Marcus or Nick Teves
Executive Vice President & Chief Financial Officer
SOURCE: Owens & Minor, Inc.

Frequently Asked Questions

What were Owens & Minor's revenues in Q2 2025?

Owens & Minor reported revenues of $681.9 million in Q2 2025.

What segment is classified as discontinued operations?

The Products & Healthcare Services segment has been classified as discontinued operations.

What was the loss from continuing operations in Q2 2025?

The loss from continuing operations for Q2 2025 was $83.8 million.

When will Owens & Minor host their earnings call?

Owens & Minor's earnings conference call is scheduled for August 11, 2025, at 8:30 a.m. EDT.

How did adjusted net income perform in Q2 2025?

Adjusted net income from continuing operations was $20.5 million in Q2 2025.

Last updated: Aug 11, 2025