Avanos Medical, Inc. Announces Fourth Quarter and Full-Year 2025 Results
- Exceeded full-year revenue and achieved the top end of full-year earnings-per-share guidance
- Delivered full-year organic growth of 6% in strategic segments
- Expanded transformation initiatives expected to deliver
$15 to$20 million of incremental annualized savings by the end of 2026
"I'm very pleased with our fourth quarter and full-year results, which demonstrate meaningful progress on our strategic priorities," said
Fourth Quarter 2025 Highlights
- Total fourth quarter net sales were
$180.9 million , a 0.7% increase from the prior year period. - Operating income in the quarter was
$2.5 million compared to operating loss of$418.5 million in the prior year period. On an adjusted basis, operating income was$22.6 million compared to$23.9 million a year ago. - Net loss for the quarter was
$1.3 million , compared to net loss of$397.0 million in the prior year period. On an adjusted basis, fourth quarter net income was$13.4 million compared to$20.0 million in the prior year. - Fourth quarter diluted loss per share was
$0.03 compared to diluted loss per share of$8.63 a year ago. On an adjusted basis, fourth quarter diluted earnings per share was$0.29 compared to$0.43 in the prior year. - Adjusted EBITDA for the quarter was
$28.0 million compared to$28.6 million in the prior year period. - Fourth quarter free cash flow was
$21.3 million compared to$53.1 million in the fourth quarter of last year.
Specialty Nutrition Systems Segment
- The Specialty Nutrition Systems ("SNS") segment delivered above-market results in the fourth quarter of 2025, achieving net sales of
$115.1 million , an increase of 8.7% compared to the prior year period. - Operating income in the SNS segment for the fourth quarter of 2025 was
$20.5 million , or 17.8% of SNS net sales, a decrease of$4.5 million .
Pain Management and Recovery Segment
- Pain Management and Recovery ("PM&R") segment net sales for the fourth quarter of 2025 was
$61.6 million , an increase of 1.3% compared to the prior year period. - Operating income in the PM&R segment for the fourth quarter of 2025 was
$5.2 million compared to$3.9 million last year.
Full-Year 2025 Highlights
- Net sales increased 1.9% to
$701.2 million in 2025, compared to$687.8 million in 2024. - Operating loss in 2025 was
$61.6 million compared to operating loss of$396.2 million in the prior year. On an adjusted basis, operating profit was$67.1 million compared to$87.3 million in 2024. - Net loss in 2025 was
$72.9 million , compared to net loss of$386.3 million in the prior year. - For the full-year, adjusted EBITDA totaled
$86.8 million , compared to$107.6 million in the prior year. - 2025 diluted loss per share was
$1.57 compared to diluted loss per share of$8.40 in the prior year. On an adjusted basis, diluted earnings per share was$0.94 compared to$1.35 in 2024. - 2025 year-to-date free cash flow was
$43.1 million compared to$82.9 million in 2024. - As of
December 31, 2025 , our net debt was$10.7 million compared to$27.0 million in the prior year.
Specialty Nutrition Systems Segment
- The SNS segment delivered above-market results in 2025, achieving net sales of
$432.9 million , an increase of 9.2% compared to 2024. - Operating income in the SNS segment in 2025 was
$82.6 million , or 19% of SNS net sales, an increase of$1.8 million compared to 2024.
Pain Management and Recovery Segment
- PM&R segment net sales for 2025 was
$237.8 million , an increase of 1.5% compared to 2024. - Operating income in the PM&R segment for 2025 was
$9.2 million compared to$2.7 million in 2024.
Non-Cash Goodwill Impairment
During the second quarter, due to downward pressure on our market capitalization, we assessed goodwill for impairment and recorded an impairment charge of
Cash Flow and Balance Sheet
Cash from operations less capital expenditures, or free cash flow, for the fourth quarter of 2025 was
At year-end 2025, the Company's cash balance was
Sale of HA Product Line
On
2026 Outlook
We expect 2026 net sales to be between
Non-GAAP Financial Measures
This press release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the
- Adjusted net income
- Adjusted diluted earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
- Adjusted selling, general and administrative expenses
- Adjusted EBITDA
- Free cash flow
These non-GAAP financial measures exclude the following items, as applicable, for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:
- Certain acquisition and integration charges related to acquisitions;
- Expenses associated with restructuring and transformation activities, including the divestiture of the Company's respiratory health business;
- Expenses associated with European Union Medical Regulation ("EU MDR") compliance;
- The amortization of intangible assets associated with business acquisitions;
- Impairments of intangibles or goodwill;
- The amortization of intangible assets associated with prior business acquisitions.
- The tax effects of certain adjusting items; and
- The positive or negative effect of changes in currency exchange rates during the year.
The Company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the Company's Board of Directors use net sales on a constant currency basis, adjusted net income, adjusted diluted earnings per share, adjusted operating profit, adjusted EBITDA, and free cash flow to (a) evaluate the Company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the Company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of the Company's ongoing business operations.
Additionally, the Compensation Committee of the Company's Board of Directors will use certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the Company's net sales on a constant currency basis and adjusted EBITDA, which will be determined by excluding certain items that are used in calculating these non-GAAP financial measures.
Our competitors may define these non-GAAP financial measures differently, and as a result, our measure of these non-GAAP financial measures may not be directly comparable to those of other companies. Items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. These non-GAAP financial measures are supplemental measures of operating performance that do not represent, and should not be considered in isolation or as an alternative to, or substitute for, the financial statement data presented in our consolidated financial statements as indicators of financial performance. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP financial measures as supplemental information.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables.
Conference Call Webcast
About
Forward-Looking Statements
This press release contains information that includes or is based on "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may", "believe", "will", "expect", "project", "estimate", "anticipate", "plan", or "continue" and similar expressions, among others. Forward-looking statements are based on the current plans and expectations of management and are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; shortages in drugs used in our Surgical Pain and Recovery products or other disruptions in our supply chain; the ongoing conflicts between
|
AVANOS MEDICAL, INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited) (in millions, except per share amounts) |
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Three Months Ended |
|
Year Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 180.9 |
|
$ 179.6 |
|
$ 701.2 |
|
$ 687.8 |
|
Cost of products sold |
94.9 |
|
81.6 |
|
347.3 |
|
306.5 |
|
Gross Profit |
86.0 |
|
98.0 |
|
353.9 |
|
381.3 |
|
Research and development expenses |
6.1 |
|
5.7 |
|
23.3 |
|
26.2 |
|
Selling and general expenses |
78.8 |
|
79.7 |
|
315.6 |
|
318.5 |
|
|
— |
|
436.7 |
|
77.0 |
|
436.7 |
|
Other (income) expense, net |
(1.4) |
|
(5.6) |
|
(0.4) |
|
(3.9) |
|
Operating Income (Loss) |
2.5 |
|
(418.5) |
|
(61.6) |
|
(396.2) |
|
Interest income |
0.6 |
|
0.8 |
|
3.2 |
|
5.1 |
|
Interest expense |
(1.9) |
|
(2.8) |
|
(7.8) |
|
(12.2) |
|
Income (Loss) Before Income Taxes |
1.2 |
|
(420.5) |
|
(66.2) |
|
(403.3) |
|
Income tax (provision) benefit |
(2.5) |
|
23.5 |
|
(6.7) |
|
17.0 |
|
Loss from Continuing Operations |
(1.3) |
|
(397.0) |
|
(72.9) |
|
(386.3) |
|
Loss from discontinued operations, net of tax |
— |
|
(0.3) |
|
— |
|
(5.8) |
|
Net Loss |
$ (1.3) |
|
$ (397.3) |
|
$ (72.9) |
|
$ (392.1) |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
1.3 |
|
2.0 |
|
4.6 |
|
7.1 |
|
Income tax benefit (provision) |
2.5 |
|
(23.4) |
|
6.7 |
|
(18.9) |
|
Depreciation and amortization |
9.9 |
|
11.1 |
|
38.9 |
|
45.5 |
|
EBITDA |
$ 12.4 |
|
$ (407.6) |
|
$ (22.7) |
|
$ (358.4) |
|
|
|
|
|
|
|
|
|
|
Loss Per Share |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Continuing operations |
$ (0.03) |
|
$ (8.63) |
|
$ (1.57) |
|
$ (8.40) |
|
Discontinued operations |
$ — |
|
$ (0.01) |
|
$ — |
|
$ (0.13) |
|
Basic Loss Per Share |
$ (0.03) |
|
$ (8.64) |
|
$ (1.57) |
|
$ (8.53) |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
Continuing operations |
$ (0.03) |
|
$ (8.63) |
|
$ (1.57) |
|
$ (8.40) |
|
Discontinued operations |
$ — |
|
$ (0.01) |
|
$ — |
|
$ (0.13) |
|
Diluted Loss Per Share |
$ (0.03) |
|
$ (8.64) |
|
$ (1.57) |
|
$ (8.53) |
|
|
|
|
|
|
|
|
|
|
Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
46.4 |
|
46.0 |
|
46.3 |
|
46.0 |
|
Diluted |
46.4 |
|
46.0 |
|
46.3 |
|
46.0 |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
As reported |
|
Acquisition and Integration(a) |
|
Post-RH Divestiture Restructuring |
|
Intangibles Amortization |
|
Tax Effects |
|
As Adjusted Non-GAAP |
|
|
$ 180.9 |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ 180.9 |
|
Cost of products sold |
94.9 |
|
— |
|
(9.0) |
|
(1.6) |
|
— |
|
84.3 |
|
Gross Profit |
86.0 |
|
— |
|
9.0 |
|
1.6 |
|
— |
|
96.6 |
|
Gross Profit Margin |
47.5 % |
|
|
|
|
|
|
|
|
|
53.4 % |
|
Research and development expenses |
6.1 |
|
— |
|
(0.5) |
|
— |
|
— |
|
5.6 |
|
Selling and general expenses |
78.8 |
|
(0.6) |
|
(4.5) |
|
(2.9) |
|
— |
|
70.8 |
|
SG&A as a percentage of revenue |
43.6 % |
|
|
|
|
|
|
|
|
|
39.1 % |
|
Other (income) expense, net |
(1.4) |
|
(0.5) |
|
(0.5) |
|
— |
|
— |
|
(2.4) |
|
Operating Income |
2.5 |
|
1.1 |
|
14.5 |
|
4.5 |
|
— |
|
22.6 |
|
Interest income |
0.6 |
|
— |
|
— |
|
— |
|
— |
|
0.6 |
|
Interest expense |
(1.9) |
|
— |
|
— |
|
— |
|
— |
|
(1.9) |
|
Income Before Income Taxes |
1.2 |
|
1.1 |
|
14.5 |
|
4.5 |
|
— |
|
21.3 |
|
Income tax provision |
(2.5) |
|
— |
|
— |
|
— |
|
(5.4) |
|
(7.9) |
|
Effective Tax Rate |
(208.3) % |
|
|
|
|
|
|
|
|
|
(37.1) % |
|
Net (Loss) Income |
$ (1.3) |
|
$ 1.1 |
|
$ 14.5 |
|
$ 4.5 |
|
$ (5.4) |
|
$ 13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share |
$ (0.03) |
|
|
|
|
|
|
|
|
|
$ 0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________ |
|
|
(a) |
In the year ended |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
As reported |
|
Acquisition & Integration |
|
Restructuring & Transform. |
|
Post-RH Divestiture Transition |
|
Post-RH Divestiture Restructuring |
|
Intangibles Impairment |
|
EU MDR Compliance |
|
Intangibles Amortization |
|
Tax Effects |
|
As Adjusted Non-GAAP |
|
|
$ 179.6 |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ 179.6 |
|
Cost of products sold |
81.6 |
|
— |
|
(1.3) |
|
(0.4) |
|
(2.1) |
|
— |
|
— |
|
(3.6) |
|
— |
|
74.2 |
|
Gross Profit |
98.0 |
|
— |
|
1.3 |
|
0.4 |
|
2.1 |
|
— |
|
— |
|
3.6 |
|
— |
|
105.4 |
|
Gross Profit Margin |
54.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58.7 % |
|
Research and development |
5.7 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5.7 |
|
Selling and general |
79.7 |
|
(0.1) |
|
0.4 |
|
(0.2) |
|
(0.4) |
|
— |
|
(1.8) |
|
(2.8) |
|
— |
|
74.8 |
|
SG&A as a percentage of revenue |
44.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41.6 % |
|
|
436.7 |
|
— |
|
— |
|
— |
|
— |
|
(436.7) |
|
— |
|
— |
|
— |
|
— |
|
Other (income) expense, net |
(5.6) |
|
— |
|
6.9 |
|
(0.3) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1.0 |
|
Operating (Loss) Income |
(418.5) |
|
0.1 |
|
(6.0) |
|
0.9 |
|
2.5 |
|
436.7 |
|
1.8 |
|
6.4 |
|
— |
|
23.9 |
|
Interest income |
0.8 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
0.8 |
|
Interest expense |
(2.8) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2.8) |
|
(Loss) Income Before Income Taxes |
(420.5) |
|
0.1 |
|
(6.0) |
|
0.9 |
|
2.5 |
|
436.7 |
|
1.8 |
|
6.4 |
|
— |
|
21.9 |
|
Income tax benefit (provision) |
23.5 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(25.4) |
|
(1.9) |
|
Effective tax rate |
(5.6) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8.7) % |
|
Net (Loss) Income from Continuing Operations |
(397.0) |
|
0.1 |
|
(6.0) |
|
0.9 |
|
2.5 |
|
436.7 |
|
1.8 |
|
6.4 |
|
(25.4) |
|
20.0 |
|
Loss from Discontinued Operations, net of tax |
(0.3) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(0.3) |
|
Net (Loss) Income |
$ (397.3) |
|
$ 0.1 |
|
$ (6.0) |
|
$ 0.9 |
|
$ 2.5 |
|
$ 436.7 |
|
$ 1.8 |
|
$ 6.4 |
|
$ (25.4) |
|
$ 19.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
$ (8.63) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.43 |
|
Discontinued Operations |
$ (0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.01) |
|
Diluted (loss) earnings per share |
$ (8.64) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.42 |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||||||||||
|
|
|||||||||||||||
|
|
Year Ended |
||||||||||||||
|
|
As reported |
|
Acquisition and Integration |
|
Post-RH Divestiture Restructuring |
|
Intangibles Impairment |
|
Litigation and Legal |
|
Intangibles Amortization |
|
Tax effects |
|
As Adjusted Non-GAAP |
|
|
$ 701.2 |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ 701.2 |
|
Cost of products sold |
347.3 |
|
— |
|
(19.5) |
|
— |
|
— |
|
(9.5) |
|
— |
|
318.3 |
|
Gross Profit |
353.9 |
|
— |
|
19.5 |
|
— |
|
— |
|
9.5 |
|
— |
|
382.9 |
|
Gross Profit Margin |
50.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
54.6 % |
|
Research and development expenses |
23.3 |
|
— |
|
(0.5) |
|
— |
|
— |
|
— |
|
— |
|
22.8 |
|
Selling and general expenses |
315.6 |
|
(1.0) |
|
(10.2) |
|
— |
|
— |
|
(9.7) |
|
— |
|
294.7 |
|
SG&A as a percentage of |
45.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
42.0 % |
|
|
77.0 |
|
— |
|
— |
|
(77.0) |
|
— |
|
— |
|
— |
|
— |
|
Other (income) expense, net |
(0.4) |
|
(0.5) |
|
(2.2) |
|
— |
|
1.4 |
|
— |
|
— |
|
(1.7) |
|
Operating (Loss) Income |
(61.6) |
|
1.5 |
|
32.4 |
|
77.0 |
|
(1.4) |
|
19.2 |
|
— |
|
67.1 |
|
Interest income |
3.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
3.2 |
|
Interest expense |
(7.8) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(7.8) |
|
(Loss) Income Before Income Taxes |
(66.2) |
|
1.5 |
|
32.4 |
|
77.0 |
|
(1.4) |
|
19.2 |
|
— |
|
62.5 |
|
Income tax provision |
(6.7) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(12.4) |
|
(19.1) |
|
Effective tax rate |
10.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
(30.6) % |
|
Net (Loss) Income |
$ (72.9) |
|
$ 1.5 |
|
$ 32.4 |
|
$ 77.0 |
|
$ (1.4) |
|
$ 19.2 |
|
$ (12.4) |
|
$ 43.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share |
$ (1.57) |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.94 |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
Year Ended |
||||||||||||||||||
|
|
As reported |
|
Acquisition and Integration |
|
Restructuring and Transform. |
|
Post-RH Divestiture Transition |
|
Post-RH Divestiture Restructuring |
|
intangibles impairment |
|
EU MDR compliance |
|
Intangibles amortization |
|
Tax effects of adjusting items |
|
As Adjusted Non-GAAP |
|
|
$ 687.8 |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ — |
|
$ 687.8 |
|
Cost of products sold |
306.5 |
|
(0.1) |
|
(3.0) |
|
(1.8) |
|
(5.1) |
|
— |
|
(0.2) |
|
(14.3) |
|
— |
|
282.0 |
|
Gross Profit |
381.3 |
|
0.1 |
|
3.0 |
|
1.8 |
|
5.1 |
|
— |
|
0.2 |
|
14.3 |
|
— |
|
405.8 |
|
Gross profit margin |
55.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59.0 % |
|
Research and development expenses |
26.2 |
|
(0.1) |
|
0.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
26.3 |
|
Selling and general expenses |
318.5 |
|
(1.4) |
|
(3.0) |
|
(0.8) |
|
(3.8) |
|
— |
|
(6.0) |
|
(10.9) |
|
— |
|
292.6 |
|
SG&A as a percentage of net sales |
46.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42.5 % |
|
|
436.7 |
|
— |
|
— |
|
— |
|
— |
|
(436.7) |
|
— |
|
— |
|
— |
|
— |
|
Other (income) expense, net |
(3.9) |
|
(2.6) |
|
6.6 |
|
(0.5) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(0.4) |
|
Operating (Loss) Income |
(396.2) |
|
4.2 |
|
(0.8) |
|
3.1 |
|
8.9 |
|
436.7 |
|
6.2 |
|
25.2 |
|
— |
|
87.3 |
|
Interest income |
5.1 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5.1 |
|
Interest expense |
(12.2) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(12.2) |
|
(Loss) Income Before Income Taxes |
(403.3) |
|
4.2 |
|
(0.8) |
|
3.1 |
|
8.9 |
|
436.7 |
|
6.2 |
|
25.2 |
|
— |
|
80.2 |
|
Income tax benefit (provision) |
17.0 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(34.6) |
|
(17.6) |
|
Effective tax rate |
(4.2) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21.9) % |
|
Net (Loss) Income from Continuing Operations |
(386.3) |
|
4.2 |
|
(0.8) |
|
3.1 |
|
8.9 |
|
436.7 |
|
6.2 |
|
25.2 |
|
(34.6) |
|
62.6 |
|
Loss from Discontinued Operations, net of tax |
(5.8) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(5.8) |
|
Net (Loss) Income |
$ (392.1) |
|
$ 4.2 |
|
$ (0.8) |
|
$ 3.1 |
|
$ 8.9 |
|
$ 436.7 |
|
$ 6.2 |
|
$ 25.2 |
|
$ (34.6) |
|
$ 56.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
$ (8.40) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1.35 |
|
Discontinued Operations |
$ (0.13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.13) |
|
Diluted (loss) earnings per share |
$ (8.53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1.22 |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||
|
|
|||||||
|
|
EBITDA |
||||||
|
|
Three Months Ended
|
|
Three Months Ended |
||||
|
|
|
Continuing
|
|
Discontinued Operations |
|
Total |
|
|
Net loss |
$ (1.3) |
|
$ (397.0) |
|
$ (0.3) |
|
$ (397.3) |
|
Interest expense, net |
1.3 |
|
2.0 |
|
— |
|
2.0 |
|
Income tax benefit (provision) |
2.5 |
|
(23.5) |
|
0.1 |
|
(23.4) |
|
Depreciation |
5.4 |
|
4.7 |
|
— |
|
4.7 |
|
Amortization |
4.5 |
|
6.4 |
|
— |
|
6.4 |
|
EBITDA |
12.4 |
|
(407.4) |
|
(0.2) |
|
(407.6) |
|
Acquisition and integration-related charges |
1.1 |
|
0.1 |
|
— |
|
0.1 |
|
Restructuring and transformation charges |
— |
|
(6.0) |
|
— |
|
(6.0) |
|
Post-RH Divestiture transition charges |
— |
|
0.9 |
|
— |
|
0.9 |
|
Post-RH Divestiture restructuring |
14.5 |
|
2.5 |
|
— |
|
2.5 |
|
|
— |
|
436.7 |
|
— |
|
436.7 |
|
EU MDR Compliance |
— |
|
1.8 |
|
— |
|
1.8 |
|
Adjusted EBITDA |
$ 28.0 |
|
$ 28.6 |
|
$ (0.2) |
|
$ 28.4 |
|
|
|||||||
|
|
EBITDA |
||||||
|
|
Year Ended
|
|
Year Ended |
||||
|
|
|
Continuing
|
|
Disc. Operations |
|
Total |
|
|
Net loss income |
$ (72.9) |
|
$ (386.3) |
|
$ (5.8) |
|
$ (392.1) |
|
Interest expense, net |
4.6 |
|
7.1 |
|
— |
|
7.1 |
|
Income tax benefit (provision) |
6.7 |
|
(17.0) |
|
(1.9) |
|
(18.9) |
|
Depreciation |
19.7 |
|
20.3 |
|
— |
|
20.3 |
|
Amortization |
19.2 |
|
25.2 |
|
— |
|
25.2 |
|
EBITDA |
(22.7) |
|
(350.7) |
|
(7.7) |
|
(358.4) |
|
Acquisition and integration-related charges |
1.5 |
|
4.2 |
|
— |
|
4.2 |
|
Restructuring and transformation charges |
— |
|
(0.8) |
|
— |
|
(0.8) |
|
Post-RH Divestiture transition charges |
— |
|
3.1 |
|
— |
|
3.1 |
|
Post-RH Divestiture restructuring |
32.4 |
|
8.9 |
|
— |
|
8.9 |
|
|
77.0 |
|
436.7 |
|
— |
|
436.7 |
|
EU MDR Compliance |
— |
|
6.2 |
|
— |
|
6.2 |
|
Litigation and legal |
(1.4) |
|
— |
|
— |
|
— |
|
Adjusted EBITDA |
$ 86.8 |
|
$ 107.6 |
|
$ (7.7) |
|
$ 99.9 |
|
NON-GAAP RECONCILIATIONS (unaudited) (in millions, except per share amounts) |
|||||||
|
|
|||||||
|
|
Free Cash Flow |
||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Cash provided by operating activities |
$ 28.2 |
|
$ 57.9 |
|
$ 74.7 |
|
$ 100.7 |
|
Capital expenditures |
(6.9) |
|
(4.8) |
|
(31.6) |
|
(17.8) |
|
Free Cash Flow |
$ 21.3 |
|
$ 53.1 |
|
$ 43.1 |
|
$ 82.9 |
|
2026 OUTLOOK |
|||
|
|
|||
|
|
|
||
|
Diluted earnings per share (GAAP) |
$ 0.48 |
to |
$ 0.73 |
|
Intangibles amortization |
0.28 |
to |
0.26 |
|
Restructuring and transformation charges |
0.08 |
to |
0.06 |
|
Other |
0.06 |
to |
0.05 |
|
Adjusted diluted earnings per share (non-GAAP) |
$ 0.90 |
to |
$ 1.10 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions) |
|||
|
|
|||
|
|
As of |
||
|
|
2025 |
|
2024 |
|
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
$ 89.8 |
|
$ 107.7 |
|
Accounts receivable, net of allowances |
103.8 |
|
132.8 |
|
Inventories |
148.0 |
|
138.8 |
|
Prepaid expenses and other current assets |
13.8 |
|
14.1 |
|
Total Current Assets |
355.4 |
|
393.4 |
|
Property, Plant and Equipment, net |
113.4 |
|
110.7 |
|
Operating Lease Right of Use Assets |
27.6 |
|
34.1 |
|
|
394.9 |
|
455.6 |
|
Other Intangible Assets, net |
117.8 |
|
112.3 |
|
Deferred Tax Assets |
33.1 |
|
24.9 |
|
Other Assets |
31.5 |
|
23.2 |
|
TOTAL ASSETS |
$ 1,073.7 |
|
$ 1,154.2 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Current portion of long-term debt |
$ 10.2 |
|
$ 9.4 |
|
Current portion of operating lease obligation |
8.2 |
|
10.9 |
|
Trade accounts payable |
55.5 |
|
54.3 |
|
Accrued expenses |
91.3 |
|
91.3 |
|
Total Current Liabilities |
165.2 |
|
165.9 |
|
Long-Term Debt |
90.3 |
|
125.3 |
|
Operating Lease Obligation |
20.4 |
|
24.6 |
|
Deferred Tax Liabilities |
6.1 |
|
5.5 |
|
Other Long-Term Liabilities |
13.5 |
|
4.4 |
|
TOTAL LIABILITIES |
295.5 |
|
325.7 |
|
Stockholders' Equity |
778.2 |
|
828.5 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 1,073.7 |
|
$ 1,154.2 |
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) (in millions) |
|||||||
|
|
|||||||
|
|
Three Months Ended
|
|
Year Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Operating Activities |
|
|
|
|
|
|
|
|
Net loss |
$ (1.3) |
|
$ (397.3) |
|
$ (72.9) |
|
$ (392.1) |
|
Depreciation and amortization |
9.9 |
|
11.1 |
|
38.9 |
|
45.5 |
|
|
— |
|
436.7 |
|
77.0 |
|
436.7 |
|
Net loss on asset dispositions |
3.6 |
|
0.8 |
|
9.3 |
|
1.2 |
|
Changes in operating assets and liabilities |
24.5 |
|
45.0 |
|
20.2 |
|
35.0 |
|
Deferred income taxes and other |
(8.5) |
|
(38.4) |
|
2.2 |
|
(25.6) |
|
Cash Provided by Operating Activities |
28.2 |
|
57.9 |
|
74.7 |
|
100.7 |
|
Investing Activities |
|
|
|
|
|
|
|
|
Capital expenditures |
(6.9) |
|
(4.8) |
|
(31.6) |
|
(17.8) |
|
Proceeds from the sale of assets |
— |
|
— |
|
4.0 |
|
— |
|
Proceeds from RH divestiture post-closing settlement |
— |
|
— |
|
— |
|
2.1 |
|
Acquisition of assets and businesses, net of cash acquired |
0.3 |
|
— |
|
(28.0) |
|
— |
|
Investments in non-affiliates |
(0.2) |
|
(2.8) |
|
(5.0) |
|
(11.8) |
|
Cash Used in Investing Activities |
(6.8) |
|
(7.6) |
|
(60.6) |
|
(27.5) |
|
Financing Activities |
|
|
|
|
|
|
|
|
Secured debt repayments |
(2.4) |
|
(2.3) |
|
(9.4) |
|
(8.6) |
|
Revolving credit facility proceeds |
— |
|
— |
|
— |
|
20.0 |
|
Revolving credit facility repayments |
— |
|
(25.0) |
|
(25.0) |
|
(45.0) |
|
Purchase of treasury stock |
(0.3) |
|
(0.1) |
|
(3.3) |
|
(12.8) |
|
Proceeds from the exercise of stock options |
— |
|
— |
|
0.7 |
|
1.1 |
|
Payment of contingent consideration liabilities |
— |
|
— |
|
— |
|
(3.8) |
|
Cash Used in Financing Activities |
(2.7) |
|
(27.4) |
|
(37.0) |
|
(49.1) |
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
0.6 |
|
(4.2) |
|
5.0 |
|
(4.1) |
|
Increase (Decrease) in Cash and Cash Equivalents |
19.3 |
|
18.7 |
|
(17.9) |
|
20.0 |
|
Cash and Cash Equivalents - Beginning of Period |
70.5 |
|
89.0 |
|
107.7 |
|
87.7 |
|
Cash and Cash Equivalents - End of Period |
$ 89.8 |
|
$ 107.7 |
|
$ 89.8 |
|
$ 107.7 |
|
SELECTED BUSINESS SEGMENT DATA (unaudited) (in millions) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended
|
|
|
|
Year Ended |
|
|
||||
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
Specialty Nutrition Systems: |
|
|
|
|
|
|
|
|
|
|
|
|
Enteral feeding |
$ 83.0 |
|
$ 75.0 |
|
10.7 % |
|
$ 314.7 |
|
$ 289.7 |
|
8.6 % |
|
Neonate solutions |
32.1 |
|
30.9 |
|
3.9 % |
|
118.2 |
|
106.7 |
|
10.8 % |
|
Total Specialty Nutrition Systems |
115.1 |
|
105.9 |
|
8.7 % |
|
432.9 |
|
396.4 |
|
9.2 % |
|
Pain Management and Recovery: |
|
|
|
|
|
|
|
|
|
|
|
|
Surgical pain and recovery |
24.7 |
|
26.7 |
|
(7.5) % |
|
98.8 |
|
108.0 |
|
(8.5) % |
|
Radiofrequency ablation |
36.9 |
|
34.1 |
|
8.2 % |
|
139.0 |
|
126.2 |
|
10.1 % |
|
Total Pain Management and Recovery |
61.6 |
|
60.8 |
|
1.3 % |
|
237.8 |
|
234.2 |
|
1.5 % |
|
Corporate and Other |
4.2 |
|
12.9 |
|
(67.4) % |
|
30.5 |
|
57.2 |
|
(46.7) % |
|
Total |
$ 180.9 |
|
$ 179.6 |
|
0.7 % |
|
$ 701.2 |
|
$ 687.8 |
|
1.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Nutrition Systems |
20.5 |
|
25.0 |
|
(18.0) % |
|
82.6 |
|
80.8 |
|
2.2 % |
|
Pain Management and Recovery |
5.2 |
|
3.9 |
|
33.3 % |
|
9.2 |
|
2.7 |
|
N.M. |
|
Corporate and Other(a) |
(23.2) |
|
(447.4) |
|
N.M. |
|
(153.4) |
|
(479.7) |
|
N.M. |
|
Total Operating Income (Loss) |
$ 2.5 |
|
|
|
N.M. |
|
$ (61.6) |
|
|
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Volume(a) |
|
Pricing/Mix |
|
Currency |
|
Other(b) |
|
|
|
Specialty Nutrition Systems |
8.7 % |
|
7.9 % |
|
0.5 % |
|
0.8 % |
|
(0.5) % |
|
|
|
Pain Management and Recovery |
1.3 % |
|
1.0 % |
|
0.2 % |
|
0.2 % |
|
(0.1) % |
|
|
|
Corporate and Other |
(67.4) % |
|
5.4 % |
|
— % |
|
— % |
|
(72.8) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Volume(a) |
|
Pricing/Mix |
|
Currency |
|
Other(b) |
|
|
|
Specialty Nutrition Systems |
9.2 % |
|
9.0 % |
|
0.4 % |
|
0.5 % |
|
(0.7) % |
|
|
|
Pain Management and Recovery |
1.5 % |
|
1.9 % |
|
0.3 % |
|
0.2 % |
|
(0.9) % |
|
|
|
Corporate and Other |
(46.7) % |
|
(7.0) % |
|
(9.5) % |
|
— % |
|
(30.2) % |
|
|
|
______________________________ |
|
|
N.M.: Not Meaningful |
|
|
(a) |
Corporate and Other operating loss for the year ended |
|
(b) |
Other includes the effects of our withdrawal from certain revenue streams that did not meet our return criteria and rounding. |
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