Owens & Minor Inc. Reports Mixed Financial Results for 2024 and Initiates Sale Process for Products & Healthcare Services Segment

Owens & Minor reported a net revenue of $2.7 billion for the fourth quarter of 2024, representing a slight increase from $2.66 billion in the same period of the previous year. However, the company faced substantial challenges, culminating in a net loss of $296 million for the quarter, compared to a net income of $18 million in the fourth quarter of 2023. This loss translated to a net loss per share of $(3.84), contrasting sharply with the previous year’s earnings per share of $0.23.

For the full year, Owens & Minor achieved total revenue of $10.7 billion, an increase from $10.33 billion in 2023. Despite this growth, the company reported a net loss for the year of $363 million, highlighting significant operational challenges, including a goodwill impairment charge of $307 million.

When focusing on adjusted figures, the company reported an adjusted net income of $43 million for the fourth quarter, yielding an adjusted earnings per share (EPS) of $0.55, compared to $0.69 in the fourth quarter of the prior year. The adjusted EBITDA for the quarter was $138 million, a decrease from $170 million year-over-year. For the full year, adjusted net income reached $119 million, with adjusted EBITDA totaling $523 million.

President and CEO Edward A. Pesicka emphasized the company’s commitment to optimizing its business strategy, particularly highlighting the Patient Direct segment's growth. In a notable announcement, he confirmed that Owens & Minor is actively pursuing a sale process for its Products & Healthcare Services segment, indicating a strategic pivot towards higher growth and higher-margin opportunities.

“Our commitment to directing capital toward the higher growth and higher margin Patient Direct segment has been increasingly evident in recent years and is consistent with our strategy.” Pesicka stated. This move is aimed at enhancing overall financial flexibility and focusing on areas that are expected to drive long-term shareholder value.

Owens & Minor has made substantial strides in managing its financial obligations, having repaid $647 million of debt over the last two years. This effort to reduce leverage provides the company with increased financial flexibility, enabling it to pursue strategic acquisitions, including a planned acquisition of Rotech, which is seen as a potential catalyst for future growth.

In a further show of confidence, the Board of Directors authorized a share repurchase program of up to $100 million over the next 24 months. This program allows the company to buy back its shares on a discretionary basis, which could serve to enhance shareholder value amid ongoing market fluctuations.

Looking ahead, Owens & Minor provided its financial outlook for 2025, projecting revenues between $10.85 billion and $11.15 billion. The company anticipates adjusted EBITDA of $560 million to $590 million and adjusted EPS within the range of $1.60 to $1.85. The outlook excludes any potential impacts from the Rotech acquisition or the anticipated sale of the P&HS segment.

Key assumptions underpinning the 2025 forecast include:

Owens & Minor's fourth-quarter and full-year results reflect a company in transition, grappling with significant operational challenges while strategically repositioning itself for future growth. The announced sale process for the Products & Healthcare Services segment and a focus on the higher-margin Patient Direct segment indicate a clear path towards enhancing shareholder value and financial stability. As the company embarks on this new chapter, stakeholders will be keen to monitor its execution against these strategic initiatives throughout 2025.