Owens & Minor Inc
NYSE:ACH
Owens & Minor Inc
Owens & Minor Inc., a stalwart within the healthcare industry, is distinguished by its unwavering commitment to ensuring the seamless flow of medical products. Born in the late 19th century, this company has weathered the evolving landscape of healthcare by steadfastly focusing on distribution and logistics. Its vast network delivers essential medical and surgical products to hospitals, integrated healthcare systems, and group purchasing organizations across the United States and beyond. The company's logistics expertise ensures that healthcare providers receive timely and reliable access to the products they need to save lives and improve patient care, making it a crucial artery in the healthcare supply chain.
At the heart of Owens & Minor's financial engine is its ability to leverage economies of scale and a broad portfolio of products and services. The company generates revenue through the sales of medical supplies and devices, complemented by value-added services such as supply chain consulting and inventory management. By optimizing supply chains for its clients, Owens & Minor not only enhances operational efficiency but also creates long-term partnerships that are financially beneficial. Additionally, its Pratteln-based Byram Healthcare division has expanded their business into direct-to-patient distribution channels, focusing on unique needs like home healthcare and diabetes. By continually adapting to the shifting demands of the healthcare industry, Owens & Minor sustains its profitability while fostering innovation and resilience in its operations.
Owens & Minor Inc., a stalwart within the healthcare industry, is distinguished by its unwavering commitment to ensuring the seamless flow of medical products. Born in the late 19th century, this company has weathered the evolving landscape of healthcare by steadfastly focusing on distribution and logistics. Its vast network delivers essential medical and surgical products to hospitals, integrated healthcare systems, and group purchasing organizations across the United States and beyond. The company's logistics expertise ensures that healthcare providers receive timely and reliable access to the products they need to save lives and improve patient care, making it a crucial artery in the healthcare supply chain.
At the heart of Owens & Minor's financial engine is its ability to leverage economies of scale and a broad portfolio of products and services. The company generates revenue through the sales of medical supplies and devices, complemented by value-added services such as supply chain consulting and inventory management. By optimizing supply chains for its clients, Owens & Minor not only enhances operational efficiency but also creates long-term partnerships that are financially beneficial. Additionally, its Pratteln-based Byram Healthcare division has expanded their business into direct-to-patient distribution channels, focusing on unique needs like home healthcare and diabetes. By continually adapting to the shifting demands of the healthcare industry, Owens & Minor sustains its profitability while fostering innovation and resilience in its operations.
Segment Divestiture: Owens & Minor is selling its Products & Healthcare Services (P&HS) segment to Platinum Equity and will rebrand to focus solely on its higher-margin Patient Direct/home-based care business.
Revenue Performance: Patient Direct revenue for Q3 was $697 million, up from $687 million last year; management expects Q4 revenue growth rate to be similar to Q3 and revenue to finish at the lower end of full-year guidance.
Profitability: Adjusted EBITDA for Q3 was $92 million, down from $108 million last year due to a one-time $6 million prior-year benefit and higher product and health costs. Adjusted net income was $0.25 per share.
2025 Guidance Affirmed: Full-year revenue guidance remains $2.76–2.82 billion, adjusted net income $1.02–1.07 per share, and adjusted EBITDA $376–382 million.
Customer Contract Loss: Owens & Minor will lose a large customer contract (Kaiser) in 2026, but management says this was low-margin/low-cash-flow business and expects minimal impact to profitability.
Cash Flow: Free cash flow from continuing operations was $28 million in Q3 and $78 million year-to-date. Management expects Q4 cash flow to resemble Q3.
Capital Allocation: The company will prioritize debt repayment and tech investments post-divestiture, expecting improved cash flow and financial flexibility.
Preferred Provider Agreements: Early progress noted on new Optum agreement, which is expected to create growth opportunities in home-based care.
