Owens & Minor Inc (NYSE:OMI) reported mixed second-quarter 2025 results, with adjusted earnings per share (EPS) of $0.26 falling short of analyst expectations of $0.28, while revenue of $681.9 million declined significantly from the estimated $2.76 billion. The healthcare solutions company is undergoing a strategic transition, having classified its Products & Healthcare Services segment as discontinued operations as it finalizes the divestiture of this business unit.
Financial Performance vs. Estimates
- Revenue: Reported $681.9M in Q2 2025, far below the $2.76B consensus estimate. This reflects the classification of the Products & Healthcare Services segment as discontinued operations, which previously contributed substantially to total revenue.
- Adjusted EPS: Came in at $0.26, missing estimates by $0.02. On a GAAP basis, the company reported a loss of $1.09 per share, driven by an $80M transaction breakage fee and restructuring costs.
- Adjusted EBITDA: Improved slightly to $96.6M from $91.1M in the prior-year quarter, indicating some operational resilience in the remaining Patient Direct segment.
Market Reaction
The stock is down 1.8% in pre-market trading, reflecting investor disappointment over the earnings miss and uncertainty surrounding the ongoing divestiture. Over the past month, shares have declined 12.7%, underperforming broader market trends.
Strategic Shift Underway
CEO Ed Pesicka emphasized the company’s transition to a "pure-play Patient Direct business," focusing on home healthcare services following its exit from the medical distribution segment. The sale of the Products & Healthcare Services division is in its final stages, with management optimistic about finding a buyer that can better support long-term growth.
Outlook & Forward Estimates
Owens & Minor did not provide updated full-year guidance during its earnings release but will discuss its 2025 outlook in its conference call. Analysts currently expect:
- Q3 2025 Revenue: $2.83B
- Full-Year 2025 Revenue: $11.09B
- Full-Year 2025 EPS: $1.11
Given the pending divestiture, future revenue comparisons will be skewed, and investors should focus on the performance of the remaining Patient Direct segment.
Key Takeaways from the Press Release
- The company is pivoting entirely to its Patient Direct business, which includes home healthcare supply and equipment services.
- A significant $80M transaction breakage fee weighed on GAAP profitability.
- Adjusted profitability metrics (EBITDA, net income) showed modest year-over-year improvement despite revenue pressures.
For detailed earnings estimates and historical performance, visit Owens & Minor’s earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
