Avanos maintains revenue target, announces leadership changes amidst HA divestiture and tariff impact

Avanos Medical maintains its Q2 2025 revenue target of $665M-$685M, despite the impact of tariffs and the divestiture of its Humerus Anatomical (HA) business. The company announced new leadership, with Scott Galovan appointed as CFO, and David Pacitti highlighted Galovan's extensive experience in strategy and corporate development.

Avanos Medical (NYSE: AVNS), a leading provider of medical devices for digestive health and pain management, reported its Q2 2025 financial results on August 5, 2025. The company maintained its full-year 2025 revenue guidance of $665 million to $685 million, despite facing challenges from tariffs and the divestiture of its Humerus Anatomical (HA) business. The company also announced new leadership, with Scott Galovan appointed as CFO.

Avanos Medical reported GAAP revenue of $175.0 million in Q2 2025, which exceeded analyst estimates by $9.5 million [1]. The company's Specialty Nutrition Systems and Radiofrequency Ablation portfolios drove this growth. However, adjusted earnings per share (EPS) dropped by 50% year over year, primarily due to higher tariffs, pricing pressure, and a significant $77.0 million goodwill impairment in the Pain Management & Recovery segment [2].

The company's Specialty Nutrition Systems segment showed strong performance, with net sales of $102.7 million, up 5.1% from the prior year. The Pain Management & Recovery segment also saw growth, with net sales of $61.0 million, a 2.9% increase. However, the company's gross margin dropped to 52.6%, reflecting ongoing challenges from tariffs and the divestiture of the HA product line [3].

Avanos Medical announced the divestiture of its HA product line to Channel-Markers Medical on July 31, 2025. This move aims to focus on core growth areas and reduce gross margin pressure. The company expects the HA divestiture and anticipated tariff costs to be reflected in its full-year 2025 guidance [3].

Scott Galovan, the newly appointed CFO, brings extensive experience in strategy and corporate development. His appointment signals Avanos Medical's commitment to driving operational excellence and strategic growth. David Pacitti, the company's CEO, highlighted Galovan's experience and the potential benefits of his leadership for Avanos Medical's future [3].

Looking ahead, Avanos Medical expects mid-single-digit organic growth from its Specialty Nutrition Systems portfolio in 2025. The company cited risks from future tariff or regulatory changes, the need for continued cost management, and the successful execution of its strategic initiatives as key factors to monitor [3].

References:
[1] https://www.stocktitan.net/news/AVNS/avanos-medical-inc-announces-second-quarter-2025-53f5vykorfus.html
[2] https://www.nasdaq.com/articles/avanos-medical-avns-q2-revenue-2
[3] https://www.mitrade.com/insights/news/live-news/article-8-1014167-20250805