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What is Avanos Medical's gross profit margin?

What were the key takeaways from Avanos Medical's earnings call?

What is Avanos Medical's latest dividend and current dividend yield?

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Did Avanos Medical beat or miss consensus estimates last quarter?

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What is the revenue and EPS growth rate for Avanos Medical year over year?

- **Revenue Growth**: Full year net sales of $701M, exceeding guidance, with SNS up 8% organically and PM&R at 2.3% normalized growth.
- **Tariff Mitigation**: $30M tariff impact in 2026, with 2/3 from China; full exit by June 2026 to improve gross margin in H2.
- **Segment Strength**: SNS driven by double-digit short-term feeding growth; PM&R RFA business up double digits, offsetting surgical pain challenges.
- **Financial Health**: $90M cash, $43M free cash flow in 2025; 2026 guidance for $700-720M net sales and $0.90-1.10 EPS.
- **Strategic Moves**: Divestitures, Nexus acquisition, and GAME READY restructuring to enhance profitability and focus on core channels.

**【CEO Summary Section】**
- **Full Year Results**: Delivered net sales of $701 million, exceeding revised guidance, with adjusted EPS of $0.94. Tariff mitigation efforts are on track, with benefits expected in 2026.
- **Specialty Nutrition Systems (SNS)**: 8% organic growth, driven by double-digit growth in short-term enteral feeding and strong neonatal solutions. CORTRAK adoption and CORGRIP 2 retention system contributed to momentum.
- **Pain Management and Recovery (PM&R)**: 2.3% normalized organic growth, with RFA business up double digits. Surgical pain segment lagged due to delayed NOPAIN Act implementation, but GAME READY restructuring is expected to enhance profitability.
- **Strategic Actions**: Divested hyaluronic acid and IV therapy businesses, acquired Nexus Medical, and transitioning GAME READY rental business to WRS Group.

**【CFO Financial Commentary】**
- **2025 Financials**: Adjusted EBITDA of $87 million, with SNS operating profit at 19% and PM&R at 4%. Free cash flow of $43 million, supported by strong balance sheet ($90M cash, $100M debt).
- **2026 Outlook**: Net sales guidance of $700-720 million, with SNS growing mid- to high-single digits and PM&R low- to mid-single digits. Tariff impact of $30 million expected, with 2/3 from China. Gross margin improvement anticipated in H2 2026 as China exit (by June) and USMCA exemptions take effect.
- **Cost Management**: $12M increase in tariff costs offset by volume growth and cost containment. Capital expenditures of $25M to support China exit and supply chain initiatives.

**【Q&A Highlights】**
- **Tariff Mitigation**: 2/3 of $30M tariff impact from China; full exit by June 2026 will reduce costs. Nairobi protocol exemption for long-term feeding tubes and USMCA for Mexico-manufactured products provide relief.
- **Revenue Growth**: 5% organic growth at consolidated level, with SNS targeting mid- to high-single digits and PM&R low- to mid-single digits. Nexus Medical acquisition expected to contribute $5M in 2026 and grow double digits.
- **Operating Leverage**: SG&A efficiency and R&D outsourcing to drive margin expansion. Free cash flow growth expected despite one-time charges.
- **SNS Momentum**: Strong demand across SNS portfolio, with CORTRAK and neonatal solutions outperforming market. Nexus integration exceeding expectations.


Avanos Medical, Inc. (AVNS) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Strategic segments up 10% organically, driven by SNS (14.5% growth) and Pain Management (2.4% growth). Full year revenue guidance raised to $690-700M.
- **Strategic Acquisitions**: Nexus Medical acquisition to expand neonatal market, expected to be accretive. Divestiture of HA business completed.
- **Cost Efficiency**: $15-20M annualized savings by 2026, with $10M one-time charges in Q4 2025. Operating margins improved in both segments.
- **Tariff Mitigation**: $18M P&L impact in 2025, with supply chain diversification (China exit by mid-2026) and pricing actions.
- **M&A Appetite**: Open to additional bolt-on acquisitions in SNS and Pain Management segments.

**【Management Opening Remarks】**
- Jason Pickett introduced the call, highlighting the availability of a presentation on the company’s website and reminding participants of forward-looking statements and risk factors. He emphasized the focus on strategic imperatives and operational efficiency.

**【CEO Commentary】**
- **Strategic Imperatives**: Accelerated growth in SNS and Pain Management segments, tariff mitigation, cost optimization, and portfolio management.
- **Financial Performance**: Q3 net sales of $178M, organic growth of 10% in strategic segments. Adjusted EPS of $0.22 and $20M adjusted EBITDA. Full year revenue guidance raised to $690-700M, adjusted EPS to $0.85-0.95.
- **Segment Highlights**: SNS grew 14.5% organically, driven by enteral feeding and neonatal solutions. Pain Management segment showed 2.4% growth, with RFA business up double digits.
- **Strategic Actions**: Divestiture of hyaluronic acid (HA) business and acquisition of Nexus Medical, a neonatal device company, expected to be accretive.
- **Cost Savings**: $15-20M annualized savings by end-2026, with $10M one-time charges in Q4 2025.
- **Tariff Mitigation**: $18M P&L impact in 2025, with strategies including supply chain diversification (exit China by mid-2026).

**【CFO Financial Commentary】**
- **Segment Profitability**: SNS operating profit margin improved to 20%, Pain Management to 3%. Tariffs and cost containment drove margin expansion.
- **Liquidity**: $70M cash on hand, $103M debt. Free cash flow guidance of $25-30M for 2025, including tariff mitigation and transformation costs.
- **Tariff Impact**: $18M incremental costs in 2025, partially offset by pricing actions and supply chain investments.

**【Q&A Highlights】**
- **Cost Improvement Plan**: Streamlined R&D and management structures, hybrid R&D model with external partners to accelerate product development.
- **M&A Strategy**: Focus on SNS and Pain Management segments, with appetite for additional bolt-on acquisitions.
- **Cash Flow Clarification**: 2025 free cash flow of $25-30M includes $18M tariff impact and $10M one-time transformation costs.
- **R&D Pipeline**: Expect new products from hybrid model in 2026, with focus on core competencies.


Avanos Medical, Inc. (AVNS) Q3 2025 Earnings Call Transcript

- **Leadership Transition**: Scott Galovan becomes CFO; Dave Pacitti joins Board. 
- **Q2 Performance**: $175M revenue, $0.17 EPS, $17M EBITDA; 2% organic growth. 
- **Strategic Shift**: Sold HA business to focus on core segments. 
- **Key Growth Driver**: RFA segment up 14%, driven by generator sales and probe pull-through. 
- **Tariff Risk**: $15M annual cost impact, but 2025 guidance maintained through cost control.

**【CEO Opening Remarks】**
- **Leadership Changes**: Scott Galovan appointed as CFO; Dave Pacitti joins the Board. 
- **Q2 Results**: $175M net sales (2% organic growth), $0.17 adj. EPS, $17M adj. EBITDA. 
- **Strategic Divestiture**: Sold hyaluronic acid (HA) business, exiting low-margin products. 
- **Impairment Charge**: $77M noncash charge for Pain Management segment. 
- **Transformation Progress**: 3-year initiatives on track; exploring cost reductions and commercial enhancements. 

**【CFO Financial Commentary】**
- **Specialty Nutrition Systems (SNS)**: 5% organic growth, driven by short-term enteral feeding (14% growth) and neonatal solutions (12%). 
- **Pain Management & Recovery (PM&R)**: 3.4% organic growth, led by RFA (14% growth) and ESENTEC/TRIDENT generator sales. 
- **Financial Health**: $90M cash, $105M debt, $40M annual free cash flow target. 
- **Tariffs Impact**: $15M annual cost headwind; 145% China tariff rate reduced to 30%. 
- **2025 Guidance**: $665-685M revenue, $0.75-0.95 adj. EPS, despite HA divestiture. 

**【Q&A Highlights】**
- **HA Divestiture Impact**: Minimal EBITDA impact; strategic focus on SNS and PM&R. 
- **RFA Growth Drivers**: 3-tiered product portfolio, generator sales driving probe pull-through. 
- **Long-Term Margins**: SNS and PM&R profitability expected to stabilize as HA exits. 
- **Tariff Mitigation**: Supply chain diversification (China exit by H2 2026), pricing actions, and cost containment.

Avanos Medical, Inc. (AVNS) Q2 2025 Earnings Call Transcript

- **Strong Q1 Performance**: $168M sales (+2.8% organic), $0.26 EPS, $22M EBITDA.
- **Segment Growth**: SNS +9% YoY, RFA near-double-digit expansion.
- **Tariff Impact**: $15M annual cost (2025), offset by USMCA/Mexico diversification and price adjustments.
- **Margin Focus**: SNS operating margin 21%, breakeven in Pain segment.
- **2025 Outlook**: $665M-$685M revenue, EPS $0.75-$0.95 (downgraded due to tariffs).

**【CEO Opening Remarks】**
- Emphasized strong foundation from portfolio transformation, organization restructuring, and cost management.
- Highlighted focus on strategic M&A and partnerships to enhance growth profile.
- Noted encouraging momentum across business segments and commitment to margin expansion.

**【CFO Financial Overview】**
- Q1 2025 sales: $168M (organic +2.8% YoY, excluding FX and exited streams).
- Adjusted EPS: $0.26; EBITDA: $22M; Gross Margin: 56.7%; SG&A: 43.4%.
- Free cash flow: $19M (Q1), guiding to $65M annual (excl. tariffs).
- Tariff impact: $1.5M Q1, est. $15M annual incremental cost (2025).

**【Segment Performance】**
**Specialty Nutrition Systems (SNS):**
- Organic growth: +9% YoY (long-term, short-term, neonatal).
- Operating profit margin: 21% (vs. 16.4% YoY), driven by top-line growth and cost efficiency.
- 2025 outlook: mid-single-digit organic growth.

**Pain Management & Recovery:**
- Normalized organic growth: +2.4% YoY.
- RFA portfolio: near-double-digit growth (ESENTEC, TRIDENT).
- Operating profit margin: breakeven (vs. -4% YoY).

**Corporate & Other:**
- Hyaluronic Acid (HA) decline: >30% YoY (pricing pressures).
- Focused on cash optimization in lower-margin businesses.

**Tariff Mitigation Strategies:**
- USMCA/Mexico supply chain diversification.
- Neonatal syringe exemption in China.
- Price adjustments and cost containment.

**2025 Guidance Update:**
- Revenue: $665M-$685M (maintained).
- Adjusted EPS: $0.75-$0.95 (down from prior $0.90-$1.10 due to tariffs and leadership transition costs).

Avanos Medical (AVNS)-6 May 25-2025 Q1 Earnings call transcript

- **Transformation Milestones**: Completed respiratory business sale and DOJ compliance, freeing capital for growth.
- **Financial Resilience**: Strong cash flow and margin control despite macro challenges.
- **Strategic Focus**: Targeted M&A and innovation to sustain leadership in high-margin categories.
- **2025 Outlook**: Balancing risks with opportunities in selective markets.


**【CEO Summary Section】**
- Avanos completed the sale of its respiratory health business and met DOJ obligations, marking a key transformation milestone.
- Fourth quarter sales from continuing operations were $180 million, with organic growth of 5% YoY. Full-year sales reached $688 million, up 3.3% organically.
- Adjusted EBITDA for the quarter was $29 million, with a noncash impairment charge of $437 million.
- 2025 guidance projects net sales of $665-685 million, with a focus on Specialty Nutrition Systems and Pain Management segments.
- Free cash flow improved by $70 million YoY, driven by cost management and business process efficiencies.

**【CFO Financial Commentary】**
- Full-year adjusted EPS increased 31% to $1.35, supported by margin expansion and cost control.
- Gross margins remained stable at 59%, while SG&A decreased by 80 basis points as a percentage of revenue.
- 2025 outlook anticipates challenges from currency and tariffs, with a focus on high-margin segments.

**【Q&A Key Highlights】**
- Margin pause in 2025 due to HA pricing pressures and macroeconomic uncertainties, with plans to reignite expansion in 2026.
- M&A strategy prioritizes Specialty Nutrition Systems for long-term growth and margin improvement.
- Product pipeline includes 1-3 innovations in 2025 to maintain leadership in enteral feeding.
- Strategic focus on high-margin segments and disciplined capital allocation for sustainable growth.


Actual											0.16	0.13	0.21	0.28	0.23	0.21	0.25	0.46	0.26	0.41	0.38	0.6	0.27	0.2305	0.3068	0.36	0.19	0.29	0.33	0.43	0.26	0.17	0.22	0.29
Forecast											0.16	-0.1	0.1	0.218	0.1783	0.2333	0.2917	0.402	0.26	0.382	0.3525	0.49	0.275	0.2975	0.28	0.3667	0.2133	0.2867	0.3533	0.4	0.18	0.15	0.12	0.25
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+230.00%	+110.00%	+28.44%	+29.00%	-9.99%	-14.30%	+14.43%	0.00%	+7.33%	+7.80%	+22.45%	-1.82%	-22.52%	+9.57%	-1.83%	-10.92%	+1.15%	-6.59%	+7.50%	+44.44%	+13.33%	+83.33%	+16.00%

AVNS

AVNS fundamentals

AVNS Q4 2025 Earnings

Earnings Call

You can ask Aime

AVNS

AVNS fundamentals

AVNS Q4 2025 Earnings

Earnings Call

AVNS Earnings Call Summary for Q4/20259:00 AM on Feb 24, 2026

AVNS Earnings Call Summary for Q3/20259:00 AM on Nov 5, 2025

AVNS Earnings Call Summary for Q2/20259:00 AM on Aug 5, 2025

AVNS Earnings Call Summary for Q1/20259:00 AM on May 6, 2025

AVNS Earnings Call Summary for Q4/20249:00 AM on Feb 26, 2025

You can ask Aime