Owens Minor 2025 Q2 Earnings Deepening Net Loss

Owens & Minor (OMI) reported its fiscal 2025 Q2 earnings on August 11, 2025, with disappointing results. The company posted a net loss of $869.06 million, or $11.30 per share, representing a 2623.2% increase compared to the $31.91 million loss in 2024 Q2. Despite a 3.3% year-over-year revenue increase to $681.92 million, the sharp rise in losses signals significant financial challenges.

Owens & Minor's total revenue for the quarter rose to $681.92 million, a 3.3% increase from $660.40 million in the prior year period. The growth was driven by its Diabetes segment, which generated $191.06 million, and the Sleep therapy segment, which contributed $181.62 million. Other notable contributors included Home respiratory therapy ($109.53 million), Ostomy ($51.89 million), and Wound care ($46.82 million). The company also reported $28.70 million from the Urology segment and $72.30 million in other revenue. This performance highlights the varied contributions from the company’s key business areas.

The company’s losses widened substantially, with a net loss of $869.06 million in 2025 Q2, or $11.30 per share, compared to $31.91 million, or $0.42 per share, in 2024 Q2. This represents a 2623.2% year-over-year increase in losses, underscoring the significant deterioration in earnings performance.

The stock price of Owens & Minor experienced a sharp decline following the earnings report. Shares dropped by 21.79% during the latest trading day, 32.90% over the past week, and 44.08% month-to-date, reflecting investor concern and pessimism about the company’s outlook.

The post-earnings price action review highlighted a failed investment strategy. A buy-and-hold approach following the earnings miss resulted in a -51.45% return, significantly underperforming the 84.92% benchmark return. The strategy recorded an excess return of -136.38%, a CAGR of -13.71%, and a Sharpe ratio of -0.21, indicating a high-risk, negative-return approach.

CEO Edward A. Pesicka emphasized the company's strategic shift to a Patient Direct business model following the divestiture of the Products & Healthcare Services segment. Pesicka expressed optimism about long-term growth and emphasized reducing stranded costs and advancing IT infrastructure. However, he acknowledged challenges, particularly in the diabetes category.

Owens & Minor provided 2025 full-year guidance, projecting revenue of $2.76–$2.82 billion, adjusted EBITDA of $376–$382 million, and adjusted net income per share of $1.02–$1.07. For the remainder of 2025, the company expects $1.40–$1.46 billion in revenue, $183–$189 million in adjusted EBITDA, and adjusted net income per share of $0.47–$0.52.

In the three weeks following the earnings report, the company announced its ongoing efforts to streamline operations and reduce stranded costs. Additionally, CFO Jonathan A. Leon indicated that elevated stranded costs are expected to decline by mid-2026. The company also highlighted its plans for strategic acquisitions and IT infrastructure improvements to drive revenue and EBITDA. These steps reflect a focus on long-term profitability and operational efficiency.