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- **Revenue Growth**: Q3 2025 sales up 5.2% YoY, driven by U.S. dental distribution (3.3%) and global specialty products (5.9%).
- **Strategic Momentum**: $200M+ operating income improvement plan over several years, with 60% of non-GAAP operating income from high-growth businesses by 2027.
- **Financial Performance**: Non-GAAP EPS of $1.38 (up 13% YoY), adjusted EBITDA growth of 10%, and $229M share buybacks in Q3.
- **KKR Partnership**: Expanded stake to 19.9%, reflecting confidence in long-term strategy and value creation initiatives.

**【Management Opening Remarks】**
- CEO Stanley Bergman highlighted Q3 2025 revenue growth across all segments, driven by U.S. dental distribution and global specialty products. He emphasized the BOLD+1 strategy, focusing on high-growth, high-margin businesses and a $200M+ operating income improvement plan over several years. The company also announced a $750M share buyback increase and KKR's expanded stake up to 19.9%.

**【CEO Commentary】**
- **Sales Momentum**: U.S. dental merchandise sales grew 3.3%, with strong corporate brand performance and promotional program success. Global specialty products, particularly implants, saw mid-single-digit growth, with value segment implants leading.
- **Strategic Initiatives**: Launched a new e-commerce platform in North America and Europe, expanded AI integration with AWS, and advanced value creation programs (e.g., centralizing support services, automating processes).
- **Long-Term Vision**: Aims for 60% of non-GAAP operating income from high-growth businesses by 2027, with a focus on owned brands and digital solutions.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: GAAP net income of $101M ($0.84 EPS) and non-GAAP EPS of $1.38, up 13% YoY. Adjusted EBITDA grew 10% to $295M. Operating margin improved 19bps to 7.83% due to cost control, offset by 56bps gross margin decline.
- **Restructuring Impact**: $34M Q3 restructuring costs, with $100M+ annual savings expected. Value creation initiatives target $200M+ operating income gains over several years.
- **2025 Guidance Update**: Non-GAAP EPS raised to $4.88-$4.96, sales growth 3%-4%, and EBITDA mid-single-digit growth.

**【Q&A Highlights】**
- **Market Share & Growth**: U.S. dental distribution market share gains driven by promotional programs and new e-commerce platform. Global specialty products, especially implants, saw double-digit growth in key regions.
- **Gross Margin Stabilization**: U.S. dental distribution gross margins stabilized due to glove price stability and reduced promotions. Medical segment growth offset by lower-margin flu vaccine sales.
- **KKR Partnership**: KKR's increased stake reflects confidence in Henry Schein's strategy, with potential for closer collaboration on value creation initiatives.
- **2026 Outlook**: CFO indicated multiyear phasing of $200M+ operating improvements, with 2026 guidance to be provided in February 2026.

Henry Schein, Inc. (HSIC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

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Cost of Revenue

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Cost of Financing Services

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Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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HSIC

HSIC fundamentals

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