Doug Miehm

Doug Miehm asked about the potential for MIEBO's profitability timeline to shift earlier than 2026, given its recent strong performance. He also inquired about the company's capital allocation strategy as it becomes more successful, specifically regarding debt paydown versus reinvestment in the business.

Answer

CFO and EVP Sam Eldessouky explained that MIEBO is transitioning from a launch to a growth phase, with deliberate, high-ROI investments contributing to overall P&L leverage and margin expansion, with more details for 2026 to be shared at Investor Day. Chairman and CEO Brent Saunders and Sam Eldessouky emphasized that deleveraging to achieve investment grade is a high priority, alongside opportunistic tuck-in M&A and R&D investments, all aimed at increasing shareholder value.

Doug Miehm inquired about the potential for MIEBO's profitability timeline to shift earlier than the guided 2026, given its recent strength, and asked about the company's capital allocation strategy for incremental cash over the next one to two years, specifically regarding debt paydown versus reinvestment.

Answer

CFO and EVP Sam Eldessouky explained that MIEBO is transitioning from a launch to a growth phase, and while investments will continue, they will be deliberate, with more details on 2026 profitability to be shared at Investor Day. Regarding capital allocation, Chairman and CEO Brent Saunders emphasized a strong commitment to deleveraging through EBITDA growth and debt paydown, while also seeking smaller, profitable tuck-in M&A and investing in R&D/IP, with lowering debt ratios being a high priority.