Jay Lewis

Jay Lewis of Baird asked about the expected impact of the 'one big beautiful bill' on the company's cash flow and cash taxes for 2025 and 2026.

Answer

EVP & CFO Jon Leon described the legislation as a 'net positive' for Owens & Minor. He explained that it is a continuation of beneficial tax laws from 2017 that will continue to help the company's cash tax position, particularly through measures like interest deductibility, given the company's debt level.

Jay Lewis sought to confirm the absence of one-time cancellation payments in the quarter and inquired about the outlook for the Performance Services segment, questioning why demand would remain strong in a difficult macro environment where hospitals typically delay investments.

Answer

President and CEO Michael Alkire confirmed there were no one-time cancellation payments. Chief Administrative and Financial Officer Glenn Coleman added that a payment is expected in Q4 but did not provide a specific amount. Alkire then explained that financial pressure on health systems historically increases, rather than decreases, demand for Performance Services as they actively seek technology and advisory solutions to automate processes and reduce costs.