Total Revenue

+1%

Total Revenue increased slightly from $2.656 billion in Q4 2023 to $2.685 billion in Q4 2024, reflecting modest underlying revenue growth. This contrasts with stronger growth in prior periods (e.g., the 5% increase in Q3 2024 " " ) and may indicate a deceleration in growth drivers despite continuing positive trends. " "

Operating Income (EBIT)

-60%

Operating Income declined sharply from $60.02 million in Q4 2023 to $24 million in Q4 2024, indicating significant pressures on profitability. This reduction is likely driven by increased operational costs and possibly other one-time or structural expense items that offset the modest revenue gains, echoing similar trends noted in earlier periods where cost increases impacted margins. " "

Net Income

Swing from +$17.79M to -$300M

Net Income swung dramatically, moving from a profit of $17.79 million in Q4 2023 to a loss of $300 million in Q4 2024. This extreme deterioration is likely due to a combination of higher operating expenses, adverse one-time charges, and lower margins which amplified the negative bottom line, building on trends observed in previous quarters where cost pressures were already impacting net profitability. " "

EPS (Basic & Diluted)

From $0.24 to -$4.03

EPS deteriorated significantly from a positive $0.24 in Q4 2023 to a loss of $4.03 in Q4 2024, reflecting the impact of the expanded net loss. The larger loss per share is directly linked to the sharp decline in operating income and the dramatic swing in net income, underscoring the adverse effects on shareholder earnings compared to prior periods. " "

Depreciation & Amortization (D&A)

-35%

D&A declined from $70.74 million in Q4 2023 to $46 million in Q4 2024, largely due to fully amortized intangible assets from previous acquisitions such as Apria, Halyard Health, and Byram Healthcare. This reduction in amortization expense reflects the completion of prior purchase price allocation adjustments and aligns with trends noted in Q3 2024. " " " "

Revenue

FY 2025

$10.6B–$10.8B "

$10.85B–$11.15B (midpoint $11.0B) "

raised

Adjusted EBITDA

FY 2025

$540M–$550M "

$560M–$590M (midpoint $575M) "

raised

Adjusted EPS

FY 2025

$1.45–$1.55 "

$1.60–$1.85 (midpoint $1.73) "

raised

Free Cash Flow

FY 2025

no prior guidance

at least $200M "

no prior guidance

Gross CapEx

FY 2025

no prior guidance

$260M midpoint "

no prior guidance

Interest Expense

FY 2025

no prior guidance

$140M "

no prior guidance

Debt-to-EBITDA Leverage

FY 2025

no prior guidance

2x to 3x "

no prior guidance

Earnings and Cash Flow Timing

FY 2025

no prior guidance

At least 70% of earnings and cash flow in last two quarters; Q4 being the strongest "

no prior guidance

Patient Direct Segment Growth

Consistently featured with Q1 reporting 5% YoY growth impacted by the Change Healthcare incident " " , Q2 showing 4% growth with acquisitions and seasonal expectations " " , and Q3 noting 6% YoY growth driven by diabetes, sleep supplies and margin improvements. " " "

Q4 indicated mid‐single‐digit growth, with incremental operating income gains, strong performance in diabetes supplies and smaller categories (close to double‐digit growth), and an outlook for improved growth in 2025. " " " "

Recurring Topic with an improving sentiment; growth drivers remain the same, but Q4 reflects a more confident outlook and plans to further accelerate growth in 2025. " " " "

Backlog Management

Q1 highlighted challenges due to the Change Healthcare incident leading to manual processes " ; Q2 reported a significant backlog (up to 50,000 customers) that was expected to improve in H2 2024 " " ; Q3 detailed progress with a notable backlog reduction and anticipation of continued improvement even as seasonality posed challenges. " "

Q4 did not provide a direct update on backlog management, instead referencing operational improvements (e.g., revenue cycle management and the Journey program) that indirectly support supply growth. "

Recurring focus but diminishing direct commentary; earlier periods detailed explicit backlog issues while Q4 shifts attention to broader operational efficiencies, suggesting partial resolution or deprioritization in discussion. " " " "

High‐Margin Product Performance (Sleep Supplies, Diabetes, NIV, Oxygen)

Q1 emphasized outsized growth in sleep supplies and diabetes as key profitable areas despite challenges from cybersecurity and regulatory issues " " " ; Q2 noted strong performance for sleep supplies and diabetes but underperformance in NIV and oxygen " " ; Q3 confirmed robust growth for diabetes and sleep supplies, while NIV and oxygen lagged with expectations to recover in 2025. " " "

Q4 reinforced strong growth in diabetes and sleep supplies (with additional resources yielding double‐digit gains in smaller categories) while also noting that NIV and oxygen, after earlier declines, showed encouraging late‐quarter recovery with a view to turning them into growth categories in 2025. " " " "

Consistently discussed with an evolved sentiment—while the profitable areas maintain a buoyant tone, the previously lagging respiratory segments now feature cautious optimism and plans for turnaround in 2025. " " " "

Free Cash Flow Generation, Debt Reduction, and Working Capital Improvements

Q1 expected minimal free cash flow amid heavy reinvestments, with flat net debt " " ; Q2 saw improved visibility in cash flow generation and active debt reduction, with working capital improvements starting to emerge " " " " ; Q3 reported positive free cash flow trends and significant debt paydowns (nearly $200 million) alongside operational working capital improvements. " " " "

Q4 communicated a markedly improved free cash flow outlook for 2025 (at least $200 million available for debt reduction), with better working capital management yielding strong operating cash flow in Q4 and further debt reduction achievements. " "

A clear improvement over time—from constrained liquidity in Q1 to robust cash flow and capital discipline in Q4—indicating enhanced operational efficiency and stronger financial management moving into 2025. " "

Capital Expenditure and Investment in Growth Initiatives

Q1 discussed significant CapEx commitments ($220–$240 million) including modernization and automation investments, alongside strategic initiatives to improve operational efficiency and expand service capabilities " " " " ; Q2 had limited mention, with only indirect references to efficiency investments and the Rotech acquisition " " " ; Q3 emphasized no incremental CapEx need due to past investments and highlighted growth initiatives such as the Sleep Journey program and preparation for the Rotech acquisition. " "

Q4 balanced ongoing investments with a clear focus on debt reduction – highlighting planned investments in the Patient Direct segment (e.g., launching digital health initiatives like Byram Connect), continued operational improvements, and awaiting the Rotech acquisition. " " " "

A consistent theme with a gradual shift from heavy upfront CapEx in Q1 to more balanced investments in Q4, where strategic growth initiatives (especially in the Patient Direct area) are paired with financial discipline. " " " "

Impact of Tariffs and Supply Chain/Transportation Costs

Q1 did not mention these topics; Q2 noted that tariffs had minimal impact due to diversified sourcing, though rising shipping costs were a headwind " " ; Q3 acknowledged that while Chinese tariffs were a concern industry‐wide, Owens & Minor’s footprint limited this impact, yet rising transportation and storage costs along with FX fluctuations affected margins. " " "

Q4 focused on tariffs by noting they are not as significant—most products aren’t made in China—and did not mention transportation or supply chain costs impacting profitability. "

A consistently monitored topic with reduced negative sentiment in Q4; earlier periods had more concerns about rising supply chain costs, while Q4 underscores that tariffs remain a minimal factor, suggesting improved risk management. " " " "

Potential Sale of the Products & Healthcare Services (P&HS) Segment

Q1, Q2, and Q3 did not address any potential sale discussions.

Q4 revealed that the company is actively engaged in a broader sale process of the P&HS segment following significant inbound interest, aiming to redeploy capital into the higher-growth Patient Direct segment. " " "

A new topic in Q4 with potentially large future impact—signaling a strategic realignment that could significantly alter capital structure and focus areas if executed. " " "

Regulatory Reimbursement Changes and Cybersecurity Risks

Q1 discussed regulatory reimbursement changes as a minor but present factor and detailed the significant impact of the Change Healthcare cyber incident on patient onboarding and cash collections " " " " ; Q2 and Q3 did not mention these issues.

Q4 only touched on regulatory reimbursement changes in relation to NIV and oxygen, noting that dramatic post‐pandemic changes initially challenged growth but that adjustments have been made; no new mention of cybersecurity risks was present. "

While regulatory changes remain a recurring concern—now more narrowly linked to respiratory product performance—the explicit discussion of cybersecurity risks has faded since Q1, indicating possible resolution or lower prioritization. " " " " "