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    Solventum (SOLV)

    Business Description

    Solventum is a global healthcare company that develops, manufactures, and commercializes a wide range of solutions by leveraging material science, data science, and digital capabilities to meet critical customer and patient needs. The company operates through four main business segments, offering products such as advanced wound care, dental and orthodontic products, healthcare software solutions, and purification technologies . Solventum's diverse product offerings aim to address various aspects of healthcare, from surgical supplies to digital health systems .

    1. MedSurg - Develops and supplies advanced wound care products, I.V. site management solutions, and surgical supplies, making it the largest segment of the company.
    2. Dental Solutions - Offers dental and orthodontic products, including brackets and aligners, catering to dental professionals and patients.
    3. Health Information Systems - Provides software solutions designed to enhance the efficiency and effectiveness of healthcare systems.
    4. Purification and Filtration - Delivers technologies such as filters and membranes, focusing on purification and filtration needs.

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    Key Metrics

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    Analyst Coverage

    Research analysts who have asked questions during Solventum earnings calls.

    Jason Bednar

    Piper Sandler Companies

    5 questions for SOLV

    Also covers: ALGN, COO, EDAP +15 more

    Patrick Wood

    Morgan Stanley

    5 questions for SOLV

    Also covers: ALC, BDX, BLCO +16 more

    Travis Steed

    Bank of America

    5 questions for SOLV

    Also covers: ABT, AXNX, BAX +15 more

    David Roman

    Goldman Sachs Group Inc.

    4 questions for SOLV

    Also covers: ABT, BAX, BDX +16 more

    Rick Wise

    Stifel Financial Corp

    3 questions for SOLV

    Also covers: BDX, BSX, GEHC +8 more

    Vikramjeet Chopra

    Wells Fargo & Company

    3 questions for SOLV

    Also covers: ALGN, ATEC, CNMD +9 more

    Christopher Senyek

    Wolfe Research

    2 questions for SOLV

    Also covers: BE, ECG, EVR +2 more

    Frederick Wise

    Stifel

    2 questions for SOLV

    Also covers: AORT, ATRC, AVNS +13 more

    Ryan Zimmerman

    BTIG

    2 questions for SOLV

    Also covers: ALC, GEHC, GKOS +23 more

    Steven Valiquette

    Mizuho

    2 questions for SOLV

    Also covers: ALGN, CAH, COR +10 more

    Brett Fishman

    KeyBanc Capital Markets Inc.

    1 question for SOLV

    Jenny Rabinowitz

    Goldman Sachs Group Inc.

    1 question for SOLV

    Also covers: SYK

    Lei Huang

    Wells Fargo

    1 question for SOLV

    Also covers: NVCR, PEN, RXST

    Vik Chopra

    Wells Fargo & Company

    1 question for SOLV

    Also covers: ALGN, ATEC, CNMD +7 more

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$300Long-term debtN/A3.7% = (300 / 8,180) * 100
    2027$1,980Senior Notes5.4524.2% = (1,980 / 8,180) * 100
    2029$1,500Senior Notes5.4018.3% = (1,500 / 8,180) * 100
    2031$1,000Senior Notes5.4512.2% = (1,000 / 8,180) * 100
    2034$1,650Senior Notes5.6020.2% = (1,650 / 8,180) * 100
    2054$1,250Senior Notes5.9015.3% = (1,250 / 8,180) * 100
    2064$500Senior Notes6.006.1% = (500 / 8,180) * 100

    Latest news

    Recent press releases and 8-K filings for SOLV.

    Solventum announces $1.75 billion note tender offers
    ·$SOLV
    Debt Issuance
    • $1.75 billion aggregate tender offers to purchase outstanding senior notes for cash, expiring Sept. 22, 2025.
    • Pool 1: up to $1.25 billion across four series due 2027–2034; Pool 2: up to $500 million across two series due 2054 and 2064.
    • Early Tender Date of Sept. 5, 2025 for enhanced payment, with expected Early and Final Settlement Dates around Sept. 10 and Sept. 25, 2025.
    • Offers subject to aggregate caps, series-specific limits and receipt of proceeds from the sale of Solventum’s purification and filtration business to Thermo Fisher Scientific.
    Aug 22, 2025, 12:19 PM
    Press Release
    Solventum sells purification and filtration unit to Thermo Fisher for $4.0B
    ·$SOLV
    M&A
    • Solventum entered into a transaction agreement to sell its purification and filtration business (excluding its Water Business) to Thermo Fisher Scientific for $4.0 billion, down from an initial $4.1 billion.
    • The company filed unaudited pro forma condensed consolidated financial statements as of June 30, 2025 and for the six months ended June 30, 2025 and year ended December 31, 2024 reflecting the Transaction under Regulation S-X Article 11.
    • Estimated closing cash consideration is $3.89 billion after deducting transaction costs of $72 million, working capital adjustments of $4 million, and indebtedness reduction of $34 million.
    • Pro forma balance sheet shows cash and cash equivalents increasing to $4,382 million from $492 million, total assets of $16,834 million, and long-term debt remaining at $7,815 million.
    • The sale generates a pre-tax gain of $1,564 million in 2024, resulting in pro forma net income of $1,677 million for the year ended December 31, 2024 versus $479 million historically.
    Aug 13, 2025, 12:00 AM
    8-K
    Solventum amends Thermo Fisher deal to retain water filtration business
    ·$SOLV
    M&A
    • On June 25, 2025, Solventum and Thermo Fisher entered into an Amended and Restated Transaction Agreement, excluding Solventum’s drinking water filtration business and reducing the cash purchase price from approximately $4.10 billion to $4.00 billion.
    • The amendment preserves future upside for Solventum, as Thermo Fisher may pay up to $75 million upon a sale of the retained Water Business or after a three-year period.
    • Closing remains anticipated by the end of 2025, with net proceeds still intended primarily to pay down debt.
    • Retaining the Water Business is projected to increase annual EPS accretion by $0.15–$0.20, while moderating the originally forecast gross and operating margin improvements of 200 and 100 basis points, respectively; updated estimates to be shared on the Q2 earnings call.
    Jun 25, 2025, 12:00 AM
    8-K
    Solventum Corp Outlines FY 2025 Strategic Transformation at GS Healthcare Conference
    ·$SOLV
    Guidance Update
    New Projects/Investments
    M&A
    • Growth Strategy: The company outlined a transformation program focused on five key growth drivers—including med surg innovations, revenue cycle management, and dental solutions—to align its internal growth rate with the market’s 4%-5% pace.
    • Operational Improvements: Management highlighted progress in ERP implementation and SKU rationalization, noting a normalized Q1 growth rate of 2.5%, with expectations for volume trends to stabilize in later quarters.
    • Restructuring & Efficiency: The firm is executing the “Solventum Way” restructuring to streamline decision-making and drive operating margin efficiencies towards the low 20s%, while preparing for potential M&A opportunities starting in late 2025 or 2026.
    • R&D and Market Positioning: Enhanced R&D efforts in dental, focused on core restorative products, are paving the way for improved market positioning and share gains in over 60 countries.
    Jun 10, 2025, 9:51 PM
    Solventum Reviews Transformation and Growth Initiatives
    ·$SOLV
    M&A
    Revenue Acceleration/Inflection
    New Projects/Investments
    • Rapid transformation progress over the past year with accelerated leadership hires, cultural shifts, and a reorganized commercial team, including notable progress on the sizable Purification & Filtration divestiture.
    • Strong underlying Q1 performance with a 2.5% growth rate after order timing adjustments from ERP and distribution center cutovers, indicating a resilient market position.
    • Robust ERP mitigation strategy implemented to manage the transition risks, while tariff relief—especially from China—could favorably impact EPS and margins later in the year.
    • MedSurg business growth drivers highlighted in the negative pressure wound therapy segment, where technology differentiation and a specialized sales force are expected to boost market penetration, with further M&A planned in 2026 post debt reduction.
    May 13, 2025, 9:21 PM
    Transcript
    Solventum Corp Reports Strong Q1 2025 Results & Guidance Update
    ·$SOLV
    Earnings
    Guidance Update
    Revenue Acceleration/Inflection
    • Strong Q1 performance: Achieved 4.3% organic growth, $2.1B net sales, adjusted EPS of $1.34 and GAAP EPS of $0.78, signaling a turnaround from previous volume declines.
    • Guidance update: Raised FY25 outlook with a confirmed EPS range of $5.45 to $5.65 and an organic sales growth forecast of +1.5% to +2.5%, despite anticipated tariff headwinds of $80–100M in H2.
    • Robust segment performance: MedSurg delivered strong results with $1,157M net sales (+3.4% reported), complemented by contributions from Health Information Systems.
    • Key financial metrics: Reported an operating margin of 19.7%, operating cash flow of $29M, and free cash flow of –$80M.
    • Strategic focus: Continued emphasis on improved commercial execution and strategic product launches across key segments (MedSurg, Dental, HIS) to drive sustainable growth amid geopolitical and currency challenges.
    May 8, 2025, 8:31 PM
    TranscriptPresentationPress Release8-K
    Solventum Corp Outlines Transformation and 2025 Guidance
    ·$SOLV
    Guidance Update
    M&A
    Revenue Acceleration/Inflection
    • Strategic Transformation: Solventum detailed its comprehensive transformation strategy, emphasizing an overhaul of its commercial organization, talent refresh, and a new focus on sustainable volume growth and innovation to drive future performance.
    • Growth Drivers and Financial Guidance: The executives highlighted initiatives such as reloading the NPI, tuck-in M&A, and improved commercial productivity, with 2025 guidance indicating organic sales growth of 1%-2%, adjusted EPS of $5.45-$5.65, and free cash flow of $450M-$550M.
    • Portfolio and Capital Optimization: The company is executing its P&F divestiture, targeting net proceeds of approximately $3.4 billion to pay down debt and improve margins, alongside plans to concentrate investments on key growth drivers across its business segments.
    Mar 20, 2025, 5:01 PM
    Transcript
    Solventum Investor Day 2025 Transformation Update
    ·$SOLV
    Revenue Acceleration/Inflection
    Guidance Update
    M&A
    • Solventum presented its comprehensive value creation strategy that leverages diverse businesses, refreshed talent and culture, and a data-centric strategic plan to reverse multi-year volume declines and stabilize the business.
    • The roadmap outlines a phased transformation across its Medical Surgical, Dental Solutions, and Health Information Systems segments, targeting revenue growth, margin expansion, and improved cash flow conversion.
    • The company also detailed its planned $4.1B divestiture of the P&F segment, with the expected net proceeds to significantly reduce debt and free up capital for future growth initiatives.
    Mar 20, 2025, 5:00 PM
    Presentation
    Solventum Unveils 2028 Growth Targets at 2025 Investor Day
    ·$SOLV
    Guidance Update
    Revenue Acceleration/Inflection
    New Projects/Investments
    • Solventum announced its 2025 Investor Day, outlining a long-range plan through 2028 focused on driving revenue growth, margin expansion, and free cash flow improvement.
    • The company set targets of 4%-5% organic sales growth, 23%-25% operating margins (including a ~200bps 3M COGS increase), 10% EPS CAGR, and a free cash flow conversion of 80%+ by 2028.
    • It detailed a three-phased transformation plan aimed at business stabilization, strategic focus enhancement, and portfolio optimization, including the sale of its Purification & Filtration business to reduce debt and support growth initiatives.
    Mar 20, 2025, 1:00 PM
    Press Release