Latest news with #Owens&Minor
Business Wire
11-08-2025
- Business
- Business Wire
Owens & Minor Reports Second Quarter 2025 Financial Results
RICHMOND, Va.--(BUSINESS WIRE)--Owens & Minor, Inc. (NYSE: OMI) today reported financial results for the second quarter ended June 30, 2025. In connection with a likely sale of the Company's Products & Healthcare Services segment, the results herein, unless otherwise noted, reflect the Company's continuing operations which primarily represent what was previously the Patient Direct segment and certain functional operations. 'We are in the final stages of our robust process for the divestiture of the Products & Healthcare Services segment, and, as a result, have classified this segment as discontinued operations. We are looking forward to concluding the sale of the business and working with a buyer who has the vision and greater flexibility to better support our customers and long-term growth,' said Ed Pesicka, Owens & Minor's Chief Executive Officer. Mr. Pesicka concluded, 'I am excited about the opportunities ahead as we transition into a focused, pure-play Patient Direct business. Building on the momentum gained since we entered the Patient Direct space eight years ago, and supported by favorable demographic trends and meaningful scale, we are confident in our ability to lead as the market continues to evolve.' 2025 Continuing Operations Financial Outlook The Company will provide its 2025 financial outlook for continuing operations during its earnings conference call this morning at 8:30 a.m. EDT. Investor Conference Call for Second Quarter 2025 Financial Results Owens & Minor will host a conference call for investors and analysts on Monday, August 11, 2025, at 8:30 a.m. EDT. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Owens & Minor website available at A replay of the webcast can be accessed following the presentation at the link provided above. Safe Harbor This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC's Fair Disclosure Regulation. This release contains certain 'forward looking' statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2025 financial results, Owens & Minor's ability to successfully complete the sale of the P&HS business in any specific transaction on favorable terms or at all, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to Owens & Minor's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, including the section captioned 'Item 1A. Risk Factors,' as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company's actual results to differ materially from its current estimates. These filings are available at Given these risks and uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. Owens & Minor specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. About Owens & Minor Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit or follow us on LinkedIn and Instagram. * Registered Trademark or Trademark of O&M Halyard or its affiliates. Owens & Minor, Inc. Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) Six Months Ended June 30, 2025 2024 Net revenue $ 1,355,801 $ 1,298,244 Operating costs and expenses: Cost of net revenue 711,957 682,623 Selling, general and administrative expenses 530,223 540,132 Transaction breakage fee 80,000 — Acquisition-related charges and intangible amortization 37,374 28,050 Exit and realignment charges, net 16,166 23,547 Total operating costs and expenses 1,375,720 1,274,352 Operating (loss) income (19,919 ) 23,892 Interest expense, net 50,223 50,997 Transaction financing fees, net 18,288 — Other expense, net 1,917 1,701 Loss from continuing operations before income taxes (90,347 ) (28,806 ) Income tax benefit (2,715 ) (8,671 ) Loss from continuing operations, net of tax (87,632 ) (20,135 ) Loss from discontinued operations, net of tax (806,408 ) (33,664 ) Net loss $ (894,040 ) $ (53,799 ) Basic loss per common share Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 ) Loss from discontinued operations, net of tax (10.46 ) (0.44 ) Net loss $ (11.60 ) $ (0.70 ) Diluted loss per common share Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 ) Loss from discontinued operations, net of tax (10.46 ) (0.44 ) Net loss $ (11.60 ) $ (0.70 ) Expand Owens & Minor, Inc. Condensed Consolidated Balance Sheets (unaudited) (dollars in thousands) December 31, 2024 Assets Current assets Cash and cash equivalents $ 38,258 $ 27,572 Accounts receivable, net 196,379 218,270 Inventories 69,227 67,581 Other current assets 104,011 82,240 Current assets of discontinued operations 1,890,638 1,625,354 Total current assets 2,298,513 2,021,017 Patient service equipment and other fixed assets, net 259,301 249,283 Operating lease assets 120,188 126,928 Goodwill 1,228,140 1,228,140 Intangible assets, net 194,924 210,056 Other assets, net 53,479 89,539 Noncurrent assets of discontinued operations — 731,193 Total assets $ 4,154,545 $ 4,656,156 Liabilities and equity Current liabilities Accounts payable $ 357,037 $ 359,927 Accrued payroll and related liabilities 52,508 73,678 Current portion of long-term debt 383,000 42,866 Other current liabilities 421,739 294,685 Current liabilities of discontinued operations 1,460,239 1,080,896 Total current liabilities 2,674,523 1,852,052 Long-term debt, excluding current portion 1,594,745 1,798,393 Operating lease liabilities, excluding current portion 80,982 89,466 Deferred income taxes, net 345 19,436 Other liabilities 84,960 72,551 Noncurrent liabilities of discontinued operations — 237,894 Total liabilities 4,435,555 4,069,792 Total (deficit) equity (281,010 ) 586,364 Total liabilities and equity $ 4,154,545 $ 4,656,156 Expand Owens & Minor, Inc. Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) Three Months Ended June 30, 2025 2024 Operating activities: Net loss $ (869,058 ) $ (31,913 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 59,399 63,879 Goodwill impairment charge 106,389 — Loss on classification to held for sale 649,140 — Share-based compensation expense 8,061 6,735 Deferred income tax benefit (6,068 ) (5,370 ) Changes in operating lease right-of-use assets and lease liabilities (41 ) 2,627 Gain from sale and dispositions of patient service equipment and other fixed assets (3,969 ) (12,257 ) Changes in operating assets and liabilities: Accounts receivable, net 30,262 6,845 Inventories 119,013 (87,665 ) Accounts payable (12,344 ) 150,445 Net change in other assets and liabilities (48,236 ) 20,100 Other, net 5,062 2,723 Cash provided by operating activities 37,610 116,149 Investing activities: Additions to patient service equipment and other fixed assets (67,879 ) (44,382 ) Proceeds from sale of patient service equipment and other fixed assets 18,120 17,488 Additions to computer software (1,658 ) (1,418 ) Other, net (1,500 ) (6,858 ) Cash used for investing activities (52,917 ) (35,170 ) Financing activities: Borrowings under amended Receivables Financing Agreement — 462,300 Repayments under amended Receivables Financing Agreement — (528,000 ) Borrowings under Revolving Credit Facility 853,200 — Repayments under Revolving Credit Facility (815,700 ) — Repayments of debt — (7,750 ) Repurchase of common stock (5,153 ) — Other, net (648 ) (4,790 ) Cash provided by (used for) financing activities 31,699 (78,240 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,259 (64 ) Net increase in cash, cash equivalents and restricted cash 17,651 2,675 Cash, cash equivalents and restricted cash at beginning of period 59,436 270,794 Cash, cash equivalents and restricted cash at end of period (1) $ 77,087 $ 273,469 Supplemental disclosure of cash flow information: Income taxes paid, net $ 5,333 $ 2,875 Interest paid $ 38,358 $ 52,608 Noncash investing activity: Unpaid purchases of patient service equipment and other fixed assets at end of period $ 73,437 $ 76,373 Expand (1) This amount includes cash from discontinued operations of $39 million and $30 million as of June 30, 2025 and March 31, 2025. There was no restricted cash as of June 30, 2025 and March 31, 2025. Expand Owens & Minor, Inc. Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) Six Months Ended June 30, (in thousands) 2025 2024 Operating activities: Net loss $ (894,040 ) $ (53,799 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 120,552 137,974 Goodwill impairment charge 106,389 — Loss on classification to held for sale 649,140 — Share-based compensation expense 14,989 13,601 Deferred income tax benefit (12,308 ) (9,029 ) Changes in operating lease right-of-use assets and lease liabilities 14,411 3,766 Gain from sale and dispositions of patient service equipment and other fixed assets (9,322 ) (27,876 ) Changes in operating assets and liabilities: Accounts receivable, net 141,875 (68,118 ) Inventories (155,576 ) (123,077 ) Accounts payable 145,324 203,371 Net change in other assets and liabilities (124,712 ) (19,517 ) Other, net 5,822 5,891 Cash provided by operating activities 2,544 63,187 Investing activities: Additions to patient service equipment and other fixed assets (123,576 ) (90,379 ) Proceeds from sale of patient service equipment and other fixed assets 35,004 67,026 Additions to computer software (10,635 ) (4,829 ) Other, net (1,910 ) (8,858 ) Cash used for investing activities (101,117 ) (37,040 ) Financing activities: Borrowings under amended Receivables Financing Agreement — 667,300 Repayments under amended Receivables Financing Agreement — (667,300 ) Borrowings under Revolving Credit Facility 1,630,184 — Repayments under Revolving Credit Facility (1,495,184 ) — Repayments of debt — (12,375 ) Repurchase of common stock (6,656 ) — Other, net (3,867 ) (12,545 ) Cash provided by (used for) financing activities 124,477 (24,920 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,801 (682 ) Net increase in cash, cash equivalents and restricted cash 27,705 545 Cash, cash equivalents and restricted cash at beginning of period 49,382 272,924 Cash, cash equivalents and restricted cash at end of period $ 77,087 $ 273,469 Supplemental disclosure of cash flow information: Income taxes paid, net $ 5,458 $ 5,240 Interest paid $ 65,845 $ 70,819 Noncash investing activity: Unpaid purchases of patient service equipment and other fixed assets at end of period $ 73,437 $ 76,373 Expand (1) This amount includes cash from discontinued operations of $39 million and $22 million as of June 30, 2025 and December 31, 2024. There was no restricted cash as of June 30, 2025 and December 31, 2024. Expand Owens & Minor, Inc. Net Loss Per Common Share (unaudited) (dollars in thousands, except per share data) Three Months Ended June 30, 2025 2024 Loss from continuing operations, net of tax $ (83,822 ) $ (6,742 ) Loss from discontinued operations, net of tax (785,236 ) (25,171 ) Net loss $ (869,058 ) $ (31,913 ) Weighted average shares outstanding - basic 76,935 76,727 Dilutive shares — — Weighted average shares outstanding - diluted 76,935 76,727 Basic loss per common share Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 ) Loss from discontinued operations, net of tax (10.21 ) (0.33 ) Net loss $ (11.30 ) $ (0.42 ) Diluted loss per common share: Loss from continuing operations, net of tax $ (1.09 ) $ (0.09 ) Loss from discontinued operations, net of tax (10.21 ) (0.33 ) Net loss $ (11.30 ) $ (0.42 ) Expand Share-based awards for the three months ended June 30, 2025 and 2024 of approximately 2.5 million and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive. Owens & Minor, Inc. Net Loss Per Common Share (unaudited) (dollars in thousands, except per share data) Six Months Ended June 30, 2025 2024 Loss from continuing operations, net of tax $ (87,632 ) $ (20,135 ) Loss from discontinued operations, net of tax (806,408 ) (33,664 ) Net loss $ (894,040 ) $ (53,799 ) Weighted average shares outstanding - basic 77,102 76,526 Dilutive shares — — Weighted average shares outstanding - diluted 77,102 76,526 Basic loss per common share Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 ) Loss from discontinued operations, net of tax (10.46 ) (0.44 ) Net loss $ (11.60 ) $ (0.70 ) Diluted loss per common share: Loss from continuing operations, net of tax $ (1.14 ) $ (0.26 ) Loss from discontinued operations, net of tax (10.46 ) (0.44 ) Net loss $ (11.60 ) $ (0.70 ) Expand Share-based awards for the six months ended June 30, 2025 and 2024 of approximately 2.2 million and 1.6 million shares were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive. Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations (unaudited) (dollars in thousands, except per share data) The following table provides a reconciliation of reported operating (loss) income, net loss from continuing operations, net of tax and net loss from continuing operations per share to non-GAAP measures used by management. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating (loss) income, as reported (GAAP) $ (39,710 ) $ 16,922 $ (19,919 ) $ 23,892 Acquisition-related charges and intangible amortization (1) 13,918 13,761 37,374 28,050 Transaction breakage fee (2) 80,000 — 80,000 — Exit and realignment charges, net (3) 2,541 15,427 16,166 23,547 Litigation and related charges (5) 121 6,678 391 6,678 Operating income, adjusted (non-GAAP) (Adjusted Operating Income) $ 56,870 $ 52,788 $ 114,012 $ 82,167 Operating (loss) income as a percent of net revenue (GAAP) (5.82 ) % 2.56 % (1.47 ) % 1.84 % Adjusted operating income as a percent of net revenue (non-GAAP) 8.34 % 7.99 % 8.41 % 6.33 % Loss from continuing operations, net of tax, as reported (GAAP) $ (83,822 ) $ (6,742 ) $ (87,632 ) $ (20,135 ) Pre-tax adjustments: Acquisition-related charges and intangible amortization (1) 13,918 13,761 37,374 28,050 Transaction breakage fee (2) 80,000 — 80,000 — Exit and realignment charges, net (3) 2,541 15,427 16,166 23,547 Transaction financing fees, net (4) 18,288 — 18,288 — Litigation and related charges (5) 121 6,678 391 6,678 Other (6) 424 430 848 861 Income tax benefit on pre-tax adjustments (9) (10,987 ) (10,248 ) (21,719 ) (17,133 ) Income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net Income) $ 20,483 $ 19,306 $ 43,716 $ 21,868 Loss from continuing operations, net of tax per common share, as reported (GAAP) $ (1.09 ) $ (0.09 ) $ (1.14 ) $ (0.26 ) After-tax adjustments: Acquisition-related charges and intangible amortization (1) 0.12 0.13 0.34 0.26 Transaction breakage fee (2) 1.04 — 1.04 — Exit and realignment charges, net (3) 0.02 0.15 0.14 0.21 Transaction financing fees, net (4) 0.17 — 0.17 — Litigation and related charges (5) — 0.06 — 0.06 Other (6) — — — 0.01 Income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) $ 0.26 $ 0.25 $ 0.55 $ 0.28 Expand Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations (unaudited), continued (dollars in thousands) The following tables provide reconciliations of net loss from continuing operations, net of tax and total debt to non-GAAP measures used by management. Six Months Ended June 30, 2025 2024 Loss from continuing operations, net of tax, as reported (GAAP) $ (87,632 ) $ (20,135 ) Income tax benefit (2,715 ) (8,671 ) Interest expense, net 50,223 50,997 Acquisition-related charges and intangible amortization (1) 37,374 28,050 Transaction breakage fee (2) 80,000 — Exit and realignment charges, net (3) 16,166 23,547 Transaction financing fees, net (4) 18,288 — Litigation and related charges (5) 391 6,678 Other depreciation and amortization (7) 70,758 71,230 Stock compensation (8) 8,952 7,743 Other (6) 848 861 Adjusted EBITDA (non-GAAP) $ 192,653 $ 160,300 Expand June 30, March 31 December 31, 2025 2025 2024 Total debt, as reported (GAAP) $ 1,977,745 $ 1,938,429 $ 1,841,259 Cash and cash equivalents (38,258 ) (29,710 ) (27,572 ) Net debt (non-GAAP) $ 1,939,487 $ 1,908,719 $ 1,813,687 Expand Owens & Minor, Inc. GAAP/Non-GAAP Reconciliations (unaudited), continued (dollars in thousands) The following tables provide reconciliations of capital expenditures to a non-GAAP measure used by management. The following items have been excluded in our non-GAAP financial measures (1) Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2025 includes $6.4 million and $22 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2024 includes $3.7 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to acquisitions, including transaction costs necessary to consummate acquisitions, which consist of investment banking advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results. (2) Transaction breakage fee includes a cash payment to Rotech of $80 million during the three and six months ended June 30, 2025 for the termination of the Rotech Acquisition. (3) During the three and six months ended June 30, 2025 exit and realignment charges, net were $2.5 million and $16 million and primarily included professional fees associated with strategic initiatives of $1.9 million and $8.1 million. During the six months ended June 30, 2025 exit and realignment charges, net also included $6.8 million related to wind-down costs of Fusion5. Exit and realignment charges, net were $15 million and $24 million for the three and six months ended June 30, 2024. These charges primarily included professional fees associated with strategic initiatives of $12 million and $18 million and costs related to IT strategic initiatives such as converting certain divisions to common IT systems. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. (4) Transaction financing fees, net includes $12 million in net interest paid on the financing issued in connection with previously expected Rotech acquisition and $6.7 million in recognition of related previously deferred debt issuance costs. (5) Litigation and related charges includes settlement costs and related charges of legal matters. These costs do not occur in the ordinary course of our business, are non-recurring/infrequent and are inherently unpredictable in timing and amount. (6) For the three and six months ended June 30, 2025 and 2024, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States (U.S.). (7) Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization. (8) Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization. (9) These charges have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes. Expand Use of Non-GAAP Measures This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). In general, the measures exclude items and charges that (i) management does not believe reflect Owens & Minor, Inc.'s (the Company) core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company's performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation. Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company's performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated. OMI-CORP OMI-IR SOURCE: Owens & Minor, Inc.
Business Wire
04-08-2025
- Business
- Business Wire
Owens & Minor Announces Second Quarter 2025 Earnings Release Date and Conference Call
RICHMOND, Va.--(BUSINESS WIRE)-- Owens & Minor, Inc. (NYSE: OMI) plans to release financial results for the second quarter of 2025 on Monday, August 11, 2025, before trading begins on the New York Stock Exchange. The Company will host a conference call for investors and analysts at 8:30 a.m. EDT on the same day. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Owens & Minor website available at A replay of the webcast can be accessed following the presentation at the link provided above. About Owens & Minor Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram®, and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. Learn more at or follow us on LinkedIn and Instagram. OMI-CORP OMI-IR
Yahoo
14-07-2025
- Business
- Yahoo
Why Owens & Minor (OMI) Shares Are Trading Lower Today
Shares of medical supply and logistics company Owens & Minor (NYSE:OMI) fell 3.2% in the morning session after continued pressure from the previous week's announcement of potential new U.S. tariffs on Canada. The negative sentiment follows news from late last week that the U.S. administration was considering a significant 35% tariff on Canadian imports, sparking fears of a broader trade dispute. The healthcare sector is seen as particularly vulnerable to such tensions because of its deeply integrated supply chains with Canada for various medical devices and products. For a medical supply and logistics company like Owens & Minor, the prospect of new tariffs raises concerns about increased operational costs and potential disruptions. This uncertainty is weighing on investor sentiment, as a trade war could pressure profit margins for companies reliant on cross-border trade for their supplies and distribution networks. The stock's move reflects broader market anxiety about the economic impact of protectionist trade policies. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Owens & Minor? Access our full analysis report here, it's free. Owens & Minor's shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada. The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions. Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses. Owens & Minor is down 38.8% since the beginning of the year, and at $7.86 per share, it is trading 52.3% below its 52-week high of $16.48 from July 2024. Investors who bought $1,000 worth of Owens & Minor's shares 5 years ago would now be looking at an investment worth $1,026. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Business Wire
10-06-2025
- Business
- Business Wire
Owens & Minor and Rotech Healthcare Mutually Agree to Terminate Previously Announced Acquisition
RICHMOND, Va.--(BUSINESS WIRE)--Owens & Minor, Inc. (NYSE: OMI) today announced it has mutually agreed with Rotech Healthcare Holdings Inc. to terminate the previously announced acquisition. Under the terms of the merger agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Owens & Minor will also redeem the $1 billion of notes issued in April 2025, which include a special mandatory redemption provision in accordance with their terms, and terminate the incremental term loan commitments and senior unsecured bridge loan commitments provided by our lenders which would have been utilized to consummate the acquisition. 'For many months, our teammates, along with the Rotech team, have worked tirelessly in cooperation with the Federal Trade Commission to close this transaction, and while we believe there would have been ample benefits to patients, payors, and providers by adding Rotech to our Patient Direct business, the path to obtain regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. 'We are confident in our strategy and will continue to focus our efforts on growing our Patient Direct business while remaining committed to strengthening our balance sheet through the use of improved cash flow generation for deleveraging. The home-based care market is a dynamic, growing market, and we are extremely well positioned to help those with chronic conditions get the care and service they need and deserve. Also, we continue to work with a number of interested parties around the potential sale of our Products and Healthcare Services business, and, in the meantime, we will continue to actively work to strengthen that business and tap into its significant upside'. 'I want to thank our teammates, partners and everyone at Rotech for their effort and cooperation over the last several months, and we look forward to a bright future with many years of profitable growth,' Pesicka concluded. About Owens & Minor Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit or follow us on LinkedIn and Instagram. * Registered Trademark or Trademark of O&M Halyard or its affiliates. This press release shall not constitute an offer to buy the notes issued in April 2025, which will be conducted pursuant to a special mandatory redemption in accordance with the terms of the notes.
Yahoo
09-06-2025
- Business
- Yahoo
3 Healthcare Stocks in Hot Water
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry's returns - over the past six months, healthcare stocks have collectively shed 12.3%. This drawdown was noticeably worse than the S&P 500's 1.9% loss. Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Keeping that in mind, here are three healthcare stocks we're swiping left on. Market Cap: $12.17 billion With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico. Why Are We Hesitant About UHS? Poor comparable store sales performance over the past two years indicates it's having trouble bringing new patients into its facilities Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points Free cash flow margin shrank by 3.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Universal Health Services's stock price of $188.81 implies a valuation ratio of 9.5x forward P/E. Dive into our free research report to see why there are better opportunities than UHS. Market Cap: $512.5 million With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE:OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients. Why Does OMI Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.2% for the last two years Underwhelming 3.8% return on capital reflects management's difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Owens & Minor is trading at $6.67 per share, or 3.7x forward P/E. If you're considering OMI for your portfolio, see our FREE research report to learn more. Market Cap: $132.8 billion With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions. Why Are We Cautious About PFE? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Diminishing returns on capital suggest its earlier profit pools are drying up At $23.40 per share, Pfizer trades at 7.8x forward P/E. To fully understand why you should be careful with PFE, check out our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
