Owens & Minor Pushes Forward, Transitions To 'Pure-Play' Patient Direct Business

Owens & Minor Inc. OMI on Monday reported a second-quarter 2025 adjusted earnings of 26 cents, up from 25 cents a year ago, missing the consensus of 27 cents.

In connection with a likely sale of the company's Products & Healthcare Services segment, the results reflect the company's continuing operations, primarily representing the Patient Direct segment and certain functional operations.

The healthcare services company reported quarterly sales of $681.9 million, up from $660.4 million in the same quarter last year. The analyst consensus, including the segment up for sale, was $2.729 billion.

"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 Owens & Minor CEO Ed Pesicka.

The company reported a loss from continuing operations $83.8 million compared to a loss of $6.7 million a year ago.

Adjusted EBITDA improved from $91.1 million to $96.6 million.

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Guidance: Owens & Minor expects fiscal 2025 adjusted earnings per share guidance of $1.02-$1.07.

The company forecasts 2025 sales of $2.76 billion – $2.82 billion.

The healthcare logistics company expects adjusted EBITDA for 2025 to be $376 million to $382 million.

In June, Owens & Minor mutually agreed with Rotech Healthcare Holdings Inc. to terminate the previously announced acquisition. Owens & Minor has paid $80 million to Rotech Healthcare. Owens & Minor will also redeem the $1 billion of notes issued in April.

“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,” Pesicka said in a statement in June.

Price Action: Owens & Minor's stock is down 24.7% at $5.34 at the last check on Monday.

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