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Avanos Medical (AVNS) investor relations material
Avanos Medical Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 4.3% year-over-year net sales growth in Q3 2025, reaching $177.8 million, with double-digit organic growth in strategic segments, led by Specialty Nutrition Systems (SNS) and Pain Management & Recovery (PM&R).
Raised and narrowed full-year revenue and adjusted EPS guidance, reflecting strong business momentum, sales momentum, and cost discipline.
Completed the divestiture of the Hyaluronic Acid (HA) business and acquired Nexus Medical, expanding the SNS portfolio and presence in neonatal and pediatric markets.
A $77.0 million goodwill impairment was recorded for the PM&R segment in Q2 2025 following a decline in market capitalization.
Restructuring and transformation initiatives, including post-divestiture actions, incurred $17.9 million in costs YTD and are expected to yield $15–$20 million in annualized savings.
Financial highlights
Q3 2025 net sales reached $177.8 million, up from $170 million in Q3 2024; organic sales in strategic segments grew 10% year-over-year.
Q3 2025 net loss was $1.4 million, compared to net income of $4.3 million in Q3 2024, primarily due to the goodwill impairment.
Adjusted EBITDA for Q3 2025 was $20.2 million, down from $31 million in Q3 2024.
Adjusted diluted EPS for Q3 2025 was $0.22, down from $0.36 in Q3 2024.
Free cash flow for Q3 2025 was $7 million; cash on hand at September 30, 2025 was $70.5 million, with total debt at $102.8 million.
Outlook and guidance
Full-year 2025 revenue guidance raised to $690–$700 million, with adjusted EPS guidance raised to $0.85–$0.95 per share.
Transformation and restructuring initiatives are expected to deliver $15–$20 million in annualized cost savings by end of 2026, with $10 million in one-time charges mostly in Q4 2025.
Guidance incorporates estimated tariff impacts and assumes successful mitigation through cost containment, pricing, and supply chain adjustments.
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