Medline (MDLN) investor relations material

Executive summary

• Q3 net sales rose 10.4% YoY to $7.856B and Adjusted EBITDA increased 11.8% to $960M; net income declined 1.2% to $318M.

• Nine-month net sales grew 10.9% to $22.893B and Adjusted EBITDA rose 5.0% to $2.796B; net income fell 28.8% to $696M.

• Existing-customer demand and implementation of 2025 signings supported growth; commercial momentum and network investment continued.

Financial highlights

• Q3 Organic Sales grew 10.5%; $81M of net IEEPA tariff refund benefits supported Adjusted EBITDA, partly offset by higher operating expenses and customer mix.

• Q3 gross profit rose 2.7% to $1.925B, while operating income fell to $500M from $574M; operating expenses increased 9.5% to $1.425B.

• Q3 net income attributable to Medline Inc. was $195M versus $322M; nine-month attributable net income was $384M versus $977M.

• Nine-month operating cash flow was $2.152B; Free Cash Flow was $1.804B after $348M of capital expenditures.

• Q3 diluted EPS was $0.22 and Adjusted Diluted EPS was $0.44; nine-month figures were $0.45 and $1.27, respectively.

Outlook and guidance

• FY 2026 Organic Sales growth guidance rose to 10.0%–10.5% from 9.0%–10.0%; Adjusted EBITDA guidance remained $3.3B–$3.4B, excluding tariff refunds.

• Initial FY 2027 framework: net sales growth in the high single digits and Adjusted EBITDA growth in the low-to-mid single digits; excludes $324M of 2026 net tariff benefits recognized through Q3.

• FY 2027 earnings drivers include customer growth, implementations, pricing, Medline Brand conversions and productivity; inflation, investment and quality remediation are expected pressures.

• October restructuring plan is expected to cost $20M–$30M in Q4 2026, excluded from Adjusted EBITDA, and generate $80M–$90M of annualized savings when fully implemented.