Avanos Medical (AVNS) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic overview and leadership

• Focused on durable long-term growth and value creation through operational discipline, strategic capital allocation, and transformation initiatives led by a CEO with 30+ years of healthcare leadership.

• New management team implemented, emphasizing sharper focus, improved execution, and a vision targeting $1B in revenue by 2030.

• Two main business segments: specialty nutrition systems and pain management and recovery, generating about $700 million in revenue.

• Global direct sales expansion with significant presence in North America, EMEA, APAC, and LATAM, and market-leading positions in core categories.

• Strong balance sheet with leverage below 0.5x supports ongoing M&A, capital deployment, and commercial partnerships.

Financial performance and outlook

• FY 2025 net sales projected at $690–$700M with mid-single digit growth in strategic segments.

• Adjusted EPS expected in the $0.85–$0.95 range, reflecting $18M in tariff headwinds.

• Annualized savings of $15–20M expected by end of 2026 from tariff mitigation and supply chain optimization.

• Balance sheet leverage remains below 0.5x, supporting capital deployment and M&A.

Segment strategies and growth drivers

• Specialty Nutrition Systems leads with #1 US market positions in short-term, long-term, and neonatal feeding portfolios, and is a market leader in guided feeding tube placement and neonatal solutions.

• Double-digit growth in short-term feeding and neonatal solutions, supported by product innovation and acquisitions, including Nexus Medical.

• Pain Management & Recovery segment focuses on RFA, non-opioid pain relief, and recovery solutions, with at-market growth outlook and leading US provider status.

• Three-tiered RFA portfolio drives recurring consumable revenue; Trident product growing at double digits.

• Pipeline includes next-gen products and adjacencies in both segments, with several launches expected in 1–5 years.