Henry Schein (HSIC) Barclays 28th Annual Global Healthcare Conference summary

Financial performance and outlook

• Fourth quarter showed strong growth in dental distribution and equipment, with U.S. equipment sales exceeding 10%, indicating market share gains and customer confidence in practice investments.

• Merchandise and specialty segments outperformed the market, driven by targeted promotions, new product launches, and successful recruitment of experienced sales reps.

• EPS guidance for 2026 is $5.23 to $5.37, reflecting 5%-8% growth, with earnings growth expected to be more weighted to the second half of the year.

• Share repurchases totaled $850 million in 2025, reflecting confidence in undervalued stock and lower M&A activity, with continued focus on buybacks as a capital deployment strategy.

• Cost savings program targets $125 million in savings by end of 2026, supporting profitability and operational efficiency.

Market trends and innovation

• Dental equipment market growth was driven by exclusive co-promotions with manufacturing partners and steady demand, not by backlog reduction or unique tax incentives.

• Digital transformation in dental practices is ongoing, with significant runway for adoption of intraoral scanners and other digital equipment as prices decrease.

• Specialty segment saw high single-digit implant growth in Europe, with value implants gaining traction in the U.S. due to expansion among general practitioners.

• Endodontic business remains stable, benefiting from demographic trends and steady mid-single-digit growth.

• Practice management technology segment launched new AI-powered products, including Voice Notes and Image Verify, enhancing efficiency and customer value.

Leadership and strategic changes

• Leadership transition with a new CEO, Fred Lowery, bringing experience from Thermo Fisher and a fresh perspective, while the previous CEO remains as Chairman.

• KKR now owns up to 19.9% and has two board members, contributing expertise and supporting value creation initiatives through its Capstone arm.

• Strategy remains focused on growth, operational efficiency, and capital deployment, with potential pivots as the new CEO completes his 100-day plan.

• Optimism for 2026 is supported by positive industry sentiment, confident customers, and ongoing value creation initiatives.