Henry Schein (HSIC) Q4 2024 earnings summary

Executive summary

• Q4 2024 results showed stable dental and medical end markets, with 41% of operating income from high-growth, high-margin businesses and the completion of the 2022–2024 BOLD+1 plan; new segment reporting and leadership changes were implemented.

• KKR became the largest non-index shareholder, and the company launched its 2025–2027 BOLD+1 plan focused on organizational simplification and leveraging synergies.

• Reportable segments were realigned to better reflect management structure and investor needs.

• Q4 2024 GAAP diluted EPS was $0.74; non-GAAP diluted EPS was $1.19, with full-year non-GAAP EPS at $4.74, up 5.3% year-over-year.

• Strategic plan (2025–2027 BOLD+1) aims to drive further growth and operational efficiency.

Financial highlights

• Q4 2024 global sales were $3.2B, up 5.8% year-over-year; full-year sales reached $12.7B, up 2.7% from 2023.

• Q4 GAAP net income was $94M ($0.74/share); non-GAAP net income was $149M ($1.19/share), up 80% year-over-year.

• Adjusted EBITDA for Q4 was $270M, up from $172M in Q4 2023; full-year Adjusted EBITDA was $1.06B.

• Operating cash flow for Q4 was $204M, and $848M for the year, up $348M from 2023.

• Non-GAAP gross margin for Q4 was 31.14%; non-GAAP operating margin was 7.46%, up 260 bps year-over-year.

Outlook and guidance

• 2025 total sales growth expected at 2%–4% over 2024, with non-GAAP diluted EPS guidance of $4.80–$4.94 (1%–4% growth).

• Adjusted EBITDA expected to grow mid-single digits in 2025, outpacing EPS due to higher depreciation from e-commerce investments.

• EPS growth is expected to be weighted toward the second half of 2025, driven by restructuring savings and new product momentum.

• Guidance assumes stable FX rates, modest market improvement, and excludes restructuring/integration costs and insurance recoveries.