Medline (MDLN) Goldman Sachs 47th Annual Global Healthcare Conference 2026 summary

Quality and recall management

• Recent FDA warning letter at the Waukegan facility was anticipated due to self-identified issues; plant was proactively shut down for remediation.

• Recalls are voluntary, with 15 this year and 29 last year, out of 190,000 products; response focuses on minimizing customer impact and maintaining supply.

• Redundancy in manufacturing and distribution allows for rapid product replacement and fulfillment during recalls.

• Significant investments in quality, including $10 million in the Waukegan plant and a global quality team of 2,700+ people.

• Financial impact of recalls and plant shutdowns is not material, and guidance remains unchanged.

Financial performance and guidance

• First quarter organic growth reached about 10%, with overall growth near 11% unadjusted and 13% adjusted for days.

• Acute care channel grew close to 12%, non-acute at 7%, and international at 10%.

• Full-year organic sales guidance raised to 8.5%-9.5% due to strong demand and share gains.

• Guidance incorporates potential softness in patient volume in the second half, but higher acuity and utilization offset volume declines.

• EBITDA guidance for the year is $3.5-$3.6 billion, with stronger performance expected in the second half due to tariff relief and seasonality.

Business drivers and growth strategy

• Prime vendor contracts are a key driver, with $2.4 billion sold last year, above the $1 billion annual target.

• Outsized wins attributed to delayed price increases, value positioning, and healthcare consolidation.

• Medline brand penetration typically doubles in the first year of new contracts, with ongoing incremental gains in subsequent years.

• Lab and diagnostics, surgical solutions, and frontline care segments are all contributing to growth, with lab and diagnostics expected to recover in the back half.

• Large addressable market remains, with significant share opportunities in acute care, post-acute, surgery centers, and physician offices.