Medline (MDLN) Morgan Stanley 24th Annual Global Healthcare Conference summary

Business performance and financial guidance

• Achieved strong top-line growth of 11.6% reported, nearly 13% adjusted for tariff refunds and repayments.

• Full-year EBITDA guidance lowered by $200 million to $3.3–$3.4 billion due to internal and external factors.

• External headwinds include $70 million impact from Middle East inflation and a $50 million loss from a facility fire.

• Internal factors include operational investments, quality initiatives, and retail business softness, totaling $150 million.

• About half of the $340 million impact is considered transitory, with the rest expected to remain in the cost base.

Growth strategy and market positioning

• Focused on sustainable long-term growth by taking market share and maximizing brand value.

• Secured $2.4 billion in new customer signings last year and $650 million in the first half of this year.

• Pipeline quality remains strong, with recent wins consisting of smaller deals rather than large contracts.

• Customers seek resilient supply partners, especially amid industry consolidation and inflation.

• Long-term targets include $1 billion in new signings annually, high single-digit organic sales growth, and leverage below 3x.

Brand conversion and category expansion

• $5 billion opportunity identified for Medline brand conversion within the prime vendor base.

• Typical brand penetration doubles from 10% to 20% in the first year of a new deal, then grows 3–4% annually.

• Maximum achievable brand penetration is about 60% of customer spend; current penetration is 35%.

• Expansion into new categories is prioritized through internal development, with acquisitions considered when internal build is less viable.

• Recent product launches and acquisitions have increased addressable markets and brand reach.