Medline (MDLN) Q4 2025 earnings summary

Executive summary

• Achieved record $2.4 billion in new customer signings and strong net sales of $28.4 billion for FY 2025, up 11.5% year-over-year, with major partnerships including the U.S. Department of Veterans Affairs and a large faith-based IDN.

• Completed a successful IPO, raising over $7 billion, strengthening the balance sheet, and enhancing strategic flexibility.

• Continued investment in automation, technology, and product innovation, including the launch of the AI-powered Mpower supply chain platform in partnership with Microsoft and expanded manufacturing capacity.

• Fourth quarter net sales rose 14.8% year-over-year to $7.8 billion, driven by volume growth in both core segments.

Financial highlights

• Annual net sales grew to $28.4 billion, up 11.5%–12% year-over-year, with organic growth of 10.5%–11%.

• Adjusted EBITDA reached $3.5 billion, up 3%–3.2% year-over-year, with margin declining to 12.2% due to tariffs and investments.

• Fourth quarter net sales were $7.8 billion, up 14.8%–15% year-over-year; Q4 Adjusted EBITDA was $805 million, nearly flat.

• Full year 2025 net income was $1.2 billion, down 3.6% year-over-year, impacted by higher costs and IPO-related expenses.

• Free cash flow for the year was $1.3 billion; CapEx totaled $447 million.

Outlook and guidance

• 2026 organic sales growth guided at 8%–9%, driven by new customer signings and moderate same-store sales growth.

• Adjusted EBITDA expected between $3.5 billion and $3.6 billion, including a $200 million incremental tariff headwind.

• Net interest expense projected at $575–$625 million; CapEx at ~$500 million; effective tax rate 17.5%–19.5%.

• Approximately 1.4 billion fully diluted shares expected for 2026 calculations.