SOLV
Solventum Corporation80.59
-1.30-1.59%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details margins, AI moat
Q&A reinforced prepared momentum but unpacked Q4's 150bps gross margin hit as separation one-offs, with 2026's 50-100bps expansion holding firm despite doubled tariff headwinds via sales leverage and Transform for the Future's $500M multiyear savings kicking in modestly next year. AI emerged as HIS opportunity, not threat—moats from 1M+ proprietary rules, vast data, long contracts blunt rivals. Dental's 6% surge blended new products and backorder recovery; normalized ~3%. Nearly 20 new products loom evenly over two years. Acera eyes double-digit growth in synthetics. Management brimmed with LRP confidence; investors eye tariff evolution, HIS defense.
Key Stats
Market Cap
13.98BP/E (TTM)
9.25Basic EPS (TTM)
8.71Dividend Yield
0%Recent Filings
8-K
10-K
FY2025 results
Solventum's FY2025 sales rose 0.9% to $8.3B despite Purification & Filtration divestiture, with organic growth of 3.3% led by MedSurg (3.5%) and Health Information Systems (4.0%); Q4 momentum accelerated via Infection Prevention volumes and Dental restoratives, though margins compressed from tariffs and 3M supply mark-ups. Operating income soared 110% to $2.2B on $1.5B P&F sale gain, yet segment margins dipped—MedSurg to 16.8%, Dental to 25.6%. Debt fell to $5.0B post-$3.1B repayments; $1B buyback authorized but unused. No 2026 guidance disclosed. Spin-Off separation costs threaten quarterly momentum.
8-K
Q4 organic sales up 3.5%
Solventum reported Q4 2025 sales of $2B, down 3.7% reported but up 3.5% organically, driven by Infection Prevention and Surgical Solutions plus Dental Solutions. Adjusted EPS hit $1.57, up 11.3%, while full-year free cash flow swung to $(10)M from Purification and Filtration sale impacts. Guidance calls for 2026 organic sales +2.0% to +3.0% and adjusted EPS $6.40-$6.60. Cash flow turned negative.
8-K
Year-end growth recap
Solventum's shareholder letter on December 16, 2025, highlights a transformative year: six quarters of positive volume growth, sale of Purification & Filtration to cut debt, Acera Surgical acquisition expanding Advanced Wound Care, and a $1 billion share repurchase launch. Restructuring drives margin gains despite tariffs. Portfolio sharpened. Team excels.
10-Q
Q3 FY2025 results
Solventum's Q3 sales edged up 0.7% y/y to $2,096M despite Purification and Filtration divestiture, with organic growth at 2.7% led by Dental Solutions (up 6.5%) and Health Information Systems (up 5.6%). Operating income exploded to $1,690M from $275M on a $1,518M gain from selling the business for ~$4B cash (closed Sept 1, 2025, recognizing $1,389M goodwill reduction); diluted EPS jumped to $7.22 from $0.70, reconciling to 175.4M shares. Cash swelled to $1,642M (up from $762M year-end) while long-term debt fell to $5,137M after $2,970M repayments. Operating cash flow slowed to $274M YTD. Debt covenants hold firm. Product liability claims loom large.
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