Avanos Medical Reports Strong Q4 2025 Earnings and Strategic Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
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Should l Buy AVNS?
Source: seekingalpha
- Strong Annual Performance: Avanos Medical reported full-year net sales of $701 million and adjusted EPS of $0.94 for 2025, despite tariff impacts; management is optimistic about future performance, projecting 2026 sales between $700 million and $720 million.
- Portfolio Growth: The Specialty Nutrition Systems (SNS) segment achieved over 8% organic growth, with double-digit growth in short-term enteral feeding products driven by the expansion of CORTRAK and CORGRIP 2 systems, highlighting the company's competitive position in the market.
- Cost Control Measures: Management anticipates $30 million in tariff costs for 2026, primarily affecting products sourced from China; however, plans are in place to mitigate long-term tariff risks, including exiting syringe manufacturing in China by June 2026.
- Successful Acquisition Integration: Avanos's acquisition of Nexus Medical is progressing well, with management expressing confidence in future growth opportunities, expecting to enhance shareholder value through portfolio optimization and cost control.
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About AVNS
Avanos Medical, Inc. is a medical technology company focused on delivering medical device solutions. It offers healthcare needs, such as providing nutrition to patients from hospital to home and reducing the use of opioids while helping patients move from surgery to recovery. Specialty Nutrition Systems portfolio of products includes enteral feeding, which consist of MIC-KEY enteral feeding tubes and Corpak patient feeding solutions, and Neonate solutions feeding products consist of NeoMed neonatal and pediatric feeding solutions. It also includes TKO, an anti-reflux needleless connector technology, which is used in Neonatal and Pediatric Intensive Care Units. The Pain Management and Recovery portfolio of products includes surgical pain and recovery products such as ON-Q and ambIT surgical pain pumps and Game Ready cold and compression therapy systems and Radiofrequency Ablation solutions, which provide invasive pain relief therapies, such as COOLIEF, Trident and ESSENTEC RFA products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Avanos Medical Reports Strong Q4 2025 Earnings and Strategic Outlook
- Strong Annual Performance: Avanos Medical reported full-year net sales of $701 million and adjusted EPS of $0.94 for 2025, despite tariff impacts; management is optimistic about future performance, projecting 2026 sales between $700 million and $720 million.
- Portfolio Growth: The Specialty Nutrition Systems (SNS) segment achieved over 8% organic growth, with double-digit growth in short-term enteral feeding products driven by the expansion of CORTRAK and CORGRIP 2 systems, highlighting the company's competitive position in the market.
- Cost Control Measures: Management anticipates $30 million in tariff costs for 2026, primarily affecting products sourced from China; however, plans are in place to mitigate long-term tariff risks, including exiting syringe manufacturing in China by June 2026.
- Successful Acquisition Integration: Avanos's acquisition of Nexus Medical is progressing well, with management expressing confidence in future growth opportunities, expecting to enhance shareholder value through portfolio optimization and cost control.
See More
Avanos Medical Nominates New Directors for Board Election
- Board Nominations: Avanos Medical has announced the nomination of Jim Cunniff, CEO of Electromed, Inc., and Bill Burke, former CFO of Haemonetics, as independent directors for election at the 2026 Annual Meeting, aiming to enhance the board's leadership and financial expertise.
- Strategic Cooperation Agreement: This nomination is coupled with a cooperation agreement with Bradley L. Radoff and his affiliates, indicating Avanos's commitment to achieving long-term strategic goals through the introduction of new directors to improve governance.
- Rich Industry Experience: Cunniff brings over 30 years of leadership experience in medical technology, having successfully driven revenue and profit growth in multiple companies, while Burke's extensive finance background in global medical technology is expected to have an immediate positive impact on Avanos.
- Future Outlook: The Avanos board will formally recommend these nominees at the 2026 Annual Meeting, which is anticipated to further drive sustainable growth and enhance market competitiveness through the introduction of new perspectives and expertise.
See More
Avanos Medical Reports 2025 Financial Highlights
- Financial Overview: Avanos Medical reported fourth-quarter net sales of $180.9 million, a slight increase of 0.7% year-over-year, while full-year net sales reached $701.2 million, up 1.9% from $687.8 million in 2024, indicating stability in the market.
- Decline in Free Cash Flow: The company generated free cash flow of $21.3 million in Q4 2025, significantly down from $53.1 million a year earlier, with total free cash flow for 2025 at $43.1 million, compared to $82.9 million in the previous year, reflecting challenges in cost management and capital expenditures.
- Goodwill Impairment Impact: Avanos recorded a $77 million goodwill impairment charge in Q2 2025 due to market capitalization pressures, negatively affecting the overall financial health of the company and resulting in a net loss of $72.9 million for the year.
- Future Outlook: The company expects net sales for 2026 to be between $700 million and $720 million, with adjusted earnings per share projected between $0.90 and $1.10, indicating management's optimism for future growth despite ongoing market challenges.
See More
Avanos Medical Q4 Earnings Highlights
- Earnings Performance: Avanos Medical reported a Q4 non-GAAP EPS of $0.29 with revenue of $180.9 million, reflecting a modest 0.7% year-over-year increase, indicating the company's ability to maintain stability in a challenging economic environment.
- Adjusted EBITDA: The adjusted EBITDA for the quarter was $28 million, slightly down from $28.6 million in the prior year, highlighting some pressure on cost control and operational efficiency that could impact future profitability.
- Free Cash Flow Decline: The fourth quarter free cash flow was $21.3 million, significantly lower than $53.1 million in the same quarter last year, suggesting a need for improved cash flow management to support future investments and operational needs.
- 2026 Outlook: The company expects net sales for 2026 to range between $700 million and $720 million, with adjusted diluted EPS projected between $0.90 and $1.10, aligning with broader market revenue consensus, which reflects the company's confidence in future growth prospects.
See More
Avanos Medical to Announce Q4 Earnings on February 24
- Earnings Announcement Schedule: Avanos Medical (AVNS) is set to announce its Q4 earnings on February 24 before market open, with a consensus EPS estimate of $0.25, reflecting a significant year-over-year decline of 41.9%, indicating potential profitability challenges ahead.
- Revenue Expectations Decline: The expected revenue for Q4 is $174.7 million, down 2.7% year-over-year, which highlights the weakening market demand and intensified competition that may impact the company's performance.
- Historical Performance Metrics: Over the past two years, Avanos Medical has exceeded EPS estimates 88% of the time and revenue estimates 75% of the time, suggesting a degree of financial stability in its operational performance.
- Investor Focus: As the earnings report approaches, investors will closely monitor Avanos Medical's performance to assess its competitiveness in the medical device industry and its potential for future growth.
See More
Avanos Medical to Host Q4 2025 Financial Results Conference Call
- Conference Call Scheduled: Avanos Medical will host a conference call on February 24, 2026, at 9 a.m. ET to discuss its financial results and business highlights for the fiscal year 2025, which is expected to provide investors with crucial performance updates.
- Pre-Release Announcement: The company will issue a detailed news release of its financial results before the market opens on the same day, ensuring that investors receive the latest financial information ahead of the call, thereby enhancing market transparency.
- Executive Leadership: The call will be hosted by CEO Dave Pacitti and CFO Scott Galovan, indicating the company's commitment to financial communication, which can help bolster investor confidence.
- Multiple Access Channels: Investors can join the call via phone or webcast, offering flexible access options that ensure a broader audience can obtain key information in a timely manner, thus enhancing interaction between the company and its investors.
See More
Avanos Medical Reports Strong Q4 2025 Earnings and Strategic Outlook
- Strong Annual Performance: Avanos Medical reported full-year net sales of $701 million and adjusted EPS of $0.94 for 2025, despite tariff impacts; management is optimistic about future performance, projecting 2026 sales between $700 million and $720 million.
- Portfolio Growth: The Specialty Nutrition Systems (SNS) segment achieved over 8% organic growth, with double-digit growth in short-term enteral feeding products driven by the expansion of CORTRAK and CORGRIP 2 systems, highlighting the company's competitive position in the market.
- Cost Control Measures: Management anticipates $30 million in tariff costs for 2026, primarily affecting products sourced from China; however, plans are in place to mitigate long-term tariff risks, including exiting syringe manufacturing in China by June 2026.
- Successful Acquisition Integration: Avanos's acquisition of Nexus Medical is progressing well, with management expressing confidence in future growth opportunities, expecting to enhance shareholder value through portfolio optimization and cost control.
See More
Avanos Medical Nominates New Directors for Board Election
- Board Nominations: Avanos Medical has announced the nomination of Jim Cunniff, CEO of Electromed, Inc., and Bill Burke, former CFO of Haemonetics, as independent directors for election at the 2026 Annual Meeting, aiming to enhance the board's leadership and financial expertise.
- Strategic Cooperation Agreement: This nomination is coupled with a cooperation agreement with Bradley L. Radoff and his affiliates, indicating Avanos's commitment to achieving long-term strategic goals through the introduction of new directors to improve governance.
- Rich Industry Experience: Cunniff brings over 30 years of leadership experience in medical technology, having successfully driven revenue and profit growth in multiple companies, while Burke's extensive finance background in global medical technology is expected to have an immediate positive impact on Avanos.
- Future Outlook: The Avanos board will formally recommend these nominees at the 2026 Annual Meeting, which is anticipated to further drive sustainable growth and enhance market competitiveness through the introduction of new perspectives and expertise.
See More
Avanos Medical Reports 2025 Financial Highlights
- Financial Overview: Avanos Medical reported fourth-quarter net sales of $180.9 million, a slight increase of 0.7% year-over-year, while full-year net sales reached $701.2 million, up 1.9% from $687.8 million in 2024, indicating stability in the market.
- Decline in Free Cash Flow: The company generated free cash flow of $21.3 million in Q4 2025, significantly down from $53.1 million a year earlier, with total free cash flow for 2025 at $43.1 million, compared to $82.9 million in the previous year, reflecting challenges in cost management and capital expenditures.
- Goodwill Impairment Impact: Avanos recorded a $77 million goodwill impairment charge in Q2 2025 due to market capitalization pressures, negatively affecting the overall financial health of the company and resulting in a net loss of $72.9 million for the year.
- Future Outlook: The company expects net sales for 2026 to be between $700 million and $720 million, with adjusted earnings per share projected between $0.90 and $1.10, indicating management's optimism for future growth despite ongoing market challenges.
See More
Avanos Medical Q4 Earnings Highlights
- Earnings Performance: Avanos Medical reported a Q4 non-GAAP EPS of $0.29 with revenue of $180.9 million, reflecting a modest 0.7% year-over-year increase, indicating the company's ability to maintain stability in a challenging economic environment.
- Adjusted EBITDA: The adjusted EBITDA for the quarter was $28 million, slightly down from $28.6 million in the prior year, highlighting some pressure on cost control and operational efficiency that could impact future profitability.
- Free Cash Flow Decline: The fourth quarter free cash flow was $21.3 million, significantly lower than $53.1 million in the same quarter last year, suggesting a need for improved cash flow management to support future investments and operational needs.
- 2026 Outlook: The company expects net sales for 2026 to range between $700 million and $720 million, with adjusted diluted EPS projected between $0.90 and $1.10, aligning with broader market revenue consensus, which reflects the company's confidence in future growth prospects.
See More
Avanos Medical to Announce Q4 Earnings on February 24
- Earnings Announcement Schedule: Avanos Medical (AVNS) is set to announce its Q4 earnings on February 24 before market open, with a consensus EPS estimate of $0.25, reflecting a significant year-over-year decline of 41.9%, indicating potential profitability challenges ahead.
- Revenue Expectations Decline: The expected revenue for Q4 is $174.7 million, down 2.7% year-over-year, which highlights the weakening market demand and intensified competition that may impact the company's performance.
- Historical Performance Metrics: Over the past two years, Avanos Medical has exceeded EPS estimates 88% of the time and revenue estimates 75% of the time, suggesting a degree of financial stability in its operational performance.
- Investor Focus: As the earnings report approaches, investors will closely monitor Avanos Medical's performance to assess its competitiveness in the medical device industry and its potential for future growth.
See More
Avanos Medical to Host Q4 2025 Financial Results Conference Call
- Conference Call Scheduled: Avanos Medical will host a conference call on February 24, 2026, at 9 a.m. ET to discuss its financial results and business highlights for the fiscal year 2025, which is expected to provide investors with crucial performance updates.
- Pre-Release Announcement: The company will issue a detailed news release of its financial results before the market opens on the same day, ensuring that investors receive the latest financial information ahead of the call, thereby enhancing market transparency.
- Executive Leadership: The call will be hosted by CEO Dave Pacitti and CFO Scott Galovan, indicating the company's commitment to financial communication, which can help bolster investor confidence.
- Multiple Access Channels: Investors can join the call via phone or webcast, offering flexible access options that ensure a broader audience can obtain key information in a timely manner, thus enhancing interaction between the company and its investors.
See More
