Cardinal Health, Inc. · NYSE:CAH

Cardinal Health — Q2 2025 Earnings Presentation

23 slides from Cardinal Health's earnings presentation, Jan 30, 2025

  1. Slide 1: Q2 FY25 Earnings

    Q2 FY25 Earnings Cardinal Health, Inc. January 30, 2025 © 2025 Cardinal Health. All Rights Reserved. 1 © 2025 Cardinal Health. All Rights Reserved.

  2. Slide 2: Cautions Concerning Forward-Looking Statements

    • Q2 FY25 Earnings Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect,"

  3. Slide 3: Q2 Results

    Q2 Results © 2025 Cardinal Health. All Rights Reserved. 3 © 2025 Cardinal Health. All Rights Reserved.

  4. Slide 4: Q2 FY25 financial summary

    • Q2 FY25 Earnings Q2 FY25 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q2 FY25 Q2 FY25 Revenue $55,264 N/A % change (4)% Gross Margin $1,941 $1,941 % change 5% 5% SG&A $1,306 $1,306 % change 3% 3% Operating Earnings $549 $635 % change 9% 9% Interest and Other1 $38 N/A % change N.M. Net Ear

  5. Slide 5: Pharmaceutical and Specialty Solutions

    • Q2 FY25 Earnings Pharmaceutical and Specialty Solutions Q2 FY25 results Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $50,849 $53,202 (4)% Segment profit $531 $495 7% Segment profit margin 1.04% 0.93% 11 bps Drivers: Revenue Segment profit - Large customer contract expiration + BioPharma Solutions,

  6. Slide 6: Global Medical Products and Distribution

    • Q2 FY25 Earnings Global Medical Products and Distribution Q2 FY25 results Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $3,154 $3,127 1% Segment profit $18 $11 N.M. Segment profit margin 0.57% 0.35% 22 bps Drivers: Revenue Segment profit + Volume growth from existing customers + Cost optimization i

  7. Slide 7: Other: NPHS, at-Home Solutions and OptiFreight

    • Q2 FY25 Earnings Other: NPHS, at-Home Solutions and OptiFreight Q2 FY25 results Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $1,283 $1,135 13% Segment profit $118 $106 11% Segment profit margin 9.20% 9.34% (14) bps Drivers: Revenue Segment profit + Growth across the three operating segments + Opti

  8. Slide 8: Outlook

    Outlook © 2025 Cardinal Health. All Rights Reserved. 8 © 2025 Cardinal Health. All Rights Reserved.

  9. Slide 9: FY25 financial expectations

    • Q2 FY25 Earnings FY25 financial expectations FY25 FY24 outlook actual Non-GAAP EPS $7.85 - $8.00 $7.53 Previously $7.75 - $7.90 Interest and Other $200M - $230M $42M Previously $140M - $170M Non-GAAP ETR 23.0% - 24.0% 21.7% Diluted weighted average shares ~243M 247M outstanding Share repurchases $

  10. Slide 10: FY25 segment guidance

    • Q2 FY25 Earnings FY25 segment guidance Revenue and segment profit Pharmaceutical Revenue decline of Segment profit growth of and Specialty Solutions 1% to 3% 10% to 12% Previously decline of 2% to 4% Previously growth of 4% to 6% Global Medical Products Revenue growth of Segment profit of and Dist

  11. Slide 11: Strategic priorities

    • Q2 FY25 Earnings Strategic priorities Relentless focus on simplification Build upon the growth and resiliency of Execute GMPD Accelerate growth Pharmaceutical and Improvement in key areas Specialty Solutions by Plan initiatives expanding in Specialty and shareholder value creation 11 © 2025 Cardin

  12. Slide 12: Supporting community-based physicians with a comprehensive model

    • Q2 FY25 Earnings Supporting community-based physicians with a comprehensive model 12 © 2025 Cardinal Health. All Rights Reserved.

  13. Slide 13: Disciplined Capital Allocation

    Q2 FY25 Earnings Table stakes FY25 Progress Investing back into the business to drive $189M in YTD capex organic growth Disciplined Maintain investment Completed annual opioid settlement payment Capital grade balance sheet Credit ratings maintained by all 3 rating agencies post acquisition announcem

  14. Slide 14: Compelling investment thesis

    • Q2 FY25 Earnings Compelling investment thesis Moving healthcare forward Pharmaceutical and at-Home, NPHS & Medical Products Cash flow and Value Specialty Solutions OptiFreight and Distribution capital deployment creation Resilient and growing business, Favorable long-term Executing our plan to Con

  15. Slide 15: Investor Day

    • Q2 FY25 Earnings Upcoming: Featuring management including: Investor Day June 12, 2025 Jason Hollar Aaron Alt Debbie Weitzman CEO CFO Pharmaceutical & Specialty Solutions Focus areas to include: • Specialty strategy • Growth businesses • GMPD Improvement Plan • Long-term targets Rob Schlissberg Mik

  16. Slide 16: Appendix

    Appendix 16 © 2025 Cardinal Health. All Rights Reserved. 16 © 2025 Cardinal Health. All Rights Reserved.

  17. Slide 17: GAAP / Non-GAAP Reconciliation

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings Net Diluted 2 3 3 Margin SG&A Earnings Before Provision for Earnings Effective EPS Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A2 Rate Earnings Rate Tax

  18. Slide 18: GAAP / Non-GAAP Reconciliation

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings Net Diluted 2 3 Margin SG&A Earnings Before Provision for Earnings Effective EPS 3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth 2 3 3 Margin Rate SG&A Rate Earnings Rat

  19. Slide 19: GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow Second Quarter Year-to-Date (in millions) 2025 2024 2025 2024 GAAP - Cash Flow Categories Net cash provided by/(used in) operating activities $ (400) $ 1,179 $ (2,047) $ 1,707 N

  20. Slide 20: Segment Information

    Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 50,849 $ 53,202 $ 3,154 $ 3,127 $ 1,283 $ 1,135 Growth rate (4)% 12 % 1% 2% 13

  21. Slide 21: Forward Looking non-GAAP Measures

    Cardinal Health, Inc. and Subsidiaries Forward Looking non-GAAP Measures In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP me

  22. Slide 22: Definitions

    Cardinal Health, Inc. and Subsidiaries Definitions Growth rate calculation: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results. Interest and Other, net: other (income)/expense, net plus interest expens

  23. Slide 23: Definitions continued

    Cardinal Health, Inc. and Subsidiaries Definitions continued 1 LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be

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