Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Q2 2025 Earnings Presentation
26 slides from Avanos Medical's earnings presentation, Aug 5, 2025
Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation August 5, 2025 Getting patients back to the things that matter.
Slide 2: Business Progress, Q2 Results & 2025 Planning Assumptions, Q&A
Dave Pacitti Jason Pickett Scott Galovan Chief Executive Officer Interim Chief Financial Officer* SVP, Chief Financial Officer Business Progress Q2 Results & 2025 Q&A Against 2025 Priorities Planning Assumptions * Effective August 1, 2025, Jason Pickett reassumed the position of VP, Corporate Financ
Slide 3: Disclaimer Regarding Forward-Looking Statements
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS Certain matters in this presentation, including expectations and planning assumptions, any comments about our expected performance, and any estimates, projections, or statements relating to our business plans, objectives, acquisitions and transformatio
Slide 4: Reflections on Performance
Reflections on Performance • Strong second quarter building momentum for back half of the year • Assessing additional cost opportunities and optimization initiatives to extend the Transformation journey benefits • Divestiture of our Hyaluronic Acid product line; enhances focus on our two strategic s
Slide 5: 2Q25 Financial Highlights
2Q25 Financial Highlights Net Sales Adjusted EBITDA Adjusted EPS Millions Millions $175 $0.34 $172 $27 $17 2% $0.17 organic growth 10% margin Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Numbers include rounding 5
Slide 6: Specialty Nutrition Systems Growing 5%
Specialty Nutrition Systems Growing 5% Net Sales Operating Profit Millions Millions $103 $22 $98 $18 5.0% organic 18% growth margin Q2 2024 Q2 2025 Q2 2024 Q2 2025 • Continued above-market growth • Higher sales volumes offset by unfavorable tariff impacts and lower transient cost • #1 position in lo
Slide 7: Pain Management & Recovery Growing 3%+
Pain Management & Recovery Growing 3%+ Net Sales Operating Profit * Millions Millions $59 $61 $2 $0 3.4% Q2 2024 Q2 2025 organic growth Q2 2024 Q2 2025 • Double-digit growth in our RFA business • Operating Profit expansion through topline growth and cost management execution • Surgical Pain in line
Slide 8: Maintaining Strong Financial Position
Maintaining Strong Financial Position • Healthy balance sheet provides $ in millions 12/31/24 6/30/25 strategic capital investment flexibility Cash $108 $90 • Capital expense deployment to Term Debt (110) (105) support key supply chain initiatives Revolver (25) - • Continuing to pursue active M&A Ne
Slide 9: 2025 Outlook in Dynamic Environment
2025 Outlook in Dynamic Environment Inclusive of Hyaluronic Acid Divestiture Impact Sales Re-affirming guidance of $665 million to $685 million Adjusted Diluted Maintaining estimate of $0.75 to $0.95 EPS 9
Slide 10: Thank You
Thank You
Slide 11: Appendices
APPENDICES Segments Non-GAAP Reconciliations
Slide 12: Segments
SEGMENTS In millions Segment Income 2024 2025 Q1 Q2 Q3 Q4 Total Q1 Q2 Total Specialty Nutrition Systems: Enteral feeding $ 70.0 $ 72.7 $ 72.0 $ 75.0 $ 289.7 $ 74.5 $ 74.5 $ 149.0 Neonate solutions 24.6 25.0 26.2 30.8 106.6 26.6 28.2 54.8 Total Specialty Nutrition Systems 94.6 97.7 98.2 105.8 396.3 1
Slide 13: Non-GAAP Reconciliations: Gross Profit (Three Months)
NON-GAAP RECONCILIATIONS In millions Gross Profit Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ 92.1 $ 95.6 $ (2.0) $ 93.6 Acquisition and integration-related charges — 0.1 — 0.1 Restructuring and transformation ch
Slide 14: Non-GAAP Reconciliations: Gross Profit (Six Months)
NON-GAAP RECONCILIATIONS In millions Gross Profit Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total As reported $ 181.9 $ 190.4 $ (1.0) $ 189.4 Acquisition and integration-related charges — 0.1 — 0.1 Restructuring and transformation cha
Slide 15: Non-GAAP Reconciliations: Operating Income (Three Months)
NON-GAAP RECONCILIATIONS In millions Operating Income (Loss) Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ (74.5) $ 6.3 $ (3.4) $ 2.9 Acquisition and integration-related charges — 2.2 — 2.2 Restructuring and transf
Slide 16: Non-GAAP Reconciliations: Operating Income (Six Months)
NON-GAAP RECONCILIATIONS In millions Operating Income (Loss) Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total As reported $ (64.2) $ 10.3 $ (5.3) $ 5.0 Acquisition and integration-related charges — 2.5 — 2.5 Restructuring and transform
Slide 17: Non-GAAP Reconciliations: Income Before Taxes (Three Months)
NON-GAAP RECONCILIATIONS In millions Income (Loss) Before Taxes Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ (75.9) $ 6.2 $ (3.4) $ 2.8 Acquisition and integration-related charges — 2.2 — 2.2 Restructuring and tra
Slide 18: Non-GAAP Reconciliations: Income Before Taxes (Six Months)
NON-GAAP RECONCILIATIONS In millions Income (Loss) Before Taxes Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total As reported $ (66.2) $ 7.7 $ (5.3) $ 2.4 Acquisition and integration-related charges — 2.5 — 2.5 Restructuring and transfo
Slide 19: Non-GAAP Reconciliations: Tax Provision
NON-GAAP RECONCILIATIONS In millions Tax (Provision) Benefit Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ (0.9) $ (1.9) $ 0.9 $ (1.0) Tax effects of adjusting items (2.0) (4.0) — (4.0) As adjusted non-GAAP $ (2.9)
Slide 20: Non-GAAP Reconciliations: Net Income (Three Months)
NON-GAAP RECONCILIATIONS In millions Net Income (Loss) Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ (76.8) $ 4.3 $ (2.5) $ 1.8 Acquisition and integration-related charges — 2.2 — 2.2 Restructuring and transformati
Slide 21: Non-GAAP Reconciliations: Net Income (Six Months)
NON-GAAP RECONCILIATIONS In millions Net Income (Loss) Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total As reported $ (70.2) $ 4.8 $ (3.9) $ 0.9 Acquisition and integration-related charges — 2.5 — 2.5 Restructuring and transformation c
Slide 22: Non-GAAP Reconciliations: SG&A (Three Months)
NON-GAAP RECONCILIATIONS I n m i l l i o n s (except per-share amounts) Selling, General and Administrative Expense Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total As reported $ 83.5 $ 80.9 $ — $ 80.9 Acquisition and integration-r
Slide 23: Non-GAAP Reconciliations: SG&A (Six Months)
NON-GAAP RECONCILIATIONS In millions Selling, General and Administrative Expense Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total As reported $ 159.2 $ 164.5 $ — $ 164.5 Acquisition and integration-related charges — (0.6) — (0.6) Restr
Slide 24: Non-GAAP Reconciliations: EBITDA (Three Months)
NON-GAAP RECONCILIATIONS In millions EBITDA Three Months Three Months Ended June 30, 2024 Ended June 30, Continuing Discontinued 2025 Operations Operations Total Net income (loss) $ (76.8) $ 4.3 $ (2.5) $ 1.8 Interest expense, net 1.4 0.1 — 0.1 Income tax provision (benefit) 0.9 1.9 (0.9) 1.0 Deprec
Slide 25: Non-GAAP Reconciliations: EBITDA (Six Months)
NON-GAAP RECONCILIATIONS In millions EBITDA Six Months Ended June 30, 2024 Six Months Ended Continuing Discontinued June 30, 2025 Operations Operations Total Net income (loss) $ (70.2) $ 4.8 $ (3.9) $ 0.9 Interest expense, net 2.0 2.6 — 2.6 Income tax provision (benefit) 4.0 2.9 (1.4) 1.5 Depreciati
Slide 26: Non-GAAP Reconciliations: Free Cash Flow and 2025 Outlook
NON-GAAP RECONCILIATIONS In millions Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash provided by operating activities $ 6.8 $ 27.8 $ 32.5 $ 19.8 Capital expenditures (11.0) (5.9) (17.7) (10.0) Free Cash Flow $ (4.2) $ 21.9 $ 14.8 $ 9.8 2025 Outlook Estimated Range Dilu