Henry Schein Reports Second Quarter 2025 Financial Results

• Second-quarter 2025 GAAP diluted EPS of $0.70, compared to $0.80 GAAP diluted EPS in the second quarter of 2024
• Second-quarter 2025 non-GAAP diluted EPS of $1.10, compared to $1.23 non-GAAP diluted EPS in the second quarter of 2024
• Maintains guidance for 2025 non-GAAP diluted EPS of $4.80 to $4.94, mid-single digit 2025 Adjusted EBITDA growth, and sales growth of 2% to 4%
• Takes next steps in collaboration with KKR to pursue additional opportunities to create shareholder value

Henry Schein, the world’s largest provider of health care solutions to office-based dental and medical practitioners, today reported financial results for the second quarter ended June 28, 2025.

“We had good sales growth in our Global Distribution Group this quarter while experiencing lower margins in the U.S. versus the prior year primarily resulting from lower glove pricing as well as time-limited targeted sales initiatives. We are pleased with the results from these initiatives and have returned to normal levels of promotional activity. Our Specialty Products and Technology Groups continued to deliver strong results, driven primarily by sales from innovative products and solutions, and cost efficiencies,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “Our full-year guidance, which we are maintaining, continues to reflect earnings weighted to the second half of the year. We expect 2025 to be the base year from which to grow and achieve our previously provided long-term goal of high-single digit to low-double digit earnings growth.”

“Partnering with KKR Capstone, we have engaged two leading global management consulting firms to support our efforts to enhance distribution gross margins, including accelerating sales of our owned-products portfolio, and to support our ongoing company-wide initiatives to increase efficiencies. We expect these projects, which expand on our BOLD+1 strategy, to start producing results towards the beginning of 2026, and will support our ongoing initiatives to drive superior customer satisfaction and our financial goal of high-single digit to low-double digit earnings growth,” Mr. Bergman added.

Second Quarter 2025 Financial Results

• Total net sales for the quarter were $3.2 billion. As-reported total net sales increased 3.3% and reflects 1.9% internal sales growth, 0.8% sales growth from acquisitions, and a 0.6% sales increase resulting from foreign currency exchange. Second-quarter sales growth is detailed in Exhibit A¹.
• Global Distribution and Value-Added Services sales for the quarter increased 2.9%, and by 2.4% in constant currencies compared with the second quarter of 2024. The main components include:
  • Global Dental Distribution merchandise sales for the quarter increased 0.3% and decreased 0.4% in constant currencies compared with the second quarter of 2024. U.S. volume increased at lower average selling prices compared with the second quarter of 2024, partly due to glove pricing and time-limited targeted sales initiatives. International sales were impacted by the timing of Easter.
  • Global Dental Distribution equipment sales for the quarter increased 3.0%, and by 1.6% in constant currencies compared with the second quarter of 2024. Sales growth was strong internationally and offset by lower sales in the U.S., resulting from a slow-down in orders beginning in May due to short-term economic uncertainty resulting from tariffs, which then returned to normal by the end of the quarter.
  • Global Medical Distribution sales for the quarter increased 6.1%, and by 6.0% in constant currencies compared with the second quarter of 2024, reflecting increased patient traffic to physician offices, strong growth in our home solutions business, and growth from acquisitions.
  • Global Value-added Services sales for the quarter increased 3.6%, and by 3.7% in constant currencies compared with the second quarter of 2024. Sales growth was impacted this quarter by lower sales in our practice transitions business as a result of a high prior year comparable.
• Global Specialty Products sales for the quarter increased 4.2%, and by 3.3% in constant currencies compared with the second quarter of 2024, reflecting continued growth in implant and biomaterial sales as well as endodontic consumables, offset in part by lower orthodontic sales.
• Global Technology sales for the quarter increased 7.4%, and by 6.6% in constant currencies compared with the second quarter of 2024, reflecting strong sales growth in practice management systems, including Dentrix Ascend and Dentally cloud-based solutions, as well as in revenue cycle management products.

• GAAP net income² for the quarter was $86 million, or $0.70 per diluted share⁴, and compares with second-quarter 2024 GAAP net income of $104 million, or $0.80 per diluted share.
• Non-GAAP net income² for the quarter was $135 million, or $1.10 per diluted share⁴, and compares with second-quarter 2024 non-GAAP net income of $158 million, or $1.23 per diluted share.
• Adjusted EBITDA³ for the quarter was $256 million and compares with second-quarter 2024 Adjusted EBITDA of $268 million.

Year-to-Date Financial Results

• Total net sales for the first half of 2025 were $6.4 billion. As-reported total net sales for the first half of 2025 increased 1.6% and reflects 1.1% internal sales growth, 1.0% sales growth from acquisitions, and a 0.5% sales decrease resulting from foreign currency exchange. Year-to-date sales growth is detailed in Exhibit A¹.
• GAAP net income² for the first half of the year was $196 million, or $1.58 per diluted share⁴, and compares with first half of 2024 GAAP net income of $197 million, or $1.52 per diluted share.
• Non-GAAP net income² for the first half of the year was $278 million, or $2.25 per diluted share⁴, and compares with first half 2024 non-GAAP net income of $301 million, or $2.33 per diluted share.
• Adjusted EBITDA³ for the first half of 2025 was $515 million, and compares with first half 2024 Adjusted EBITDA of $523 million.

Restructuring Plan

During the second quarter of 2025, the Company recorded $23 million in restructuring costs and expects to achieve annual run-rate savings of over $100 million by the end of 2025, which is when the current plan is expected to have been completed.

Share Repurchases

During the second quarter of 2025, the Company repurchased approximately 3.7 million shares of common stock at an average price of $70.88 per share for a total of $259 million.

This included approximately 3.1 million shares of its common stock under its previously announced Accelerated Stock Repurchase plan (ASR) at an average price of $71.60 per share, for a total of $223 million, which followed the Company’s sale of 3.3 million shares of common stock at an average price of $76.10 per share for a total of $250 million, to KKR. The ASR plan was completed in July.

In addition, the Company repurchased approximately 0.5 million shares of common stock at an average price of $67.36 per share, for a total of $36 million. The impact of these share repurchases on second-quarter diluted EPS was immaterial.

At the end of the quarter, Henry Schein had $432 million authorized and available for future stock repurchases, plus a further $27 million authorized under the ASR.

2025 Financial Guidance

Henry Schein today maintained its financial guidance for 2025. Guidance is for current continuing operations as well as acquisitions that have closed and does not include the impact of restructuring expenses, amortization expense of acquired intangible assets, the insurance claim recovery associated with the cybersecurity incident, changes in contingent consideration, costs associated with shareholder advisory matters and select value creation consulting costs, and litigation settlements. This guidance also assumes that foreign currency exchange rates will remain generally consistent with current levels, that the effects of tariffs can be mitigated, and includes expected remeasurement gains related to the purchase of controlling interests of previously held non-controlling equity investments, consistent with business strategy.

• 2025 non-GAAP diluted EPS attributable to Henry Schein, Inc. is maintained at $4.80 to $4.94, reflecting growth of 1% to 4%.
• 2025 total sales growth is unchanged and is expected to be approximately 2% to 4% over 2024.
• 2025 Adjusted EBITDA³ growth is unchanged and is expected to increase mid-single digits compared with 2024.

Adjustments to 2025 GAAP Net Income and Diluted EPS

The Company is providing guidance for 2025 diluted EPS on a non-GAAP basis and for 2025 Adjusted EBITDA, as noted above. The Company is not providing a reconciliation of its 2025 non-GAAP diluted EPS guidance to its projected 2025 diluted EPS prepared on a GAAP basis, or its 2025 Adjusted EBITDA guidance to net income prepared on a GAAP basis. This is because the Company is unable to provide without unreasonable effort an estimate of restructuring costs related to an ongoing initiative to drive operating efficiencies, including the corresponding tax effect, which will be included in the Company’s 2025 diluted EPS and net income, prepared on a GAAP basis. The inability to provide this reconciliation is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related costs.

Management does not believe these items are representative of the Company’s underlying business performance. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Second-Quarter 2025 Conference Call Webcast

The Company will hold a conference call to discuss second-quarter 2025 financial results today, beginning at 8:00 a.m. Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website by visiting https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call has ended for a period of one week.

The Company will be posting slides that provide a summary of its second-quarter 2025 financial results on its website at https://www.henryschein.com/us-en/Corporate/investor-presentations.aspx.

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