Avanos Medical 2025 Sales Climb 1.9% to $701M, Plans $20M Cost Savings
Avanos Medical’s net sales rose 1.9% to $701.2 million for 2025, with adjusted operating profit of $67.1 million and net debt falling to $10.7 million. Q4 organic growth included an 8.7% increase in Specialty Nutrition Systems segment to $115.1 million, and transformation initiatives target $15–20 million annual savings by year-end 2026.
1. Full-Year 2025 Financial Results
Avanos Medical reported net sales of $701.2 million for full-year 2025, up 1.9% year-over-year. Adjusted operating profit reached $67.1 million, adjusted EBITDA was $86.8 million, and free cash flow totaled $43.1 million. The company narrowed its net loss to $72.9 million and reduced net debt to $10.7 million.
2. Fourth Quarter Performance
In Q4 2025, net sales were $180.9 million, a 0.7% increase from Q4 2024. Operating income turned positive at $2.5 million versus a prior-year loss, while adjusted operating income was $22.6 million and adjusted diluted EPS was $0.29. Free cash flow for the quarter was $21.3 million.
3. Segment Highlights
The Specialty Nutrition Systems segment generated $115.1 million in Q4 sales, up 8.7%, with operating income of $20.5 million (17.8% margin). The Pain Management and Recovery segment posted Q4 sales of $61.6 million, up 1.3%, and operating income of $5.2 million.
4. Transformation Initiatives and 2026 Outlook
Avanos expanded transformation initiatives expected to deliver $15–20 million of incremental annualized savings by end of 2026 and is seeing tariff mitigation benefits. For 2026, the company forecasts net sales of $700–720 million and adjusted diluted EPS of $0.90–1.10.