Henry Schein Boosts 2025 EPS Guidance to $4.88–4.96, Repurchases $161M Stock
Henry Schein raised its 2025 adjusted EPS guidance to $4.88–4.96 after reporting Q3 sales of $3.34 billion and Q1 net sales of $3.2 billion, supported by specialty product growth. The company repurchased 2.3 million shares for $161 million as net margins slid to 3.1% from 4.5% in 2015.
1. Q3 Sales and EPS Guidance Revision
Henry Schein reported Q3 2025 sales of $3.34 billion with profit per share exceeding consensus, prompting an upward revision of its full-year adjusted EPS guidance to $4.88–4.96 and projecting 2–4% sales growth alongside mid-single-digit EBITDA expansion.
2. Q1 Sales Growth and Share Repurchases
In Q1 2025, net sales reached $3.2 billion, driven by specialty products and technology offerings despite modest declines in dental equipment, and the company repurchased 2.3 million shares for $161 million as part of its capital allocation strategy.
3. Margin Compression and Governance Shift
Operating and net margins have declined over the past decade, with net margin sliding from roughly 4.5–4.9% in 2015 to 3.1% in 2024 and operating margin falling from about 7% to the mid-5% range, while KKR’s new board representation signals intensified governance oversight and value-creation initiatives.
4. Capital Efficiency and Cash Flow Improvement
Inventory turnover recovered to 5.0x in 2024 after pandemic-related dips, accounts receivable days stood at 47.3, and operating cash flow rose to $848 million from $500 million in 2023, reflecting stabilization of the cash conversion cycle.