Specialty Nutrition Systems Segment Growth
The SNS segment showed strong performance with each business delivering double-digit and above-market growth. Specifically, organic sales were up 10% compared to a year ago.
Successful Divestiture and Acquisition
Avanos divested its hyaluronic acid business and acquired Nexus Medical, expanding its presence in neonatal and pediatric settings. The acquisition is expected to be immediately accretive to both revenue growth and earnings per share.
Improved Financial Metrics
Net sales reached approximately $178 million with an adjusted EBITDA of $20 million, an adjusted gross margin of 52.8%, and adjusted SG&A as a percentage of revenue of 40.6%.
Cost Improvement Initiatives
Avanos anticipates delivering $15 million to $20 million of run rate annualized incremental cost savings by the end of 2026.
Raised Full-Year Financial Guidance
Avanos raised and narrowed its full-year revenue estimates to $690 million to $700 million and adjusted EPS estimate to $0.85 to $0.95 per share.