Fri, May 9, 4:25 PM (2 days ago)
**Solventum Corporation (SOLV) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** Total net sales were $2,070 million, up 2.6% year-over-year (YoY), driven by organic growth of 4.3%. - **Profit Margins:** Gross profit was $1,114 million, down from $1,172 million in Q1 2024. Operating income decreased significantly to $152 million from $381 million in Q1 2024, largely due to higher costs associated with becoming a standalone company. - **Earnings:** Net income was $137 million, down from $237 million in Q1 2024. Earnings per share (EPS) were $0.79 basic and $0.78 diluted, compared to $1.37 basic and diluted in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $29 million, down from $442 million in Q1 2024. The decrease is primarily due to lower net income and higher operating expenses. **Segment Performance:** - **MedSurg:** Sales increased by 3.4% YoY to $1,157 million, with organic growth of 6.0%. Operating income decreased by 6.6% to $206 million. - **Dental Solutions:** Sales decreased by 2.1% YoY to $328 million, with organic growth of 0.4%. Operating income decreased by 28.6% to $78 million. - **Health Information Systems:** Sales increased by 3.6% YoY to $329 million, with organic growth of 3.9%. Operating income increased by 8.0% to $109 million. - **Purification and Filtration:** Sales decreased by 0.9% YoY to $242 million, with organic growth of 2.2%. Operating income decreased by 9.1% to $35 million. **Trends and Uncertainties:** - **Currency Impact:** The stronger U.S. dollar negatively impacted sales by 1.6%. - **Restructuring:** The Company is undergoing a restructuring program, "Solventum Way," to establish a more flexible and decentralized structure, which is expected to be completed by the end of 2025. - **Divestiture:** The Company agreed to sell its Purification and Filtration business for $4.1 billion, expected to close by the end of 2025. - **Legal Proceedings:** The Company is involved in various legal proceedings, including product liability and regulatory matters, which could impact future financial results. **Future Operations Impact:** - **Debt and Liquidity:** The Company has significant long-term debt and is focused on managing its liquidity and cash flows. - **Investments:** The Company is investing in growth, renewal, and maintenance programs, as well as environmental health services. - **Forward-Looking Statements:** The Company's forward-looking statements are subject to risks and uncertainties, including economic conditions, operational execution, regulatory environment, and competitive pressures.