Henry Schein Reports Strong First Quarter 2025 Financial Results, Reaffirms Full-Year Guidance
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of healthcare solutions for office-based dental and medical practitioners, has announced its financial results for the first quarter ended March 29, 2025. Despite continued macroeconomic pressures and foreign currency headwinds, the company delivered solid performance and reaffirmed confidence in its long-term strategic growth plan.
Leadership Perspective and Strategic Direction
Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein, highlighted the company’s forward momentum and strategic clarity. “We are pleased with our first quarter financial results as well as the momentum we are seeing heading into the second quarter and remain confident in the fundamentals of our business,” he said.
He emphasized that Henry Schein is making measurable progress on its refreshed BOLD+1 Strategic Plan for 2025–2027, which serves as the blueprint for driving sustainable growth across its portfolio. The company’s strategic pillars focus on enhancing operational efficiency, improving customer experience, expanding specialty and branded product lines, and advancing its digital ecosystem.
“Our team remains focused on growing the distribution business, scaling our dental and medical specialty segments, and leveraging our digital and technological capabilities,” Bergman added. “We are committed to achieving high-single-digit to low-double-digit earnings growth over the long term through the successful execution of this strategy.”
Q1 2025 Financial Highlights
Henry Schein reported total net sales of $3.2 billion for the first quarter of 2025. While as-reported sales declined slightly by 0.1% due to foreign currency fluctuations, performance in constant currencies tells a more positive story:
- Total net sales in constant currency increased by 1.4% year-over-year, and by 2.0% when excluding sales of personal protective equipment (PPE) and COVID-19 test kits.
Sales performance was driven by gains in key business segments, including medical distribution, specialty products, and technology platforms, offset slightly by soft dental equipment sales due to tough year-over-year comparisons.
Segment Performance Overview
Global Distribution and Value-Added Services
This core segment saw a 0.8% increase in constant currency sales, and a 1.5% increase excluding PPE and COVID-related products. As-reported sales declined 0.7%.
- Global Dental Distribution Merchandise
Merchandise sales grew 0.4% in constant currency and 0.9% excluding pandemic-related products. While January sales were impacted by adverse weather conditions across the U.S., demand recovered in February and March, resulting in improving monthly trends. As-reported sales fell 2.1%. - Global Dental Equipment Sales
Equipment sales decreased 2.4% in constant currency and 4.5% as reported. The decline was largely attributed to a difficult year-over-year comparison due to the shift of some Q4 2023 sales into Q1 2024. On a normalized basis, sales were approximately flat. - Global Medical Distribution
Sales increased 3.0% in constant currencies and 4.4% when adjusted for PPE and COVID products. This strong performance was driven by higher patient traffic to physician offices, growth in the home health solutions business, and contributions from recent acquisitions. As-reported sales grew 2.9%.
Global Specialty Products
Specialty products, which include dental implants and biomaterials, reported a 4.3% increase in constant currency. As-reported growth stood at 2.0%, supported by continued demand and contributions from acquired businesses.
Global Technology and Value-Added Services
The technology segment delivered 3.4% constant currency growth and 2.9% as-reported growth, benefiting from strong sales of cloud-based practice management systems such as Dentrix Ascend and Dentally. Revenue cycle management solutions also performed well. These gains were partially offset by the planned phase-out of legacy software products.
A detailed breakdown of quarterly sales performance is included in Exhibit A1 of the company’s earnings report.
Profitability Metrics
Henry Schein’s bottom line remained strong during the quarter:
- GAAP net income was $110 million, or $0.88 per diluted share, compared to $93 million, or $0.72 per share, in Q1 2024.
- Non-GAAP net income held steady at $143 million, or $1.15 per diluted share, in line with the prior year’s $143 million, or $1.10 per share.
- Adjusted EBITDA reached $259 million, up from $255 million in Q1 2024.
The company’s stable profitability underscores effective cost control and disciplined execution amidst mixed revenue growth.
Restructuring Initiatives
During Q1 2025, Henry Schein incurred $25 million in restructuring charges related to an ongoing cost optimization initiative. The company anticipates achieving annual run-rate savings at the upper end of its $75 million to $100 million target range by the end of 2025. These efforts are focused on improving operational efficiency across logistics, administrative, and support functions globally.
Share Repurchase Program
The company continues to return capital to shareholders through its robust share buyback program. In the first quarter of 2025:
- 2.3 million shares were repurchased at an average price of $71.58, totaling $161 million.
- The impact of share repurchases on Q1 earnings per share was immaterial.
- As of March 29, 2025, Henry Schein had $718 million of authorized repurchase capacity remaining.
Guidance
Henry Schein reaffirmed its full-year financial guidance for 2025, reflecting management’s confidence in the company’s underlying business performance and growth trajectory.
- Non-GAAP diluted EPS is expected to range between $4.80 and $4.94, representing 1% to 4% growth over FY 2024 non-GAAP EPS of $4.74.
- Total sales growth is projected to be in the range of 2% to 4%, consistent with previous expectations.
- Adjusted EBITDA is anticipated to grow in the mid-single-digit range versus 2024.
The guidance assumes no significant changes in foreign exchange rates and does not factor in potential new tariffs. It excludes restructuring and integration expenses, intangible amortization, cybersecurity insurance recoveries, and shareholder advisory costs.
Limitations on GAAP Reconciliation
Henry Schein noted that it is not providing a reconciliation of 2025 non-GAAP guidance to GAAP measures due to the difficulty of estimating restructuring costs and other one-time items. These adjustments, including tax implications, are not yet quantifiable and could materially affect GAAP results.
Management believes these non-GAAP metrics better reflect the company’s core operating performance and are more useful for investors assessing long-term trends.
Henry Schein enters the second quarter of 2025 with renewed strategic clarity and operational discipline. The company continues to invest in expanding its digital capabilities, enhancing customer-centric solutions, and growing both organically and through targeted acquisitions.
With its global scale, diversified revenue streams, and proven management team, Henry Schein remains well-positioned to drive value creation in the healthcare distribution and solutions marketplace.
