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Solventum Reports Financial Outcomes for Q4 2025 and Guidance for 2026

Solventum (NYSE: SOLV) has released its financial results for the fourth quarter and the entire year ending December 31, 2025. This report comes with insights into the corporate performance over the past year as well as expectations for 2026.

Q4 2025 Highlights

• - Sales Figures: Solventum reported total sales of $1.998 billion for Q4, which marks a decline of 3.7% compared to the previous year. However, on an organic basis, sales increased by 3.5%, demonstrating resilience within specific segments of the business.
• - Earnings Per Share (EPS): Diluted earnings per share stood at $0.36 for the quarter, a significant jump of 111.8% from $0.17 in Q4 2024. The adjusted diluted EPS also rose to $1.57, showing a year-over-year increase of 11.3%.
• - Cash Flow: Operating cash flow for the quarter was $96 million, with free cash flow amounting to $33 million, indicating solid liquidity.

Bryan Hanson, CEO of Solventum, commented on the quarter's results, stating, "Our fourth quarter performance reflects a commitment to our strategies, resulting in 2025 figures exceeding our expectations for sales and EPS. Continued progress on our transformation journey is paving the way to meet our long-term objectives."

Full-Year Financial Results for 2025

The year 2025 highlighted mixed results:

• - Total Sales: Annual net sales reached $8.325 billion, up by 0.9% year-over-year.
• - Income and Expenses: The increase in sales was paired with higher selling, general, and administrative expenses, which rose by 10.7% to $3.08 billion. However, research and development costs decreased by 4.6% during the same period.
• - Net Income: Solventum reported net income of $1.556 billion for 2025, marking a substantial increase of 224.8% compared to the previous year.

Segment Performances

In terms of segment performance during Q4 2025:

• - Advanced Wound Care: Sales peaked at $483 million, showing a 3.8% increase from the previous year.
• - Infection Prevention and Surgical Solutions: This segment delivered robust sales of $752 million, a 6.2% increase, underscoring the pivotal role these products have in healthcare.
• - Dental Solutions: Posting a remarkable growth of 8.6%, up to $343 million.
• - MedSurg: Contributed $1.235 billion reflecting robust growth.

Looking Ahead: 2026 Guidance

For physical year 2026, Solventum aims for:

• - Organic Sales Growth: Projecting a growth range of 2.0% to 3.0%, with an optimistic outlook of 3.0% to 4.0% when excluding SKU exit impacts.
• - Adjusted EPS: Forecasted between $6.40 to $6.60 for the year.
• - Free Cash Flow: Expected to hover around $200 million, suggesting a focus on maintaining liquidity and investment capacity.

Other Information

Investors eager to discuss these results can tune into Solventum's earnings conference call, occurring today at 4:30 p.m. Eastern Time. The call can be accessed through audio webcast on their investor relations website or by telephoning designated numbers for participants inside and outside of the U.S.

The announced figures signal Solventum's strategic maneuvers enabling a positive outlook despite external market pressures. The company is committed to sustaining its growth trajectory while navigating challenges effectively. These efforts demonstrate its commitment to innovation in healthcare, paving the way for future developments.