Owens & Minor Reports $362.7 Million Net Loss for Fiscal Year 2024 Amid Revenue Growth

Owens & Minor, Inc. reported a net loss of $362.7 million for the fiscal year ending December 31, 2024, translating to a loss per share of $4.73, a significant decline from a loss of $41.3 million, or $0.54 per share, in the previous year. The company's financial performance was notably impacted by a $307 million goodwill impairment charge related to its Apria reporting unit, which accounted for a $3.97 negative impact per share. Additionally, the company faced a $19 million tax charge due to the remeasurement of an uncertain tax position, alongside legal settlements totaling $17 million and exit and realignment charges of $11 million.

In terms of revenue, Owens & Minor achieved a total of $10.7 billion, reflecting a 3.6% increase from $10.3 billion in 2023. The growth was driven by a 3.1% increase in the Products & Healthcare Services segment, which generated $8.0 billion, and a 5.0% increase in the Patient Direct segment, which brought in $2.7 billion. However, the Products & Healthcare Services segment's operating income decreased to $53 million from $58 million the previous year, primarily due to rising teammate benefit costs and competitive pricing pressures. Conversely, the Patient Direct segment saw an increase in operating income to $260 million from $247 million, attributed to revenue growth and cost savings from IT initiatives.

Strategically, Owens & Minor is pursuing significant changes, including the planned acquisition of Rotech Healthcare Holdings Inc. for $1.36 billion, expected to close in the first half of 2025. This acquisition is anticipated to enhance the company's Patient Direct segment, which focuses on home healthcare equipment. Additionally, the company announced on February 28, 2025, that it is exploring the potential sale of its Products & Healthcare Services segment, although no timeline has been established for this process.

Operationally, Owens & Minor employed approximately 13,500 teammates in the U.S. and 9,700 internationally as of December 31, 2024. The company serves healthcare customers in around 80 countries, with a significant portion of its revenue derived from contracts with major group purchasing organizations (GPOs) such as Vizient and Premier. The company reported a Days Sales Outstanding (DSO) of 23.3 days, an increase from 20.5 days in 2023, indicating a need for improved accounts receivable management.

Looking ahead, Owens & Minor's management expressed cautious optimism, emphasizing the importance of strategic initiatives to enhance operational efficiency and financial performance. The company aims to leverage its acquisitions and potential divestitures to optimize its business model and adapt to the evolving healthcare landscape, while also addressing the challenges posed by competitive pricing pressures and rising operational costs.