Overview
- Avanos reported 2025 net sales of $701 million and adjusted diluted EPS of $0.94, with Q4 delivering about $181 million in revenue, $0.29 in adjusted EPS, and $28 million in adjusted EBITDA.
- For 2026, the company guides to $700–720 million in sales and $0.90–1.10 in adjusted diluted EPS, and management expects gross margin improvement to resume in the second half as tariff timing eases.
- Tariffs are projected to impact 2026 P&L by roughly $30 million, an increase of about $12 million versus 2025, with approximately two-thirds linked to China.
- Avanos plans to exit China syringe sourcing by June 2026, shifting production to Mexico and Cambodia and using USMCA and Nairobi exemptions, with $25 million in capital spending to support the move.
- Specialty Nutrition Systems grew more than 8% organically in 2025 and Pain Management RFA posted double-digit growth, while the Nexus neonatal acquisition added $5 million and is expected to grow at a double-digit rate in 2026.