Avanos delivered a solid fourth quarter with net sales of $180.9 million and a significant improvement in operating income compared to the prior year's impairment-driven loss. While the company reported a small GAAP net loss, adjusted metrics showed resilience, particularly in the Specialty Nutrition segment which grew 8.7%. The company also provided 2026 guidance reflecting continued transformation and cost management efforts.
Specialty Nutrition Systems (SNS) segment grew 8.7% in Q4, driven by strong performance in enteral feeding and neonate solutions.
Operating income improved to $2.5 million from a $418.5 million loss in the prior year, which was impacted by a massive goodwill impairment.
Transformation initiatives are expanded and expected to deliver $15 to $20 million in incremental annualized savings by the end of 2026.
The company successfully divested its HA product line in July 2025 as part of its strategic focus on core segments.
Avanos expects 2026 net sales between $700 million and $720 million with adjusted diluted EPS between $0.90 and $1.10.
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