Solventum Q4 2024 Earnings Report

Solventum reported steady sales growth in Q4 2024, with notable improvements in operating income and free cash flow.

Key Takeaways

Solventum delivered a solid quarter with total sales reaching $2.074 billion, marking a 1.9% increase year-over-year. GAAP diluted EPS stood at $0.17, while adjusted EPS reached $1.41. The company generated $219 million in operating cash flow and achieved $92 million in free cash flow. Organic sales growth was led by MedSurg and Dental Solutions segments.

Total sales increased 1.9% YoY to $2.074 billion.

GAAP EPS was $0.17, while adjusted EPS reached $1.41.

Operating income stood at $136 million GAAP and $422 million adjusted.

Free cash flow for the quarter was $92 million.

Total Revenue

$2.07B

EPS

$1.41

Organic Sales Growth

2.3%

Cash and Equivalents

$762M

Free Cash Flow

$92M

Total Assets

$14.5B

Solventum Revenue

Solventum EPS

Solventum Revenue by Segment

Forward Guidance

Solventum anticipates continued moderate sales growth in 2025, with stable earnings and strong free cash flow generation.

Positive Outlook

Organic sales growth expected between 1.0% and 2.0%.
Adjusted EPS projected between $5.45 and $5.65.
Free cash flow guidance set at $450M to $550M.
Continued strong performance in MedSurg and Dental Solutions.
Strategic cost management efforts to sustain margins.

Challenges Ahead

Potential impact from SKU exit reducing growth by 0.5%.
Macroeconomic headwinds could impact demand.
Operational expenses may remain elevated due to transition costs.
Uncertainty surrounding Purification & Filtration segment sale.
Currency fluctuations may impact international revenue.