Medline Q2 profit sinks on Tracy fire-related charges

Medline

05/08/2026 12:42

Overview
U.S. med-surg products provider's Q2 net sales rose 11.6% yr/yr to $7.7 bln
Q2 net income fell 58.3% yr/yr, impacted by Tracy distribution center fire losses
Adjusted EBITDA for Q2 rose 13.4% yr/yr, aided by tariff refund benefits

Outlook
Medline raises 2026 organic sales growth outlook to 9.0%-10.0% from 8.5%-9.5%
Company lowers 2026 adjusted EBITDA forecast to $3.3-$3.4 bln from $3.5-$3.6 bln
Medline says 2026 organic sales outlook includes IEEPA tariff repayments; EBITDA outlook excludes IEEPA tariff refunds

Result Drivers
CUSTOMER GROWTH - Co said Q2 sales growth was driven by existing customer expansion and new customer signings
TRACY FIRE LOSSES - Co said Q2 net income decline was mainly due to $336 mln losses from fire at Tracy, California distribution center
TARIFF REFUND BENEFITS - Co said Q2 Adjusted EBITDA was aided by $243 mln net IEEPA tariff refund benefits

Company press release: ID:nGNX75BjQx

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$7.69 bln
 
Q2 Net Income
 
$139 mln
 
Q2 Gross Profit
 
$2.22 bln
 
Q2 Operating Expenses
 
$1.82 bln
 
Q2 Operating Income
 
$395 mln
 
Q2 Pretax Profit
 
$235 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Medline Inc. is $52.00, about 23.7% above its August 4 closing price of $42.04

Reuters Recommended Reads
Aug 5 - CVS Health Q2 revenue beats estimates, outlook raised
Aug 4 - Weyco Q2 net earnings surge on tariff refunds
Aug 3 - KKR to take medical-equipment maker Integer Holdings private in $5.7 billion deal

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)