Medline (MDLN) investor relations material

Executive summary

• Net sales reached $7.4 billion in Q1 2026, up 10.7% year-over-year, driven by strong Supply Chain Solutions performance, new customer signings, and Prime Vendor relationships, with minimal impact from pricing or FX.

• Adjusted EBITDA was $776 million, down 10.6%–11% year-over-year, reflecting higher costs, tariffs, and IPO-related expenses.

• Net income declined 25.8% to $239 million, with a net income margin of 3.3%.

• Free cash flow was $316 million, down 45.9% from the prior year.

• Continued investment in automation and AI, including Mpower, Symbotic, and Pick Pack Pro, and expansion into new markets.

Financial highlights

• Q1 net sales were $7.4 billion, up 10.7% year-over-year, with organic growth as the main driver.

• Adjusted EBITDA margin declined to 10.6% (down from 13.1%), impacted by tariffs and higher costs.

• Gross profit margin dropped to 25.0% from 27.5% due to higher import costs and lower initial margins on new customers.

• Free cash flow was $316 million; CapEx was $96 million, focused on automation and capacity expansion.

• Net leverage remained at 3.1x; cash and cash equivalents at $2.2–$2.24 billion.

Outlook and guidance

• Full-year 2026 organic sales growth guidance raised to 8.5%–9.5% (from 8%–9%) on strong Q1 performance.

• Adjusted EBITDA guidance maintained at $3.5–$3.6 billion.

• CapEx projected at ~$500 million for automation and capacity expansion.

• Management expects sequential adjusted EBITDA growth as mitigation actions take effect.

• Estimated GAAP tax rate of 17.5%–19.5%.