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ST. PAUL, Minn. - Solventum Corporation (NYSE:SOLV) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down 2% in after-hours trading. The healthcare technology and solutions company posted adjusted earnings per share of $1.41, missing the consensus estimate of $1.50.
Revenue for the quarter came in at $2.07 billion, up 1.9% from $2.04 billion in the same period last year. Organic sales growth was 2.3%, driven primarily by the MedSurg and Dental Solutions segments.
"Solventum executed another quarter of solid performance, enabling us to deliver full year 2024 at the high end of our expectations," said Bryan Hanson, CEO of Solventum.
The company’s operating income margin declined in Q4 due to lower gross margins, including the impact from a 3M supply agreement mark-up, and increased operating expenses related to public company stand-up costs and growth investments.
For the full year 2025, Solventum forecasts organic sales growth of 1.0% to 2.0% and adjusted EPS of $5.45 to $5.65. The midpoint of the EPS guidance range is slightly above the current analyst consensus of $5.49.
"We’re successfully executing across all elements and phases of the 3-phased transformation plan we laid out at our 2024 Investor Day," Hanson added. "We look forward to introducing our long-term strategic plan and financial targets to drive sustainable long-term growth and value creation at our upcoming 2025 Investor Day next month."
Solventum generated $219 million in cash from operations and $92 million in free cash flow during the fourth quarter. The company expects free cash flow of $450 million to $550 million for the full year 2025.
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