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Home » Distribution Industry News » Henry Schein Sees Lower Profits in Q2 but Sticks to Full-Year Outlook

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  • Published on: August 5, 2025

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  • Picture of Distribution Strategy Group Distribution Strategy Group

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Henry Schein Sees Lower Profits in Q2 but Sticks to Full-Year Outlook

Henry Schein’s profit fell in the second quarter as lower pricing and ongoing restructuring expenses weighed on the health care distributor’s bottom line. Still, the company says it’s on track for a stronger second half and reaffirmed its full-year forecast.

For the quarter ending June 29, Henry Schein earned $86 million, down 17% from $104 million a year earlier. Sales for the quarter rose 3.3% to $3.24 billion, up from $3.14 billion in the second quarter of 2024.

For the first half of 2025, net income dropped 8% to $281 million from $305 million during the same period last year. Sales rose 1.6% year over year, reaching $6.4 billion compared to $6.3 billion a year ago.

CEO Stanley Bergman said the company continues to see solid demand in its global distribution business, with strength in medical sales to ambulatory surgical centers, physician offices, and other alternate care sites. However, he noted that margins in the U.S. remain under pressure due to lower pricing on gloves and other infection prevention products. Promotional activity in U.S. dental sales has also impacted results, although Bergman said that environment has now normalized.

One bright spot was the company’s cloud-based technology services, which continued to grow steadily as more dental offices adopt modern practice management platforms.

The company is also pressing ahead with a broad efficiency initiative launched earlier this year in partnership with investment firm KKR. That work includes engaging two global consulting firms to help cut costs, improve distribution margins, and grow sales of the company’s private-label products. Schein said it expects to realize over $100 million in annual savings from the program by the end of 2025, with most of the benefits showing up in early 2026.

Bergman described 2025 as a “baseline year” as the company builds toward stronger profit growth starting next year. The company expects earnings to grow in the high-single to low-double-digit range in future years once its operational changes are in place.

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