Henry Schein, the global healthcare solutions provider, started the year on steady footing, navigating foreign currency challenges and a slower January to deliver solid results and reaffirm confidence in the year ahead.
The company’s first-quarter sales held firm at around $3.2 billion, nearly unchanged from last year. While international currency shifts created a bit of drag, core business remained healthy—especially in the U.S., where demand picked up after weather disruptions slowed activity early in the quarter.
“We had a bit of a slow start to the year,” said CEO Stanley Bergman. “But February and March picked up nicely, and April has been even better. We feel good about where things are headed.”
Henry Schein’s profit for the quarter rose notably compared to last year, driven by improvements in efficiency and a stronger mix of higher-margin services. Even with modest sales growth, the company delivered higher earnings, pointing to careful cost management and a focus on more profitable parts of its business.
One of those areas is home healthcare. With more patients managing chronic conditions like diabetes from home, Henry Schein’s “Home Solutions” segment saw strong growth—up over 20% from last year. The recent acquisition of Acentus, a distributor focused on blood sugar monitoring equipment, helped fuel that performance.
“We’re really encouraged by the demand for healthcare in the home,” Bergman noted. “It’s a big shift in how care is delivered, and we’re positioning ourselves to lead in that space.”
Another bright spot was Henry Schein’s specialty products business, which includes dental implants and orthopedic tools. That group grew by over 4%, with orthopedic sales getting a boost from the recent purchase of TriMed, a company focused on foot and ankle surgical products. The company says that acquisition will be a bigger contributor in the second quarter and beyond.
While some parts of the business faced headwinds—like a dip in sales of dental equipment in the U.S.—most of the slowdown came from timing issues. Many customers made purchases late last year, pulling demand forward. Internationally, dental equipment sales rose modestly, especially in Canada and parts of Europe.
Henry Schein is also betting big on technology, especially cloud-based software that helps dental offices manage everything from patient records to insurance claims. Over 9,500 practices now use the company’s cloud platforms—a 20% jump from a year ago. The tech group’s profits surged as the company moved away from older systems and streamlined operations.
“We’re not just offering software,” Bergman explained. “We’re transforming how dental practices run—from the front desk to the exam room.”
Analysts were largely upbeat following the company’s results. “Core trends are healthy,” noted Stifel’s Jon Block. “They’re clearly investing in the right areas, and it’s paying off.”
Evercore’s Elizabeth Anderson echoed that sentiment. “Henry Schein is executing well. They’re managing costs smartly, and their outlook for the rest of the year looks solid.”
Behind the scenes, the company is also going through a quiet transformation. It’s reshaping parts of its workforce and operations to improve speed and efficiency. That effort, which started last year, is expected to save $75 to $100 million annually once it’s fully in place.
And while the company faces broader challenges—like shifting trade policies and tariffs—it’s taking steps to reduce risk by sourcing products more strategically and expanding its private-label offerings.
“We’re being thoughtful about where and how we manufacture,” Bergman said. “Our focus is on staying agile and supporting our customers.”
Looking ahead, Henry Schein expects stronger growth in the second half of the year. With new products rolling out, a more streamlined operation, and demand building in key segments, the company believes it’s on track for a solid 2025.
“We’re confident in our strategy and our team,” Bergman said. “The fundamentals of our business are strong—and getting stronger.”
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