Medline Inc. is a global manufacturer of medical and surgical products, catering to a broad spectrum of healthcare providers. Their clientele includes ...
Medline Inc., headquartered in Northfield, Illinois, is a leading healthcare company that manufactures and distributes medical-surgical products and provides supply chain solutions. Founded in 1966 by brothers Jim and Jon Mills, the company has grown to become the largest provider of medical-surgical products in the United States, with over 45,000 ...Medline Inc., headquartered in Northfield, Illinois, is a leading healthcare company that manufactures and distributes medical-surgical products and provides supply chain solutions. Founded in 1966 by brothers Jim and Jon Mills, the company has grown to become the largest provider of medical-surgical products in the United States, with over 45,000 employees worldwide and $28.4 billion in revenue in 2025. Medline operates through two primary divisions: the Medline Brand and Supply Chain Solutions. The Medline Brand division produces proprietary products across three categories: Frontline Care (including wound care, gloves, sanitation supplies, and durable medical equipment), Surgical Solutions (including procedure trays, drapes, gowns, and orthopedic implants), and Laboratory and Diagnostics (including point-of-care testing and diagnostic equipment). The Supply Chain Solutions segment sources and distributes third-party products, offering logistics and optimization services such as consulting, warehouse management, and inventory rationalization. The company serves hospitals, surgical centers, physician practices, and post-acute care facilities both domestically and internationally. Financially, Medline reported a net income margin of 3.3% and a debt-to-equity ratio of 1.12, indicating moderate leverage. The company was private until its IPO in December 2025, and is led by CEO James Boyle and Chairman Charlie Mills. With a focus on improving clinical, financial, and operational outcomes, Medline continues to expand its product lines and supply chain capabilities to support healthcare providers globally.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$28.4B
+11.5%
+4.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.2B
-3.4%
-53.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+26.4%
+7.2%
+27.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.8%
-10.8%
-10.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.1%
-13.4%
-55.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.3B
-7.7%
+91.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.6%
-17.2%
+82.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
117.0%
+14.4%
-2.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
4.29x
+26.5%
-1.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and thank you for standing by. Welcome to Medline Second Quarter 2026 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like to now hand the conference over to your first speaker today, Karen King.
Karen King: Welcome to Medline's Second Quarter and Half Year 2026 Earnings Conference Call. This morning, we issued our earnings release and shared supplemental materials. Joining me on today's call are Jim Boyle, our Chief Executive Officer; and Mike Drazin, our Chief Financial Officer. During today's call, we may make forward-looking statements regarding our expectations for the future including our business plans, strategy and investments and expected timing and impact. These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in our earnings release, which accompany these remarks as well as our most recent 10-K and other SEC filings for more information regarding these risks and uncertainties. We may also reference non-GAAP financial measures, which exclude certain items from our financial results calculated in accordance with GAAP. You can find a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP measures in the earnings release and the disclosures and non-GAAP reconciliations that accompany these remarks, which are available on our website at ir.medline.com under Quarterly Results. With that, I will now turn the call over to our CEO, Jim Boyle.
James Boyle: Thank you, Karen, and thank you all for joining Medline's second quarter earnings call. I'll begin with a brief performance update. Mike will review our financial results and outlook, and I'll return with closing remarks before opening up the call for questions. Medline delivered strong top line growth of 12% in the second quarter, reflecting positive momentum across our business. Medline Brand grew 7% for the quarter, including the impact of an IEEPA tariff price refund to customers. Supply Chain Solutions exceeded our expectations, growing 16%, driven by new customer signings and growth within existing customers. This segment remains central to our long-term strategy because it strengthens customer relationships and creates opportunities to deliver savings and value over time through conversion to higher-margin Medline Brand products. We are pleased with the continued momentum across the business and are raising our fiscal year organic sales outlook to reflect stronger demand and solid execution by our team. Adjusted EBITDA increased 13% year-over-year to $1.1 billion as strong sales growth was partially offset by higher cost of goods sold, increased operational expenses and net tariff related impacts. This includes a net benefit of $243 million from IEEPA tariff refund. As we look to the second half of the year, several external …
