Avanos Medical reported third‑quarter 2025 results, delivering net sales of $177.8 million, up 4.3% year‑over‑year, and an operating profit of $0.1 million versus $12 million in the same quarter a year earlier. Adjusted operating profit fell to $15.2 million from $25.3 million, largely due to a $77 million goodwill impairment recorded in Q2.
Segment performance: Specialty Nutrition Systems (SNS) generated $114.0 million in net sales, a 14.0% volume increase, and produced $23.0 million in operating income, reflecting strong demand for life‑sustaining nutrition products. Pain Management & Recovery (PM&R) posted $59.0 million in net sales, up $1.2 million; Radio Frequency Ablation (RFA) sales grew 10.5%, while surgical pain sales fell 7.9% as Game‑Ready volume declined.
The earnings beat analyst expectations: adjusted diluted EPS of $0.22 surpassed the consensus estimate of $0.19, a $0.03 or 15.8% beat, while revenue exceeded the consensus of $166.35 million by $11.45 million, a 6.9% lift. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin SNS products, offsetting the impact of tariff‑related cost increases.
Management raised its full‑year 2025 revenue outlook to $690 million–$700 million, up from the prior guidance of $665 million–$685 million, and adjusted diluted EPS guidance to $0.85–$0.95, an increase from the previous $0.75–$0.95 range. The upward revision signals confidence that the company will sustain momentum in its high‑growth segments and that tariff mitigation and currency gains will continue to support profitability.
The company also announced the completion of its acquisition of Nexus Medical, a transaction that adds complementary neonatal and pediatric intensive‑care technology to Avanos’ portfolio. The deal, finalized in September 2025, is expected to deliver immediate value in NICU and PICU markets and reinforce the company’s focus on specialty nutrition and pain‑management solutions.
Investors reacted positively to the earnings beat and guidance raise, with analysts noting the company’s ability to navigate tariff headwinds while maintaining growth in its core segments. The acquisition of Nexus Medical was highlighted as a strategic move that expands Avanos’ product offering and strengthens its competitive position in critical‑care markets.
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