Medline (MDLN) investor relations material

Executive summary

• Q2 2026 net sales rose 11.6% to $7.7 billion, with organic sales up 11.5% and strong gains in Medline Brand and Supply Chain Solutions.

• Adjusted EBITDA increased 13.4% to $1.1 billion, benefiting from IEEPA tariff refunds; net income was $139 million, down 58.3% due to a $336 million Tracy, CA distribution center fire.

• H1 2026 net sales reached $15.0 billion, with $650–$659 million in new customer signings, over 65% of the annual goal.

• Rapid recovery and expansion followed the Tracy fire, with new facilities expanding California footprint by 1.6 million sq. ft.

• Growth was primarily volume-driven, with minimal impact from pricing or FX.

Financial highlights

• Q2 gross profit was $2.2 billion (+16.3% YoY), gross margin improved to 28.8% from 27.7% due to tariff refunds.

• Adjusted EBITDA margin rose to 13.8%; net income margin was 1.8%.

• Free cash flow for H1 was $920 million; CapEx was $207 million.

• Total debt stood at $12.75 billion; cash and equivalents at $2.3 billion.

• Interest expense, net, decreased 46.6% to $119 million post-IPO.

Outlook and guidance

• Full-year organic sales growth guidance raised to 9%-10%; adjusted EBITDA guidance lowered to $3.3-$3.4 billion due to inflation, Tracy fire, and operational investments.

• CapEx guidance updated to $500-$600 million, including Tracy-related investments.

• Insurance recoveries for Tracy fire expected in future periods; timing and amounts uncertain.

• Sequential sales expected flat in Q3, increasing in Q4; adjusted EBITDA to rise each quarter, strongest in Q4.