Henry Schein (HSIC) Baird Global Healthcare Conference 2025 summary

Strategic initiatives and business performance

• Advanced BOLD+1 initiative, with high growth, high margin products now nearly 60% of operating income.

• Recovered from a significant cyber incident in October 2023, with high team morale.

• Value creation projects underway, focusing on both gross profit and SG&A optimization, with benefits expected to begin accruing in 2026.

• KKR's involvement has brought new skills and partnership, with Capstone team collaborating on cost and margin improvements.

• $750 million share repurchase authorization announced, providing flexibility for future capital allocation.

Market and industry trends

• Dental market remains stable globally, with signs of recovery in Europe due to easing inflation and energy prices.

• U.S. dental market faced uncertainty from tariffs, impacting equipment sales, but saw a rebound in June.

• Specialty dental business, especially implants and endodontics, is growing faster than general dental, with strong performance in Europe and Latin America.

• Technology adoption continues to drive efficiency, and lower interest rates are expected to further support growth.

Financial strategy and guidance

• Equity investments are used to enter new markets or verticals, with revaluation gains recognized when consolidating holdings.

• Not all investments are consolidated; some are held or sold for cash reinvestment.

• 2025 is considered a baseline year, with long-term growth targets of upper single to low double digits expected to resume in 2026, contingent on market conditions and value creation project outcomes.