Henry Schein Misses Q1 Revenue, KKR Takes Stake

Henry Schein reported first-quarter 2025 revenue of $3.17 billion, narrowly flat from the previous year and missing analysts’ estimates due to continued weakness in the dental segment and negative foreign exchange impacts. Adjusted earnings per share were $1.15, exceeding expectations, supported by stronger medical sales and increased doctor-office visits. Net income rose to $110 million from $93 million a year earlier, while dental equipment and merchandise sales declined amid reduced discretionary spending and a tough comparison to the prior year. Management reaffirmed its 2025 adjusted EPS guidance of $4.80 to $4.94 and projected sales growth of 2% to 4%. Private equity firm KKR recently acquired a significant stake in Henry Schein and is influencing the composition of its board. Operating margins were stable, but free cash flow margins declined year over year, reflecting ongoing operational challenges.