MDLN · Medline Inc.

Medline Inc. delivered strong top-line growth in Q1 2026 with net sales reaching $7.4 billion, a 10.7% increase from $6.6 billion in Q1 2025, and organic sales up 10.1%. This performance was primarily fueled by implementations of 2025 new customer signings and growth with existing customers, as highlighted by CEO Jim Boyle, who noted the company's momentum in customer expansion and operational execution. However, profitability faced headwinds, with net income dropping 25.8% to $239 million and Adjusted EBITDA declining 10.6% to $776 million. Key pressures included higher costs of goods sold, notably from tariffs, elevated operating expenses to support new customer onboarding, and a one-time employee bonus tied to the IPO. These were partially mitigated by higher sales and reduced interest expense. Diluted EPS came in at $0.16, with adjusted at $0.33. Cash generation remained robust, with operating cash flow at $412 million and free cash flow at $316 million, supporting investments in distribution center automation and kitting facilities. Management expressed confidence by raising full-year 2026 organic sales guidance to 8.5%-9.5% from 8%-9%, while holding Adjusted EBITDA outlook steady at $3.5-$3.6 billion, signaling sustained demand and strategic investments for long-term growth despite cost challenges.