Solventum Corp (SOLV) 2025 Q3 法說會逐字稿

Good afternoon. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to Solventum's third quarter 2025 earnings call. As a reminder, this conference is being recorded. (Operator Instructions)

午安.我叫雷吉娜，今天我將擔任你們的會議接線生。在此，我謹代表 Solventum 公司歡迎各位參加 2025 年第三季財報電話會議。再次提醒，本次會議正在錄影。（操作說明）

I would now like to turn the program over to your host for today's conference, Amy Wakeham, Senior Vice President of Investor Relations and Finance Communications. Please proceed.

現在，我將把主持權交給今天的主持人，投資者關係和財務傳播高級副總裁艾米·韋克漢姆。請繼續。

Thank you, and good afternoon. Welcome to Solventum's third quarter fiscal year 2025 earnings call. Joining me on today's call, our Chief Executive Officer, Bryan Hanson; and Chief Financial Officer, Wayde McMillan. A replay of today's earnings call will be available later today on the Investor Relations section of our corporate website.

謝謝，下午好。歡迎參加 Solventum 2025 財年第三季財報電話會議。今天與我一起參加電話會議的有：執行長布萊恩漢森；以及財務長韋德麥克米蘭。今天財報電話會議的錄音回放將於今日稍後在公司網站的投資者關係版塊提供。

The earnings press release and presentation are both available there now. During today's call, our discussion and any comments we make will be made on a non-GAAP basis unless they are specifically called out as GAAP. The non-GAAP information discussed is not intended to be considered in isolation or as a substitute for the reported GAAP financial information.

財報新聞稿和簡報現在都可以在那裡取得。在今天的電話會議中，除非特別註明是按照公認會計準則 (GAAP) 進行，否則我們的討論和任何評論都將按照非公認會計準則 (non-GAAP) 進行。本文討論的非GAAP資訊不應被孤立地看待，也不應被視為替代已公佈的GAAP財務資訊。

You're encouraged to review the supporting schedules in today's earnings press release to reconcile the non-GAAP measures with the GAAP reported numbers. Additionally, our discussion on today's call will include forward-looking statements, including, but not limited to, expectations about our future financial and operating performance. We make these statements based on reasonable assumptions.

我們鼓勵您查看今天發布的獲利新聞稿中的附表，以便將非GAAP指標與GAAP報告的數字進行核對。此外，我們今天電話會議的討論將包括前瞻性陳述，包括但不限於對我們未來財務和營運績效的預期。我們基於合理的假設做出這些陳述。

However, our actual results could differ. Please review our SEC filings for a complete discussion of the risk factors that could cause our actual results to differ materially from any forward-looking statements made today. Following our prepared remarks, we'll hold a Q&A session. (Operator Instructions)

然而，我們的實際結果可能會有所不同。請查閱我們向美國證券交易委員會提交的文件，以全面了解可能導致我們的實際業績與今天所作的任何前瞻性聲明有重大差異的風險因素。在我們發言完畢後，我們將進行問答環節。（操作說明）

And with that, I'd like to now hand the call over to Bryan.

那麼，現在我想把電話交給布萊恩。

All right. Great. Thank you, Amy, and thanks to everyone for joining us for our third quarter call today. Let's just jump right in. We delivered another strong quarter as we execute our 3-phase transformation plan and the consistent underlying momentum we are seeing reflects not just the effectiveness of the changes we've already made, but also the performance and the dedication of our global teams. And this momentum was reflected in our Q3 performance with positive volume growth driving top and bottom line results.

好的。偉大的。謝謝艾米，也謝謝各位今天參加我們的第三季電話會議。咱們直接進入正題吧。我們迎來了一個強勁的季度，因為我們正在執行三階段轉型計劃，我們看到的持續潛在勢頭不僅反映了我們已經做出的改變的有效性，也反映了我們全球團隊的績效和奉獻精神。這一動能也體現在我們第三季的業績中，銷售的正面成長帶動了營收和利潤的提升。

And as such, we are again raising our sales growth and EPS guidance for the year. We are clearly ramping towards our LRP revenue growth targets faster than expected, and our momentum is anchored in three primary areas of progress and clear results. The first is the team's ability to manage the separation distractions and importantly, execute ERP implementations while also delivering on their commitments. And number two, the commercial restructuring and enhancements we executed last year are rapidly delivering results.

因此，我們再次上調了今年的銷售成長和每股收益預期。我們顯然正在以比預期更快的速度朝著 LRP 收入成長目標邁進，我們的發展動能主要體現在三個方面的進展和明確的成果上。首先是團隊管理分離幹擾的能力，更重要的是，在履行承諾的同時執行 ERP 實施。第二，我們去年實施的商業重組和改善措施正在迅速取得成效。

We shifted, as you remember, over 1,000 positions to drive specialization. We upgraded commercial leadership, executed an accountability culture with rigorous operating mechanisms and changed incentives to bias growth, all of which are paying off. And number three, our project to revitalize the innovation process has derived a sharper, more aligned new product pipeline, almost doubling our previously forecasted vitality index and meaningfully increasing the value of our innovation pipeline.

如您所知，我們調整了 1000 多個職位，以推動專業化發展。我們提升了商業領導力，推行了具有嚴格運作機制的問責文化，並改變了激勵機制以促進成長，所有這些都取得了成效。第三，我們重振創新流程的專案已經產生了更清晰、更協調的新產品線，使我們先前預測的活力指數幾乎翻了一番，並顯著提高了我們創新線的價值。

We are also seeing the underlying operating margin improvements we expected as we move through the year and remain focused on driving sustainable efficiencies. Our momentum in programmatic savings and tariff mitigation strategies within our supply chain, combined with our Transform for the Future initiative we just announced today strengthens our ability to deliver our LRP margin targets even in the face of current tariff headwinds.

隨著年內推進，我們也看到了預期的基本營運利潤率的改善，並將繼續專注於推動可持續的效率提升。我們在供應鏈中實施的計劃性節約和關稅緩解策略的勢頭，加上我們今天剛剛宣布的「面向未來的轉型」計劃，增強了我們實現長期利潤目標的能力，即使面對當前的關稅不利因素。

Our Transform for the Future initiative is a multiyear global initiative designed to further accelerate profitable growth and strengthen our position in a dynamic market. This initiative will reshape our cost structure, improve operational efficiency and fuel innovation as we mix shift resources to our most attractive markets. As the separation progresses, we are unlocking new efficiencies by gaining full ownership of our IT systems and freeing up resources and bandwidth to more aggressively pursue savings and drive efficiencies for our team members.

我們的「面向未來轉型」計劃是一項多年期全球性計劃，旨在進一步加速獲利成長，並鞏固我們在充滿活力的市場中的地位。這項措施將重塑我們的成本結構，提高營運效率，並透過將資源轉移到最具吸引力的市場來推動創新。隨著分離的進行，我們透過完全掌控我們的 IT 系統，釋放資源和頻寬，從而釋放新的效率，更積極地為我們的團隊成員節省成本並提高效率。

In other words, given where we are in our journey, this is an excellent time to transform how we operate for a stronger future. Okay. As we move forward, the third phase of our transformation program, portfolio optimization remains a key priority. This is about making choices to shape our future, focusing on acquiring strategically attractive assets that fit our long-term vision and closely evaluating current assets to ensure go-forward fit.

換句話說，鑑於我們目前所處的發展階段，現在是轉變營運方式、邁向更美好未來的絕佳時機。好的。隨著我們轉型計劃進入第三階段，投資組合優化仍然是我們的首要任務。這關乎做出選擇來塑造我們的未來，重點是收購符合我們長期願景的具有戰略吸引力的資產，並密切評估現有資產以確保其能夠繼續發展。

And I'm very proud of the progress we have already made in this phase. We are more than halfway through our comprehensive SKU rationalization program, which is a solid step in refining our portfolio and the successful and timely sale of our Purification and Filtration business is another tangible example of this strategy in action, allowing us to quickly and materially reduce our debt, refine our strategic focus and improve our leverage position, which has resulted in credit upgrades from two of our rating agencies.

我對我們在這個階段已經取得的進展感到非常自豪。我們的全面 SKU 合理化計劃已完成過半，這是優化產品組合的重要一步。成功及時地出售淨化和過濾業務是這一戰略實施的又一切實例證，使我們能夠迅速大幅減少債務，優化戰略重點，改善槓桿狀況，從而獲得了兩家評級機構的信用評級上調。

We are now positioned to shift our focus toward offensive M&A while expanding our options for capital allocation, including potential capital return initiatives. From an M&A perspective, we are targeting tuck-in opportunities generally valued under $1 billion in established and attractive markets where we already operate.

我們現在可以把重點轉向積極的併購，同時擴大資本配置的選擇範圍，包括潛在的資本回報計畫。從併購的角度來看，我們的目標是在我們已經經營的成熟且有吸引力的市場中，尋找估值通常低於 10 億美元的補充收購機會。

This approach allows us to build scale in our most promising markets and leverage the capabilities of our enhanced global commercial team.

這種方法使我們能夠在最有前景的市場中擴大規模，並充分利用我們增強的全球商業團隊的能力。

Okay. Moving to our businesses. Overall, our business mix in the third quarter was largely as expected, but with growth rates of Dental Solutions and HIS better than expected. Our MedSurg business continues to deliver strong year-to-date performance in all three of its growth driver areas, leveraging new product innovation, commercial specialization and consistent execution by the team. In Advanced Wound Care specifically, we saw a clear acceleration in growth led by our negative pressure wound therapy growth driver.

好的。轉向我們的業務。整體而言，我們第三季的業務組合基本上符合預期，但牙科解決方案和 HIS 的成長率高於預期。我們的醫療外科業務在其三大成長驅動領域持續保持強勁的年初至今業績，這得益於新產品創新、商業專業化以及團隊的持續執行。具體到高級傷口護理領域，我們看到了明顯的成長加速，這主要得益於負壓傷口治療的成長動力。

Our newly specialized commercial organization is driving the planned ramp-up of Prevena therapy and the V.A.C Peel and Place Dressing. And with the strong clinical differentiation that we have in this space, a robust -- a very robust DME infrastructure that nobody else has and significant underpenetration of this breakthrough therapy, we see meaningful runway for continued growth acceleration. In Infection Prevention and Surgical Solutions, aside from the expected impact of the first half order timing, our underlying performance remains strong.

我們新成立的專業商業機構正在推動 Prevena 療法和 V.A.C 剝離敷料的計劃性推廣。憑藉我們在該領域強大的臨床差異化優勢、其他任何公司都沒有的強大 DME 基礎設施，以及這種突破性療法的嚴重滲透率不足，我們看到了持續加速成長的廣闊前景。在感染預防和外科解決方案領域，除了上半年訂單時間可能帶來的影響外，我們的基本業績依然強勁。

Growth was fueled by our two growth drivers in this area, sterilization assurance and IV site management. Looking at sterilization assurance first, our dedicated sales team is capitalizing on the strong brand equity we already have in this space and the momentum from three new test sterilization product launches, each designed to simplify and enhance the sterilization process for our customers.

此領域的成長得益於我們的兩大成長驅動因素：滅菌保證和靜脈輸液部位管理。首先來看滅菌保證，我們專業的銷售團隊正在利用我們在該領域已經擁有的強大品牌資產以及三款新的測試滅菌產品推出的勢頭，每款產品都旨在簡化和增強我們客戶的滅菌過程。

In IV site management, we continue to see robust demand for our Tegaderm antimicrobial solutions, supported by recent launches across Europe, Asia and the US. Our specialized teams are driving premium growth by converting customers from standard films to higher-value solutions that reduce catheter-related bloodstream infections and ultimately improve patient outcomes. Again, with our strong clinical differentiation, a robust and specialized commercial channel and once again, significant underpenetration of this breakthrough technology, we see meaningful runway for continued growth acceleration.

在靜脈輸液部位管理方面，我們持續看到市場對我們的 Tegaderm 抗菌解決方案的強勁需求，這得益於近期在歐洲、亞洲和美國的上市。我們的專業團隊正在推動高端產品成長，他們將客戶從標準薄膜產品轉向更高價值的解決方案，從而減少導管相關血流感染，並最終改善患者的治療效果。再次強調，憑藉我們強大的臨床差異化優勢、穩健且專業的商業管道，以及這項突破性技術目前仍嚴重缺乏市場滲透，我們看到了持續加速成長的廣闊前景。

In our Dental Solutions business, we continue to gain momentum in our core restorative growth driver with results driven by a focused portfolio, accelerating new innovation and specialization in our sales channel. This quarter brought two major milestones. First, the launch of our refined and redesigned Clarity brand and the launch of the Solventum Filtek Composite Warmer. This is actually the first fully Solventum-branded restorative device.

在我們的牙科解決方案業務中，我們透過專注的產品組合，加速銷售管道的新創新和專業化，在核心修復成長驅動力方面持續取得進展。本季迎來了兩個重大里程碑。首先，我們推出了經過改進和重新設計的 Clarity 品牌以及 Solventum Filtek 複合式加熱器。這其實是第一款完全採用 Solventum 品牌的修復裝置。

These efforts alongside continued strong demand for ClinPro Clear and Filtek Easy Match helped fuel strong sales growth in the quarter. We also saw significant service level improvements, driving impressive back order recovery in the quarter. Confidence in our service levels is absolutely critical to driving growth, and I want to congratulate the team for making it happen. In Health Information Systems, we delivered a solid quarter as we continue to modernize revenue cycle management. We made progress in our autonomous coding offering with high automation and acceptance rates being achieved in our partnership with Ensemble.

這些努力，加上市場對 ClinPro Clear 和 Filtek Easy Match 的持續強勁需求，推動了本季強勁的銷售成長。我們也看到服務水準有了顯著提高，推動了本季積壓訂單的顯著恢復。對自身服務水準的信心對於推動成長至關重要，我要祝賀團隊實現了這一目標。在醫療資訊系統方面，我們本季業績穩健，並持續推進收入周期管理的現代化進程。我們與 Ensemble 合作，在自主編碼產品方面取得了進展，實現了高自動化率和高接受率。

This demonstrates our operational excellence and service line automation capabilities. These advances continue to position HIS as the largest autonomous coding vendor, underscoring our role as an AI-driven leader, transforming customer operations and setting new standards for efficiency and accuracy. Another important element of our RCM strategy -- our revenue cycle management strategy is the international expansion of our flagship solution 360 Encompass and autonomous coding options.

這體現了我們卓越的營運能力和服務線自動化能力。這些進步繼續鞏固了 HIS 作為最大的自主編碼供應商的地位，凸顯了我們作為人工智慧驅動型領導者的地位，改變了客戶的運作方式，並為效率和準確性樹立了新的標準。我們 RCM 策略的另一個重要組成部分——我們的收入週期管理策略——是我們的旗艦解決方案 360 Encompass 和自主編碼選項的國際擴張。

On track installations in Australia and ongoing expansion in the Middle East demonstrate our commitment to supporting health care providers around the world. In summary, our progress is palpable from our navigation of separation activities, traction from commercial structure and innovation enhancements or portfolio optimization results, we are delivering and delivering with speed here at Solventum, and we are just getting started.

在澳洲的軌道安裝計畫和在中東的持續擴張表明了我們致力於支持世界各地醫療保健機構的承諾。總而言之，從我們對分離活動的掌控、商業結構和創新改進或投資組合優化成果的推進，我們所取得的進展顯而易見。在 Solventum，我們正在快速交付成果，而這只是個開始。

I am absolutely convinced we have the right strategy, the right global team and the right culture to continue unlocking value for our patients, partners and shareholders. I want to say thank you to the entire Solventum team for your unwavering resolve, your dedication to continuous improvement and your inspiring progress every single day.

我堅信我們擁有正確的策略、正確的全球團隊和正確的文化，能夠繼續為我們的患者、合作夥伴和股東創造價值。我要感謝 Solventum 團隊全體成員，感謝你們堅定不移的決心、對持續改進的奉獻精神以及每天取得的令人鼓舞的進步。

And with that, I'm going to turn it over to Wayde for a closer look at our financial results and other key updates. Okay. Wayde, I'll pass it to you.

接下來，我將把鏡頭交給韋德，讓他更詳細地介紹我們的財務表現和其他重要更新。好的。韋德，我把它傳給你。

Thanks, Bryan. We're pleased to report another solid quarter as we navigate the separation from 3M and transform our balance sheet following the sale of the Purification and Filtration business. Consistent with prior quarters, I'll provide you with updates on the separation and P&F divestiture and then transition to our Q3 financial performance and conclude with an update on our 2025 guidance.

謝謝你，布萊恩。我們很高興地報告，在完成與 3M 的分離以及出售淨化和過濾業務後調整資產負債表的過程中，我們又迎來了一個穩健的季度。與前幾季一樣，我將向大家介紹分拆和 P&F 資產剝離的最新情況，然後過渡到我們第三季的財務業績，最後更新我們 2025 年的業績指引。

Overall, our work to complete the separation from 3M is going very well. The dedicated separation management teams at 3M and at Solventum are working well together on multiple fronts our separation from 3M and the divestiture of P&F.

整體而言，我們與 3M 的分離工作進展非常順利。3M 和 Solventum 的專門分離管理團隊在多個方面合作良好，包括我們從 3M 分離以及 P&F 的剝離。

We continue to execute against milestones while making foundational changes to deliver on our long-range plan. In Q3, after a successful European ERP conversion, we are winding down interim mitigation efforts and are fulfilling orders from our dedicated European distribution centers. We also continue to simplify our supply chain network, now with 21 global Solventum-owned manufacturing locations, down from the 29 we had at the March 2025 Investor Day. 7 of the 8 facilities were conveyed as part of the sale of the Purification and Filtration segment, while the eighth facility was an exit from 1 of our 3 remaining dental plants.

我們將繼續推進各項里程碑任務，同時進行根本性變革，以實現我們的長期計劃。第三季度，在成功完成歐洲 ERP 系統轉換後，我們正在逐步結束臨時緩解措施，並透過我們專門的歐洲配送中心履行訂單。我們持續簡化供應鏈網絡，目前Solventum在全球擁有21個生產基地，低於2025年3月投資者日時的29個。其中8個工廠中有7個是作為淨化和過濾業務出售的一部分而轉讓的，而第8個工廠則是我們剩餘3家牙科工廠之一的退出項目。

We have also completed about half of the manufacturing line transitions, all while improving product availability as part of our commitment to deliver for customers and patients. Regarding the P&F divestiture, the teams are finalizing plans and positioned for success. At the close, 1,700 employees transitioned as part of the successful handover along with initiation of nearly 200 transition agreements.

我們也完成了大約一半的生產線轉型，同時提高了產品供應能力，這是我們履行對客戶和患者承諾的一部分。關於P&F的資產剝離，各團隊正在敲定計劃，並已做好成功準備。交接結束時，1700 名員工順利完成過渡，同時啟動了近 200 項過渡協議。

Now turning to our Q3 results. Starting with sales. Third quarter 2025 sales of $2.1 billion increased 2.7% on an organic basis compared to prior year and increased 0.7% on a reported basis. During the quarter, foreign exchange was a 110 basis point benefit to reported growth, while the intra-quarter sale of the P&F business represented a 310 basis point impact on our reported growth. Overall, we had stronger-than-expected sales growth driven by higher performance in dental and HIS. Importantly, volume continues to be the main driver of growth as we align our organization to deliver sustainable sales growth and new product innovation.

現在來看我們第三季的業績。從銷售開始。2025 年第三季銷售額為 21 億美元，以有機成長計算比上年增長 2.7%，按報告增長計算增長 0.7%。本季度，外匯變動對報告的成長產生了 110 個基點的利好，而季度內出售 P&F 業務則對報告的成長產生了 310 個基點的影響。整體而言，由於牙科和 HIS 業務表現較佳，我們的銷售成長強於預期。重要的是，銷售量仍然是成長的主要驅動力，我們將調整組織架構，以實現可持續的銷售成長和新產品創新。

Pricing remains within the expected range of plus or minus 1% -- our SKU rationalization program also remains on track with 60 basis point impact in the quarter. Moving to the segments. Our largest segment, MedSurg, delivered $1.2 billion in sales, an increase of 1.1% on an organic basis. Within MedSurg, the Advanced Wound Care business grew 2.7%, an expected improvement over the first half of the year, which was driven by negative pressure wound therapy.

定價仍保持在預期的正負 1% 的範圍內——我們的 SKU 合理化計劃也繼續按計劃進行，本季度影響為 60 個基點。接下來進入各部分。我們最大的業務部門——醫療外科——實現了 12 億美元的銷售額，以有機成長計算成長了 1.1%。在 MedSurg 業務中，高級傷口護理業務增長了 2.7%，較上半年有所改善，這主要得益於負壓傷口治療的推動。

Notably, growth was led by single-use Prevena, which exited the quarter at double-digit growth. As expected, Advanced Wound Care performance was partially offset by Infection Prevention and Surgical Solutions, which was flat in the quarter. As a reminder, Infection Prevention and Surgical Solutions was the primary beneficiary of order timing in the first half of the year.

值得注意的是，成長主要由一次性使用的 Prevena 引領，該產品在本季度實現了兩位數的成長。正如預期的那樣，高級傷口護理業務的業績部分被感染預防和外科解決方案業務所抵消，後者本季業績持平。需要提醒的是，感染預防和外科解決方案是今年上半年訂單時間表的主要受益者。

We have communicated the first half benefit would reverse mostly in Q3, and we anticipate absorbing the balance of the timing headwind in Q4. Our Dental Solutions segment delivered higher-than-expected $340 million in sales, an increase of 6.5% on an organic basis. On a normalized basis, we grew in the 2% to 3% range. The additional growth came from backorder improvements along with an easier comparable.

我們已經說明，上半年的收益將在第三季度基本逆轉，我們預計將在第四季度消化剩餘的時間不利因素。我們的牙科解決方案部門實現了高於預期的 3.4 億美元銷售額，以有機成長計算成長了 6.5%。以正常水準計算，我們的成長率在 2% 到 3% 之間。額外的增長來自於積壓訂單的減少以及更容易進行比較。

Our focus on innovation across our restorative and prevention products as well as our Clarity aligners is translating to improved performance. Our HIS segment also contributed higher-than-expected $345 million in sales, an increase of 5.6% on an organic basis, driven by strong performance management solutions due to favorable consulting fees and service milestones in the quarter as well as strong revenue cycle management software solutions.

我們專注於修復和預防產品以及 Clarity 矯正器的創新，這正在轉化為性能的提升。我們的 HIS 業務部門也貢獻了高於預期的 3.45 億美元銷售額，按有機增長計算增長了 5.6%，這主要得益於本季度有利的諮詢費和服務里程碑帶來的強勁績效管理解決方案，以及強勁的收入周期管理軟體解決方案。

Together, these more than offset expected declines in clinician productivity solutions. We remain focused on system implementations to support our hospital customers as they navigate a dynamic environment. Looking down to P&L, gross margins were 55.8% of sales in the quarter, a 20 basis point sequential reduction, which largely reflects the 130 basis point impact of tariff headwinds, including mitigation and offset by strong manufacturing performance. And to a lesser extent, the expected partial quarter 20 basis point benefit of the Purification and Filtration sale.

這些措施加起來，足以抵消臨床醫生生產力解決方案預期下降的影響。我們將繼續專注於系統實施，以支援我們的醫院客戶應對不斷變化的環境。從損益表來看，本季毛利率為銷售額的 55.8%，環比下降 20 個基點，這主要反映了關稅不利因素造成的 130 個基點的影響，包括緩解措施，但被強勁的製造業表現所抵消。此外，淨化和過濾業務的銷售預計可帶來部分季度收益 20 個基點，但影響較小。

Our manufacturing and supply chain organization remains focused on delivering programmatic savings and margin expansion. Sequentially, operating expenses increased by $3 million to $739 million, driven mainly by an increase in equity compensation and other benefits, which were partially offset by the P&F sale and further savings from our Solventum Way restructuring program.

我們的製造和供應鏈組織將繼續專注於實現專案性的成本節約和利潤成長。與上一季相比，營運費用增加了 300 萬美元，達到 7.39 億美元，主要原因是股權激勵和其他福利的增加，但部分被 P&F 的出售以及我們 Solventum Way 重組計劃的進一步節省所抵消。

In total, we delivered adjusted operating income of $431 million, which translates to an operating margin of 20.6%, in line with our expectations. Moving down the P&L to nonoperating items. Our net interest expense and other nonoperating spend improved modestly versus Q2, driven by $10 million reduction in interest expense following the partial quarter benefit of the $2.7 billion debt paydown following the P&F sale.

我們總共實現了調整後的營業收入 4.31 億美元，營業利潤率為 20.6%，符合我們的預期。將損益表向下移動到非經營性項目。由於 P&F 出售後償還了 27 億美元的債務，部分季度收益使利息支出減少了 1,000 萬美元，我們的淨利息支出和其他非經營性支出較第二季略有改善。

Lastly, our effective tax rate of 21.8% was higher than the first half due to a tax rate increase in a foreign jurisdiction during the quarter and a change in our geographic mix due to the significant paydown of U.S.-based debt. Overall, we delivered earnings per share of $1.50, ahead of our expectations, driven by sales outperformance, stronger gross margins and lower net interest expense.

最後，由於本季外國司法管轄區的稅率提高以及由於大幅償還美國債務而導致的地域結構變化，我們的實際稅率為 21.8%，高於上半年。總體而言，我們實現了每股收益 1.50 美元，超出預期，這主要得益於銷售業績超預期、毛利率提高以及淨利息支出降低。

Shifting to our balance sheet. The higher estimated $3.6 billion net proceeds from the purification and filtration sale resulted in an improved $1.6 billion of cash and equivalents with no outstanding borrowings on our revolving credit facility.

前往我們的資產負債表。預計淨化和過濾業務出售所得淨收益將達到 36 億美元，使我們的現金及等價物增加到 16 億美元，且循環信貸額度內無未償還借款。

Additionally, we paid down $2.7 billion of debt in the quarter. This represents a transformation of our balance sheet just 6 quarters following our separation from 3M. Looking ahead, we are well positioned to execute on our Phase III portfolio optimization with added flexibility across a range of capital allocation options to unlock shareholder value.

此外，本季我們也償還了27億美元的債務。這代表我們從 3M 分拆出來僅僅 6 個季度後，我們的資產負債表就發生了巨大轉變。展望未來，我們已做好充分準備，透過一系列靈活的資本配置方案，執行第三階段的投資組合優化，從而釋放股東價值。

For Q3, free cash flow decreased by $22 million. Excluding P&F divestiture impact of $189 million, free cash flow increased $167 million. On a year-to-date basis, free cash flow, excluding separation costs and divestiture costs is $735 million with a conversion rate of 93%. As a reminder, we expect to see a step down in separation costs in 2026 and again in 2027 as we complete the separation from 3M.

第三季自由現金流減少了2200萬美元。不計入 P&F 資產剝離帶來的 1.89 億美元影響，自由現金流增加了 1.67 億美元。截至目前，不計分離成本和剝離成本的自由現金流為 7.35 億美元，轉換率為 93%。再次提醒大家，隨著我們完成與 3M 的分離，預計 2026 年和 2027 年分離成本將會下降。

Now turning to our 2025 guidance update, which reflects our Q3 performance and sustained momentum. Starting with our top line, we are increasing our guidance to the high end of our full year organic sales growth range of 2% to 3%. By segment, we expect MedSurg will improve sequentially again in Q4, given continued strength in Advanced Wound Care and improving infection prevention and surgical solution volumes as we expect to digest the remaining first half volume benefit in Q4.

現在來看看我們 2025 年的業績指引更新，這反映了我們第三季的業績和持續的成長動能。首先，從營收方面來看，我們將全年有機銷售成長預期提高到 2% 至 3% 的上限。按業務部門來看，鑑於高級傷口護理業務持續強勁，以及感染預防和外科解決方案銷量不斷提高，我們預計 MedSurg 將在第四季度繼續環比改善，因為我們預計將在第四季度消化上半年剩餘的銷量增長。

We anticipate Dental to again be stronger than the first half given strong new product momentum. Finally, HIS is expected to grow in line with the first half of the year and continue to benefit from strength in revenue cycle management. We continue to estimate a 50 basis point impact of SKU exits for this year and 100 basis point impact in 2026. Excluding this planned impact, our annual growth outlook for 2025 is now at the high end of 2.5% to 3.5%, reflecting the continued volume-driven performance across our business segments as we execute against the phased approach to reposition for growth.

鑑於新產品強勁的成長勢頭，我們預計牙科業務下半年將再次強於上半年。最後，HIS預計將與上半年保持成長勢頭，並繼續受益於收入週期管理方面的優勢。我們繼續預計，今年 SKU 退出將造成 50 個基點的影響，2026 年將造成 100 個基點的影響。排除此計畫內的影響，我們對 2025 年的年度成長預期目前處於 2.5% 至 3.5% 的高端水平，這反映了我們各業務部門持續的銷量驅動型業績，同時我們也在執行分階段重新定位以實現成長的方法。

We are progressing towards our 2028 long-range plan goal of 4% to 5% faster than expected with continued sales and margin improvement planned in 2026. We are revising our full year net interest expense assumption to approximately $360 million and our total nonoperating expense assumption to approximately $400 million for the year. And we continue to estimate the full year effective tax rate will be at the low end of our 20% to 21% range.

我們正朝著 2028 年長期計畫目標（比預期快 4% 至 5%）穩步邁進，並計劃在 2026 年繼續提高銷售額和利潤率。我們將全年淨利息支出假設修正為約 3.6 億美元，全年非營業支出總額假設修正為約 4 億美元。我們繼續預計全年實際稅率將處於我們預測的 20% 至 21% 區間的低端。

Before commenting on earnings per share, our 2025 tariff headwind estimate remains unchanged at $60 million to $80 million with a greater headwind expected in Q4 than the impact in Q3. Altogether, for earnings per share, we have increased our guidance to a range of $5.98 to $6.08. This represents an increase following the $5.88 to $6.03 update we issued on September 1 after completing the EPS accretive Purification and Filtration sale. This further increase reflects our strong performance in the quarter, combined with expectations for continued execution as we complete our first full fiscal year as a stand-alone organization.

在評論每股收益之前，我們對 2025 年關稅不利影響的估計仍然維持在 6000 萬美元至 8000 萬美元之間，預計第四季度的不利影響將比第三季度更大。綜上所述，我們將每股盈餘預期上調至 5.98 美元至 6.08 美元。此前，我們在 9 月 1 日發布的預期為 5.88 美元至 6.03 美元，原因是完成了對每股收益的增值性淨化和過濾業務的出售。這一進一步成長反映了我們本季強勁的業績，以及作為獨立組織完成第一個完整財年後，我們對持續發展的預期。

For free cash flow, we have updated the guidance range to $150 million to $250 million due to the P&F divestiture, including classification of certain impacts to free cash flow. Excluding the impact of the P&F divestiture, free cash flows are still expected to be in the range of $450 million to $550 million. As Bryan mentioned at the outset of the call, we have announced our Transform for the Future restructuring program. This program is designed to offset the impact of tariff pressures, divestiture stranded costs and separation impacts as we exit TSAs.

由於 P&F 資產剝離，我們將自由現金流的預期範圍更新為 1.5 億美元至 2.5 億美元，其中包括對自由現金流的某些影響的分類。不計 P&F 資產剝離的影響，預計自由現金流仍將在 4.5 億美元至 5.5 億美元之間。正如布萊恩在電話會議開始時提到的那樣，我們已經宣布了我們的「面向未來的轉型」重組計劃。該計劃旨在抵消關稅壓力、剝離擱淺成本以及退出運輸安全管理局 (TSA) 時產生的分離影響。

The program also fuels investment to drive sales growth, all while we deliver on our margin expansion plans consistent with our long-range plan. Once fully implemented, the 4-year program is projected to deliver annual savings of approximately $500 million and is expected to cost $500 million in total. We will provide more detail on our 2026 guidance on our Q4 earnings call.

該計劃也能促進投資，進而推動銷售成長，同時我們也能實現與長期計畫一致的利潤率擴張計畫。這項為期 4 年的計畫一旦全面實施，預計每年可節省約 5 億美元，總成本預計為 5 億美元。我們將在第四季財報電話會議上提供更多關於2026年業績指引的細節。

Before wrapping up, I want to extend my gratitude to all Solventum team members for their outstanding work and collaboration in successfully completing the sale of the Purification and Filtration business. Closing this transaction, only 6 quarters after separation is a major achievement that strengthens our balance sheet and accelerates our transformation.

在結束之前，我要感謝 Solventum 團隊的所有成員，感謝他們為成功完成淨化和過濾業務的出售所做的傑出工作和協作。在分拆後僅 6 個季度就完成這項交易是一項重大成就，它增強了我們的資產負債表，並加速了我們的轉型。

At the same time, we're staying disciplined. Balancing strategic investment with cost transformation to deliver expanding margins, robust cash flow and lasting shareholder value. Concluding the financial section, we delivered another strong quarter and are making great progress towards achieving our long-range plan goals of accelerating sales growth to 4% to 5% and growing EPS at a 10% CAGR.

同時，我們保持著自律。透過平衡策略投資和成本轉型，實現利潤率成長、現金流強勁和股東價值持久提升。財務部分總結如下：我們又迎來了一個強勁的季度，並且在實現長期計劃目標方面取得了巨大進展，即加快銷售增長至 4% 至 5%，以及實現每股收益 10% 的複合年增長率。

With that, I'll now hand it back to Bryan for a quick summary.

接下來，我將把任務交還給布萊恩，讓他做一個簡短的總結。

Okay. Thanks, Wayde. And so we had a lot of information in our prepared remarks, and I just want to make sure we summarize the most relevant points. So let me just do that now. First, our commercial and new innovation enhancements are delivering faster and more materially than we expected. And this has resulted in faster ramp towards our LRP revenue growth target and sets us up well for improvements in 2026.

好的。謝謝你，韋德。因此，我們準備的發言稿包含了很多訊息，我只想確保我們總結出最相關的要點。那我就現在去做吧。首先，我們的商業和創新改進措施正以比預期更快、更實質的速度帶來成效。這使得我們更快實現了 LRP 收入成長目標，並為 2026 年的改善奠定了良好的基礎。

Number two, our supply chain tariff mitigation and savings initiatives, together with our new Transform for the Future program, drive tangible confidence in our ability to improve margins in 2026 and deliver our LRP margin target, even with significant tariff impacts that were not contemplated in those targets. Number three, with SKU rationalization and the P&F sale, we are seeing meaningful results in our portfolio optimization strategy and portfolio optimization will continue to be a lever for value creation here at Solventum.

第二，我們的供應鏈關稅緩解和節省措施，以及我們新的「面向未來的轉型」計劃，使我們對在 2026 年提高利潤率並實現 LRP 利潤率目標的能力充滿信心，即使存在這些目標中未考慮到的重大關稅影響。第三，透過 SKU 合理化和 P&F 出售，我們在產品組合優化策略中看到了顯著的成果，產品組合優化將繼續成為 Solventum 創造價值的槓桿。

And then finally, our significant debt reduction has strengthened our position to pursue tuck-in M&A and it expands our options for capital allocation, including potential capital return initiatives. Okay. And with that, I'm just going to reiterate once more, we have a bright future. We have the right strategy, we have the right team, and we are well on our way. Okay. Let's go to Q&A.

最後，我們大幅削減債務，增強了我們進行補充併購的地位，並擴大了我們的資本配置選擇，包括潛在的資本回報計劃。好的。最後，我再重申一遍，我們擁有光明的未來。我們擁有正確的策略，我們擁有合適的團隊，我們正朝著目標穩步前進。好的。接下來進入問答環節。

(Operator Instructions)

（操作說明）

Patrick Wood, Morgan Stanley.

派崔克‧伍德，摩根士丹利。

Beautiful, thanks so much. I'll keep it to one. But the Transform for the Future program, was this one that was kind of kicking around that you guys had initiated pretty early on? Or was this a function of tariffs, if you see what I mean? And then when you're thinking about the savings and the reinvestment from that, what are -- if you had to pick a couple of buckets of the main areas you're most interested in internally reinvesting in where is that? Is that the sales force? Is that marketing? Like how should we think about that?

太漂亮了，非常感謝。我只說一個。但「面向未來的轉型計畫」是不是你們很早就啟動的計畫？或者，這是否與關稅有關？你明白我的意思嗎？那麼，當你考慮如何節省資金並將其用於再投資時，如果你必須從你最感興趣的內部再投資領域中挑選幾個類別，你會選擇哪些領域？那是銷售團隊嗎？這是行銷手段嗎？我們該如何看待這個問題？

Yeah, Good to hear from you, and thanks for the question. I'd just say maybe to start, it was something that we were always contemplating. If you just think about it, Transform for the Future is part of the transformation phase. We had those three phases that we've talked about. And so it's always been there, but we really had to wait until we were ready.

是啊，很高興收到你的來信，謝謝你的提問。我想說，或許可以先從這件事開始，這是我們一直在想的事情。仔細想想，「面向未來轉型」本身就是轉型階段的一部分。我們經歷了之前討論過的三個階段。所以它一直都在那裡，但我們真的需要等到我們準備好了。

We had to get through our Solventum Way restructuring changes. Obviously, there was a lot that was happening there. We wanted to make progress on the separation from 3M and also the sale of P&F. And now we have -- I'm just going to call it the systems and the bandwidth to do Transform for the Future. So something we had always contemplated. And certainly, you can imagine the focus on it because of tariffs is pretty high. So with that, maybe I'll transfer to Wayde on a couple of the areas that we're going to focus on savings and then we can talk about reinvestment.

我們必須完成 Solventum Way 的重組變革。顯然，那裡發生了很多事情。我們希望在與 3M 的分離以及 P&F 的出售方面取得進展。現在我們擁有了──我就稱之為實現未來轉型所需的系統和頻寬。這是我們一直以來都在思考的問題。當然，由於關稅問題，人們對此事的關注度非常高。所以，接下來，我可能會把一些關於儲蓄的重點領域轉交給韋德，然後再討論再投資的問題。

Yeah, sounds good, Bryan. Happy to. And as Bryan said, it's a broad program. And so we are looking across all areas of the organization. Actually, it's very comprehensive. Looking at our operating structure, looking at procurement, cost management, supply chain team, manufacturing, looking at our global footprint as well. And then looking at streamlining our systems, as Bryan said in his prepared remarks, we'll be working through final ERP implementations here in 2026, taking over ownership of those systems. And then certainly, looking at increasing automation as well. So we're very focused on separation today but looking forward to freeing up resources and working on this program over the next several years. And I think, Bryan, do you want to touch on the reinvestment.

好的，布萊恩。樂意之至。正如布萊恩所說，這是一個涵蓋範圍很廣的項目。因此，我們正在對組織的各個領域進行檢視。實際上，它非常全面。從我們的營運結構、採購、成本管理、供應鏈團隊、製造，以及我們的全球佈局等方面來看，我們都應該認真審視一下。然後，正如布萊恩在準備好的演講稿中所說，我們將著眼於簡化我們的系統，我們將在 2026 年完成 ERP 系統的最終實施，並接管這些系統的所有權。當然，也要考慮提高自動化程度。因此，我們目前非常專注於分離工作，但期待在未來幾年內釋放資源並推進該專案。布萊恩，我想問你關於再投資的問題。

Yeah. And ultimately, when you think about the reinvestment, it just really accelerates our opportunity to mix shift our spend to those areas with the highest returns. You hit some of them. Obviously, research and development is going to be an area of concentration. The commercial infrastructure we need to drive it, so on and so forth. Those are the areas of the shift. Not saying that we don't spend a lot in those areas today. What I'm saying is we're going to shift the focus of that spend to the highest return areas.

是的。最終，當你考慮到再投資時，它確實加快了我們將支出轉移到回報最高的領域的機會。你擊中了其中一​​些。顯然，研發將是重點領域。我們需要推動它發展的商業基礎設施，等等。這些就是轉變的領域。並不是說我們現在在這些領域不花錢。我的意思是，我們將把這筆支出的重點轉移到回報最高的領域。

Love it. Thanks for the question, guys.

愛它。謝謝大家的提問。

Thanks thanks, Patrick.

謝謝，派崔克。

Ryan Zimmerman with BTIG.

Ryan Zimmerman，BTIG。

Thanks for taking the question. Just to dovetail on Patrick, just real quick, and then I have a more high-level question. The program, the $500 million in cost weight, is that equal over the next 4 years? Is that upfront? I might have missed that.

感謝您回答這個問題。簡單接著派崔克的話，然後我還有一個更高層次的問題。該項目耗資 5 億美元，這筆費用在未來 4 年內是否仍然有效？這是事先說清楚的嗎？我可能錯過了。

Yeah, Ryan, we haven't given details on the cadence of the spend yet, just that, that $500 million costs we're planning over the next 4 years. And so it will be dictated by the different projects. There's many multiple projects that we're planning to execute over the next few years.

是的，瑞安，我們還沒有透露具體的支出進度，只是說這 5 億美元的支出計畫將在未來 4 年內完成。因此，具體情況將取決於不同的項目。未來幾年，我們計劃執行多個專案。

Okay. All right. And then if I think about kind of your guidance for the remainder of the year, getting into that kind of 3% or so, clearly, you guys outperformed in the back -- in this quarter, but it does imply a little bit of a lower growth profile in the back -- in the fourth quarter, excuse me. And so is there anything in there maybe from the Dental back order dynamic that you're contemplating or that we should contemplate when we think about kind of your fourth quarter implied guidance.

好的。好的。然後，如果我考慮一下你們對今年剩餘時間的業績指引，例如達到 3% 左右，顯然，你們在本季度表現出色，但這確實意味著第四季度的成長前景會略微放緩，抱歉。那麼，在牙科積壓訂單動態方面，您是否考慮過任何因素，或者我們在考慮您第四季度的業績指引時，是否應該考慮任何因素？

Yeah, I'm glad you asked that one, Ryan, because as you know and others know, we've had some lumpiness to the first half of the year around volume as our customers prepared for our ERP systems and DC cutovers. And so just to reiterate there, what we've guided to now is the high end of our 2% to 3% annual guide. And what you're talking about is that Q4 essentially puts us at the midpoint of that around 2.5% for the quarter. But you have to remember that, that also includes absorbing the remaining first half volume giveback in IPSS. So we'll still have some pressure in Q4 in IPSS. If you normalize for that, it's going to be in line with the growth rate in the previous 2 quarters.

是的，瑞恩，很高興你問了這個問題，因為正如你和其他人所知，由於我們的客戶正在為我們的 ERP 系統和 DC 切換做準備，今年上半年我們的業務量出現了一些波動。因此，我再次重申一下，我們目前的指導目標已經達到了我們年度指導目標 2% 至 3% 的上限。你所說的其實是，第四季的數據基本上使我們處於該季度2.5%左右的中點。但你必須記住，這也包括吸收 IPSS 中剩餘的前半部分銷量回吐。所以第四季IPSS仍將面臨一些壓力。如果將此因素考慮在內，其成長率將與前兩個季度的成長率保持一致。

Steven Valiquette with Mizuho Securities.

Steven Valiquette，瑞穗證券。

Thanks. Good afternoon. Thanks for, taking the question. Congrats on the results, especially on the Dental sector. So I guess my question in relation to dental, there was somewhat of a common geographic theme across most of the other publicly traded dental companies that Europe had a pretty strong recovery in 3Q but the U.S. market was still fairly choppy. Just curious within your dental portfolio, were you seeing similar trends geographically or perhaps were some different dynamics for you guys?

謝謝。午安.謝謝您回答這個問題。恭喜你們取得的成績，尤其是在牙科領域。所以我想問的是，關於牙科領域，其他大多數上市牙科公司都呈現出某種共同的地域趨勢，即歐洲在第三季度實現了相當強勁的復甦，但美國市場仍然相當動盪。我很好奇，在你們的牙科業務組合中，你們是否也觀察到了類似的地域趨勢，還是你們的情況有所不同？

Yeah, Yes. Thanks for the question. I would say we didn't see anything that was dramatically different by region. The real momentum for us comes around new products, and we've launched those on a global basis, and they're getting traction not just in the U.S. but outside the U.S. as well. So I'll just kind of give a shout out to that dental team. They're really doing a nice job from an innovation perspective and the specialized sales organization they put into place is receiving those new products quite well and delivering results.

是的，沒錯。謝謝你的提問。我認為我們沒有看到各個地區之間有顯著差異。我們真正的發展動力來自於新產品，我們已經在全球推出了這些產品，它們不僅在美國，而且在美國以外的地區也獲得了市場認可。所以我要特別感謝一下牙科團隊。從創新角度來看，他們做得非常出色，他們建立的專業銷售組織也很好地吸收了這些新產品，並且取得了良好的表現。

Thanks for the question. Alright thanks.

謝謝你的提問。好的，謝謝。

Jason Bednar with Piper Sandler.

傑森·貝德納和派珀·桑德勒。

Hey, good afternoon. Thanks for taking the questions and Congrats on the results here. I've got two. I'll just ask the first and first here to start picking up on the dental theme, Wayde I heard you about pricing contributions for the company. But was there any benefit in your results there for dental from tariff-related price uplift. We've seen that from some other players. And just maybe what kind of visibility you have to sustaining that underlying 2% to 3% growth you saw during the quarter, maybe not just in 4Q like you guided, but even in quarters that follow.

嘿，下午好。感謝您回答問題，並祝賀您取得這樣的成績。我有兩個。我先問第一個和第一個開始討論牙科話題的人，韋德，我聽到了你關於公司定價貢獻的話題。但根據你們的研究結果，牙科價格上漲是否對牙科行業有任何益處？我們從其他一些球員身上也看到了這一點。而且，你對維持本季看到的 2% 到 3% 的潛在成長有什麼樣的可見性呢？也許不僅僅是像你預測的那樣在第四季度，甚至在接下來的幾個季度也是如此。

Yeah. I'm going to put the dental team on the spot because I absolutely believe that it's sustainable, if not something that we can improve. So I'm feeling good about the momentum in that business, again really focusing on the commercial infrastructure they put into place a change in new product cadence, which looks really good and healthy, not just now but in the future. And so I'm feeling pretty good about the momentum we have there. And relative to pricing, we didn't see any extraordinary pricing in the quarter. It's in line with what we typically see.

是的。我要讓牙科團隊承擔責任，因為我堅信這是可以持續的，即使不能完全持續，至少我們還可以改進。所以我對這家公司的業務發展勢頭感到樂觀，再次強調他們真正關注的是他們建立的商業基礎設施，以及新產品推出節奏的改變，這看起來非常好，不僅現在如此，將來也會如此。所以，我對我們目前的發展勢頭感覺相當不錯。就價格而言，本季我們沒有看到任何異常的價格波動。這與我們通常看到的情況一致。

All right. Understood. And then as for a follow-up, Bryan or Wayde, why is the tariff impact range still as wide as it is. I mean isn't all of that effectively capitalizing the balance sheet at this point? Shouldn't we be able to dial that into a tighter range than what we had 3 months ago?

好的。明白了。那麼，布萊恩或韋德，作為後續問題，為什麼關稅影響範圍仍然如此之大？我的意思是，這一切不都相當於在資產負債表上進行資本化嗎？我們難道不能將範圍縮小到比三個月前更小的程度嗎？

Yeah, Jason, we talked about that a lot heading into the quarter, and we decided just to hold it because it is such a dynamic environment. And so we'll wait to see here. That's the best estimate that we can have at this point in time, the range we felt is appropriate given the high and low end for what we think could happen. But of course, very dynamic out there, and we'll see how this progresses through the end of the year.

是的，傑森，我們在本季開始前就多次討論過這個問題，我們決定暫緩處理，因為這是一個瞬息萬變的環境。所以，我們拭目以待。這是我們目前能做出的最佳估計，考慮到我們認為可能發生的情況的上限和下限，我們認為這個範圍是合適的。當然，市場瞬息萬變，我們將拭​​目以待，看看年底前情勢如何發展。

I was going to say, just to your point in the way that we capitalize things, it would be even if things change to be very little impact to this year.

我本來想說，就你提到的我們處理大小寫的方式而言，即使情況發生變化，對今年的影響也很小。

Travis Steed, Bank of America.

特拉維斯·斯蒂德，美國銀行。

Hey, thanks for the question. I wanted to ask about your comment on kind of progressing towards the 28 long-range plan of 4% to 5% faster than expected. It looks like already excluding SKUs, you're only 100 basis points away from market growth this year. How should we think about kind of that going forward? Can you close that gap next year? And wait, anything else to kind of think about on kind of puts and takes to consider as we dial in models for next year?

嘿，謝謝你的提問。我想問您關於在實現 28 長期計劃方面比預期快 4% 到 5% 的評論。即使不考慮 SKU，你今年距離市場成長目標也只差 100 個基點了。我們接下來該如何看待這類問題？明年你能縮小這個差距嗎？等等，在製定明年的模型時，還有什麼其他需要考慮的買賣策略嗎？

Yeah, Maybe I'll start with that, Wayde, and if you want to provide any additional color. I'd just say that we are giving a lot of color right now. So we're not going to give any more than that relative to the guidance for 2026. I think the takeaway is the ramp that we're seeing in the LRP just stated it is happening faster than expected. I remember that when we presented the LRP back in March, I had people come up to me afterwards saying, I don't know that you can get there and are you reaching too far.

是啊，或許我可以先從這方面入手，韋德，如果你想補充一些細節的話。我只想說，我們現在賦予了它很多色彩。因此，相對於 2026 年的指導意見，我們不會給予更多資訊。我認為關鍵在於，我們在 LRP 中看到的成長速度比預期的要快。我記得我們在三月發布 LRP 時，之後有人走過來對我說，我不知道你們能否實現這個目標，你們是不是好高騖遠了。

I think anyone who doubted us now knows that we're already ramping pretty rapidly to it. And it's not a question of when, not a question of if, it's a question of when. And remember, once we get there, the bus doesn't stop, right? That's not the final stop. We're going to revise once we get there and shoot for a higher target. We're not going to make that change now, and we're not going to try to change the time line. We're going to keep the LRP as is. But it's pretty clear we're progressing faster than people thought.

我認為任何曾經懷疑過我們的人現在都知道，我們正在迅速朝著這個目標邁進。這不是何時發生的問題，也不是是否發生的問題，而是何時發生的問題。記住，我們到達目的地後，公車就不會停了，對吧？那不是終點站。到達目的地後，我們會進行調整，並爭取更高的目標。我們現在不會做出這樣的改變，也不會試圖改變時間表。我們將保持 LRP 不變。但很明顯，我們的進展速度比人們預想的還要快。

Yeah. Just picking up on '26 guidance. Travis, I'd be disappointed if you didn't ask about '26 on a Q3 call, knowing that we don't guide until Q4. But we do have some color that I think could help everybody as you think about our 2026 numbers. And one of them is the good news is that we don't see any full year significant tougher easy comps next year. And that's important because we've had some intra-quarter ups and downs during the year.

是的。只是順便提一下2026年的指導。崔維斯，如果你在第三季電話會議上沒有問到 2026 年的情況，我會很失望的，因為我們知道要到第四季才會發布業績指引。但我們有一些數據，我認為這可以幫助大家思考我們 2026 年的數據。其中一個好消息是，我們預計明年不會出現任何全年都比較艱難或容易的比較情況。這一點很重要，因為我們今年經歷了一些季度內的波動。

And so we've provided color throughout the year so that it can support the modeling on a quarterly basis, but it all nets out for the year. Our expectation is that this final volume headwind for IPSS in Q4 will net us out for the year. And then on a full year basis, we won't see any tougher easy comps. But of course, we have to take a look at the intra-quarter timing as we get into 2026. But other than that, we're not guiding to 2026 just at this time, but hopefully, that's helpful on the sales line.

因此，我們全年都提供了色彩數據，以便按季度進行建模，但最終所有數據都會匯總到全年。我們預計，IPSS在第四季的最終銷量逆風將使我們全年實現淨收益。從全年來看，我們不會再看到任何難度更高、難度更低的比賽了。當然，到了 2026 年，我們必須考慮季度內的時間安排。但除此之外，我們目前還沒有針對 2026 年的情況做出預測，但希望這對銷售方面有所幫助。

Yeah, it's helpful. And glad, I'm predictable, Wayde kind of my second question is on in the comment you guys made on the balance sheet has been transformed in just 6 quarters and you're ready to execute on portfolio optimization. Just wanting to kind of dial into that a little bit and kind of what that means and how that could happen and the ability to kind of improve the free cash flow from where it is today to help fund those acquisitions.

是的，這很有幫助。很高興，我很有規律，韋德，我的第二個問題就在你們的評論裡，資產負債表在短短 6 個季度內就發生了翻天覆地的變化，你們已經準備好執行投資組合優化了。我只是想稍微深入探討一下，了解一下這意味著什麼，以及這種情況是如何發生的，還有提高自由現金流的能力，以幫助為這些收購提供資金。

Yeah. Yes, absolutely. I think the reason why we're kind of doubling down on that capital allocation question is because we are feeling very confident about the operating cash that we're generating, and we feel like it's extremely durable. And of course, combine that with where we are from a balance sheet perspective, and it allows us to do multiple things now, right? We can do the M&A that we've been talking about, and it certainly opens the door to giving cash back as well. So those are the things that we're contemplating, having conversations with our Board, as you can imagine. And at the appropriate time, we'll update Wayde, anything?

是的。是的，絕對的。我認為我們之所以在資本配置問題上加倍投入，是因為我們對自身產生的經營現金流非常有信心，而且我們認為這種現金流具有極強的可持續性。當然，結合我們目前的資產負債表狀況，我們現在可以做很多事情，對吧？我們可以進行我們一直在討論的併購，當然也為返還現金打開了大門。所以，正如你所想，這些都是我們正在考慮的事情，我們正在與董事會進行討論。到時候我們會通知韋德，有什麼消息嗎？

Yeah. And I just pick up on the last part of your question around the free cash flows. And again, glad you asked this one, gives us an opportunity to talk a little bit more about it. As we called out in prepared remarks, we have some accounting for the P&F divestiture that impacts the free cash flow line, but that's offset in the investing cash flows.

是的。我只是想回應你關於自由現金流問題的最後一部分。再次感謝你提出這個問題，這給了我們一個機會再多談談它。正如我們在事先準備好的發言稿中提到的，P&F 資產剝離對自由現金流產生了一些影響，但這在投資現金流中得到了抵消。

And so that caused us to revise our guidance for free cash flows for the year. But if you net out the impact of the P&F divestiture, we're still right in line with our beginning of the year, $450 million to $550 million of free cash flows. And so what I shared last call in the Q2 call is that we do have some timing throughout the year that we're dealing with.

因此，我們修改了本年度自由現金流的預期。但如果扣除 P&F 資產剝離的影響，我們的自由現金流仍與年初的預期相符，介於 4.5 億至 5.5 億美元之間。因此，我在第二季電話會議上分享的內容是，我們今年確實有一些時間安排上的問題需要解決。

But our expectation would be similar cash flows to Q3 net of the divestiture, which I shared in my prepared remarks, around $170 million to $200 million. And so if we assume the same type of free cash flow benefit ex divestiture in Q4, we'll be right into our guidance range for the year.

但我們預計，扣除我先前在準備的發言稿中提到的資產剝離後，現金流將與第三季類似，約 1.7 億至 2 億美元。因此，如果我們假設第四季度不計資產剝離帶來的自由現金流收益與之前相同，那麼我們將完全符合我們全年的業績預期範圍。

And we intentionally added some additional color around free cash flows, excluding the separation costs, which will step down somewhat in '26, but most of it and be almost all done in 2027. And then these divestiture impacts that are classified to free cash flow because we want to make sure that we're highlighting the very strong free cash flow conversion for the business.

我們特意對自由現金流進行了一些額外的說明，不包括分離成本，分離成本將在 2026 年有所下降，但大部分將在 2027 年幾乎全部完成。然後，我們將這些資產剝離的影響歸類為自由現金流，因為我們希望確保突出該業務非常強勁的自由現金流轉換率。

And on a year-to-date basis, what we look like over 90% free cash flow conversion, excluding those two major initiatives. And so we can't wait to get to the other side of the separation as well as get through the divestiture here and really show the cash generation power of this business on the free cash flow line.

截至目前，如果排除這兩項重大舉措，我們的自由現金流轉換率似乎超過 90%。因此，我們迫不及待地想要完成分拆，順利完成資產剝離，並在自由現金流方面真正展現這家企業的現金創造能力。

(Operator Instructions)

（操作說明）

Vik Chopra with Wells Fargo.

維克·喬普拉與富國銀行合作。

Hi, thank you, It's Lei calling in for Vik. You gave some helpful color on 2026 in terms of how to think about the top line growth. Can you share any color as far as how to think about margin expansion kind of like that's also ahead of plan as you look at the LRP target? And I have a follow-up.

您好，謝謝，我是Lei，替Vik打電話。您就 2026 年的營收成長提供了一些有益的見解。您能否分享一下您對利潤率擴張的看法，例如這是否也比預期提前實現了長期目標？我還有一個後續問題。

Sure. So for 2026, what we shared in our prepared remarks is that we would expect to see continued improvement on both the top line and the bottom line. What we do have to highlight is that, obviously, tariffs are going to be -- assuming the assumptions that are in place today, there'll be more of a headwind next year, and that will pressure operating margin expansion, but that's one of the reasons we've got our programmatic savings as well as our new Transform for the Future program here to offset that.

當然。因此，對於 2026 年，我們在準備好的演講稿中表示，我們預計營收和利潤都將持續改善。我們必須強調的是，很顯然，關稅將會——假設目前的假設不變——明年將會面臨更大的阻力，這將對營業利潤率的擴張構成壓力，但這正是我們推出項目節省計劃以及新的“面向未來轉型”計劃來抵消這種影響的原因之一。

So we might see a little bit more pressure on the bottom line in 2026. But just pulling back up to the long-range plan commentary we gave on the bottom line for earnings per share growth, we're planning a 10% CAGR for earnings per share over the 3-year long-range plan period. And it's our goal. We're looking to expand earnings per share 10% each year. It might not happen every single year, but that's our goal.

因此，我們可能會看到2026年利潤面臨更大的壓力。但回到我們先前對每股收益成長的長期計畫評論，我們計劃在 3 年長期計畫期間實現每股收益 10% 的複合年增長率。這也是我們的目標。我們力求每年實現每股收益成長10%。或許不能每年都實現，但這是我們的目標。

Yeah. Maybe just to draft off that as well. One of the reasons we're talking about the programmatic savings, the tariff mitigation that we're doing in supply chain and also the Transform for the Future is we wanted to take that concern off the table that tariffs might actually drive margins down in '26. We just take that off the table. We're saying that we're going to improve margins. We're not going to say how much, but we just wanted to be very clear that that's the expectation.

是的。或許也可以以此為藍本。我們談論專案性節約、我們在供應鏈中實施的關稅緩解措施以及「面向未來的轉型」的原因之一是，我們希望消除關稅可能在 2026 年實際上導致利潤率下降的擔憂。我們先把這個選項排除掉。我們說我們會提高利潤率。我們不會透露具體金額，但我們只想明確表示，這就是我們的期望。

That's super helpful. And just my quick follow-up is you mentioned a few times about the firepower to do deals and such going forward. Can you just remind us what you said about potential areas of interest. And any comment on how soon you might expect to see something.

這太有幫助了。我還有一個小問題要補充：您曾多次提到未來要有足夠的實力去達成交易等等。您能再提醒一下您之前提到的潛在研究領域嗎？關於預計多久能看到成果，您有什麼建議嗎？

Yeah. We're actually actively looking for opportunities to move forward. And these would be tuck-in type acquisitions. We just referenced in the prepared remarks, something below $1 billion in value, obviously, not sales, but $1 billion in value.

是的。我們正在積極尋找前進的機會。這些都是補充性收購。我們在準備好的演講稿中提到了價值低於 10 億美元的項目，顯然不是指銷售額，而是指價值 10 億美元。

And it would be close to the vest. It would be in areas that we already play. We have commercial infrastructure that we can leverage. It would just fit to reduce the risk, reduce the complexity and ensure that we get a good outcome. So that's where we're going to concentrate. You can imagine, just given the scale of MedSurg, that's an area of concentration, but we're looking for these in all of our businesses right now.

而且這件事必須保密。這將是在我們已經涉足的領域。我們擁有可以利用的商業基礎設施。這樣做恰好可以降低風險，簡化流程，確保我們取得好的結果。所以，這就是我們要重點關注的地方。您可以想像，考慮到醫療外科的規模，這是一個重點關注的領域，但我們現在在所有業務中都在尋找這些人才。

I will now turn the call back over to Amy for closing remarks.

現在我將把電話轉回給艾米，請她作總結發言。

Great. Thanks, Regina, and thanks, everyone, for listening and to our analysts for your questions. If you have follow-up questions or need anything else, please don't hesitate to contact the Investor Relations team. This concludes our third quarter fiscal year 2025 conference call. Regina, you may now close things out.

偉大的。謝謝 Regina，也謝謝大家的聆聽，謝謝各位分析師提出的問題。如果您有任何後續問題或需要其他協助，請隨時聯絡投資者關係團隊。本次2025財年第三季電話會議到此結束。雷吉娜，你現在可以結束這一切了。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。