Henry Schein, Inc. (HSIC)

Henry Schein reported second-quarter 2026 net sales of $3.5 billion on 4 August, up 6.7 percent from a year earlier 3. Internal growth, meaning sales from the existing business before acquisitions and currency, added 4.6 percent 3.

The company raised its 2026 guidance 3. It now expects sales growth of 4.5 percent to 5.5 percent, up from 3 percent to 5 percent, and non-GAAP earnings per share of $5.29 to $5.39 3.

The leadership is changing too 24. Fred Lowery became chief executive on 2 March 2026, succeeding Stanley Bergman 2. On 8 October the company said Chief Financial Officer Ronald South will become a senior advisor on 4 November, and Emmanuel Caprais, from ITT, will take his post 4.

Lowery said the company's value creation plans remain a top focus, with priorities of accelerating growth and simplifying the business 3.

The company describes itself as having more than 94 years of experience distributing health care products 1. It became a public company in 1995, and its sales have grown at a compound annual rate of about 11 percent since then, reaching $13.2 billion in 2025 3.

In 2023 it acquired three businesses 1. A 57 percent stake in Biotech Dental, a French maker of implants and clear aligners, came in April 1. A São Paulo implant maker followed in July, and 90 percent of Shield Healthcare, a home medical supplier, in October 1.

In October 2023 a cyber incident hit its North American and European dental and medical distribution businesses 1. The company says it disrupted key operations, hurt 2023 results and still weighed on 2024 1. Net sales were $12.3 billion in 2023, $12.7 billion in 2024 and $13.2 billion in 2025 1.

A restructuring plan begun in August 2022 was completed on 31 July 2024 1. A second plan, committed on 6 August 2024, aims to integrate acquisitions and right-size operations 1. Restructuring and related costs were $80 million in 2023, $110 million in 2024 and $105 million in 2025 1.

In 2025 net sales rose 4.0 percent, with internal growth of 2.6 percent 1. Operating income was $653 million, and net income attributable to the company was $398 million 1.

In January 2025 funds linked to KKR agreed to invest in the company, and in May 2025 they bought 3,285,151 new shares for $250 million 1. Two KKR designees joined the board 1. Bergman announced in July 2025 that he would retire as chief executive, a date later moved to 1 March 2026 1.

Dental and medical distribution

The largest segment, Global Distribution and Value-Added Services, supplies dental and medical practices and made 84.5 percent of 2025 net sales 1. Dental merchandise, such as infection-control products, handpieces and anesthetics, made 36.6 percent 1. Dental equipment, such as chairs and X-ray gear, made 13.6 percent, and medical products made 32.5 percent 1.

This work earns thin margins: gross margin, revenue minus the cost of goods, was 25.0 percent here against 54.8 percent in Specialty Products 1. In the second quarter of 2026, dental merchandise sales rose 9.7 percent and medical sales 4.0 percent 3.

Its main U.S. dental rivals are Patterson Dental and Benco Dental, and in U.S. medical distribution McKesson and Medline 1.

Specialty products

Global Specialty Products makes dental implants, biomaterials, orthodontic and endodontic products and orthopedic implants, and made 11.7 percent of 2025 net sales 1. Its sales rose 6.7 percent in 2025, helped by implants and biomaterials and held back by lower orthodontic sales 1. Straumann, Envista, Zimvie and Dentsply Sirona compete in implants 1.

Technology

Global Technology provides practice management software for dental offices, including Dentrix and Dentally, and made 5.1 percent of 2025 net sales 1. It had about 95,000 active practices at the end of 2025 and a gross margin of 67.7 percent 1. Rivals include Open Dental, CareStack and Epic Systems 1.

Plants, people and problems

The company ships from 38 distribution centers and makes specialty products at 17 manufacturing sites 1. It employs more than 25,000 people, with about 48 percent in the United States 1. Lowery is chief executive, and Dan Daniel became chairman after the 2026 annual meeting 2.

Current problems include the October 2023 cyber incident, whose costs the company has largely recovered through a $60 million insurance policy 1. The company says tariffs had no adverse material effect on 2025 or the first half of 2026 2.

The umbrella, in words

Henry Schein supplies its own corporate brand of consumable merchandise and software brands such as Dentrix 1. Exhibit 21 lists subsidiaries including Camlog USA, Henry Schein Europe and BHCL US Holdings, parent of 16 wholly-owned dental implant and distribution businesses 6.

Internet Brands owns a 33.6 percent noncontrolling interest in Henry Schein One, LLC, the software joint venture formed in 2018 1. Henry Schein agreed with KKR that the fund may acquire up to 19.9 percent of the shares, and two KKR designees sit on the board 1.

In properties above 100,000 square feet it leases or owns about 5.0 million square feet, in places including the United States, Germany, France, Canada and Brazil 1.

The company expects 2026 sales growth of 4.5 percent to 5.5 percent and non-GAAP earnings per share of $5.29 to $5.39 3. It also expects adjusted EBITDA, a profit measure before interest, taxes and some charges, to grow in the mid to high single digits 3.

The company expects its 2024 restructuring plan to be completed by the end of 2027, and has not estimated the charges for 2026 and 2027 2.

South stays as chief financial officer through 3 November, including the third-quarter earnings process, and Caprais takes the role on 4 November 4. The company expects to recognize the net effect of tariff refunds in the quarter ending 26 September 2026 2.

On 21 September the company raised its revolving credit commitments from $1 billion to $1.25 billion and extended the end date to 19 September 2031 5. It plans to use the facility for working capital, share repurchases and potential acquisitions 5.