Solventum Corporation

Good afternoon, my name is Audra and I will be your conference call operator today. I would like to welcome everyone to Solventum's fourth quarter 2025 earnings call. As a reminder, this conference is being recorded. All lines have been placed on mute to prevent any background noise. 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.

Thank you. Good afternoon and welcome to Solventum's fourth quarter fiscal year 2025 earnings call. Joining me on today's call are Chief Executive Officer Ryan Hansen and Chief Financial Officer Wade McMillan. A replay of today's earnings call will be available later today on the investor relations section of our corporate website. The earnings press release and presentation are both available there now. During today's call, Our discussion and any comments we make will be 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. 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. These statements are made based on reasonable assumptions. 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 from any forward-looking statements made today. Following our prepared remarks, we'll hold a Q&A session. For this portion of today's call, please limit yourself to one question and one related follow-up. If you have additional questions, you're more than welcome to rejoin the queue. I'd like to now hand the call over to Brian.

All right. Thanks, Amy, and to all of our shareholders and everyone else that's interested in the Solventum story. I just want to say thanks for joining us today as we review our fourth quarter and our full year results, along with our 2026 guidance. We closed 2025 with solid momentum, making significant progress in our first full year as a standalone public company. Looking back at the year, I'm very proud of what we accomplished. We formally launched our long-range plans. and prioritize five growth drivers that are expected to now deliver more than 80% of our future growth. We built an experienced leadership team with strong MedTech experience, but also strong transformation experience, solidified our mission and culture, revamped our innovation process, restructured our global sales organization, and through our SKU rationalization program, sale of our purification and filtration business, In acquisition of Acera, we rapidly advanced our portfolio strategy as well, all while managing the separation process from 3M. And inside of that, throughout the year, we consistently delivered on our strategic, operational, and financial commitments. We improved volume growth, outperformed expectations, and tripled our annual sales growth from a year ago. I think it's clear that we are moving toward our long-range revenue targets faster than expected. and have programs in place to overcome external headwinds and execute against our margin targets as well. This team's capacity to deliver results while navigating ongoing separation efforts, ERP implementations, and acquisitions and divestitures is a testament to the strong talent and culture we've already built. And building on the foundation of our Salesforce restructuring project, our revitalized innovation process has meaningfully increased our vitality index, and as a result, We now expect a solid cadence of new product launches in our growth driver areas to drive further momentum with this more optimized sales team. And as our separation progresses, we are gaining full ownership of our IT systems and freeing up needed resources to drive greater overall savings and efficiencies. Our Transform for the Future program was built to capture this opportunity, and its impact is reflected in our 2026 operating margin outlook. Okay, moving to our quarter results. Well, the fourth quarter reflects another quarter of progress and provides a solid foundation as we head into the new year. And during the quarter, we announced and closed our first tuck-in acquisition, Acera Surgical, which not only opens the door to the fast-growth synthetic tissue market, it also very well complements our existing technology categories and our call points. And as we move forward, portfolio optimization will remain a key lever for value creation here at Solventum. In other words, we will continue evaluating attractive assets to acquire and assessing our current assets for go-forward fit. And our business performance and resulting healthy balance sheet now provide flexibility to return capital to shareholders. And during the quarter, we announced a $1 billion share repurchase program, which we began executing in January of this year. We see this. as a clear and important step in achieving a more balanced capital plan. Okay, moving to our business performance in the quarter. Overall, we delivered solid sales growth with dental solutions and MedSurg performing better than expected. Starting with MedSurg, we continue to leverage our existing brands, our new product innovation, and newly specialized sales teams, and are seeing traction in each of our growth driver areas, which, as you probably remember, are negative pressure wound therapy, IV site management, and sterilization assurance. In our advanced wound care business, we saw continued growth in negative pressure wound therapy, supported specifically by double-digit growth in Provena and ongoing expansion of our innovative back peel-in-place dressing. As mentioned earlier, we recently closed the Acera acquisition, which will now be a part of our advanced wound care business. We're obviously very early in the integration process, but sales teams across our newly combined business will now have access to an expanded suite of technologies to offer our joint customers. And with our combined clinical differentiation, our robust DME and differentiated infrastructure, and proprietary technology, we have a meaningful runway for growth acceleration in this business. In the infection prevention and surgical solutions business, we saw better than expected growth supported by our two growth driver areas, sterilization assurance and IV site management. Inside sterilization assurance, our strong brand equity continues to provide a solid foundation for our dedicated sales force, and early momentum from our three attest sterilization product launches will continue to support the team's momentum to drive growth going forward. In IV site management, demand for Tegaderm CHG remains strong, and our global launch continues to gain momentum. We have meaningful clinical differentiation, and our specialized sales teams are focused on converting customers from standard films to this high-value solution that reduces the risk of infection. Tegaderm CHG is still significantly underpenetrated, providing a clear runway for continued growth. And in our dental solutions business, our core restoratives growth driver was again a key component of our performance in the quarter and was supported by our strong existing brands, recent new product launches, and the Salesforce specialization that we put into place in 2025. From a new product launch perspective, we continue to see strong demand for products like ClinPro Clear and Filtech Easy Match, and overall new product sales are driving the majority of our underlying business growth. In building on last quarter's service improvements, the dental team once again significantly reduced back orders, which also contributed to growth in the quarter. Our health information systems business delivered another solid quarter, supported by its growth driver, revenue cycle management. And we continue to see adoption of 360 encompass progress against our international expansion efforts and gains in autonomous coding. And relative to autonomous coding, our strong automation and acceptance rates are further positioning us as the largest and, importantly, most capable autonomous coding vendor. Over decades, we built deep rules and algorithms designed to ensure accurate and compliant reimbursement coding. This, combined with our vast datasets and proprietary workflows, uniquely positions us to leverage AI-driven autonomous coding our customers can trust. And in summary, we finished the year building on the success and the momentum we achieved in the first three quarters. And it's clear to me that we have the right team and strategy and our momentum will continue into 2026 and beyond. And with that, I want to thank our global team for their hard work and ongoing commitment to our mission. It's you that are making a difference every single day by delivering for our patients, our customers, and our shareholders. And with that, I'll turn the call over to Wade to review our financial results and our 2026 guides. Wade, I'll just pass it to you.