Summary: Henry Schein reported steady growth in its dental segment for 2024, with increased sales in merchandise, equipment, and value-added services.

Key Takeaways:

  • Global dental merchandise sales grew by 6.2% in Q4 2024, while dental equipment sales rose by 8.1%.
  • The company’s dental distribution segment generated $6.7 billion in revenue for the full year, a 0.4% increase.
  • Henry Schein introduced a new organizational structure, consolidating its dental business under Global Distribution and Value-Added Services.

Henry Schein Inc released its financial results for the fourth quarter and full year of 2024, reporting stable performance in its dental segment as part of its broader health care business. The company also introduced a new organizational structure, enhancing transparency for investors and aligning with its 2025-2027 BOLD+1 Strategic Plan.

Dental Business Performance

Henry Schein’s global dental distribution segment generated $6.7 billion in revenue in 2024, reflecting a slight 0.4% year-over-year increase. Within this category, dental merchandise sales reached $4.7 billion, experiencing a 1.3% decline, while dental equipment sales grew by 2.9% to $1.7 billion. The value-added services segment, which includes consulting, financial, and practice transition services, demonstrated strong growth of 21.5%, reaching $233 million in sales.

Henry Schein’s Global Specialty Products segment, which encompasses dental implants, biomaterials, orthodontics, and endodontic products, achieved $1.4 billion in sales, marking an 8.7% increase from the previous year. This growth underscores a sustained demand for specialty dental products within the industry.

New Organizational Structure and Reporting Segments

In an effort to streamline operations and enhance investor insight, Henry Schein has reorganized its business into three primary segments:

  • Global Distribution and Value-Added Services – covering distribution of dental and medical supplies, as well as equipment and related technical services.
  • Global Specialty Products – comprising manufacturing and sales of specialized dental and health care products.
  • Global Technology – which includes practice management software, e-services, and digital solutions for dental and medical practices.

Outlook for 2025

Looking ahead, Henry Schein projects modest improvement in dental markets and anticipates total company sales growth of 2% to 4% in 2025. The company also expects mid-single-digit growth in adjusted EBITDA as it continues to expand digital offerings and specialty dental product lines.

“We have confidence in the underlying fundamentals of our business and look forward to advancing the opportunities contained in our updated 2025 to 2027 BOLD+1 Strategic Plan,” said Stanley M. Bergman, chairman of the board and chief executive officer of Henry Schein. “We expect 2025 to be the base year from which to grow and achieve our previously provided long-term goal of high-single-digit to low-double-digit earnings growth.”

Henry Schein remains focused on leveraging e-commerce, expanding specialty dental offerings, and strengthening its practice management solutions to support the evolving needs of dental professionals. As part of this strategy, the company continues to develop its digital technology segment, which reported $630 million in sales for 2024, representing 4.7% growth year-over-year.

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