Medline Inc. reported higher revenue but lower profitability for the quarter and six months ended June 27, 2026. Net sales were $7,685 million for the quarter and $15,037 million year‑to‑date, up from $6,886 million and $13,530 million a year earlier, while operating income fell to $395 million and $817 million from $642 million and $1,213 million. Net income attributable to Medline Inc. declined to $60 million for the quarter and $189 million for the six months, compared with $333 million and $655 million, reflecting a higher effective tax rate and significant one‑time items.
A June 11, 2026 fire destroyed the Tracy, California distribution center, leading to estimated losses of $336 million (inventory, fixed assets and other costs) recorded in other operating expenses, with no insurance recoveries yet recognized. Results also include IEEPA tariff refunds: Medline recognized $332 million as a reduction of cost of goods sold, $89 million as a reduction of net sales for customer repayments, and $14 million of interest income, and carried a $279 million receivable and $89 million liability to customers at quarter‑end. The company generated $1,127 million of operating cash flow, ended with $2,329 million in cash, cash equivalents and restricted cash, and had total debt of $12,750 million. In May it issued $1,250 million of 5.000% senior secured notes due 2031, $750 million of 5.250% notes due 2033 and a new $2,750 million term loan at SOFR plus 1.5%, using proceeds and cash to repay term loans and redeem $500 million of 6.250% notes, incurring $23 million of extinguishment losses and $22 million of fees. Net interest expense decreased to $255 million from $433 million year‑to‑date, while the tax receivable agreement liability rose to $4,404 million, up $862 million, driven by March and May 2026 resale offerings by existing stockholders, from which Medline received no proceeds.
Medline Inc. reported Q2 2026 net sales of $7.7 billion, up 11.6% year over year, with Organic Sales growth of 11.5%. Gross margin improved to 28.8%. For the first six months, net sales reached $15.0 billion, up 11.1%, with Organic Sales up 10.8%.
Profitability was pressured by a $336 million loss from the Tracy, California distribution-center fire, higher operating expenses and tariff impacts. Q2 net income fell 58.3% to $139 million, while Adjusted EBITDA rose 13.4% to $1.1 billion. The company recognized $332 million of IEEPA tariff refunds and accrued $89 million of related customer repayments, for a net benefit of $243 million to net income and Adjusted EBITDA.
Operating cash flow for the first six months was $1.1 billion and Free Cash Flow was $920 million. Medline updated 2026 guidance, raising Organic Sales growth to 9.0%–10.0% but lowering Adjusted EBITDA to $3.3–$3.4 billion, citing inflation from the Middle East conflict, increased operational and quality investments, and retail channel softness.
Medline Inc. disclosed that its Chief Operating Officer, Stephen L. Miller, has notified the company of his decision to retire for health-related reasons. The retirement will be effective August 30, 2026. Medline has begun a search for a successor to the COO role.
Medline Inc. executive William J. Abrams reported a routine tax-related share disposition. On June 15, 2026, 1,308 shares of Class A Common Stock were withheld at $36.61 per share to cover his tax liability from vesting restricted stock units. This was not an open-market sale, and Abrams continues to hold 16,546 shares directly after the transaction.
Medline Inc. Chief Human Resources Officer Christopher P. Shryock reported a routine tax-withholding transaction involving company stock. On the vesting of restricted stock units, 872 shares of Class A Common Stock were withheld at a value of $36.61 per share to satisfy his tax liability, as noted in the footnote. After this non-market disposition for taxes, he directly holds 11,031 shares of Medline common stock.
Medline Inc.'s Chief Operating Officer Stephen L. Miller reported a routine tax-related share disposition. On the vesting of restricted stock units, 1,889 shares of Class A Common Stock were withheld at $36.61 per share to cover his tax liability. This was not an open-market sale. Following the withholding, Miller directly holds 23,899 shares, so he retains the vast majority of his equity position.
Medline Inc. Chief Legal Officer Alexander M. Liberman reported a routine tax-related share disposition. On the reported date, 872 shares of Class A Common Stock were withheld to cover his tax liability arising from the vesting of restricted stock units. After this withholding, he directly holds 11,031 shares of Medline Class A Common Stock. This event reflects a standard administrative step tied to equity compensation rather than an open-market sale.
Medline Inc. Chief Product Officer Amanda H. Laabs reported a routine tax-related share disposition. On the reported date, 1,889 shares of Class A Common Stock were withheld to cover her tax liability arising from the vesting of restricted stock units, at a value of $36.61 per share. After this withholding, she directly holds 23,899 shares of Medline common stock. This event reflects compensation-related tax settlement rather than an open-market stock sale.
Medline Inc. Chief Financial Officer Michael B. Drazin reported a tax-withholding disposition related to equity compensation. On the vesting of restricted stock units, 1,889 shares of Class A Common Stock were withheld at $36.61 per share to cover taxes, leaving him with 23,899 shares held directly.
Medline Inc. Chief Commercial Officer and 10% owner Douglas P. Golwas reported a mix of equity transactions involving Medline stock and partnership units. He exercised 100,000 Common Units of Medline Holdings, LP into 100,000 shares of Class A common stock, while an equivalent 100,000 shares of Class B common stock were automatically cancelled and returned to the issuer with no economic value exchanged.
Golwas then sold 38,034 Class A shares at a weighted average price of $37.05 per share and 61,966 Class A shares at a weighted average price of $36.60 per share, both under a pre-arranged Rule 10b5-1 trading plan. In a separate move tied to restricted stock unit vesting, 1,889 Class A shares were withheld to cover tax obligations. Following these transactions, he continues to hold significant direct Class A ownership and 365,864 Common Units of Medline Holdings, LP indirectly, each exchangeable one-for-one into Class A shares.