Solventum ups financial guidance as tariff risks fade

Despite financial hurdles including tariffs, Maplewood-based health care supplier Solventum raised its revenue expectations Thursday as executives said momentum is growing for the newly public company.

CEO Bryan Hanson said cultural and structural enhancements at the 3M spinoff are driving growth.

“The foundation we inherited, combined with the aggressive actions we’ve already taken, position us well for continued growth and margin acceleration and, ultimately, sustainable value creation,” Hanson said.

Solventum, which spun out of 3M in 2024, makes health care products like wound care supplies as well as hospital software. It said in February it was selling its purification business to burn down debt. It has since said it is keeping the drinking water filtration portion of that business to “decrease complexity and potentially accelerate time to close the transaction” according to a filing with the Securities and Exchange Commission.

Overall, Solventum reported adjusted net profits of $296 million on about $2.2 billion in sales for the quarter that ended June 30. Sales rose on an organic basis by 2.8%, and the company’s profit and sales both beat Wall Street estimates.

The company now expects 2025 organic sales growth of 2% to 3%, up by half a percentage point.

The company’s medical, surgical and health information units fueled the organic sales growth.

Hanson said autonomous medical coding using artificial intelligence is a key component of billing management — a pillar of the company’s health information systems (HIS) unit — growing by 3.2%. In May, the company announced a partnership with billing management company Ensemble to create a first-of-its-kind AI coding product to help with hospital revenue processes.

“This is yet another step in solidifying HIS as the largest autonomous coding vendor and underscores its leadership in AI-driven solutions that transform customer operation,” Hanson said.

Solventum’s increase in guidance arrived as as the U.S. began imposing higher tariffs on dozens of countries Thursday.

Chief Financial Officer Wayde McMillan said the company is lowering the range of its estimated losses due to tariffs to as much as $80 million, down by $20 million. A smaller estimated hit from China tariffs, despite higher tariff rates for Europe and other regions, led to the reduction, he said. Other medical companies such as Boston Scientific made similar moves recently.

Hanson said the company will continue to monitor tariffs and implement new mitigation strategies as needed. During the call, he celebrated that Solventum “earned its place on the Fortune 500 in our first year as a standalone company.”