$SOLV

Solventum Corp

CIK:0001964738|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total net sales	$ 2,209	$ 2,161	$ 4,216	$ 4,231
Gross profit	1,286	1,175	2,382	2,289
Selling, general and administrative expenses	927	772	1,754	1,541
Research and development expenses	178	189	367	381
Operating income	181	214	262	367
Interest expense, net	64	103	125	207
Other expense (income), net	9	8	13	19
Income before income taxes	108	103	123	141
Provision for (benefit from) income taxes	15	13	19	(86)
Net income	$ 92	$ 90	$ 105	$ 227
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.53	$ 0.52	$ 0.60	$ 1.31
Diluted earnings per share (in dollars per share)	$ 0.53	$ 0.51	$ 0.60	$ 1.30
Weighted-average number of shares outstanding:
Basic (in shares)	172.7	174.1	173.5	173.9
Diluted (in shares)	173.3	175.2	174.4	175.0
Cost of product
Total net sales	$ 1,698	$ 1,668	$ 3,211	$ 3,265
Cost of sales	807	865	1,603	1,700
Cost of software and rentals
Total net sales	511	493	1,005	966
Cost of sales	$ 116	$ 121	$ 231	$ 242

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income	$ 105	$ 227
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	268	251
Pension and postretirement benefits	27	32
Stock-based compensation expense	89	83
Deferred income taxes	(88)	(177)
Changes in assets and liabilities
Accounts receivable	(286)	(15)
Due from related parties	27	4
Inventories	18	(77)
Accounts payable	26	23
Due to related parties	(117)	(6)
Accrued compensation	(101)	(47)
All other operating activities — net	68	(100)
Net cash provided by operating activities	38	198
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(167)	(219)
Other — net	3	(5)
Net cash used in investing activities	(164)	(224)
Cash Flows from Financing Activities
Repayment of debt	0	(200)
Proceeds from debt, net of issuance costs	46	0
Net transfers from (to) 3M	2	(30)
Purchases of treasury stock	(355)	0
Other — net	(44)	(19)
Net cash used in financing activities	(350)	(249)
Effect of exchange rate changes on cash and cash equivalents	1	7
Net increase (decrease) in cash and cash equivalents	(475)	(268)
Cash and cash equivalents at beginning of period	878	762
Less: cash and cash equivalents held for sale	0	(2)
Cash and cash equivalents at end of period	403	492
Supplemental Cash Flow Information
Right-of-use assets obtained in exchange for finance lease liability	$ 204	$ 0

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 403	$ 878
Accounts receivable — net of allowances of $82 and $87	1,310	1,034
Due from related parties	122	150
Inventories
Finished goods	573	636
Work in process	218	201
Raw materials and supplies	249	229
Total inventories	1,040	1,066
Other current assets	865	731
Total current assets	3,741	3,859
Property, plant and equipment — net	1,565	1,326
Goodwill	5,626	5,704
Intangible assets — net	2,408	2,592
Other assets	904	814
Total assets	14,243	14,294
Current liabilities
Short-term borrowings and current portion of long-term debt	506	0
Accounts payable	701	687
Due to related parties	331	435
Unearned revenue	596	621
Other current liabilities	1,528	1,393
Total current liabilities	3,663	3,136
Long-term debt	4,573	5,035
Pension and postretirement benefits	358	363
Deferred income taxes	157	164
Finance leases	207	0
Other liabilities	486	547
Total liabilities	9,443	9,245
Commitments and contingencies (Note 12)
Equity
Common stock, par value $0.01 per share, 750,000,000 shares authorized	2	2
Additional paid-in-capital	3,919	3,876
Retained earnings	1,902	1,797
Treasury stock, at cost	(355)	0
Accumulated other comprehensive income (loss)	(669)	(625)
Total equity	4,800	5,049
Total liabilities and equity	$ 14,243	$ 14,294