Medline Inc (MDLN) shares tumbled 6.04% in pre-market trading on Wednesday after the medical-surgical products distributor reported second-quarter earnings that revealed a sharp decline in net income and a lowered full-year profit outlook.

The company posted net income of $139 million, a 58.3% plunge from the same period a year earlier, primarily driven by a $336 million loss related to a fire at its Tracy, California distribution center. While net sales grew 11.6% to $7.7 billion, the profit slump overshadowed the top-line strength. Additionally, Medline cut its full-year 2026 Adjusted EBITDA guidance to a range of $3.3 billion to $3.4 billion, down from its prior forecast of $3.5 billion to $3.6 billion, citing higher-than-expected inflationary pressure from the Middle East conflict, increased operational investments, and retail channel softness.

The earnings report also highlighted a $243 million net IEEPA tariff refund benefit that partially offset the fire-related losses, but the reduced guidance and significant profit drop weighed heavily on investor sentiment in the pre-market session.