Investing.com -- Medline shares slumped more than 13% in premarket trading Wednesday after the medical supply distributor reported a 58.3% year-over-year drop in second-quarter net income, weighed down by losses tied to a fire that destroyed one of its distribution centers.

The company reported adjusted diluted earnings per share of $0.50, topping the $0.32 analysts had expected. On a reported basis, EPS came in at $0.07. The steep decline in net income followed a massive fire last month that completely destroyed Medline’s 1-million-square-foot distribution center in Tracy, California.

Second-quarter net sales rose 11.6% year-over-year to $7.7 billion, above the $7.51 billion consensus estimate, driven by expansion among existing customers and new customer signings.

Adjusted EBITDA rose 13.4% to $1.1 billion, aided by tariff refund benefits.

“We delivered robust top-line growth in the quarter, secured over 65% of our annual goal in total new customer signings during the first half of 2026, and moved swiftly to minimize disruption from the fire at our Tracy, California distribution center, demonstrating an unwavering commitment to our customers," said Jim Boyle, chief executive officer of Medline.

Medline raised its 2026 organic sales growth outlook to 9.0% to 10.0%, up from a prior range of 8.5% to 9.5%, while lowering its full-year adjusted EBITDA forecast to $3.3 billion to $3.4 billion, down from $3.5 billion to $3.6 billion.

The company said its organic sales outlook includes IEEPA tariff repayments, while its EBITDA guidance excludes IEEPA tariff refunds.