Direct Answer
81 SEC filers are classified under the Standard Industrial Classification code that describes the respiratory devices industry, and their latest annual reports show $173.5 billion of combined revenue and a median operating margin of -16.6%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Respiratory device makers produce ventilators, sleep apnea therapy, oxygen concentrators and inhalation devices used in hospitals and homes. Recurring supplies and rental models give steady revenue. The first numbers to compare across companies here are device units and resupply, recurring supplies share and gross margin.
Key Industry Metrics
- Device units and resupply: Number of devices placed and replacement supplies sold. Resupply keeps flowing as long as patients stay on therapy.
- Recurring supplies share: Portion of revenue from masks, tubing and consumables. A higher share makes revenue steadier than device sales.
- Gross margin: Share of sales left after cost to make devices and supplies. Supplies and mix shape it, and recalls can weigh on it.
- Patient compliance: Share of patients who use therapy as prescribed. Higher compliance supports resupply and coverage, since payers often require it.
- Reimbursement: Payment from insurers and government, including bidding programs. Rate cuts reduce revenue per device.
Primary Macro Drivers
- Sleep apnea and chronic lung disease prevalence: More patients are diagnosed with sleep apnea and chronic lung disease, which expands users and supports device units and resupply.
- Reimbursement and competitive bidding: Government bidding and payment rates for home equipment set what suppliers earn, which moves revenue and the supplies share.
- Home care adoption: More care at home increases demand for oxygen and ventilation equipment, which supports recurring rental and supply revenue.
- Recall and supply issues: A recall or shortage of key components can stop shipments and shift patients to rivals, so supply issues move device units and share.
Major Risks
- Recalls and litigation: A safety recall can stop sales, trigger lawsuits and lead to repairs; watch recall notices, legal proceedings and reserves.
- Reimbursement cuts: Lower payments or competitive bidding reduce revenue per patient and supply sales; watch reimbursement updates and gross margin.
- Competition from alternative therapies: New drugs or surgical options may reduce the need for devices in some patients; watch patient compliance and new device starts.
- Supply chain: Shortages of components delay shipments and lift costs; watch backlog, inventory and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Respiratory Devices Filers in the SEC Record
81 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3841. Their latest fiscal years end between 2022 and 2026, and together they reported $173.5 billion of revenue. Median revenue growth over the prior year was 14.7%. Median operating margin was -16.6% and median net margin -18.8%. Median total liabilities were 50% of total assets, and 27 of 81 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Medline Inc. | $28.4 billion | 11.5% | 7.8% | 4069.4% | FY 2025 |
| Stryker Corp | $25.1 billion | 11.2% | 19.5% | 12.9% | FY 2025 |
| 3m Co | $24.9 billion | 1.5% | 18.6% | 13.0% | FY 2025 |
| Becton Dickinson & Co | $21.8 billion | 8.2% | 11.8% | 7.7% | FY 2025 |
| Boston Scientific Corp | $20.1 billion | 19.9% | 18.0% | 14.4% | FY 2025 |
| Baxter International Inc | $11.2 billion | 5.7% | -2.7% | -8.5% | FY 2025 |
| Solventum Corp | $8.3 billion | 0.9% | 26.2% | 18.7% | FY 2025 |
| Resmed Inc | $5.1 billion | 9.8% | 32.7% | 27.2% | FY 2025 |
The 8 largest of 81 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Respiratory Devices guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Respiratory Devices industry?
Key performance indicators for the Respiratory Devices industry include: Device units and resupply, Recurring supplies share, Gross margin, Patient compliance, Reimbursement. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Respiratory Devices industry?
The Respiratory Devices industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Respiratory Devices industry?
The primary risks for Respiratory Devices companies include: Recalls and litigation, Reimbursement cuts, Competition from alternative therapies, Supply chain. Investors should assess each company's exposure to these factors and its track record of navigating them.