By Padmanabhan Ananthan
(Reuters) -Cencora will invest over $1 billion through 2030 to expand its U.S. network, the drug distributor said on Wednesday, after forecasting adjusted profit for next year above Wall Street expectations.
The company said it will build a second national distribution center in Harrison, Ohio, and new or enlarged sites in California and Alabama.
The investment aligns with the Trump administration’s push to boost domestic pharmaceutical manufacturing and distribution, and help Cencora respond to surging demand for medicines that need special handling and refrigeration.
The new Ohio hub will span 530,000 square feet and have advanced automation, while the planned 430,000-square-foot center in Fontana, California, will be nearly twice the current size, the company said.
“These investments will allow us to better support our customers with additional cold chain storage,” CEO Bob Mauch said in conference call with analysts.
Earlier in the day, Cencora said it expects 2026 adjusted profit per share between $17.45 and $17.75, compared with an average estimate of $17.5 per share, according to data compiled by LSEG.
Mauch also said Cencora has identified its businesses that do not closely align with its strategy, including the animal health business, legacy U.S. hub services and pro forma equity investment in Brazil. But he did not disclose whether the company would be selling these businesses.
“The strategic review, while having an uncertain outcome, also likely strengthens the overall enterprise as it allows Cencora to allocate resources to its faster growing core assets,” Leerink Partners analyst Michael Cherny said.
Cencora’s adjusted quarterly profit came in at $3.84 per share, beating estimates of $3.79 per share, and sales were at $83.73 billion, above estimates of $83.46 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sahal Muhammed)
