Sleep apnea specialist Resmed announces plans for major new distribution centre

Constructing the Greenwood, Indiana facility will cost the company US$30 million

Rowan Dunne

Published

4 hours ago

Sleep apnea treatment aid pioneer Resmed Inc (NYSE: RMD) (FRA: RME) has announced the construction of a new distribution centre in Greenwood, Indiana. The reveal marks the beginning of a significant expansion for the company within the United States.

Resmed is investing US$30 million in this 446,500-square-foot facility, which will serve as a key logistics hub for delivering healthcare products across North America. Operations are slated to begin in 2027, complementing existing centres in Atlanta, Georgia, and Moreno Valley, California. The project will create over 100 jobs.

This central location will boost two-day transit coverage from 75 per cent to 90 per cent of the U.S. population and reduce delivery times to Canada by one day, according to Resmed.

Local incentives, including up to US$1.75 million in performance-based tax credits from the Indiana Economic Development Corporation, support the initiative.

ResMed is a medical tech company that develops innovative devices and digital health solutions for treating sleep apnea, chronic obstructive pulmonary disease and other respiratory disorders. It serves millions worldwide through its focus on sleep, breathing and home care technologies.

“At Resmed, we envision a future where everyone can reach their full potential through better sleep and better breathing,” said CEO Mick Farrell on social media this week, “with care delivered right in their home.”

Operational implications are positive

This development should strengthen Resmed’s supply chain by integrating the new hub with its existing network, reducing bottlenecks and enhancing resilience. Faster shipments will improve product availability and order fill rates, enabling reliable service for clinicians and home-care providers.

Patients will benefit from quicker access to essential equipment, potentially improving outcomes in sleep and respiratory care.

However, execution risks, such as labour availability and integration challenges, accompany the construction and ramp-up phases.

The facility aligns with broader healthcare trends toward strong, localized supply chains, helping Resmed differentiate from competitors like Koninklijke Philips NV (NYSE: PHG) and Fisher & Paykel Healthcare Corporatn Ltd (OTCMKTS: FSPKF) (NZE: FPH).

Indiana Governor Mike Braun and Greenwood Mayor Mark W. Myers are pleased with the news.

Recent financials have been looking sharp

In the second quarter of fiscal 2026 ending Dec. 31, Resmed reported revenue of US$1.42 billion — an 11 per cent year-over-year increase.

The company’s gross margin rose by roughly 5.5 per cent in comparison to fiscal Q2 of 2025 at 61.8 per cent while operating income shot up by 18 per cent year-over-year. Adjusted diluted earnings per share hit US$2.81 during the quarter, beating analyst estimates.

During fiscal H1, Resmed saw a 26 per cent year-over-year rise in operating cash flow at US$797.1 million.

Overall, Resmed maintains robust cash flow characteristics, with trailing twelve-month operating cash flow around US$1.8 billion as of FY Q2, 2026. This has supported ongoing investments, dividends and share repurchases while keeping a solid net cash position.

The Greenwood centre could positively influence future financials by supporting efficiency gains and margin improvements through streamlined logistics. Analysts from Simply Wall St project annual revenue growth to US$6.4 billion and earnings to US$1.9 billion by 2028. They expect that the facility will contribute incrementally to these goals.

Upfront costs may put pressure on short-term margins, but long-term benefits from enhanced supply chain tightness and patient access strengthen the bull case for rising profits.

Big economic development news for #CD6: @Resmed is investing $30 million to build a 440,000 sq. ft. distribution center in Greenwood.

That means 100+ high-wage jobs, a boost for Indiana’s life sciences ecosystem, and faster delivery of critical medical products across the…

— Congressman Jefferson Shreve (@RepShreve) February 26, 2026