[Baxter Q2 2025 Earnings Release](index=1&type=section&id=Baxter%20Reports%20Second-Quarter%202025%20Results) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Baxter's Q2 2025 sales from continuing operations reached $2.81 billion, up 4% reported and 1% operational, with adjusted diluted EPS at $0.59 Q2 2025 Key Financial Metrics | Metric | Value | Basis | Growth (vs. Q2 2024) | | :--- | :--- | :--- | :--- | | Sales from Continuing Operations | $2.81 billion | Reported | +4% | | Sales from Continuing Operations | $2.81 billion | Operational | +1% | | GAAP Diluted EPS from Continuing Operations | $0.24 | GAAP | +26% | | Adjusted Diluted EPS from Continuing Operations | $0.59 | Non-GAAP | +28% | - The company appointed **Andrew Hider** as the new President and CEO to accelerate innovation, growth, and operational effectiveness[3](index=3&type=chunk)[4](index=4&type=chunk) [Second-Quarter 2025 Segment Performance](index=2&type=section&id=Second-Quarter%202025%20Segment%20Results) Q2 2025 segment performance was mixed, with Medical Products & Therapies flat at $1.32 billion, Healthcare Systems & Technologies up 3% to $767 million, and Pharmaceuticals up 2% to $612 million Q2 2025 Sales by Segment (Continuing Operations) | Segment | Sales (approx.) | Reported Growth | Operational Growth | | :--- | :--- | :--- | :--- | | Medical Products & Therapies | $1.32 billion | 0% | +1% | | Healthcare Systems & Technologies | $767 million | +3% | +2% | | Pharmaceuticals | $612 million | +2% | +1% | - Medical Products & Therapies performance was impacted by softness in **IV solutions demand** due to fluid conservation efforts post-Hurricane Helene[8](index=8&type=chunk) - Pharmaceuticals growth was driven by **Drug Compounding** strength, partially offset by a **1% decline in Injectables** and a low double-digit decline in Anesthesia sales[9](index=9&type=chunk) [Recent Business Highlights](index=3&type=section&id=Recent%20Highlights) Baxter restored IV solution inventory post-Hurricane Helene, partnered with Vizient for supply reliability, and published its 2024 Corporate Responsibility Report - Inventory levels for **IV solutions** from the North Cove, N.C. site were restored, and all product allocations removed post-Hurricane Helene[9](index=9&type=chunk) - Partnered with **Vizient** to include **IV fluids** in its Vizient Reserve Program, ensuring reliable access during supply disruptions[9](index=9&type=chunk) - Published the **2024 Corporate Responsibility Report**, detailing progress on 2030 sustainability goals[10](index=10&type=chunk) [2025 Financial Outlook](index=4&type=section&id=2025%20Financial%20Outlook) Baxter updated its full-year 2025 forecast to 6-7% reported sales growth and adjusted diluted EPS of $2.42-$2.52, with similar Q3 expectations Full-Year 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Sales Growth (Reported) | 6% to 7% | | Sales Growth (Operational) | 3% to 4% | | Adjusted Diluted EPS | $2.42 to $2.52 | Third-Quarter 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Sales Growth (Reported) | 6% to 7% | | Sales Growth (Operational) | 3% to 4% | | Adjusted Diluted EPS | $0.58 to $0.62 | [Financial Statements & Reconciliations](index=10&type=section&id=Financial%20Statements%20%26%20Reconciliations) [Consolidated Statements of Income (Loss)](index=10&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) Q2 2025 net sales from continuing operations grew 4% to $2.81 billion, with GAAP income at $122 million, reflecting Kidney Care exclusion Q2 2025 vs Q2 2024 Income Statement Highlights (Continuing Operations) | Metric (in millions, except EPS) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,810 | $2,694 | 4% | | Gross Margin | $991 | $1,031 | (4)% | | Operating Income | $191 | $179 | 7% | | Income from Continuing Operations | $122 | $95 | 28% | | Diluted EPS from Continuing Operations | $0.24 | $0.19 | 26% | Six Months 2025 vs 2024 Income Statement Highlights (Continuing Operations) | Metric (in millions, except EPS) | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,435 | $5,184 | 5% | | Gross Margin | $1,852 | $1,992 | (7)% | | Operating Income | $249 | $294 | (15)% | | Income from Continuing Operations | $186 | $101 | 84% | | Diluted EPS from Continuing Operations | $0.36 | $0.20 | 80% | [Segment Performance Analysis](index=16&type=section&id=Segment%20Performance%20Analysis) For H1 2025, Medical Products & Therapies sales grew 1% to $2.58 billion, Healthcare Systems & Technologies 4% to $1.47 billion, and Pharmaceuticals 1% to $1.19 billion Six Months Ended June 30, 2025 Sales by Segment | Segment | Sales (in millions) | Actual Growth | Operational Growth | | :--- | :--- | :--- | :--- | | Medical Products & Therapies | $2,582 | 1% | 3% | | Healthcare Systems & Technologies | $1,471 | 4% | 4% | | Pharmaceuticals | $1,193 | 1% | 2% | | Total - Continuing Operations | $5,435 | 5% | 3% | Six Months Ended June 30, 2025 Segment Operating Income | Segment | Operating Income (in millions) | % of Segment Net Sales | | :--- | :--- | :--- | | Medical Products & Therapies | $483 | 18.7% | | Healthcare Systems & Technologies | $211 | 14.3% | | Pharmaceuticals | $127 | 10.6% | Six Months Ended June 30, 2025 Sales by Geography (Continuing Ops) | Region | Sales (in millions) | % Growth | | :--- | :--- | :--- | | U.S. | $3,026 | 7% | | International | $2,409 | 3% | | Total | $5,435 | 5% | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Baxter reconciled Q2 2025 adjusted diluted EPS of $0.59 from GAAP EPS of $0.24, operational sales growth of 1% from 4% reported, and reported negative free cash flow of $144 million for H1 Q2 2025 GAAP to Adjusted EPS Reconciliation (Continuing Operations) | Item | Per Diluted Share | | :--- | :--- | | **Reported GAAP EPS** | **$0.24** | | Intangible asset amortization | $0.23 | | Business optimization items | $0.03 | | Product related reserves | $0.03 | | Hurricane Helene costs | $0.03 | | Separation-related costs | $0.02 | | Other items | $0.01 | | **Adjusted Non-GAAP EPS** | **$0.59** | Q2 2025 Reported to Operational Sales Growth Reconciliation | Item | Impact on Growth | | :--- | :--- | | **Net Sales Growth As Reported** | **4%** | | Kidney Care MSA | (4)% | | Exit of IV Solutions in China | 1% | | Foreign Exchange (FX) | (0)% | | **Operational Sales Growth** | **1%** | Free Cash Flow Reconciliation (Six Months Ended June 30, 2025) | Item (in millions) | Amount | | :--- | :--- | | Cash flows from operations - continuing operations | $118 | | Less: Capital expenditures - continuing operations | ($262) | | **Free cash flow - continuing operations** | **($144)** | [Other Information](index=5&type=section&id=Other%20Information) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Baxter utilizes non-GAAP measures like operational sales growth and adjusted diluted EPS to clarify core performance by excluding variable or unusual items - Management uses non-GAAP measures internally for **financial planning**, **monitoring business unit performance**, and **determining incentive compensation**[16](index=16&type=chunk) - **Operational sales growth** is a non-GAAP measure excluding Kidney Care MSA impact, IV solutions exit in China, and calculated at constant currency rates[17](index=17&type=chunk) - Special items excluded from adjusted earnings include **intangible asset amortization**, **business optimization charges**, **acquisition costs**, **separation costs**, **Hurricane Helene costs**, and certain legal and tax matters[19](index=19&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks including global economic conditions, supply chain disruptions, regulatory actions, and integration of acquisitions - Forward-looking statements cover the **financial outlook for Q3 and full-year 2025** and operational activities[22](index=22&type=chunk) - Major risks include impacts from **global economic conditions**, **supply chain disruptions**, **inflation**, and **geopolitical events**[23](index=23&type=chunk) - Other cited risks include **regulatory actions by the FDA**, **raw material availability**, **quality program failures**, and **IT system breaches**[23](index=23&type=chunk)[24](index=24&type=chunk)

In its upcoming report, Baxter International (BAX) is predicted by Wall Street analysts to post quarterly earnings of $0.60 per share, reflecting a decline of 11.8% compared to the same period last year. Revenues are forecasted to be $2.82 billion, representing a year-over-year decrease of 26.1%. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to a ...

Core Viewpoint - Baxter International Inc. is set to announce its second-quarter 2025 results on July 31, with expectations of moderate growth despite a projected decline in revenues and earnings compared to the previous year [1][2][3]. Q2 Estimates - The consensus estimate for revenues is $2.82 billion, reflecting a 26.1% decline from the prior year's quarter [2]. - The consensus estimate for earnings is 60 cents per share, indicating an 11.8% year-over-year decline [2]. - The model estimates total revenues from continuing operations to improve by 1.3% at constant currency to $2.81 billion, with adjusted earnings per share expected to decline 11.4% to 60 cents [2]. Important Factors to Note - Baxter is anticipated to report moderate growth supported by strong execution across core segments and easing operational challenges [3]. - Sales from continuing operations grew 5% in the first quarter, driven by the Medical Products & Therapies and Healthcare Systems & Technologies segments [3]. - For Q2, the company expects reported sales growth of approximately 4% to 5% and operational growth in the 1% to 2% range [3]. Margin Profile - Baxter's adjusted operating margin improved by 260 basis points year-over-year to 14.9%, aided by strong top-line delivery and lower SG&A expenses [4]. - The margin stability is expected to continue due to operational efficiencies and ongoing cost containment initiatives [4]. Operational Performance - The completion of Baxter's transformation strategy, including the spin-offs of the Kidney Care and BioPharma Solutions businesses, has streamlined its portfolio [5]. - Management expects adjusted earnings per share in the range of 59 to 63 cents, building on the 55 cents reported in the previous quarter [5]. Recovery from Hurricane Helene - Manufacturing at the North Cove facility has returned to pre-hurricane levels, allowing for inventory replenishment and reduced product allocations [6]. - The company anticipates normalized ordering patterns as IV solution product allocations are removed [6]. Segmental Overview - The Medical Products & Therapies segment reported a 6% operational growth in Q1, with sales reaching $1.3 billion, driven by the U.S. infusion systems portfolio [7][9]. - The Healthcare Systems & Technologies segment also saw a 6% operational increase in Q1, with sales totaling $704 million, led by the Care and Connectivity Solutions division [10]. - The Pharmaceuticals segment reported 3% operational growth in Q1, with sales of $581 million, primarily driven by specialty injectables [11]. Other Sales and Revenue Streams - Other sales totaled $15 million in Q1, with drug compounding business growing 2% [12]. - MSA revenue from Vantive was reported at $63 million in Q1, with expectations of around $80 million for Q2 [12].

Group 1 - The FDA reported that as of June 27, Baxter has documented 79 severe injuries and 2 deaths related to infusion pump issues [1]

Charleston, SC, July 22, 2025 (GLOBE NEWSWIRE) -- In The Adventures of Baxter: The Cat Pack Attack, readers are introduced to Baxter, a spirited young mouse living in a luxury toaster, who thrives on adventure and creativity. Baxter, along with his loyal friend Henry, prepares for the Annual Baxterville Cheese-Off, an event that brings excitement and joy to their peaceful backyard community. However, a dark omen looms when Mella, the friendly dog, shares a troubling dream about the Cat Pack, a trio of misch ...

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].

Group 1 - Baxter International Inc. announced the appointment of Andrew Hider as President and CEO, effective no later than September 3, 2025 [1] - Brent Shafer, who has served as Chairman and interim CEO since February 2025, will transition to the role of independent Chairman of the Board [1] Group 2 - Andrew Hider has 25 years of cross-industry experience and a global perspective, focusing on growth-oriented and people-centric leadership [2] - Hider served as CEO and Director of ATS, a leading automation solutions provider, where he significantly improved profit margins and nearly doubled adjusted revenue over five years with a compound annual growth rate (CAGR) in the low double digits [4][5] - Under Hider's leadership, ATS's stock price more than doubled since 2017, outperforming major indices [5] Group 3 - Baxter International, founded in 1931 and headquartered in Deerfield, Illinois, specializes in medical products for chronic and critical care, developing and selling products for complex conditions such as hemophilia and cancer [6] - Baxter's diverse business integrates medical devices, pharmaceuticals, and biotechnology, with a leading position in home kidney therapy and recombinant factor products for bleeding disorders [6] - The company employs approximately 38,000 members globally [6]

Core Viewpoint - Changlian Co., Ltd. has established long-term strategic partnerships with several Fortune 500 companies, including Pop Mart and other industry leaders [1] Company Partnerships - The company has formed collaborations with notable firms such as Apple, BD, BOC Healthcare, Seiko, Mitsubishi, Hissen Meikang, Jaguar Land Rover, Baxter, and Kobayashi [1]

Summary of Baxter's Conference Call Company Overview - **Company**: Baxter International Inc. - **Key Executives**: Joel Grade (CFO), Claire Trackman (SVP, Investor Relations) Core Industry Insights - **Industry**: Healthcare, specifically focusing on medical devices and pharmaceuticals Key Points and Arguments CEO Search Update - The board is making diligent progress in the CEO search, balancing speed and thoroughness [3][4] Growth Strategy - Baxter aims for a growth target of 4% to 5%, driven by innovation and R&D investments [6] - The company is focusing on operational effectiveness and streamlining processes [7] - Inorganic growth opportunities are also part of the strategy, alongside cultural integration [7] Business Identity Post-Sales - Post divestitures (BPS and Vantiv), Baxter is focusing on agility and simplification of operations [11] - The company is emphasizing innovation and capital allocation to drive growth and margin expansion [12] Q1 Performance - Q1 performance exceeded expectations, with a 5% growth driven by strong performance in HST and MPT segments [13][14] - HST grew at a rate of 7%, while frontline care grew by 5% [14] - Notable growth in pump sales and advanced surgeries, although some softness in the U.S. pharma segment [15][16] Q2 Guidance - Q2 guidance is conservative, projecting 1% to 2% growth due to expected conservation in MPT and historical seasonal trends [17][19] - The second quarter is typically the weakest, and hospitals are adjusting back to normal ordering patterns post-allocation [21][24] Pricing Dynamics - Pricing improvements are anticipated, with a full benefit expected in Q2, contributing to a projected 100 basis points improvement for the year [30][31] - The impact of tariffs is being monitored, with China being a significant factor in tariff-related costs [46][47] Margin Expectations - Full-year margin guidance is set at 16% to 16.5%, with expectations for gradual improvement as cost initiatives ramp up [49][52] - TSA income and stranded costs are influencing gross margins, with a focus on operating margins for a clearer profitability picture [65][76] Balance Sheet and Cash Utilization - Baxter is on track to achieve a net debt to EBITDA ratio of three times by year-end, allowing for potential stock buybacks and tuck-in acquisitions [77][78] Additional Important Insights - The company is focusing on maintaining a balanced view across its product lines, particularly in MPT and HST segments [39][42] - There is a recognition of the need for hospitals to return to historical purchasing habits, which may take time [24][28] - The company is committed to exploring small-scale M&A opportunities to enhance growth [78] This summary encapsulates the key insights and strategic directions discussed during Baxter's conference call, highlighting the company's focus on growth, operational efficiency, and financial health.

Company Overview - Baxter International (BAX) has launched the Hemopatch Sealing Hemostat in the United States, a collagen pad designed for hemostasis and sealing during surgical procedures, suitable for both open and minimally invasive surgeries [1][4] - Hemopatch can be stored at room temperature and is activated upon contact with moisture, enhancing convenience and efficiency in the operating room [1][4] Product Features and Benefits - Hemopatch addresses significant challenges in clinical settings related to surgical bleeding and leakage, providing a reliable and easy-to-use solution [2] - The product is versatile and effective across various surgical specialties, including general, cardiovascular, hepatic, and orthopedic procedures, which is expected to improve patient outcomes and reduce surgical complications [2][10] - Hemopatch is engineered to deliver rapid hemostasis and effective tissue sealing, relying on the interaction of collagen and NHS-PEG to form a hydrogel that enhances adhesion [8][10] - The pad's three-dimensional matrix absorbs fluids and adds mechanical strength to the developing clot, ensuring stability and rapid control of bleeding, often within just 2 minutes [9] Market Potential - The global surgical hemostats and sealants market is projected to grow steadily due to rising surgical volumes and demand for minimally invasive procedures, positioning Baxter to capture greater market share [4][11] - The global hemostats market size was estimated at $2.70 billion in 2023 and is expected to grow at a CAGR of 6.76% from 2024 to 2030, driven by the increasing prevalence of chronic diseases and the growing volume of surgical procedures [11] Financial Performance - Baxter currently has a market capitalization of $16.15 billion and an earnings yield of 7.9%, significantly higher than the industry's 0.04% [5] - In the last reported quarter, Baxter delivered an earnings surprise of 14.58% [5]