Baxter International (NYSE:BAX) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Company ParticipantsJoanne Wuensch - Managing Director and Head of US Healthcare ResearchJoel Grade - EVP and CFOVijay Kumar - Senior Managing Director of Healthcare Services and Technology Research TeamKevin Moran - VP of Investor RelationsDavid Roman - Managing DirectorAndrew Heider - President and CEOMatt Taylor - Managing DirectorConference Call ParticipantsMatt Mixkit - Equity Research AnalystTravis Steed - Managing Dire ...

Financial Data and Key Metrics Changes - Third quarter 2025 global sales from continuing operations totaled $2.8 billion, increasing 5% on a reported basis and 2% on an operational basis [17] - Adjusted earnings from continuing operations were $0.69 per share, reflecting a 41% increase versus the prior year [30] - Adjusted operating margin on a continuing operations basis was 14.9%, improving 40 basis points compared to the prior year [29] Business Line Data and Key Metrics Changes - Sales in the Medical Products & Therapies (MPT) segment were $1.3 billion, declining 1% due to softness in Infusion Therapies and Technologies [18] - Infusion Therapies and Technologies division sales totaled $1 billion, declining 4% primarily due to lower infusion pump sales [18] - Advanced Surgery sales totaled $306 million, growing 11% globally, driven by strong demand for hemostats and sealants [20] - Pharmaceuticals segment sales totaled $632 million, increasing 7%, with Injectables and Anesthesia division growing 3% [24] Market Data and Key Metrics Changes - U.S. demand for IV Solutions remains below pre-Hurricane Helene levels, with expectations for further recovery at a moderate pace [20] - Total U.S. capital orders for Care and Connectivity Solutions increased 30% compared to the prior year, indicating robust demand [23] - The company anticipates continued softness in specialty mix products within Pharmaceuticals, impacting overall growth [33] Company Strategy and Development Direction - The company is focusing on stabilizing business areas that require increased attention, strengthening the balance sheet, and driving a culture of continuous improvement [11][14] - A reduction in the quarterly dividend to $0.01 per share is planned to free up cash for deleveraging [13][31] - The company plans to launch an Investor Day in 2026 to provide deeper insights into long-term strategy and financial outlook [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges current performance challenges and emphasizes the need for immediate actions and long-term solutions [9] - The company expects operational sales growth of 1 to 2% for 2025, reflecting updated expectations due to evolving business dynamics [33] - Management remains confident in the strength of the IV Solutions business over the medium and long term despite current challenges [20][76] Other Important Information - The company has undergone significant transformation in recent years, becoming more streamlined and focused [11] - The introduction of Baxter GPS, a new growth and performance system, aims to drive continuous improvement across the organization [14] Q&A Session Questions and Answers Question: Vision for Baxter and future changes - Management emphasizes a focus on stabilizing business areas, strengthening the balance sheet, and driving a culture of continuous improvement [39][40] Question: Potential for positive growth in 2026 - Management anticipates growth but is not providing specific guidance for 2026 at this time [43] Question: Impact of Novum on guidance - The hold on Novum IQ Large Volume Pump is affecting sales, leading to customer evaluations of alternative solutions [57] Question: Free cash flow generation - Management expects continued positive free cash flow, particularly in the fourth quarter, and is focused on improving working capital [63][64] Question: Hospital CapEx and political impacts - There has been no observed slowdown in hospital capital spending despite political uncertainties, with robust order growth reported [78]

Baxter International (NYSE:BAX) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Speaker5Good morning, ladies and gentlemen, and welcome to Baxter International Inc.'s third quarter 2025 earnings conference call. Your lines will remain in a listen-only mode until the question and answer segment of today's call. At that time, if you have a question, you will need to press STAR and the number one on your touchtone phone. If anyone should require assistance during the conference, please press STAR then zero ...

NEW YORK, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds Baxter International Inc. (“Baxter” or the “Company”) (NYSE: BAX) investors of an upcoming deadline involving a securities fraud class action lawsuit commenced against the Company. Should You Join This Class Action Lawsuit? Do you, or did you, own shares of Baxter International Inc. (NYSE: BAX)?Did you purchase your shares between February 23, 2022 and July 30, 2025, inclusive?Did you ...

CLASS PERIOD: February 23, 2022 to July 30, 2025 Accessibility StatementSkip Navigation NEW YORK, Oct. 30, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Baxter International, Inc. (NYSE: BAX). Shareholders who purchased shares of BAX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/se ...

Third -Quarter 2025 Earnings Baxter International Inc. October 30, 2025 1 Forward-Looking Statements This presentation includes forward-looking statements concerning the company's financial results (including the outlook for fourth-quarter and full-year 2025) and operational, business development and regulatory activities. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the fo ...

Core Viewpoint - Baxter International has revised its forecasts for adjusted annual profit and revenue growth downward after missing third-quarter revenue estimates due to ongoing impacts from hurricane-related disruptions [1] Financial Performance - The company reported a revenue miss in the third quarter, which has led to a reassessment of its financial outlook for the year [1] - Adjusted annual profit and revenue growth forecasts have been trimmed as a result of these challenges [1] External Factors - Persistent impacts from hurricane-related disruptions have significantly affected the company's operations and financial performance [1]

Sales Performance - Third-quarter sales from continuing operations totaled approximately $2.84 billion, increasing 5% on a reported basis and 2% on an operational basis[4] - U.S. sales from continuing operations totaled approximately $1.54 billion, increasing 3% on a reported basis but declining 1% on an operational basis[8] - International sales from continuing operations reached approximately $1.29 billion, increasing 8% on a reported basis and 5% on an operational basis[8] - Medical Products & Therapies sales for the third quarter were approximately $1.33 billion, declining 1% on both a reported and operational basis[7] - Healthcare Systems & Technologies sales for the third quarter totaled approximately $773 million, increasing 3% on a reported basis[10] - Pharmaceuticals sales for the third quarter were approximately $632 million, reflecting a 7% increase on both a reported and operational basis[10] - Infusion Therapies & Technologies segment sales decreased by 4% to $1,023 million in Q3 2025 from $1,070 million in Q3 2024[44] - Advanced Surgery segment sales increased by 13% to $306 million in Q3 2025, up from $272 million in Q3 2024[44] - The Medical Products & Therapies segment reported sales of $1,329 million in Q3 2025, a slight decrease of 1% from $1,342 million in Q3 2024[44] - The Healthcare Systems & Technologies segment achieved sales of $773 million in Q3 2025, reflecting a 3% increase from $752 million in Q3 2024[44] - The Pharmaceuticals segment's sales rose by 7% to $632 million in Q3 2025, compared to $588 million in Q3 2024[44] - For the three months ended September 30, 2025, total net sales growth for continuing operations was reported at 5%, with operational sales growth at 2%[53] - For the nine months ended September 30, 2025, total net sales growth was 5%, with operational sales growth at 2%[55] Earnings and Income - Adjusted diluted earnings per share (EPS) from continuing operations for the third quarter was $0.69, representing a 41% increase over the prior year[8] - Income (loss) from continuing operations was $(51) million, compared to $61 million in Q3 2024[28] - Adjusted income (loss) from continuing operations (excluding special items) rose by 40% to $353 million, compared to $252 million in the previous year[28] - Adjusted diluted EPS from continuing operations (excluding special items) increased by 41% to $0.69, up from $0.49[28] - The company reported a net income of $171 million for the nine months ended September 30, 2025, compared to a net loss of $128 million in 2024[35] - Diluted earnings per share from continuing operations increased by 40% to $1.83 from $1.31 in the previous year[35] - The company's net income for the nine months ended September 30, 2025, was $1,238 million, with diluted earnings per share of $1.85, reflecting a gross margin of 40.6%[37] - Adjusted diluted EPS guidance for FY 2025 is projected to be between $2.35 and $2.40[56] Costs and Expenses - Cost of sales increased by 13% to $1,885 million, compared to $1,666 million in the previous year[28] - Gross margin decreased by 8% to $950 million, with a gross margin percentage of 33.5%, down from 38.3%[28] - The company incurred $96 million in intangible asset amortization during the quarter[30] - The company incurred restructuring and business optimization costs related to the sale of its former Kidney Care segment and product line exits in 2024[33] - The company faced significant costs to comply with new European medical device regulations, which are considered a one-time regulatory change[33] - The company incurred costs related to centralizing research and development activities in 2024, impacting discontinued operations[39] - The company faced significant costs related to Hurricane Helene, impacting both continuing and discontinued operations in 2025[44] Future Projections - For full-year 2025, Baxter expects sales growth from continuing operations of 4% to 5% on a reported basis and 1% to 2% on an operational basis[12] - The company expects fourth-quarter 2025 sales growth from continuing operations of approximately 2% on a reported basis and a decline of approximately 2% on an operational basis[13] - The company projects a U.S. GAAP sales growth of approximately 2% for Q4 2025, with operational sales growth expected to be around -2%[56] - The exit of IV Solutions in China is expected to impact sales growth by approximately 50 basis points in FY 2025[56] - Foreign exchange effects are anticipated to reduce sales growth by approximately 100 basis points in Q4 2025 and 50 basis points for FY 2025[56] Special Items and Adjustments - Business optimization items contributed $25 million to the income, with a net impact of $0.05 per share[30] - The company reported a gain of $37 million from the sale of Kidney Care, impacting earnings by $0.07 per share[30] - Tax matters resulted in a net impact of $(213) million, affecting earnings by $(0.07) per share[30] - Special items included in the results for 2025 amounted to $1,082 million, impacting the net income attributable to Baxter stockholders, which was $1,087 million for the same period[38] - The effective tax rate for income tax expense was reported at 30.2% for the nine months ended September 30, 2025[38] - The effective tax rate for income tax expense was 4.3%[30] - The effective tax rate for income tax expense in 2024 was reported at (1.6)%[38] Operational Efficiency - Operating income rose by 11% to $172 million, representing 6.1% of net sales, compared to 5.7% in Q3 2024[28] - Interest expense decreased by 33% to $58 million, down from $87 million in the prior year[28] - The company experienced a 142.1% increase in operating income before income taxes, reflecting improved operational efficiency[30] - Adjusted operating income (excluding special items) increased by 8% to $423 million, up from $391 million[28] - Adjusted operating income (excluding special items) increased by 17% to $1,238 million from $1,055 million in the previous year[35] Shareholder Information - Net income attributable to Baxter stockholders was $(46) million, a significant decrease from $140 million in Q3 2024[28] - The weighted-average diluted shares as reported were 514 million, with adjusted shares at 515 million[30] - The company reported a gross margin of 38.4% for the nine months ended September 30, 2024, with a net income of $(128) million[38] - The adjusted net income for the nine months ended September 30, 2025, was $1,096 million, with adjusted diluted earnings per share of $2.13[38]

Oct 30, 2025 7:15 AM Eastern Daylight Time Baxter Reports Third-Quarter 2025 Results Share DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today reported results for the third quarter of 2025. "I joined Baxter because it's a global healthcare leader – an iconic brand with an essential portfolio that touches more than 350 million patients every year,†said Andrew Hider, president and CEO. "In my first weeks, I've seen firsthand the passion and expertise that ...

Accessibility StatementSkip Navigation SAN DIEGO, Oct. 29, 2025 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Baxter International, Inc. (NYSE: BAX) common stock between February 23, 2022 and July 30, 2025, inclusive (the "Class Period"), have until December 15, 2025 to seek appointment as lead plaintiff of the Baxter class action lawsuit. Captioned Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Baxter International, Inc., No. 25-cv-12672 (N.D. Ill.), th ...