Becton, Dickinson(BDX) - 2025 Q2 - Quarterly Results

Revenue Performance - Revenue for Q2 fiscal 2025 was $5.3 billion, representing a 4.5% increase as reported, 6.0% currency-neutral, and 0.9% organic growth[4] - Revenues for Q2 2025 were $5,272 million, representing a 4.5% increase compared to $5,045 million in Q2 2024[28] - For the first six months of fiscal year 2025, revenues reached $10,440 million, a 7.1% increase from $9,751 million in the same period of 2024[29] - Total revenues for the first quarter of fiscal year 2025 reached $5,272 million, a 4.5% increase compared to $5,045 million in the same period of 2024[38] - Total revenues for the six months ended March 31, 2025, were $10,440 million, representing a 7.1% increase compared to $9,751 million in the same period of 2024[47] - In the United States, total revenues increased by 7.0% to $3,108 million from $2,906 million year-over-year[32] - International revenues showed a slight increase of 1.2% to $2,164 million compared to $2,139 million in the previous year[35] Segment Performance - BD Medical segment revenue grew by 12.7% to $2.76 billion, driven by strong performance in Medication Management Solutions[8] - BD Life Sciences segment reported a revenue decline of 4.3% to $1.25 billion, impacted by lower demand in Diagnostic Solutions[8] - BD Medical segment reported total revenues of $2,760 million, up 12.7% from $2,449 million year-over-year[38] - BD Life Sciences segment total revenues decreased by 4.3% to $1,247 million from $1,304 million in the previous year[38] - BD Interventional segment revenues declined by 2.2% to $1,264 million compared to $1,292 million in the same quarter of 2024[38] - BD Medical organic revenue for the three months ended March 31, 2025, was $2,503 million, reflecting a 2.2% increase from $2,449 million in 2024[50] - BD Medical segment revenues increased to $5,375 million, a 14.9% increase from $4,679 million in 2024, with Medication Delivery Solutions growing by 3.8%[47] - BD Life Sciences segment reported revenues of $2,545 million, a decrease of 1.8% from $2,592 million in 2024, with Biosciences declining by 5.2%[47] Earnings and Guidance - GAAP diluted EPS was $1.07, down 42.2% from the previous year, while adjusted diluted EPS increased by 5.7% to $3.35[6] - Adjusted diluted EPS guidance for fiscal 2025 is now projected to be between $14.06 and $14.34, indicating a year-over-year growth of approximately 7.0% to 9.1%[16] - Reported diluted earnings per share (EPS) for the three months ended March 31, 2025, was $1.07, down 42.2% from $1.85 in 2024[53] - The company expects FY 2025 reported revenue growth to be between +8.0% to +8.5%, with total revenues projected to be approximately $21.8 to $21.9 billion[58] - Organic revenue growth for FY 2025 is anticipated to be between +3.0% to +3.5%[58] - The company anticipates a reported percentage change in earnings of +7.0% to +9.1% for FY 2025[61] Costs and Expenses - Operating income for Q2 2025 decreased by 25.5% to $546 million from $734 million in Q2 2024[28] - Total operating costs and expenses for Q2 2025 were $4,725 million, an increase of 9.6% from $4,311 million in Q2 2024[28] - Cash and equivalents as of March 31, 2025, were $667 million, down from $1,717 million as of September 30, 2024[30] - The company reported a net cash provided by continuing operating activities of $857 million for the first six months of 2025[31] - Total assets decreased to $54,467 million as of March 31, 2025, from $57,286 million as of September 30, 2024[30] Strategic Initiatives - The company plans to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years to enhance its position in the medical device market[5] - The Advanced Patient Monitoring business unit launched the HemoSphere Alta™ Advanced Monitoring Platform, featuring AI-driven clinical decision support[5] - The company split its Integrated Diagnostic Solutions unit into two separate units to better align resources with business needs[33] - The company restructured its Life Sciences segment by splitting the Integrated Diagnostic Solutions unit into two distinct units to better align resources[48] Regulatory and Compliance Issues - The company received FDA clearance for the Phasix™ ST Umbilical Hernia Patch, marking a significant advancement in its product offerings[9] - BD was named to Fortune's 2025 list of America's Most Innovative Companies, ranking in the top 25% overall[9] - European regulatory initiative-related costs reached $104 million pre-tax, reflecting compliance efforts with new regulations[62] - The tax impact of specified items and other tax-related adjustments was ($297) million, influencing net earnings[61] - The company recorded $67 million in accruals impacting revenues due to legal matters and $175 million related to an SEC investigation[62] - Future costs for product remediation efforts included charges of $38 million to cost of products sold, indicating ongoing operational challenges[62] Challenges - The company faced significant challenges including macroeconomic conditions, supply chain disruptions, and competitive pressures impacting future performance[27] - Purchase accounting adjustments amounted to $1.503 billion pre-tax, impacting reported earnings significantly[61] - Integration costs incurred were $23 million pre-tax, while restructuring costs totaled $387 million pre-tax[61] - Transaction costs related to the Advanced Patient Monitoring acquisition were $48 million pre-tax, with financing costs recorded as ($8) million pre-tax[61] - Product, litigation, and other items accounted for $346 million pre-tax, affecting overall financial performance[62]