Financial Data and Key Metrics Changes - Q4 revenue reached $5.9 billion, representing a 7% increase and 3.9% organic growth, while full-year revenue was a record $21.8 billion, up 7.7% and 2.9% organic [4][5] - Adjusted diluted EPS for Q4 was $3.96, with a full-year record of $14.40, reflecting a 9.6% growth, including a two-point impact from tariffs [5][17] - Adjusted gross margin for Q4 was 54.2%, and adjusted operating margin was 25.8%, with a full-year adjusted gross margin of 54.7% and operating margin of 25% [16][17] Business Line Data and Key Metrics Changes - New BD achieved strong organic growth of 4.9% in Q4, with significant contributions from various segments [4] - BD Interventional experienced high single-digit growth, driven by double-digit growth in PureWick and advanced tissue regeneration [7][14] - Pharma systems saw high single-digit growth in biologics, offset by lower vaccine demand, which constitutes about 20% of pharma systems revenue [15][23] Market Data and Key Metrics Changes - The biosciences business showed sequential improvement in sales in the U.S. and EMEA, led by demand for the new FACSDiscover platform [7][15] - Research funding in biosciences remained subdued, impacting growth, while diagnostic solutions returned to positive growth due to recovering BD BACTEC utilization [7][15] - China is expected to decline in the mid-teens due to government policies, impacting growth by about 100 basis points [23][51] Company Strategy and Development Direction - The company is focused on accelerating its strategy as it transitions into new BD, emphasizing commercial excellence and innovation [10][20] - A two-year $200 million cost-out program has been initiated to address stranded corporate costs, with approximately half expected this year [12] - The company plans to enhance its capital allocation strategy, prioritizing internal investment, share repurchases, and a reliable dividend [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term mid-single digit growth despite transitory market dynamics expected to continue into fiscal 2026 [9][24] - The company is taking a prudent approach to guidance, incorporating updated views on the operating environment, particularly regarding vaccines and China [31][32] - Management highlighted the importance of BD Excellence in driving margin expansion and cash generation, with expectations for continued strong performance [20][56] Other Important Information - The company announced its 54th consecutive year of dividend increases and returned $2.2 billion to shareholders, including a $1 billion share buyback [5][17] - The Waters transaction is seen as a significant strategic opportunity to unlock value for investors, with expected closure around the end of Q1 2026 [18][27] Q&A Session All Questions and Answers Question: How does the guidance for new BD reflect conservatism? - Management emphasized a prudent approach to guidance, incorporating macro dynamics and not assuming improvements in the operating environment [31][32] Question: What are the expectations for Q1 compared to the full year? - Q1 guidance reflects full-year headwinds, with expectations for growth to step up in Q2 and Q3, which are anticipated to be the strongest quarters [36][37] Question: Why not be more aggressive in returning capital to shareholders? - Management stated the focus remains on cash generation and disciplined capital allocation, with plans for significant share buybacks post-Waters transaction [41][42] Question: What was the organic growth in China for Q4? - China experienced high single-digit organic growth in Q4, with a cautious outlook due to volume-based procurement policies [51] Question: Can new BD grow EPS double digits? - Management expressed confidence in the new BD's ability to achieve high single-digit EPS growth, supported by strong cash generation and margin expansion [55][56]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [5][20] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or 32.4% margin [5][6] - The company is raising its revenue guidance by $100 million at the midpoint for the full year based on year-to-date performance and foreign currency movements [5][33] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% in Q2 2025 [7][8] - Sales of Nexplanon declined 1% at constant currency in Q2, with a 5% decline in the U.S. but a 10% growth outside the U.S. [10][11] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [12][13] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [10][11] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [21][22] - Volume increased by $90 million in Q2, representing a growth of about 5.6%, driven by fertility, HEDLEMA, Emgality, and VITAMMA [22] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of long-term debt in Q2 [6][31] - Aiming for a net leverage ratio below four times by year-end and further improvements to 3.5 times or below by 2026 [6][31] - The company is committed to building Nexplanon into a billion-dollar franchise and expanding its market presence [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow of over $900 million before one-time costs in 2025 [6][41] - The company is optimistic about the growth potential of VITAMMA and expects to achieve significant access improvements by early 2026 [15][18] - Management acknowledged challenges in the U.S. market due to federal funding issues but remains confident in Nexplanon's long-term growth potential [11][53] Other Important Information - The company expects to see a modest decline in adjusted gross margin in the second half of the year but aims to land closer to the high end of the 60% to 61% range [36][39] - One-time costs related to restructuring are expected to decline, improving free cash flow conversion in the coming years [60][61] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - The company has started new telehealth and DTC campaigns and added more sales representatives, totaling over 125 in the field [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - The decline in U.S. Nexplanon sales is attributed to both purchase timing and underlying pressures, with confidence in growth despite market confusion [48][52] Question: What is the expected impact of tariffs on margins in 2026? - It is too early to speculate on tariff impacts for 2026, but the EU is the largest import exposure for the company [56][57] Question: How should we think about free cash flow conversion and one-time items? - Free cash flow should grow in line with the business, with a continued reduction in one-time costs expected [60][61] Question: What is the status of the 6219 endometriosis program? - The company has decided to discontinue the program due to lack of efficacy signals [80][82] Question: Will the FDA update the guidance for generics regarding Nexplanon? - The company is working closely with the FDA for the new labeling for the five-year indication, but the FDA will make its own assessment [82][86]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [11] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [11] - Adjusted diluted earnings per share grew by 16% [4] - Adjusted free cash flow was $26 million, up 6% from the prior year period [5][13] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [11] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [11] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [7] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [9] Market Data and Key Metrics Changes - The company faced a negative 3.5% impact from rate and exposure changes on renewals, compared to a positive 4.5% benefit in the prior year [6][7] - Client retention improved year over year to approximately 92% [6] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [8] - The introduction of the Builder Reciprocal Insurance Exchange (BRI) is a significant milestone for growth in the builder channel [8] - The company remains confident in maintaining double-digit organic growth despite macroeconomic uncertainties [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [9] - The company expects organic revenue growth in the IAS business to be in the mid to high single-digit range for the year, with overall double-digit growth anticipated [15][16] - Management noted that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to grow over time [45][46] Other Important Information - The company was recently upgraded by S&P to a B rating, with a stable outlook from Moody's [15] - The transition to a fiduciary reporting model for cash and receivables aims to reduce volatility in cash flow from operations [12] Q&A Session Summary Question: Organic revenue outlook for the second quarter - Management acknowledged that the IAS business is running below expectations due to project-based headwinds but remains confident in the underlying fundamentals [19][20] Question: Cash flow conversion rate - Management targets a free cash flow conversion rate of 50% against adjusted EBITDA for the year, with potential to reach 65% to 70% over time [25][26] Question: Project-based work in the second quarter - Management noted an increase in new project starts in May and a strong pipeline for the balance of the month [34] Question: Strong growth in UCTS segment - The growth was driven by strong performance in homeowners programs and the introduction of a multifamily captive [36] Question: Timing of headwinds from renewal - Management indicated that timing-related headwinds from project-based work are expected to improve in the second quarter [41] Question: Market conditions in Florida - Management stated that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to increase over time [45][46] Question: Employee benefits business - Management noted that the cautious business outlook among clients has impacted the employee benefits segment, but they expect visibility to improve as the year progresses [65][66]