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 Insights - Baxter International Inc. reported its third-quarter 2025 financial results, highlighting a significant increase in adjusted net income and earnings per share, alongside a strategic focus on continuous improvement and growth initiatives [1][4][11]. Financial Performance - The company reported third-quarter sales from continuing operations of approximately $2.84 billion, representing a 5% increase on a reported basis and a 2% increase on an operational basis [11][12]. - Adjusted net income from continuing operations was $0.69 per diluted share, marking a 41% increase compared to the previous year [4][11]. - U.S. GAAP diluted earnings per share from continuing operations was reported at a loss of $0.10, while adjusted diluted EPS from continuing operations was $0.69 [11][12]. Segment Results - Medical Products & Therapies sales totaled approximately $1.33 billion, declining 1% on both a reported and operational basis, primarily due to reduced sales in the Infusion Therapies & Technologies division [12]. - Healthcare Systems & Technologies sales reached approximately $773 million, increasing 3% on a reported basis and 2% on an operational basis, driven by demand for Care & Connectivity Solutions [12]. - Pharmaceuticals sales amounted to approximately $632 million, reflecting a 7% increase on both a reported and operational basis, supported by strong performance in Drug Compounding and Injectables & Anesthesia products [12]. Strategic Initiatives - The company has launched a new enterprise-wide continuous improvement system aimed at enhancing execution and strengthening future results [2]. - Baxter expects full-year 2025 sales growth from continuing operations to be between 4% to 5% on a reported basis and 1% to 2% on an operational basis, with adjusted earnings from continuing operations projected at $2.35 to $2.40 per diluted share [6][7]. - For the fourth quarter of 2025, Baxter anticipates sales growth from continuing operations of approximately 2% on a reported basis and a decline of about 2% on an operational basis [7].

Core Insights - Baxter International Inc. has launched the Welch Allyn Connex 360 Vital Signs Monitor, which has received FDA's 510(k) clearance and is now available for order in the U.S. [2][11] - The launch is expected to enhance Baxter's Front Line Care unit within the Healthcare Systems & Technologies segment and strengthen its position in the connected patient monitoring market [3][10]. Product Details - The Connex 360 monitor features advanced connectivity, customizable configurations, and automated clinical documentation to streamline clinician workflows [6][7]. - It captures vital signs for adult, pediatric, and neonate patients, including blood pressure, temperature, pulse rate, respiration rate, and blood oxygen levels, enabling care teams to obtain a full set of patient vitals in under a minute [7][8]. Market Context - The global patient monitoring devices market was valued at $50.36 billion in 2024 and is projected to reach $118.21 billion by 2033, growing at a CAGR of approximately 10.2% [9]. - The increasing demand for monitoring devices and the need for continuous monitoring are key factors driving market growth [9]. Financial Performance - Baxter currently has a market capitalization of $11.92 billion and an earnings yield of 10.6%, significantly higher than the industry average of 0.2% [5]. - Despite the positive outlook from the product launch, Baxter's shares have declined nearly 2.5% following the announcement and have lost 40.2% over the past year [4][13].