Baxter International Inc. · NYSE:BAX
Baxter International — Q2 2025 Earnings Presentation
40 slides from Baxter International's earnings presentation, Jul 31, 2025
Slide 1: Second-Quarter 2025 Earnings
Second-Quarter 2025 Earnings Baxter International Inc. July 31, 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements concerning the company's financial results (including the outlook for third-quarter and full-year 2025) and operational (including with respect to the new Vizient partnership), business development and regulatory activi
Slide 3: Use Of Non-GAAP Financial Measures
Use Of Non-GAAP Financial Measures To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United S
Slide 4: Table of Contents
Table of Contents Performance Summary 5 Financial Results 12 2025 Outlook 23 Non-GAAP Reconciliations 27 4
Slide 5: Performance Summary
Performance Summary Second-Quarter 2025 Earnings July 31, 2025 5
Slide 6: Executing On Our Strategy For Value Creation
Executing On Our Strategy For Value Creation Q2 2025 Results1 Worldwide sales from continuing operations grew 4% on a reported basis and 1% on an operational basis, with all three segments contributing to operational growth Adjusted earnings per share from continuing operations totaled $0.59 per
Slide 7: Performance Highlights
Performance Highlights Continuing Operations1 Second-Quarter 2025 First-Half 2025 $2.8B +4% Reported $5.4B +5% Reported +1% Operational2 +3% Operational2 Sales Sales Key Metrics GAAP Adjusted3 Key Metrics GAAP Adjusted3 Gross Margin 35.3% 40.7% Gross Margin 34.1% 41.3% YOY Change (300 bps) (170 bps)
Slide 8: Key Financial Metrics
Key Financial Metrics Second-Quarter 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $2.7B $2.8B 15.1% $0.59 13.3% $0.46 +1% Operational Growth 2 +180 bps +28% Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 1Non-GAAP financial metrics refe
Slide 9: Key Financial Metrics
Key Financial Metrics First-Half 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $5.4 B 15.0% $1.15 $5.2 B 12.8% $0.82 +3% Operational Growth 2 +220 bps +40% H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 1Non-GAAP financial metrics refere
Slide 10: Second-Quarter 2025 Adjusted Financial Results
Second-Quarter 2025 Adjusted Financial Results1 (Continuing Operations) Q2 2024 Q2 2025 Change Adjusted Gross Margin 42.4% 40.7% (170 bps) Adjusted SG&A Expense 24.4% 22.7% (170 bps) (% of Sales) Adjusted R&D Expense 4.8% 4.8% +0 bps (% of Sales) Adjusted Operating Margin 13.3% 15.1% +180 bps Adjust
Slide 11: Second-Quarter 2025 Performance
Second-Quarter 2025 Performance1 (Continuing Operations) Metric Q2 2025 Q2 2025 Guidance Actual Sales Growth 4% - 5% +4% Reported Sales Growth 1% - 2% +1% Operational Growth GAAP Diluted EPS N/A $0.24 Growth vs. Prior-Year Period +26% Adjusted Diluted EPS $0.59 - $0.63 $0.59 Growth vs. Prior-Year Pe
Slide 12: Financial Results By Operating Segment
Financial Results By Operating Segment Second-Quarter 2025 Earnings July 31, 2025 12
Slide 13: Second-Quarter 2025 Sales By Product Category
Second-Quarter 2025 Sales By Product Category1 Q2 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $554 $470 $1,024 (2%) (1%) Advanced Surgery $158 $138 $296 +7% +5% Medical Products & Therapies $712 $608 $1,320 (0%) +1% Care & C
Slide 14: First-Half 2025 Sales By Product Category
First-Half 2025 Sales By Product Category1 H1 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $1,138 $880 $2,018 +0% +3% Advanced Surgery $303 $261 $564 +4% +5% Medical Products & Therapies $1,441 $1,141 $2,582 +1% +3% Care & Co
Slide 15: Second-Quarter 2025 Sales By Product Category
Second-Quarter 2025 Sales By Product Category1 Product Category Sales Operational2 Quarterly Performance Drivers Results in the quarter reflect the impact from hospital IV fluid conservation efforts and slightly Infusion Therapies & $1,024M (1%) lower U.S. patient admissions than previously anticipa
Slide 16: Medical Products & Therapies
Medical Products & Therapies Q2 2025 Results Increase / (Decrease) $ In Millions Q2 2025 Q2 2024 $ Change % Change Net Sales $1,320 $1,322 ($2) (0%) Cost of Sales $755 $734 $21 +3% Gross Margin $565 $588 ($23) (4%) % of Sales 42.8% 44.5% (170 bps) Selling, General and Administrative Expenses $295 $2
Slide 17: Medical Products & Therapies
Medical Products & Therapies H1 2025 Results Increase / (Decrease) $ In Millions H1 2025 H1 2024 $ Change % Change Net Sales $2,582 $2,551 $31 +1% Cost of Sales $1,449 $1,402 $47 +3% Gross Margin $1,133 $1,149 ($16) (1%) % of Sales 43.9% 45.0% (110 bps) Selling, General and Administrative Expenses $
Slide 18: Healthcare Systems & Technologies
Healthcare Systems & Technologies Q2 2025 Results Increase / (Decrease) $ In Millions Q2 2025 Q2 2024 $ Change % Change Net Sales $767 $748 $19 +3% Cost of Sales $388 $380 $8 +2% Gross Margin $379 $368 $11 +3% % of Sales 49.4% 49.2% +20 bps Selling, General and Administrative Expenses $222 $202 $20
Slide 19: Healthcare Systems & Technologies
Healthcare Systems & Technologies H1 2025 Results Increase / (Decrease) $ In Millions H1 2025 H1 2024 $ Change % Change Net Sales $1,471 $1,415 $56 +4% Cost of Sales $744 $726 $18 +2% Gross Margin $727 $689 $38 +6% % of Sales 49.4% 48.7% +70 bps Selling, General and Administrative Expenses $439 $409
Slide 20: Pharmaceuticals
Pharmaceuticals Q2 2025 Results Increase / (Decrease) $ In Millions Q2 2025 Q2 2024 $ Change % Change Net Sales $612 $602 $10 +2% Cost of Sales $428 $407 $21 +5% Gross Margin $184 $195 ($11) (6%) % of Sales 30.1% 32.4% (230 bps) Selling, General and Administrative Expenses $106 $98 $8 +8% % of Sales
Slide 21: Pharmaceuticals
Pharmaceuticals H1 2025 Results Increase / (Decrease) $ In Millions H1 2025 H1 2024 $ Change % Change Net Sales $1,193 $1,180 $13 +1% Cost of Sales $824 $789 $35 +4% Gross Margin $369 $391 ($22) (6%) % of Sales 30.9% 33.1% (220 bps) Selling, General and Administrative Expenses $209 $194 $15 +8% % of
Slide 22: Second-Quarter & First-Half 2025 Results
Second-Quarter & First-Half 2025 Results1 Q2 2025 Results Adjusted Adjusted Reported Reported Operational Operating Operating YoY Margin $ In Millions Revenue Growth Growth Income Margin Change2 Baxter Continuing Operations $2,810 +4% +1% $423 15.1% +180 bps H1 2025 Results Adjusted Adjusted Reporte
Slide 23: 2025 Outlook
2025 Outlook Second-Quarter 2025 Earnings July 31, 2025 23
Slide 24: Third-Quarter 2025 Guidance
Third-Quarter 2025 Guidance1 Q3 2025 Guidance Sales Growth 6% - 7% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~70 bps Foreign Exchange (~100 bps) Sales Growth 3% - 4% Operational Growth (Continuing Operations)2 ~ Adjusted Diluted EPS $0.58 - $0.62 Conti
Slide 25: Full-Year 2025 Guidance
Full-Year 2025 Guidance1 FY 2025 Guidance Sales Growth 6% - 7% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~50 bps Foreign Exchange (~50 bps) Sales Growth 3% - 4% Operational Growth (Continuing Operations)2 Adjusted Diluted EPS $2.42 - $2.52 Continuing O
Slide 26: Full-Year 2025 Guidance By Segment
Full-Year 2025 Guidance By Segment1 Sales Growth FY 2025 Operational Growth Guidance Medical Products & Therapies 3% - 4% Healthcare Systems & Technologies 3% - 4% Pharmaceuticals 4% - 5% 1Non-GAAP financial metrics referenced in this slide include operational sales growth. Information about our use
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Second-Quarter 2025 Earnings July 31, 2025 27
Slide 28: Non-GAAP Reconciliations as of July 31, 2025
NON-GAAP RECONCILIATIONS AS OF JULY 31, 2025 Non-GAAP Reconciliations: As part of its Q2 2025 earnings announcement on July 31, 2025, Baxter presented its financial results for the second quarter of 2025. Baxter also presented guidance for the third quarter and full year of 2025. In these presentati
Slide 29: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended June 30, 2025 included special items which impacted the U.S. GA
Slide 30: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended June 30, 2024 included special items which impacted the U.S. GA
Slide 31: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2025 and 2024 (unaudited) 1. The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These restruct
Slide 32: Descriptions of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the six months ended June 30, 2025 included special items which impacted the U.S. GAAP
Slide 33: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the six months ended June 30, 2024 included special items which impacted the U.S. GAAP m
Slide 34: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2025 and 2024 (unaudited) 1. The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These restructur
Slide 35: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Three Months Ended June 30, 2025 Cash flows from (used in) operations – continuing operations $ 217 Cash flows from (used in) investing activities - continuing operations (115) Cash flows fro
Slide 36: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From The Three Months Ended June 30, 2024 to The Three Months Ended June 30, 2025 (unaudited) Sales By Product Category: Net Sales Growth Kidney Care Exit of IV Operational Sales As Report
Slide 37: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From The Six Months Ended June 30, 2024 to The Six Months Ended June 30, 2025 (unaudited) Sales By Product Category: Net Sales Growth Kidney Care Exit of IV Operational Sales As Reported M
Slide 38: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Third Quarter and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth by Segment (unaudited) Sales Growth Guidance Q3 2025* FY 2025* Sales gr
Slide 39: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2025 Projected Adjusted Operating Margin, Projected Full Year 2025 Projected Adjusted Tax Rate and Projected Third Quarter and Full Year 2025 Projected Adjusted Earnings Per Share (unaudited) Adjusted Operating Margin Guidance FY 2025
Slide 40: Second-Quarter 2025 Earnings
Second-Quarter 2025 Earnings Baxter International Inc. July 31, 2025 40