Baxter International Inc. · NYSE:BAX
Baxter International — Q1 2025 Earnings Presentation
32 slides from Baxter International's earnings presentation, May 1, 2025
Slide 1: First-Quarter 2025 Earnings
F I R S T - Q UA R T E R 2025 EARNINGS Baxter International Inc. May 1, 2025 1
Slide 2: Forward-Looking Statements
FO RWA R D - LO O K I N G S TAT E M E N T S This presentation includes forward-looking statements concerning the company’s financial results (including the outlook for second-quarter and full-year 2025) and business development and regulatory activities. These forward-looking statements are based on
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
TA B L E O F C O N T E N T S Performance Summary 5 Financial Results 12 2025 Outlook 19 Non-GAAP Reconciliations 23 4
Slide 5: Performance Summary
P E R FO R M A N C E S U M M A RY First-Quarter 2025 Earnings May 1, 2025 5
Slide 6: Executing on Our Strategy for Value Creation
E X E C U T I N G O N O U R S T R AT E GY FO R VA LU E C R E AT I O N RECENT HIGHLIGHTS Q1 2025 Results1 Worldwide Baxter sales from continuing operations grew 5% on both a reported and operational basis, exceeding previously announced guidance, driven by better-than-expected sales in the company’
Slide 7: Performance Highlights
P E R FO R M A N C E H I G H L I G H T S C O N T I N U I N G O P E R AT I O N S 1 First-Quarter 2025 $2.6B +5% Reported +5% Operational 2 Sales Key Metrics GAAP Adjusted3 Gross Margin 32.8% 41.8% YOY Change (580 bps) (160 bps) Operating Margin 2.2% 14.9% YOY Change (240 bps) +260 bps Diluted EPS $0.
Slide 8: Key Financial Metrics
KEY FINANCIAL METRICS F I R S T - Q U A R T E R 2 0 2 5 S N A P S H O T ( C O N T I N U I N G O P E R AT I O N S ) 1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS 14.9% $0.55 $2.6B $2.5B 12.3% $0.36 +5%Operational Growth 2 +260 bps +53% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024
Slide 9: First-Quarter Adjusted Financial Results
F I R S T- Q UA R T E R 2 0 2 5 A DJ U S T E D F I N A N C I A L R E S U LT S 1 ( C O N T I N U I N G O P E R AT I O N S ) Q1 2024 Q1 2025 Change Adjusted Gross Margin 43.4% 41.8% (160 bps) Adjusted SG&A Expense 26.3% 23.2% (310 bps) (% of Sales) Adjusted R&D Expense 4.8% 5.3% +50 bps (% of Sales) A
Slide 10: First-Quarter Performance vs. Guidance
F I R S T- Q UA R T E R 2 0 2 5 P E R FO R M A N C E 1 ( C O N T I N U I N G O P E R AT I O N S ) Metric Q1 2025 Q1 2025 Guidance Actual Sales Growth 3% - 4% +5% Reported Sales Growth ~4% +5% Operational Growth GAAP Diluted EPS N/A $0.13 Growth vs. Prior-Year Period NM2 Adjusted Diluted EPS $0.47 -
Slide 11: Executing Portfolio Management Actions to Accelerate Disciplined Capital Allocation Strategy
E X E C U T I N G P O R T FO L I O M A N AG E M E N T AC T I O N S TO AC C E L E R AT E D I S C I P L I N E D C A P I TA L A L LO C AT I O N S T R AT E GY PORTFOLIO SHARE MANAGEMENT DEBT REPAYMENT DIVIDENDS REPURCHASES Disciplined portfolio Taking actions toward achieving Paid quarterly dividend of
Slide 12: Financial Results by Operating Segment
F I N A N C I A L R E S U LT S BY O P E R AT I N G S E G M E N T First-Quarter 2025 Earnings May 1, 2025 12
Slide 13: First-Quarter Sales by Product Category
F I R S T- Q UA R T E R 2 0 2 5 S A L E S BY P RO D U C T C AT E G O RY 1 Q1 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $584 $410 $994 +3% +6% Advanced Surgery $145 $123 $268 +2% +4% Medical Products & Therapies $729 $533 $
Slide 14: First-Quarter Business Drivers
F I R S T- Q UA R T E R 2 0 2 5 B U S I N E S S D R I V E R S 1 Product Category Sales Operational2 Quarterly Performance Drivers Sales in the quarter benefited from double-digit growth for U.S. infusion systems portfolio as the rollout of Infusion Therapies & Novum IQ pump platform continues. Nutri
Slide 15: Medical Products & Therapies Q1 2025 Results
M E D I C A L P RO D U C T S & T H E R A P I E S Q1 2025 Results Increase / (Decrease) $ In Millions Q1 2025 Q1 2024 $ Change % Change Net Sales $1,262 $1,229 $33 +3% Cost of Sales $694 $668 $26 +4% Gross Margin $568 $561 $7 +1% % of Sales 45.0% 45.6% (60 bps) Selling, General and Administrative Exp
Slide 16: Healthcare Systems & Technologies Q1 2025 Results
H E A LT H C A R E SY S T E M S & T E C H N O LO G I E S Q1 2025 Results Increase / (Decrease) $ In Millions Q1 2025 Q1 2024 $ Change % Change Net Sales $704 $667 $37 +6% Cost of Sales $356 $346 $10 +3% Gross Margin $348 $321 $27 +8% % of Sales 49.4% 48.1% +130 bps Selling, General and Administrativ
Slide 17: Pharmaceuticals Q1 2025 Results
P H A R M AC E U T I C A L S Q1 2025 Results Increase / (Decrease) $ In Millions Q1 2025 Q1 2024 $ Change % Change Net Sales $581 $578 $3 +1% Cost of Sales $396 $382 $14 +4% Gross Margin $185 $196 ($11) (6%) % of Sales 31.8% 33.9% (210 bps) Selling, General and Administrative Expenses $103 $96 $7 +7
Slide 18: First-Quarter Results
F I R S T- Q UA R T E R 2 0 2 5 R E S U LT S 1 Q1 2025 Results Adjusted Adjusted Reported Reported Operational Operating Operating YoY Margin $ In Millions Revenue Growth Growth Income Margin Change2 Baxter Continuing Operations $2,625 +5% +5% $392 14.9% +260 bps 1Non-GAAP financial metrics referenc
Slide 19: 2025 Outlook
2 0 2 5 O U T LO O K First-Quarter 2025 Earnings May 1, 2025 19
Slide 20: Second-Quarter Guidance
S E C O N D - Q UA R T E R 2 0 2 5 G U I DA N C E 1 Q2 2025 Guidance Sales Growth 4% - 5% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~70 bps Foreign Exchange (~50 bps) Sales Growth ~ 1% - 2% Operational Growth (Continuing Operations)2 Adjusted Diluted E
Slide 21: Full-Year Guidance
F U L L -Y E A R 2 0 2 5 G U I DA N C E 1 FY 2025 Guidance Sales Growth 7% - 8% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~50 bps Foreign Exchange (<50 bps) Sales Growth 4% - 5% Operational Growth (Continuing Operations)2 Adjusted Diluted EPS $2.47 - $
Slide 22: Full-Year Guidance by Segment
F U L L -Y E A R 2 0 2 5 G U I DA N C E BY S E G M E N T 1 Sales Growth FY 2025 Operational Growth Guidance Medical Products & Therapies ~5% Healthcare Systems & Technologies ~3% Pharmaceuticals 5% - 6% 1Non-GAAP financial metrics referenced in this slide include operational sales growth. Informatio
Slide 23: Non-GAAP Reconciliations
NON-GAAP R E C O N C I L I AT I O N S First-Quarter 2025 Earnings May 1, 2025 23
Slide 24: Non-GAAP Reconciliations as of May 1, 2025
NON-GAAP RECONCILIATIONS AS OF MAY 1, 2025 Non-GAAP Reconciliations: As part of its Q1 2025 earnings announcement on May 1, 2025, Baxter presented its financial results for the first quarter of 2025. Baxter also presented guidance for the second quarter and full year of 2025. In these presentations,
Slide 25: Reconciliations of U.S. GAAP to Non-GAAP Measures, Q1 2025
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended March 31, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended March 31, 2025 included special items which impacted the U.S.
Slide 26: Reconciliations of U.S. GAAP to Non-GAAP Measures, Q1 2024
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended March 31, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended March 31, 2024 included special items which impacted the U.S.
Slide 27: Description of Adjustments, Q1 2025 and 2024
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended March 31, 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 restruc
Slide 28: Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Three Months Ended March 31, 2025 2024 Cash flows from operations – continuing operations $ (99) $ 67 Cash flows from investing activities - continuing operations (124) (100) Cash flows from
Slide 29: Net Sales Growth As Reported to Operational Sales Growth
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From The Three Months Ended March 31, 2024 to The Three Months Ended March 31, 2025 (unaudited) Sales By Product Category: Net Sales Growth Kidney Care Exit of IV Operational Sales As Repo
Slide 30: Projected Sales Growth Reconciliation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Second 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 Q2 2025* FY 2025* Sales g
Slide 31: Projected Adjusted Operating Margin, Tax Rate and EPS
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2025 Projected Adjusted Operating Margin, Projected Full Year 2025 Projected Adjusted Tax Rate and Projected Second Quarter and Full Year 2025 Projected Adjusted Earnings Per Share (unaudited) Adjusted Operating Margin Guidance FY 2025
Slide 32: First-Quarter 2025 Earnings
F I R S T - Q UA R T E R 2025 EARNINGS Baxter International Inc. May 1, 2025 32