Baxter International Inc. · NYSE:BAX
Baxter International — Q3 2025 Earnings Presentation
41 slides from Baxter International's earnings presentation, Oct 30, 2025
Slide 1: Third-Quarter 2025 Earnings
Third-Quarter 2025 Earnings Baxter International Inc. October 30, 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 fourth-quarter and full-year 2025) and operational, business development and regulatory activities. These forward-looking statements are based on ass
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 Third-Quarter 2025 Earnings October 30, 2025 5
Slide 6: Executing On Our Strategy For Value Creation
Executing On Our Strategy For Value Creation Q3 2025 Results1 Worldwide sales from continuing operations grew 5% on a reported basis and 2% on an operational basis Adjusted earnings per share from continuing operations totaled $0.69 per diluted share, increasing 41% as compared to the prior year
Slide 7: Performance Highlights
Performance Highlights Continuing Operations1 Third-Quarter 2025 Year-To-Date 2025 $2.8B +5% Reported $8.3B +5% Reported +2% Operational2 +2% Operational2 Sales Sales Key Metrics GAAP Adjusted3 Key Metrics GAAP Adjusted3 Gross Margin 33.5% 39.4% Gross Margin 33.9% 40.6% YOY Change (480 bps) (430 bps
Slide 8: Key Financial Metrics
Key Financial Metrics Third-Quarter 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $2.7B $2.8B 14.9% 14.5% $0.69 $0.49 +2% Operational Growth2 +40 bps +41% Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 1Non-GAAP financial metrics referen
Slide 9: Key Financial Metrics
Key Financial Metrics Year-To-Date 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $8.3B 15.0% $1.83 $7.9B 13.4% $1.31 +2% Operational Growth 2 +160 bps +40% YTD 2024 YTD 2025 YTD 2024 YTD 2025 YTD 2024 YTD 2025 1Non-GAAP financial metrics
Slide 10: Third-Quarter 2025 Adjusted Financial Results
Third-Quarter 2025 Adjusted Financial Results1 (Continuing Operations) Q3 2024 Q3 2025 Change Adjusted Gross Margin 43.7% 39.4% (430 bps) Adjusted SG&A Expense 24.6% 22.2% (240 bps) (% of Sales) Adjusted R&D Expense 4.8% 4.1% (70 bps) (% of Sales) Adjusted Operating Margin 14.5% 14.9% +40 bps Adjust
Slide 11: Third-Quarter 2025 Performance
Third-Quarter 2025 Performance1 (Continuing Operations) Metric Q3 2025 Q3 2025 Guidance Actual Sales Growth 6% - 7% +5% Reported Sales Growth 3% - 4% +2% Operational Growth GAAP Diluted EPS N/A ($0.10) Growth vs. Prior-Year Period (183%) Adjusted Diluted EPS $0.58 - $0.62 $0.69 Growth vs. Prior-Year
Slide 12: Financial Results By Operating Segment
Financial Results By Operating Segment Third-Quarter 2025 Earnings October 30, 2025 12
Slide 13: Third-Quarter 2025 Sales By Product Category
Third-Quarter 2025 Sales By Product Category1 Q3 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $555 $468 $1,023 (4%) (4%) Advanced Surgery $168 $138 $306 +13% +11% Medical Products & Therapies $723 $606 $1,329 (1%) (1%) Care &
Slide 14: Year-To-Date 2025 Sales By Product Category
Year-To-Date 2025 Sales By Product Category1 YTD 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $1,693 $1,348 $3,041 (1%) +0% Advanced Surgery $471 $399 $870 +7% +7% Medical Products & Therapies $2,164 $1,747 $3,911 +0% +2% Car
Slide 15: Third-Quarter 2025 Sales By Product Category
Third-Quarter 2025 Sales By Product Category1 Product Category Sales Operational2 Quarterly Performance Drivers Results in the quarter reflect lower infusion pump sales due to the previously Infusion Therapies & discussed ship and installation hold of Novum LVP and ongoing softness in U.S. $1,023M (
Slide 16: Medical Products & Therapies
Medical Products & Therapies Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $1,329 $1,342 ($13) (1%) Cost of Sales $752 $734 $18 +2% Gross Margin $577 $608 ($31) (5%) % of Sales 43.4% 45.3% (190 bps) Selling, General and Administrative Expenses $286 $
Slide 17: Medical Products & Therapies
Medical Products & Therapies YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $3,911 $3,893 $18 0% Cost of Sales $2,201 $2,136 $65 +3% Gross Margin $1,710 $1,757 ($47) (3%) % of Sales 43.7% 45.1% (140 bps) Selling, General and Administrative Expenses
Slide 18: Healthcare Systems & Technologies
Healthcare Systems & Technologies Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $773 $752 $21 +3% Cost of Sales $410 $368 $42 +11% Gross Margin $363 $384 ($21) (5%) % of Sales 47.0% 51.1% (410 bps) Selling, General and Administrative Expenses $219 $2
Slide 19: Healthcare Systems & Technologies
Healthcare Systems & Technologies YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $2,244 $2,167 $77 +4% Cost of Sales $1,154 $1,094 $60 +5% Gross Margin $1,090 $1,073 $17 +2% % of Sales 48.6% 49.5% (90 bps) Selling, General and Administrative Expens
Slide 20: Pharmaceuticals
Pharmaceuticals Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $632 $588 $44 +7% Cost of Sales $450 $408 $42 +10% Gross Margin $182 $180 $2 +1% % of Sales 28.8% 30.6% (180 bps) Selling, General and Administrative Expenses $107 $95 $12 +13% % of Sales
Slide 21: Pharmaceuticals
Pharmaceuticals YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $1,825 $1,768 $57 +3% Cost of Sales $1,274 $1,197 $77 +6% Gross Margin $551 $571 ($20) (4%) % of Sales 30.2% 32.3% (210 bps) Selling, General and Administrative Expenses $316 $289 $27 +
Slide 22: Third-Quarter & Year-To-Date 2025 Results
Third-Quarter & Year-To-Date 2025 Results1 Q3 2025 Results Adjusted Adjusted Reported Reported Operational Operating Operating YoY Margin $ In Millions Revenue Growth Growth Income Margin Change2 Baxter Continuing Operations $2,835 +5% +2% $423 14.9% +40 bps YTD 2025 Results Adjusted Adjusted Report
Slide 23: 2025 Outlook
2025 Outlook Third-Quarter 2025 Earnings October 30, 2025 23
Slide 24: Fourth-Quarter 2025 Guidance
Fourth-Quarter 2025 Guidance1 Q4 2025 Guidance Sales Growth ~2% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China NM2 Foreign Exchange (~100 bps) Sales Growth (~2%) Operational Growth (Continuing Operations)3 ~ Adjusted Diluted EPS $0.52 - $0.57 Continuing Ope
Slide 25: Full-Year 2025 Guidance
Full-Year 2025 Guidance1 FY 2025 Guidance Sales Growth 4% - 5% Reported (Continuing Operations) Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~50 bps Foreign Exchange (~50 bps) Sales Growth 1% - 2% Operational Growth (Continuing Operations)2 Adjusted Diluted EPS $2.35 - $2.40 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 0% - 1% Healthcare Systems & Technologies 3% - 4% Pharmaceuticals ~2% 1Non-GAAP financial metrics referenced in this slide include operational sales growth. Information about our use of
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Third-Quarter 2025 Earnings October 30, 2025 27
Slide 28: Non-GAAP Reconciliations as of October 30, 2025
NON-GAAP RECONCILIATIONS AS OF October 30, 2025 Non-GAAP Reconciliations: As part of its Q3 2025 earnings announcement on October 30, 2025, Baxter presented its financial results for the third quarter of 2025. Baxter also presented guidance for the fourth quarter and full year of 2025. In these pres
Slide 29: 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 September 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended September 30, 2025 included special items which impacted t
Slide 30: 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 September 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended September 30, 2024 included special items which impacted t
Slide 31: 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 September 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 res
Slide 32: Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the nine months ended September 30, 2025 included special items which impacted th
Slide 33: Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the nine months ended September 30, 2024 included special items which impacted the
Slide 34: Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 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 rest
Slide 35: Reconciliations of U.S. GAAP to Non-GAAP Measures, Continued
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES, Continued Nine Months Ended September 30, 2025 and 2024 (unaudited) 9. The company's results of discontinued operations in 2025 included a gain from the sale of its former Kidney Care segment, partially offset by the f
Slide 36: 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 September 30, 2025 2025 Cash flows from (used in) operations – continuing operations $ 237 Cash flows from (used in) investing activities - continuing operations (111) Cash
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 Three Months Ended September 30, 2024 to the Three Months Ended September 30, 2025 (unaudited) Sales By Product Category: Exit of IV Net Sales Growth Kidney Care Solutions in Oper
Slide 38: 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 Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2025 (unaudited) Sales By Product Category: Exit of IV Net Sales Growth Kidney Care Solutions in Operat
Slide 39: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Fourth 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 Q4 2025* FY 2025* Sales g
Slide 40: 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 Fourth Quarter and Full Year 2025 Projected Adjusted Earnings Per Share (unaudited) Adjusted Operating Margin Guidance FY 2025
Slide 41: Third-Quarter 2025 Earnings
Third-Quarter 2025 Earnings Baxter International Inc. October 30, 2025 41