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31-07-2025
- Business
- Business Wire
Baxter Reports Second-Quarter 2025 Results
- Second-quarter sales from continuing operations of $2.81 billion increased 4% on a reported basis and 1% on an operational basis, in line with the company's previously issued guidance 1,2 Second-quarter U.S. GAAP 3 diluted earnings per share (EPS) from continuing operations of $0.24; adjusted diluted EPS from continuing operations of $0.59, in line with the company's previously issued guidance Recently announced appointment of Andrew Hider as president and chief executive officer (CEO) 4 supports company's focus to accelerate innovation, drive sustainable growth, enhance operational effectiveness and create shareholder value DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today reported results for the second quarter of 2025. 'For the second quarter of 2025, Baxter delivered performance in line with guidance while our employees across the globe continued advancing the company's life-sustaining Mission and building on its vision to redefine healthcare delivery,' said Brent Shafer, chair and interim CEO. 'The company is poised to enter a new chapter with the appointment of Andrew Hider as our next CEO. Andrew's extensive experience in driving operational excellence, innovation and growth at global, diversified companies will help propel Baxter into a new era of progress and performance.' Second-Quarter 2025 Companywide Financial Results Note that continuing operations exclude Baxter's Kidney Care business, which was acquired by Carlyle in January 2025, and is reported as discontinued operations. Worldwide sales from continuing operations in the second quarter totaled approximately $2.81 billion, increasing 4% on a reported basis and 1% on an operational basis. U.S. sales from continuing operations in the second quarter totaled approximately $1.54 billion, increasing 3% on a reported basis and declining 1% on an operational basis. International sales from continuing operations in the second quarter totaled approximately $1.27 billion, increasing 6% on a reported basis and 3% on an operational basis. On a U.S. GAAP basis, net income from continuing operations totaled $122 million, or $0.24 per diluted share in the second quarter On an adjusted basis, net income from continuing operations in the second quarter was $0.59 per diluted share, increasing 28% over the prior year. Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter's segments. Second-Quarter 2025 Segment Results Medical Products & Therapies sales for the second quarter totaled approximately $1.32 billion, remaining flat on a reported basis and increasing 1% on an operational basis. Performance in the quarter reflected strength globally for Advanced Surgery and for infusion systems products within the Infusion Therapies & Technologies division. As previously discussed, softness in demand for IV solutions due to fluid conservation efforts enacted post Hurricane Helene partially offset the segment's growth in the quarter. Healthcare Systems & Technologies sales for the second quarter totaled approximately $767 million, an increase of 3% on a reported basis and 2% on an operational basis. Performance in the quarter reflected solid global growth for the Care & Connectivity Solutions division, with a noted improvement in growth internationally. Sales in the Front Line Care division improved sequentially but declined compared to the prior year, driven by softness in select markets outside the U.S. Pharmaceuticals sales for the second quarter totaled approximately $612 million, an increase of 2% on a reported basis and 1% on an operational basis. Positive performance in the quarter reflected strength in Drug Compounding, which was partially offset by reduced sales of Injectables & Anesthesia. Injectables sales declined 1%, primarily reflecting a difficult comparison to the prior-year period due to the timing of a government order. Anesthesia sales declined low double digits in the quarter globally. Recent Highlights 5 Baxter continues to advance key strategic priorities in pursuit of its Mission to Save and Sustain Lives. Among recent highlights, the company: Announced that following the impact of Hurricane Helene at its North Cove, N.C. site, inventory levels are restored and therefore allocations have been removed for all IV solutions product codes manufactured at the site. Partnered with Vizient to include IV fluids through an expansion of its Vizient Reserve Program, to help ensure reliable access to these critical products during times of supply disruption. The program provides participating healthcare organizations with dedicated, on-demand manufacturer inventory, warehoused in the U.S., along with comprehensive support to help safeguard continuity of care. Published its 2024 Corporate Responsibility Report, demonstrating its commitment to transparent reporting and providing updates on the company's 2030 Corporate Responsibility Commitment and Goals, 6 which strive to create a more sustainable and responsible business model. 2025 Financial Outlook For full-year 2025: Baxter now expects sales growth from continuing operations of 6% to 7% on a reported basis. On an operational basis, Baxter expects sales growth of 3% to 4%. The company now expects adjusted earnings from continuing operations, before special items, of $2.42 to $2.52 per diluted share. Baxter's updated guidance attempts to capture potential downside risks associated with factors primarily impacting the company's Medical Products & Therapies segment. For third-quarter 2025: The company expects sales growth from continuing operations of 6% to 7% on a reported basis and 3% to 4% on an operational basis. The company expects adjusted earnings from continuing operations, before special items, of $0.58 to $0.62 per diluted share. A webcast of Baxter's second-quarter 2025 conference call for investors can be accessed live from a link in the Investor Relations section of the company's website at beginning at 7:30 a.m. CDT on July 31, 2025. Please see for more information regarding this and future investor events and webcasts. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 38,000 Baxter team members live our enduring Mission: to Save and Sustain Lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow, and beyond. To learn more, visit and follow us on X, LinkedIn and Facebook. Non-GAAP Financial Measures Non-GAAP financial measures may enhance an understanding of the company's operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company's reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this release), may enhance an investor's overall understanding of the company's past financial performance and prospects for the future. Management uses these non-GAAP measures internally in financial planning, to monitor business unit performance, and, in some cases, for purposes of determining incentive compensation. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Operational sales growth is a non-GAAP measure that excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated on a constant currency basis, as if foreign currency exchange rates had remained constant between the prior and current periods. Other non-GAAP financial measures included in this release and the accompanying tables (including within the tables that provide the company's detailed reconciliations to the corresponding U.S. GAAP financial measures) are: adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted operating income, adjusted other income (expense), net, adjusted income (loss) from continuing operations before income taxes, adjusted income tax expense (benefit), adjusted income (loss) from continuing operations, adjusted income (loss) from discontinued operations, adjusted net income (loss), adjusted net income (loss) attributable to Baxter stockholders, adjusted diluted earnings per share from continuing operations, adjusted diluted earnings per share from discontinued operations and adjusted diluted earnings per share. Those non-GAAP financial measures exclude the impact of special items. For the quarters and six-month periods ended June 30, 2025 and 2024, special items for one or more periods included intangible asset amortization, business optimization charges, acquisition and integration costs, separation-related costs, expenses related to European medical devices regulation, certain legal matters, a goodwill impairment, investment impairments, product-related reserves, the gain on the sale of the Kidney Care business, Hurricane Helene costs, and certain tax matters. These items are excluded because they are highly variable or unusual and of a size that may substantially impact the company's reported operations for a period. Additionally, intangible asset amortization is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and the company's Board of Directors assess performance. This release and the accompanying tables also include free cash flow, a non-GAAP financial measure that Baxter defines as operating cash flow less capital expenditures. Free cash flow is used by management and the company's Board of Directors to evaluate the cash generated from Baxter's operating activities each period after deducting its capital spending. This release also includes forecasts of certain of the aforementioned non-GAAP measures on a forward-looking basis as part of the company's financial outlook for upcoming periods. Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking operational sales growth represents the company's targeted future sales growth excluding sales to Vantive under the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and assumes foreign currency exchange rates remain constant in future periods. Additionally, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking operational sales growth guidance and adjusted diluted EPS guidance because it believes that these measures provide useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, integration-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. Forward-Looking Statements This release 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 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 forward-looking statements: the company's ability to achieve the intended benefits of its strategic actions, including the sale of the Kidney Care business, business strategy and development activities and cost saving initiatives; the company's ability to successfully integrate acquisitions, including the acquisition of Hill-Rom Holdings, Inc. (Hillrom) and the related impact on the company's organization structure, senior leadership, culture, functional alignment, outsourcing and other areas, the company's management of resulting related personnel capacity constraints and potential institutional knowledge loss, and the company's ability to achieve anticipated performance or financial targets and maintain its reputation following integration; the impact of global economic conditions (including, among other things, changes in tariffs, taxation, trade policies and treaties, sanctions, embargos, export control restrictions, the potential for a recession, supply chain disruptions, inflation levels and interest rates, financial market volatility, banking crises, the war in Ukraine, the conflict in the Middle East and other geopolitical events, including U.S. military strikes on Iran, and the potential for escalation of these and other conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars, global public health crises, pandemics and epidemics, or the anticipation of any of the foregoing, on the company's operations and on the company's employees, customers, suppliers, and foreign governments in countries in which the company operates and the company's ability to identify actions to mitigate the impact of those conditions (or to realize the anticipated benefits of any such mitigating actions); product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale, and the general unpredictability associated with the product development cycle; demand and market acceptance risks for, and competitive pressures (including pricing) related to, new and existing products and services (including response to product recalls), challenges and reputational risks associated with converting customers to new products and challenges with accurately predicting changing customer preferences and future expenditures and inventory levels (including with respect to any fluid conservation efforts) and with being able to monetize new and existing products and services (and to sustain any related price increases), the impact of those products and services on quality and patient safety concerns, and the need for ongoing training and support for the company's products and services; future actions of, or failures to act or delays in acting by the U.S. Food and Drug Administration, the European Medicines Agency, or any other regulatory body or government authority (including the U.S. Securities and Exchange Commission, Department of Justice, Health Canada or the Attorney General of any state), or any product quality or patient safety issues (including those related to voluntary corrections for the company's Novum IQ Large Volume pump) that could delay, limit or suspend product development, manufacturing, or sale or otherwise lead to product recalls (either voluntary or required by governmental authorities), adverse regulatory site inspection reports, voluntary or official action indicated classifications, labeling changes, launch delays, warning letters, import bans, refusal of a government to grant or the government withdrawal of approvals, clearances, licenses or other marketing authorizations, denial of import certifications, sanctions, seizures, injunctions (including to halt manufacture or distribution), monetary sanctions, criminal or civil liabilities or litigation; the continuity, availability, and pricing of acceptable raw materials and component parts, the company's ability to pass some or all of these costs to its customers through price increases or otherwise, and the related continuity of the company's manufacturing, sterilization, supply and distribution and those of the company's suppliers; failure to accurately forecast or achieve the company's short- and long-term financial performance and goals, market and category growth rates, growth rates for the company's segments, and related impacts on the company's liquidity; the company's ability to execute on its capital allocation plans, including the company's debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds; downgrades to the company's credit ratings or ratings outlooks, or withdrawals by rating agencies from rating the company and its indebtedness, and the related impact on the company's funding costs and liquidity; fluctuations in foreign exchange and interest rates; the impact of any accounting estimates and assumptions, including with respect to goodwill, intangible asset, or other long-lived asset impairments on the company's operating results; the company's ability to finance and develop new products or services, or enhancements thereto, on commercially acceptable terms or at all; actions by tax authorities in connection with ongoing tax audits (including with respect to transfer pricing matters) and the outcome of pending or future litigation; failures with respect to the company's quality, compliance or ethics programs; our ability to attract, develop, retain and engage employees, including senior management, and the occurrence of labor disruptions (including as a result of labor disagreements under bargaining agreements or national trade union agreements or disputes with works councils); inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties, including as a result of natural disaster or severe weather event (such as Hurricane Helene), war, terrorism, global public health crises and epidemics/pandemics, regulatory actions or otherwise; future actions of third parties, including third-party payors and the company's customers and distributors (including group purchasing organizations and integrated delivery networks); breaches and breakdowns affecting the company's information technology systems or protected information, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in the company's information technology systems or products; the company's ability to effectively develop, integrate or deploy artificial intelligence, machine learning and other emerging technologies into the company's products, services and operations in a manner that is compliant with existing and emerging regulations; the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events; changes to legislation and regulation and other governmental pressures in the United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, including new or amended laws, rules and regulations as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation (including taxation of income, whether with respect to current or future tax reform) and rebate policies; the company's ability to meet evolving and varied corporate responsibility expectations of the company's stakeholders, including compliance with new and emerging sustainability regulations; the ability to protect or enforce the company's patents or other proprietary rights (including trademarks, copyrights, trade secrets, and know-how) or where the patents of third parties prevent or restrict the company's manufacture, sale or use of affected products or technology; and other risks discussed in Baxter's most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter's website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws. Baxter and Novum IQ are trademarks of Baxter International Inc. BAXTER INTERNATIONAL INC. Consolidated Statements of Income (Loss) (unaudited) (in millions, except per share and percentage data) Three Months Ended June 30, 2025 2024 Change NET SALES $ 2,810 $ 2,694 4% COST OF SALES 1,819 1,663 9% GROSS MARGIN 991 1,031 (4)% % of Net Sales 35.3 % 38.3 % (3.0) pts SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 718 723 (1)% % of Net Sales 25.6 % 26.8 % (1.2) pts RESEARCH AND DEVELOPMENT EXPENSES 134 130 3% % of Net Sales 4.8 % 4.8 % 0.0 pts OTHER OPERATING INCOME, NET (52 ) (1 ) NM OPERATING INCOME 191 179 7% % of Net Sales 6.8 % 6.6 % 0.2 pts INTEREST EXPENSE, NET 58 86 (33)% OTHER (INCOME) EXPENSE, NET — (24 ) NM INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 133 117 14% INCOME TAX EXPENSE (BENEFIT) 11 22 (50)% % of Income (loss) from Continuing Operations Before Income Taxes 8.3 % 18.8 % (10.5) pts INCOME (LOSS) FROM CONTINUING OPERATIONS 122 95 28% INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX (31 ) (406 ) (92)% NET INCOME (LOSS) 91 (311 ) NM — — NM — 3 NM — 3 NM NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS $ 91 $ (314 ) NM Basic $ 0.24 $ 0.19 26% Diluted $ 0.24 $ 0.19 26% INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER COMMON SHARE Basic $ (0.06 ) $ (0.81 ) (93)% Diluted $ (0.06 ) $ (0.80 ) (93)% INCOME (LOSS) PER COMMON SHARE Basic $ 0.18 $ (0.62 ) NM Diluted $ 0.18 $ (0.61 ) NM WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING Basic 513 510 Diluted 514 511 ADJUSTED OPERATING INCOME (excluding special items)¹ $ 423 $ 357 18% ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS (excluding special items)¹ $ 304 $ 234 30% ADJUSTED INCOME (LOSS) FROM DISCONTINUED OPERATIONS (excluding special items) 1 $ (28 ) $ 114 NM ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹ $ 276 $ 345 (20)% ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)¹ $ 0.59 $ 0.46 28% ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)¹ $ (0.05 ) $ 0.22 NM ADJUSTED DILUTED EPS (excluding special items)¹ $ 0.54 $ 0.68 (21)% Expand 1 Refer to page 11 for a description of the adjustments and a reconciliation to U.S. GAAP measures. NM - Not Meaningful Expand BAXTER INTERNATIONAL INC. Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures (unaudited, in millions) The company's U.S. GAAP results for the three months ended June 30, 2025 included special items which impacted the U.S. GAAP measures as follows: Reported $ 991 $ 718 $ 191 $ 133 $ 11 $ 122 $ (31 ) $ 91 $ 91 $ 0.24 $ (0.06 ) $ 0.18 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 35.3 % 25.6 % 6.8 % 4.7 % 8.3 % 4.3 % (1.1 )% 3.2 % 3.2 % Intangible asset amortization 101 (50 ) 151 151 35 116 — 116 116 0.23 0.00 0.23 Business optimization items 1 6 (11 ) 17 17 4 13 — 13 13 0.03 0.00 0.03 Acquisition and integration items 2 — (5 ) 5 5 1 4 — 4 4 0.01 0.00 0.01 European medical devices regulation 3 5 — 5 5 1 4 — 4 4 0.01 0.00 0.01 Product related reserves 4 23 — 23 23 6 17 — 17 17 0.03 0.00 0.03 Hurricane Helene costs 5 17 — 17 17 4 13 — 13 13 0.03 0.00 0.03 Separation-related costs 6 1 (13 ) 14 14 3 11 — 11 11 0.02 0.00 0.02 Tax matters 8 — — — — (4 ) 4 3 7 7 0.01 0.00 0.01 Adjusted $ 1,144 $ 639 $ 423 $ 365 $ 61 $ 304 $ (28 ) $ 276 $ 276 $ 0.59 $ (0.05 ) $ 0.54 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 40.7 % 22.7 % 15.1 % 13.0 % 16.7 % 10.8 % (1.0 )% 9.8 % 9.8 % Expand 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 restructuring and business optimization costs in 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment. These restructuring and business optimization costs in 2024 included costs which were primarily related third-party costs incurred to support the transformation of certain general and administrative functions. The company's results of discontinued operations in 2024 included costs related to property, plant and equipment impairments in connection with the company's exit from a manufacturing facility in connection with its initiatives to optimize its global manufacturing and supply chain organization, and to centralize certain of its research and development activities into a new location. 2 The company's results of continuing operations in 2025 and 2024 included integration-related items comprised of Hill-Rom Holdings, Inc. (Hillrom) acquisition and integration expenses. 3 The company's results in 2025 and 2024 included incremental costs to comply with the European Union's medical device regulations for previously registered products, which primarily consisted of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results. 4 The company's results of continuing operations in 2025 included charges related to an estimate of warranty and remediation activities arising from field corrective actions on certain of its infusion pumps and a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. 5 The company's results of continuing operations in 2025 included charges related to Hurricane Helene, which consisted of remediation, air freight and other costs. 6 The company's results of continuing operations in 2025 included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. The company's results of discontinued operations in 2024 included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. 7 The company's results of discontinued operations in 2024 included a charge related to a goodwill impairment of the company's former Chronic Therapies reporting unit within its former Kidney Care segment. 8 The company's results of continuing operations in 2025 included income tax expenses resulting from the application of intraperiod tax allocation to our adjusted results in an interim period. The company's results of discontinued operations in 2025 included indirect impacts of the carryback of the tax benefits generated by the sale of its former Kidney Care business to prior years. The company's results of continuing operations in 2024 included a state valuation allowance recorded partially offset by an adjustment to its change in permanent reinvestment assertion that it allocated to continuing operations. Expand BAXTER INTERNATIONAL INC. Consolidated Statements of Income (Loss) (unaudited) (in millions, except per share and percentage data) Six Months Ended June 30, 2025 2024 Change NET SALES $ 5,435 $ 5,184 5% COST OF SALES 3,583 3,192 12% GROSS MARGIN 1,852 1,992 (7)% % of Net Sales 34.1 % 38.4 % (4.3) pts SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,421 1,452 (2)% % of Net Sales 26.1 % 28.0 % (1.9) pts RESEARCH AND DEVELOPMENT EXPENSES 274 250 10% % of Net Sales 5.0 % 4.8 % 0.2 pts OTHER OPERATING INCOME, NET (92 ) (4 ) NM OPERATING INCOME 249 294 (15)% % of Net Sales 4.6 % 5.7 % (1.1) pts INTEREST EXPENSE, NET 122 164 (26)% OTHER (INCOME) EXPENSE, NET (3 ) (33 ) (91)% INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 130 163 (20)% INCOME TAX EXPENSE (BENEFIT) (56 ) 62 NM % of Income from Continuing Operations Before Income Taxes (43.1 )% 38.0 % NM INCOME (LOSS) FROM CONTINUING OPERATIONS 186 101 84% INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX 31 (373 ) NM NET INCOME (LOSS) 217 (272 ) NM — — NM — 5 (100)% — 5 (100)% NET LOSS ATTRIBUTABLE TO BAXTER STOCKHOLDERS $ 217 $ (277 ) NM Basic $ 0.36 $ 0.20 80% Diluted $ 0.36 $ 0.20 80% Basic $ 0.06 $ (0.74 ) NM Diluted $ 0.06 $ (0.74 ) NM NET INCOME (LOSS) PER COMMON SHARE Basic $ 0.42 $ (0.54 ) NM Diluted $ 0.42 $ (0.54 ) NM WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING Basic 512 509 Diluted 514 510 ADJUSTED OPERATING INCOME (excluding special items)¹ $ 815 $ 664 23% ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special items)¹ $ 589 $ 417 41% $ 7 $ 264 (97)% ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹ $ 596 $ 676 (12)% ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items) 1 $ 1.15 $ 0.82 40% ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items) 1 $ 0.01 $ 0.51 (98)% ADJUSTED DILUTED EPS (excluding special items)¹ $ 1.16 $ 1.33 (13)% Expand 1 Refer to page 13 for a description of the adjustments and a reconciliation to U.S. GAAP measures. NM - Not Meaningful Expand BAXTER INTERNATIONAL INC. Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures (unaudited, in millions) The company's U.S. GAAP results for the six months ended June 30, 2025 included special items which impacted the U.S. GAAP measures as follows: Reported $ 1,852 $ 1,421 $ 274 $ 249 $ (3 ) $ 130 $ (56 ) $ 186 $ 31 $ 217 $ 217 $ 0.36 $ 0.06 $ 0.42 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 34.1 % 26.1 % 5.0 % 4.6 % (0.1 )% 2.4 % (43.1 )% 3.4 % 0.6 % 4.0 % 4.0 % Intangible asset amortization 205 (101 ) — 306 — 306 72 234 — 234 234 0.46 0.00 0.46 Business optimization items 1 19 (41 ) (2 ) 62 — 62 15 47 — 47 47 0.09 0.00 0.09 Acquisition and integration items 2 — (6 ) — 6 (5 ) 11 2 9 — 9 9 0.02 0.00 0.02 European medical devices regulation 3 10 — — 10 — 10 2 8 — 8 8 0.02 0.00 0.02 Product-related reserves 4 29 — — 29 — 29 8 21 — 21 21 0.04 0.00 0.04 Hurricane Helene costs 5 115 — — 115 — 115 29 86 6 92 92 0.17 0.01 0.18 Legal matters 6 11 — — 11 — 11 2 9 — 9 9 0.02 0.00 0.02 Investment impairments 7 — — — — (9 ) 9 2 7 — 7 7 0.01 0.00 0.01 Separation-related costs 8 1 (26 ) — 27 — 27 6 21 31 52 52 0.04 0.06 0.10 Gain on Kidney Care Sale 9 — — — — — — — — (111 ) (111 ) (111 ) 0.00 (0.22 ) (0.22 ) Tax Matters 11 — — — — — — 39 (39 ) 50 11 11 (0.08 ) 0.10 0.02 Adjusted $ 2,242 $ 1,247 $ 272 $ 815 $ (17 ) $ 710 $ 121 $ 589 $ 7 $ 596 $ 596 $ 1.15 $ 0.01 $ 1.16 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 41.3 % 22.9 % 5.0 % 15.0 % (0.3 )% 13.1 % 17.0 % 10.8 % 0.1 % 11.0 % 11.0 % Expand 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 restructuring and business optimization costs in 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment. These restructuring and business optimization costs in 2024 included costs related to programs to optimize its organization and cost structure which were primarily related to the implementation of a new operating model intended to simplify and streamline its operations and better align its manufacturing and supply chain to its commercial activities and to a lesser extent, third-party costs incurred to support the transformation of certain general and administrative functions. The company's results of discontinued operations in 2024 included costs related to property, plant and equipment impairments in connection with the company's exit from a manufacturing facility in connection with its initiatives to optimize its global manufacturing and supply chain organization, and to centralize certain of its research and development activities. 2. The company's results of continuing operations in 2025 and 2024 included integration-related items comprised of Hillrom acquisition and integration expenses. In 2025 these expenses reflected third-party consulting costs and the recognition of a noncash impairment of property, plant and equipment related to integration activities. In 2024 these expenses related to third-party consulting costs related to its integration of Hillrom. 3. The company's results in 2025 and 2024 included incremental costs to comply with the European Union's medical device regulations for previously registered products, which primarily consist of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results. 4. The company's results of continuing operations in 2025 included charges related to an estimate of warranty and remediation activities arising from field corrective actions on certain of its infusion pumps and a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. 5. The company's results of continuing operations in 2025 included charges related to Hurricane Helene, which consisted of remediation, air freight and other costs. The company's results of discontinued operations in 2025 included charges related to Hurricane Helene, which consisted of air freight and other costs. 6. The company's results of continuing operations in 2025 included charges related to matters involving alleged injury from environmental exposure. 7. The company's results of continuing operations in 2025 included losses from a noncash impairment write-down in an equity method investment. 8. The company's results of continuing operations in 2025 included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. The company's results of discontinued operations in 2025 and 2024 included separation-related costs related to external advisors supporting its activities related to the sale of its former Kidney Care segment. 9. The company's results of discontinued operations in 2025 included a gain from the sale of its former Kidney Care segment. 10. The company's results of discontinued operations in 2024 included a charge related to a goodwill impairment of the company's former Chronic Therapies reporting unit within its former Kidney Care segment. 11. The company's results of continuing operations in 2025 included a tax benefit primarily driven by an entity classification election that it made for U.S. tax purposes, which resulted in a capital loss. The company's results of discontinued operations in 2025 included indirect impacts of the carryback of tax benefits generated by the sale of its former Kidney Care business to prior years. The company's results in 2024 included a change in its permanent reinvestment assertion that is allocated to continuing operations and a reallocation of income tax expense between discontinued operations and continuing operations resulting from the application of intraperiod tax allocation to its adjusted results in an interim period. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. Expand BAXTER INTERNATIONAL INC. Sales by Operating Segment (unaudited) ($ in millions) The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems & Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. Other sales not allocated to a segment primarily includes sales to Vantive, pursuant to the Kidney Care MSA, and sales of products and services provided directly through certain of our manufacturing facilities Expand Three Months Ended June 30, % Change @ Actual Rates % Change @ Operational Sales Growth Six Months Ended June 30, % Change @ Actual Rates % Change @ Operational Sales Growth 2025 2024 2025 2024 Infusion Therapies & Technologies $ 1,024 $ 1,045 (2 )% (1 )% $ 2,018 $ 2,011 0 % 3 % Advanced Surgery 296 277 7 % 5 % 564 540 4 % 5 % Medical Products & Therapies 1,320 1,322 (0 )% 1 % 2,582 2,551 1 % 3 % Care & Connectivity Solutions 474 452 5 % 4 % 901 854 6 % 5 % Front Line Care 293 296 (1 )% (1 )% 570 561 2 % 2 % Healthcare Systems & Technologies 767 748 3 % 2 % 1,471 1,415 4 % 4 % Injectables & Anesthesia 332 341 (3 )% (4 )% 667 669 (0 )% (0 )% Drug Compounding 280 261 7 % 7 % 526 511 3 % 4 % Pharmaceuticals 612 602 2 % 1 % 1,193 1,180 1 % 2 % Other 111 22 405 % (41 )% 189 38 397 % (24 )% Total - Continuing Operations $ 2,810 $ 2,694 4 % 1 % $ 5,435 $ 5,184 5 % 3 % Expand Operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. Expand BAXTER INTERNATIONAL INC. Segment Operating Income (unaudited) ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Medical Products & Therapies $ 239 $ 238 $ 483 $ 465 % of Segment Net Sales 18.1 % 18.0 % 18.7 % 18.2 % Healthcare Systems & Technologies 118 120 211 187 % of Segment Net Sales 15.4 % 16.0 % 14.3 % 13.2 % Pharmaceuticals 64 75 127 153 % of Segment Net Sales 10.5 % 12.5 % 10.6 % 13.0 % Other 6 9 15 13 Total 427 442 836 818 Unallocated corporate costs (4 ) (85 ) (21 ) (154 ) Intangible asset amortization expense (151 ) (154 ) (306 ) (312 ) Legal matters — — (11 ) — Business optimization items (17 ) (9 ) (62 ) (31 ) Acquisition and integration items (5 ) (6 ) (6 ) (11 ) Separation-related costs (14 ) — (27 ) — European Medical Devices Regulation (5 ) (9 ) (10 ) (16 ) Product-related items (23 ) — (29 ) — Hurricane Helene costs (17 ) — (115 ) — Total operating income (loss) 191 179 249 294 Interest expense, net 58 86 122 164 Other (income) expense, net — (24 ) (3 ) (33 ) Income (Loss) from continuing operations before income taxes $ 133 $ 117 $ 130 $ 163 Expand BAXTER INTERNATIONAL INC. Operating Segment Sales by U.S. and International (unaudited) ($ in millions) Three Months Ended June 30, 2025 2024 % Growth U.S. International Total U.S. International Total U.S. International Total Infusion Therapies & Technologies $ 554 $ 470 $ 1,024 $ 579 $ 466 $ 1,045 (4 )% 1 % (2 )% Advanced Surgery 158 138 296 150 127 277 5 % 9 % 7 % Medical Product & Therapies 712 608 1,320 729 593 1,322 (2 )% 3 % (0 )% Care & Connectivity Solutions 341 133 474 332 120 452 3 % 11 % 5 % Front Line Care 221 72 293 218 78 296 1 % (8 )% (1 )% Healthcare Systems & Technologies 562 205 767 550 198 748 2 % 4 % 3 % Injectables & Anesthesia 187 145 332 197 144 341 (5 )% 1 % (3 )% Drug Compounding — 280 280 — 261 261 0 % 7 % 7 % Pharmaceuticals 187 425 612 197 405 602 (5 )% 5 % 2 % Other 75 36 111 16 6 22 369 % 500 % 405 % Total - Continuing Operations $ 1,536 $ 1,274 $ 2,810 $ 1,492 $ 1,202 $ 2,694 3 % 6 % 4 % Expand BAXTER INTERNATIONAL INC. Operating Segment Sales by U.S. and International (unaudited) ($ in millions) Six Months Ended June 30, 2025 2024 % Growth U.S. International Total U.S. International Total U.S. International Total Infusion Therapies & Technologies $ 1,138 $ 880 $ 2,018 $ 1,105 $ 906 $ 2,011 3 % (3 )% 0 % Advanced Surgery 303 261 564 297 243 540 2 % 7 % 4 % Medical Products & Therapies 1,441 1,141 2,582 1,402 1,149 2,551 3 % (1 )% 1 % Care & Connectivity Solutions 657 244 901 610 244 854 8 % 0 % 6 % Front Line Care 423 147 570 413 148 561 2 % (1 )% 2 % Healthcare Systems & Technologies 1,080 391 1,471 1,023 392 1,415 6 % (0 )% 4 % Injectables & Anesthesia 382 285 667 388 281 669 (2 )% 1 % (0 )% Drug Compounding — 526 526 — 511 511 0 % 3 % 3 % Pharmaceuticals 382 811 1,193 388 792 1,180 (2 )% 2 % 1 % Other 123 66 189 27 11 38 356 % 500 % 397 % Total - Continuing Operations $ 3,026 $ 2,409 $ 5,435 $ 2,840 $ 2,344 $ 5,184 7 % 3 % 5 % Expand BAXTER INTERNATIONAL INC. Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow (unaudited) ($ in millions) Six Months Ended June 30, 2025 2024 Cash flows from (used in) operations – continuing operations $ 118 $ 30 Cash flows from (used in) investing activities - continuing operations (239 ) (142 ) Cash flows from (used in) financing activities - continuing operations (3,988 ) (1,076 ) Cash flows from (used in) operations - continuing operations $ 118 $ 30 Capital expenditures - continuing operations (262 ) (180 ) Free cash flow - continuing operations $ (144 ) $ (150 ) Expand Free cash flow is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. Expand BAXTER INTERNATIONAL INC. 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) Net Sales Growth As Reported Kidney Care MSA Exit of IV Solutions in China FX Operational Sales Growth* Infusion Therapies & Technologies (2 )% 0 % 2 % (1 )% (1 )% Advanced Surgery 7 % 0 % 0 % (2 )% 5 % Medical Products & Therapies (0 )% 0 % 1 % 0 % 1 % Care & Connectivity Solutions 5 % 0 % 0 % (1 )% 4 % Front Line Care (1 )% 0 % 0 % 0 % (1 )% Healthcare Systems & Technologies 3 % 0 % 0 % (1 )% 2 % Injectables & Anesthesia (3 )% 0 % 0 % (1 )% (4 )% Drug Compounding 7 % 0 % 0 % 0 % 7 % Pharmaceuticals 2 % 0 % 0 % (1 )% 1 % Other 405 % (445 )% 0 % (1 )% (41 )% Total - Continuing Operations 4 % (4 )% 1 % (0 )% 1 % Expand *Totals may not add across due to rounding Operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. Expand BAXTER INTERNATIONAL INC. 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) Net Sales Growth As Reported Kidney Care MSA Exit of IV Solutions in China FX Operational Sales Growth* Infusion Therapies & Technologies 0 % 0 % 2 % 1 % 3 % Advanced Surgery 4 % 0 % 0 % 1 % 5 % Medical Products & Therapies 1 % 0 % 1 % 1 % 3 % Care & Connectivity Solutions 6 % 0 % 0 % (1 )% 5 % Front Line Care 2 % 0 % 0 % 0 % 2 % Healthcare Systems & Technologies 4 % 0 % 0 % 0 % 4 % Injectables & Anesthesia (0 )% 0 % 0 % 0 % (0 )% Drug Compounding 3 % 0 % 0 % 1 % 4 % Pharmaceuticals 1 % 0 % 0 % 1 % 2 % Other 397 % (424 )% 0 % 3 % (24 )% Total - Continuing Operations 5 % (3 )% 1 % 0 % 3 % Expand *Totals may not add across due to rounding Operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. Expand BAXTER INTERNATIONAL INC. Reconciliation of Non-GAAP Financial Measures Projected Third Quarter and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth and Projected Third Quarter and Full Year 2025 Adjusted Earnings Per Share (unaudited) Sales Growth Guidance Q3 2025* FY 2025* Sales growth - U.S. GAAP 6% - 7% 6% - 7% Kidney Care MSA (~300 bps) (~300 bps) Exit of IV Solutions in China ~70 bps ~50 bps Foreign Exchange (~100 bps) (~50 bps) Operational sales growth 3% - 4% 3% - 4% Expand Adjusted Earnings Per Share Guidance Q3 2025 FY 2025 Adjusted diluted EPS $0.58 - $0.62 $2.42 - $2.52 Expand *Totals may not foot due to rounding Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking operational sales growth represents the company's targeted future sales growth excluding sales to Vantive under the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV Solutions in the Medical Products & Therapies reportable segment, and assumes foreign currency exchange rates remain constant in future periods. Additionally, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking operational sales growth guidance and adjusted diluted EPS guidance because it believes that these measures provide useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, integration-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. Expand Contacts Media Contact Andrea Johnson, (224) 948-5353 media@ Investor Contact Clare Trachtman, (224) 948-3020 Industry: Surgery Medical Devices Medical Supplies FDA Health Technology Biotechnology Health Pharmaceutical General Health Baxter International Inc. NYSE:BAX Release Versions English Contacts Media Contact Andrea Johnson, (224) 948-5353 media@ Investor Contact Clare Trachtman, (224) 948-3020 More News From Baxter International Inc. Get RSS Feed Baxter to Host Second-Quarter 2025 Financial Results Conference Call for Investors DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, will host a conference call to discuss its second-quarter 2025 financial results on Thursday, July 31, 2025 at 7:30 a.m. Central Time. To participate in this conference call please follow this link to pre-register for the call and receive the call information. This call is also being webcast and can be accessed through Baxter's website at Baxter Declares Quarterly Dividend DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today announced that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on October 1, 2025, to stockholders of record as of August 29, 2025. The indicated annual dividend rate is $0.68 per share of common stock. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in... Baxter Appoints Andrew Hider Chief Executive Officer DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today announced the appointment of Andrew Hider as president and chief executive officer (CEO), and a member of its board of directors. Mr. Hider will assume his responsibilities at Baxter no later than Sept. 3, 2025, or an earlier date pending completion of his current employment commitments. Brent Shafer, who has served as chair and interim CEO since February 2025, will then transition to independ... Baxter International Inc. NYSE:BAX Release Versions English Contacts Media Contact Andrea Johnson, (224) 948-5353 media@ Investor Contact Clare Trachtman, (224) 948-3020
Business Wire
17-07-2025
- Business
- Business Wire
Baxter to Host Second-Quarter 2025 Financial Results Conference Call for Investors
DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, will host a conference call to discuss its second-quarter 2025 financial results on Thursday, July 31, 2025 at 7:30 a.m. Central Time. To participate in this conference call please follow this link to pre-register for the call and receive the call information. This call is also being webcast and can be accessed through Baxter's website at The conference call will be recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 38,000 Baxter team members live our enduring Mission: to Save and Sustain Lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow, and beyond. To learn more, visit and follow us on X, LinkedIn and Facebook.
Yahoo
16-07-2025
- Business
- Yahoo
What to Expect From Baxter International's Q2 2025 Earnings Report
Baxter International Inc. (BAX), headquartered in Deerfield, Illinois, develops and provides a portfolio of healthcare products. With a market cap of $14.6 billion, the company develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. The company's products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories. The global Medtech leader is expected to announce its fiscal second-quarter earnings for 2025 on Tuesday, Aug. 5. Ahead of the event, analysts expect BAX to report a profit of $0.60 per share on a diluted basis, down 11.8% from $0.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. Dear Nvidia Stock Fans, Mark Your Calendars for July 16 How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Retirement Ready: 3 Dividend Stocks to Set and Forget Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For the full year, analysts expect BAX to report EPS of $2.50, up 32.3% from $1.89 in fiscal 2024. Similarly, its EPS is expected to rise 7.6% year-over-year to $2.69 in fiscal 2026. BAX stock has underperformed the S&P 500 Index's ($SPX) 10.9% gains over the past 52 weeks, with shares down 16.8% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund's (XLV) 10.3% dip over the same time frame. BAX's decline in performance is a direct result of the considerable expenses resulting from the damage caused by Hurricane Helene to its North Cove facility, which is a critical supplier of IV fluids in the U.S. This indicates weaknesses in the company's operational management and underscores the need for improvements to mitigate such risks in the future. On May 1, BAX shares closed down more than 1% after the company reported its Q1 results. Its revenue stood at $2.6 billion, up 5.4% year-over-year. The company's adjusted EPS declined 4.6% year-over-year to $0.62. Analysts' consensus opinion on BAX stock is reasonably bullish, with an overall 'Moderate Buy' rating. Out of 15 analysts covering the stock, five advise a 'Strong Buy' rating, nine give a 'Hold,' and one recommends a 'Moderate Sell.' BAX's average analyst price target is $36.28, indicating a potential upside of 28.4% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
05-07-2025
- Business
- Yahoo
Investors in Baxter International (NYSE:BAX) have unfortunately lost 60% over the last five years
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. For example the Baxter International Inc. (NYSE:BAX) share price dropped 64% over five years. That's an unpleasant experience for long term holders. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over five years Baxter International's earnings per share dropped significantly, falling to a loss, with the share price also lower. This was, in part, due to extraordinary items impacting earnings. At present it's hard to make valid comparisons between EPS and the share price. But we would generally expect a lower price, given the situation. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Baxter International's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Baxter International the TSR over the last 5 years was -60%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Baxter International shareholders are down 9.1% for the year (even including dividends), but the market itself is up 15%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Baxter International has 2 warning signs we think you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Wire
24-06-2025
- Business
- Business Wire
Baxter Publishes Annual Corporate Responsibility Report, Demonstrating Ongoing Action to Make a Meaningful Difference Around the World
DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today published its 2024 Corporate Responsibility Report. The annual report demonstrates Baxter's commitment to transparent reporting and provides updates on the company's 2030 Corporate Responsibility Commitment and Goals, 1 which strive to create a more sustainable and responsible business model. The annual report demonstrates Baxter's commitment to transparent reporting and provides updates on the company's 2030 Corporate Responsibility Commitment and Goals, which strive to create a more sustainable and responsible business model. Share 'Baxter's Mission to Save and Sustain Lives inspires our work every day and has remained a guiding force even as we redefined the company's business, portfolio and operating model in recent years,' said Brent Shafer, chair and interim chief executive officer. 'Our mission extends to Baxter's commitment as a responsible corporation and our aim to make a meaningful difference in the world. I thank Baxter's 38,000 global employees for continuing to shape who we are as a company and the positive impact we have on the patients, healthcare professionals and communities who rely on us.' 2024 Corporate Responsibility Highlights Baxter's 2024 Corporate Responsibility Report shares updates on the company's 2030 Corporate Responsibility Commitment and Goals, supporting an overarching pledge to 'Empower our Patients,' 'Protect our Planet' and 'Champion our People and Communities.' Key accomplishments from 2024 include: Reduced Scope 1 and 2 greenhouse gas emissions (GHG) by 13.5% compared to 2023 and 18.8% compared to the baseline year of 2020. This marks three-quarters of the way to Baxter's 2030 goal of a 25% emissions reduction, aligned with a well-below 2⁰ Celsius science-based target. Additionally, in 2024, Baxter invested approximately $12 million to complete 175 energy conservation projects across the company's manufacturing sites, including four solar installations and one biomass-fired steam generator installation. Completed a circular economy pilot—a model of keeping materials in circulation to help avoid waste—as part of Baxter's ongoing efforts and goal to mitigate waste across its integrated supply chain, from procurement to distribution. The pilot, which included employee education and an exploration of how circularity principles can be applied to Baxter's manufacturing processes, is helping to inform materials and waste management plans and builds on existing reuse and recycle practices in manufacturing, product and packaging. One existing example is Baxter's HR 900 hospital beds, which are manufactured in Pluvigner, France and made from nearly 37% recycled materials. Invested approximately $31.5 million in underserved and disaster-affected communities worldwide through strategic partnerships and product donations from both Baxter and the Baxter Foundation, including more than $4 million to support employees and communities affected by Hurricane Helene in the U.S. The Baxter Foundation focuses on collaborations with leading global humanitarian organizations to increase access to healthcare, bolster science, technology, engineering and math (STEM) education and promote community resilience. In 2024, Baxter's charitable giving reached people in more than 100 countries. For the fourth consecutive year – since the current goal set was launched – achieved an annual goal of top quartile workplace safety performance in total recordable incident rate. Prioritizing Stakeholder Engagement and Transparent Reporting Baxter periodically conducts materiality assessments to understand and prioritize topics that are important to the long-term sustainability of Baxter's business and most relevant to the company's stakeholders. In 2024, Baxter conducted a double materiality assessment to analyze how the company impacts the environment and society as well as how environmental, social and governance topics impact the company's operational results and financial position. The findings help inform Baxter's corporate responsibility strategy, commitment and goals and provide critical insights as the company evaluates its commitment and goals following the sale of its Kidney Care business in January 2025. An overview of the assessment and its findings are included in this year's report. In addition, the 2024 Corporate Responsibility Report includes Baxter's annual Sustainability Accounting Standards Board (SASB) Index, based on the SASB Medical Equipment and Supplies Sustainability Accounting Standard, and the annual Task Force on Climate-related Financial Disclosures (TCFD) Index. Learn more about Baxter's corporate responsibility initiatives here. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 38,000 Baxter team members live our enduring mission: to save and sustain lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow and beyond. To learn more, visit and follow us on X, LinkedIn and Facebook. This release includes forward-looking statements concerning Baxter's 2030 Corporate Responsibility Commitment and Goals and other plans and initiatives described in the release. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the company's ability to achieve the intended benefits of our strategic actions, including the sale of our Kidney Care business, business strategy and development activities and cost saving initiatives; demand for and market acceptance risks for, and competitive pressures (including pricing) related to new and existing products and services; product development risks; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties (including as a result of natural disaster or severe weather event, war, terrorism, global public health crises and epidemics/pandemics, regulatory actions or otherwise); satisfaction of regulatory and other requirements; product quality, manufacturing or supply, or patient safety issues; actions of regulatory bodies and other governmental authorities and changes in law and regulations and other governmental pressures in the United States and globally; the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events; the company's ability to meet evolving and varied corporate responsibility expectations of our stakeholders, including compliance with new and emerging sustainability regulations; and other risks identified in Baxter's most recent filing on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter's website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws. Baxter and HR 900 are trademarks of Baxter International Inc. or its subsidiaries. 1 Data presented in the 2024 report includes Baxter's Kidney Care business, which was sold in January 2025, unless otherwise noted.
