BAX 8-K

Baxter International Inc (BAX)

8-K 2025-02-20 For: 2025-02-20

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Added on April 11, 2026


Baxter International Inc.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

1-4448			36-0781620
(Commission File Number)			(I.R.S. Employer Identification No.)

One Baxter Parkway, Deerfield, Illinois			60015
(Address of principal executive offices)			(Zip Code)

(224)948-2000
(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)


Exhibit Number						Description

99.1						Press Release Dated February 20, 2025

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


			BAXTER INTERNATIONAL INC.

			By:			/s/ Joel T. Grade
			Name:			Joel T. Grade
			Title:			Executive Vice President, Chief Financial
						Officer and Interim Chief Accounting Officer


	Three Months Ended December 31,
	2024			2023			Change
NET SALES	$	2,753		$	2,729		1	%
COST OF SALES	1,794			1,629			10	%
GROSS MARGIN	959			1,100			(13)	%
% of Net Sales	34.8		%	40.3		%	(5.5 pts)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	761			683			11	%
% of Net Sales	27.6		%	25.0		%	2.6 pts
RESEARCH AND DEVELOPMENT EXPENSES	211			127			66	%
% of Net Sales	7.7		%	4.7		%	3.0 pts
GOODWILL IMPAIRMENTS	425			—			NM
OTHER OPERATING INCOME, NET	(3)			(14)			(79)	%
OPERATING INCOME (LOSS)	(435)			304			NM
% of Net Sales	(15.8)		%	11.1		%	(26.9 pts)
INTEREST EXPENSE, NET	90			72			25	%
OTHER (INCOME) EXPENSE, NET	(4)			11			NM
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(521)			221			NM
INCOME TAX EXPENSE (BENEFIT)	(33)			2			NM
% of Income (Loss) from Continuing Operations Before Income Taxes	6.3		%	0.9		%	5.4 pts
INCOME (LOSS) FROM CONTINUING OPERATIONS	(488)			219			NM
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX	(22)			27			NM
NET INCOME (LOSS)	(510)			246			NM
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS INCLUDED IN CONTINUING OPERATIONS	—			—			NM
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS INCLUDED IN DISCONTINUED OPERATIONS	2			1			100	%
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	2			1			100	%
NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS	$	(512)		$	245		NM
INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE
Basic	$	(0.95)		$	0.43		NM
Diluted	$	(0.95)		$	0.43		NM
INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER COMMON SHARE
Basic	$	(0.05)		$	0.05		NM
Diluted	$	(0.05)		$	0.05		NM
NET INCOME (LOSS) PER COMMON SHARE
Basic	$	(1.00)		$	0.48		NM
Diluted	$	(1.00)		$	0.48		NM
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Basic	511			507
Diluted	511			509
ADJUSTED OPERATING INCOME (excluding special items)¹	$	419		$	468		(10)	%
ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special items)¹	$	297		$	330		(10)	%
ADJUSTED INCOME FROM DISCONTINUED OPERATIONS (excluding special items)1	$	101		$	105		(4)	%
ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹	$	396		$	434		(9)	%
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)¹	$	0.58		$	0.65		(11)	%
ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)¹	$	0.19		$	0.20		(5)	%
ADJUSTED DILUTED EPS (excluding special items)¹	$	0.77		$	0.85		(9)	%


	Gross Margin			Selling, General and Administrative Expenses			Research and Development Expenses			Goodwill Impairments			Operating Income (Loss)					Income (Loss) From Continuing Operations Before Income Taxes			Income Tax Expense (Benefit)			Income (Loss) From Continuing Operations			Income From Discontinued Operations, Net of Tax			Net Income (Loss)			Net Income (Loss) Attributable to Baxter Stockholders			Diluted Earnings Per Share from Continuing Operations		Diluted Earnings Per Share from Discontinued Operations		Diluted Earnings Per Share
Reported	$	959		$	761		$	211		$	425		$	(435)				$	(521)		$	(33)		$	(488)		$	(22)		$	(510)		$	(512)		$	(0.95)	$	(0.05)	$	(1.00)
Reported percent of net sales (or effective tax rate for income tax expense (benefit))	34.8		%	27.6		%	7.7		%	15.4		%	(15.8)		%			(18.9)		%	6.3		%	(17.7)		%	(0.8)		%	(18.5)		%	(18.6)		%
Intangible asset amortization	103			(51)			—			—			154					154			37			117			1			118			118			0.23		0.00		0.23
Business optimization items1	59			(24)			(30)			—			113					113			27			86			(4)			82			82			0.17		(0.01)		0.16
Acquisition and integration items2	—			(7)			—			—			7					7			2			5			—			5			5			0.01		0.00		0.01
European medical devices regulation3	8			—			—			—			8					8			1			7			(1)			6			6			0.01		0.00		0.01
Product-related items4	12			—			—			—			12					12			3			9			—			9			9			0.02		0.00		0.02
Hurricane Helene costs5	85			—			—			—			85					85			21			64			9			73			73			0.13		0.01		0.14
Long-lived asset impairments6	—			—			(50)			—			50					50			13			37			—			37			37			0.07		0.00		0.07
Goodwill impairments7	—			—			—			(425)			425					425			—			425			—			425			425			0.83		0.00		0.83
Separation-related costs8	—			—			—			—			—					—			—			—			68			68			68			0.00		0.13		0.13
Tax matters12	—			—			—			—			—					—			(35)			35			50			85			85			0.07		0.10		0.17
Adjusted	$	1,226		$	679		$	131		$	—		$	419				$	333		$	36		$	297		$	101		$	398		$	396		$	0.58	$	0.19	$	0.77
Adjusted percent of net sales (or effective tax rate for income tax expense (benefit))	44.5		%	24.7		%	4.8		%	0.0		%	15.2		%			12.1		%	10.8		%	10.8		%	3.7		%	14.5		%	14.4		%

																		Reported			Adjusted
Income (loss) from discontinued operations, net of tax																$	(22)	$	101					Weighted-average diluted shares as reported												511
Less: Net income attributable to noncontrolling interests included in discontinued operations																2		2						Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported												1
Income (loss) from discontinued operations attributable to Baxter stockholders													$	(24)		$	99				Weighted-average diluted shares as adjusted												512

																		Reported			Adjusted
Net income (loss)																		$	(510)		$	398
Less: Net income (loss) attributable to noncontrolling interests																		2			2
Net income (loss) attributable to Baxter stockholders																		$	(512)		$	396


	Gross Margin			Selling, General and Administrative Expenses			Other Operating Expense, Net			Operating Income (Loss)			Other (Income) Expense, Net			Income (Loss) From Continuing Operations Before Income Taxes			Income Tax Expense (Benefit)			Income (Loss) From Continuing Operations			Income From Discontinued Operations			Net Income (Loss)			Net Income (Loss) Attributable to Baxter Stockholders			Diluted Earnings Per Share from Continuing Operations		Diluted Earnings Per Share from Discontinued Operations		Diluted Earnings Per Share
Reported	$	1,100		$	683		$	(14)		$	304		$	11		$	221		$	2		$	219		$	27		$	246		$	245		$	0.43	$	0.05	$	0.48
Reported percent of net sales (or effective tax rate for income tax expense (benefit))	40.3		%	25.0		%	(0.5)		%	11.1		%	0.4		%	8.1		%	0.9		%	8.0		%	1.0		%	9.0		%	9.0		%
Intangible asset amortization	104			(52)			—			156			—			156			44			112			12			124			124			0.22		0.02		0.24
Business optimization items1	4			(3)			—			7			—			7			31			(24)			14			(10)			(10)			(0.05)		0.03		(0.02)
Acquisition and integration items2	—			(3)			5			(2)			—			(2)			—			(2)			—			(2)			(2)			0.00		0.00		0.00
European medical devices regulation3	9			—			—			9			—			9			1			8			1			9			9			0.02		0.00		0.02
Legal matters9	—			(2)			8			(6)			—			(6)			(1)			(5)			—			(5)			(5)			(0.01)		0.00		(0.01)
Long-lived asset impairments6	—			—			—			—			—			—			4			(4)			—			(4)			(4)			(0.01)		0.00		(0.01)
Investment impairments10	—			—			—			—			(21)			21			(7)			28			6			34			34			0.06		0.01		0.07
Gain on BPS Sale11	—			—			—			—						—						—			15			15			15			0.00		0.03		0.03
Separation-related costs8	—			—			—			—			—			—			—			—			71			71			71			0.00		0.14		0.14
Tax matters12	—			—			—			—			—			—			2			(2)			(41)			(43)			(43)			0.00		(0.08)		(0.08)
Adjusted	$	1,217		$	623		$	(1)		$	468		$	(10)		$	406		$	76		$	330		$	105		$	435		$	434		$	0.65	$	0.20	$	0.85
Adjusted percent of net sales (or effective tax rate for income tax expense)	44.6		%	22.8		%	0.0		%	17.1		%	(0.4)		%	14.9		%	18.7		%	12.1		%	3.8		%	15.9		%	15.9		%

																			Reported			Adjusted
Income (loss) from discontinued operations													$	27		$	105
Less: Net income attributable to noncontrolling interests included in discontinued operations													1			1
Income (loss) from discontinued operations attributable to Baxter stockholders													$	26		$	104

																			Reported			Adjusted
Net income (loss)																			$	246		$	435
Less: Net income (loss) attributable to noncontrolling interests													1			1
Net income (loss) attributable to Baxter stockholders													$	245		$	434


	Twelve Months Ended December 31,
	2024			2023			Change
NET SALES	$	10,636		$	10,360		3	%
COST OF SALES	6,652			6,210			7	%
GROSS MARGIN	3,984			4,150			(4)	%
% of Net Sales	37.5		%	40.1		%	(2.6 pts)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	2,967			2,953			NM
% of Net Sales	27.9		%	28.5		%	(0.6 pts)
RESEARCH AND DEVELOPMENT EXPENSES	590			518			14	%
% of Net Sales	5.5		%	5.0		%	0.5 pts
GOODWILL IMPAIRMENTS	425			—			NM
OTHER OPERATING INCOME, NET	(12)			(28)			(57)	%
OPERATING INCOME	14			707			(98)	%
% of Net Sales	0.1		%	6.8		%	(6.7 pts)
INTEREST EXPENSE, NET	341			439			(22)	%
OTHER (INCOME) EXPENSE, NET	(38)			26			NM
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(289)			242			NM
INCOME TAX EXPENSE	37			61			(39)	%
% of Income (Loss) from Continuing Operations Before Income Taxes	(12.8)		%	25.2		%	(38.0 pts)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(326)			181			NM
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX	(312)			2,482			NM
NET INCOME (LOSS)	(638)			2,663			NM
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS INCLUDED IN CONTINUING OPERATIONS	—			—			NM
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS INCLUDED IN DISCONTINUED OPERATIONS	11			7			57	%
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	11			7			57	%
NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS	$	(649)		$	2,656		NM
INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE
Basic	$	(0.64)		$	0.36		NM
Diluted	$	(0.64)		$	0.36		NM
INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER COMMON SHARE
Basic	$	(0.63)		$	4.89		NM
Diluted	$	(0.63)		$	4.87		NM
NET INCOME (LOSS) PER COMMON SHARE
Basic	$	(1.27)		$	5.25		NM
Diluted	$	(1.27)		$	5.23		NM
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Basic	510			506
Diluted	510			508
ADJUSTED OPERATING INCOME (excluding special items)¹	$	1,474		$	1,519		(3)	%
ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS (excluding special items)¹	$	966		$	863		12	%
ADJUSTED INCOME FROM DISCONTINUED OPERATIONS (excluding special items)1	$	528		$	625		(16)	%
ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹	$	1,483		$	1,481		NM
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)1	$	1.89		$	1.70		11	%
ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)1	$	1.01		$	1.22		(17)	%
ADJUSTED DILUTED EPS (excluding special items)¹	$	2.90		$	2.92		(1)	%


	Three months ended December 31,						Twelve months ended December 31,
(in millions)	2024			2023			2024			2023
Medical Products & Therapies	$	217		$	266		$	950		$	972
% of Segment Net Sales	16.5		%	20.2		%	18.2		%	19.4		%
Healthcare Systems & Technologies	145			156			468			483
% of Segment Net Sales	18.5		%	19.6		%	15.9		%	16.0		%
Pharmaceuticals	102			117			313			401
% of Segment Net Sales	15.9		%	19.6		%	13.0		%	17.8		%
Other	3			(1)			18			18
Total	467			538			1,749			1,874
Unallocated corporate costs	(48)			(70)			(275)			(355)
Intangible asset amortization expense	(154)			(156)			(625)			(590)
Business optimization items	(113)			(7)			(162)			(174)
European medical devices regulation	(8)			(9)			(33)			(41)
Long-lived asset impairments	(50)			—			(50)			—
Legal matters	—			6			(17)			(7)
Acquisition and integration items	(7)			2			(23)			—
Product-related items	(12)			—			(15)			—
Hurricane Helene costs	(85)			—			(110)			—
Goodwill impairments	(425)			—			(425)			—
Total operating income (loss)	(435)			304			14			707
Interest expense, net	90			72			341			439
Other (income) expense, net	(4)			11			(38)			26
Income (loss) from continuing operations before income taxes	$	(521)		$	221		$	(289)		$	242


	Net Sales Growth As Reported		FX		Constant Currency Sales Growth*
Infusion Therapies & Technologies	(2)	%	1	%	(1)	%
Advanced Surgery	5	%	1	%	6	%
Medical Products & Therapies	(0)	%	1	%	1	%
Care and Connectivity Solutions	2	%	1	%	3	%
Front Line Care	(8)	%	0	%	(8)	%
Healthcare Systems & Technologies	(1)	%	0	%	(1)	%
Injectables and Anesthesia	7	%	1	%	8	%
Drug Compounding	10	%	(1)	%	9	%
Pharmaceuticals	8	%	0	%	8	%
Other	(33)	%	0	%	(33)	%
Total - Continuing Operations	1	%	1	%	2	%
Discontinued Operations - Kidney Care	(2)	%	3	%	1	%


Sales Growth Guidance	Q1 2025*	FY 2025*
Sales growth - U.S. GAAP	3% - 4%	5% - 6%
Kidney Care MSA	(~250 bps)	(~350 bps)
Exit of IV Solutions in China	~60 bps	~60 bps
Foreign Exchange	>200 bps	~200 bps
Operational sales growth	~4%	4% - 5%


Adjusted Earnings Per Share Guidance	Q1 2025	FY 2025
Adjusted diluted EPS	$0.47 - $0.50	$2.45 - $2.55


	Twelve Months Ended December 31,
	2024		2023
Cash flows from operations – continuing operations	$	819	$	1,207
Cash flows from investing activities - continuing operations	(410)		(410)
Cash flows from financing activities	(1,081)		(3,489)

Cash flows from operations - continuing operations	$	819	$	1,207
Capital expenditures - continuing operations	(446)		(432)
Free cash flow - continuing operations	$	373	$	775