Q1 2026 Baxter International Inc Earnings Call Transcript
Key Points
- Baxter International Inc (BAX) reported first quarter global sales from continuing operations totaling $2.7 billion, representing a 3% increase year over year on a reported basis.
- Advanced Surgery segment grew 10% in the quarter, reflecting strong demand and increased volumes for hemostats and sealants.
- The company is making significant progress in clearing back orders and increasing throughput at manufacturing facilities.
- Baxter International Inc (BAX) is leveraging AI in its Connected Care Foundation to provide actionable data and analysis, enhancing operational efficiency.
- The company is focused on strengthening its balance sheet, with positive free cash flow generation in the quarter and a target net leverage of approximately 3 times by the end of 2026.
- Adjusted earnings from continuing operations decreased by 35% to $0.36 per share, reflecting an unfavorable comparison to the prior year.
- The Medical Products & Therapy segment saw a 2% decline in sales, impacted by lower infusion pump sales due to shipment and installation holds.
- Higher costs related to tariffs and manufacturing, including absorption pressure, negatively impacted operating margins.
- The Pharmaceuticals segment faced supply constraints and continued softness in certain pre-mixed products, contributing to a 13% decline in sales for the Injectables and Anesthesia division.
- Baxter International Inc (BAX) continues to face challenges with the Novum LVP, with potential customer returns factored into the full-year guidance.
Good morning, ladies and gentlemen, and welcome to Baxter International's first quarter 2026 earnings call. (Operator Instructions) As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time.
I would now like to turn the call over to Mr. Kevin Moran, Vice President, Investor Relations at Baxter International. Mr. Moran, you may begin.
Good morning, and welcome. Today, we'll discuss Baxter's first quarter results along with our financial outlook for the full year 2026. This morning, a press release was issued with our preliminary earnings results and reiterated outlook. The press release and investor presentation are available on the Investors section of the Baxter website.
Joining me today are Andrew Hider, President and Chief Executive Officer; and Anita Zielinski, Interim Chief Financial Officer, Chief Accounting Officer
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