Baxter Reports Q4 and Full-Year 2024 Results
Baxter International Inc. (NYSE: BAX), a leader in the global medtech industry, reported its financial results for the fourth quarter and full year ending December 31, 2024. The company also provided financial guidance for the first quarter and full year of 2025.
“Our 2024 results and the strategic milestones we’ve achieved highlight Baxter’s continued momentum and commitment to delivering value for patients, healthcare providers, customers, and shareholders,” said Brent Shafer, chair and interim CEO. “In addition to our strong performance in the fourth quarter and full year, we also completed the sale of our Kidney Care business, a pivotal move in the transformation we announced in early 2023. As a more streamlined Baxter, we are positioned for profitable growth and continued innovation.”
Fourth-Quarter Financial Results
Baxter reported worldwide sales from continuing operations of approximately $2.75 billion for the fourth quarter, reflecting a 1% increase on a reported basis and a 2% increase on a constant currency basis. Continuing operations exclude the Kidney Care business, which was sold to Carlyle in January 2025, and the BioPharma Solutions (BPS) business, divested in the third quarter of 2023.
U.S. sales from continuing operations for the quarter totaled $1.51 billion, flat compared to the prior year. International sales reached $1.24 billion, up 1% on a reported basis and 3% at constant currency rates.
Baxter’s fourth-quarter performance exceeded its earlier guidance, driven by stronger-than-expected sales in the Medical Products & Therapies and Pharmaceuticals segments.
- Medical Products & Therapies: Sales were flat on a reported basis but grew low single digits in constant currency. The segment saw strong performance from its infusion systems, including the Novum IQ infusion pump, parenteral nutrition products, and Advanced Surgery items. A decline in IV solutions sales, due to the impact of Hurricane Helene, was less severe than anticipated, contributing to the positive outcome.
- Pharmaceuticals: This segment grew by high single digits both on a reported and constant currency basis. Double-digit growth in specialty injectables, boosted by new product launches, and strength in drug compounding helped drive the increase.
- Healthcare Systems & Technologies: Sales declined by low single digits, driven by product exits, tough comparisons to the previous year, and certain supply constraints. However, strong U.S. sales in the Care and Connectivity Solutions division, fueled by upgrades in the Patient Support Systems business, partially offset the decline.
- Kidney Care: As a discontinued operation, Kidney Care sales were down low single digits on a reported basis but grew slightly on a constant currency basis.
For the fourth quarter, Baxter reported a net loss of $512 million, or $1.00 per diluted share, which includes a $0.95 loss from continuing operations. Adjusted earnings per diluted share from continuing operations were $0.58, exceeding the original guidance of $0.50 to $0.53. Total adjusted earnings, including discontinued operations, came in at $0.77 per diluted share, within the company’s forecast range.
Full-Year Financial Results
For the full year 2024, Baxter reported total sales of $10.64 billion from continuing operations, a 3% increase on both a reported and constant currency basis. U.S. sales were $5.85 billion, up 1% year-over-year, while international sales totaled $4.79 billion, growing 5% on a reported basis and 6% at constant currency rates.
Baxter reported a full-year net loss of $649 million, or $1.27 per diluted share, with a $0.64 loss from continuing operations and $0.63 from discontinued operations. This includes special items totaling $2.13 billion after-tax, primarily related to goodwill impairment charges and business optimization costs. On an adjusted basis, income from continuing operations was $1.89 per diluted share, and total adjusted net income was $1.48 billion, or $2.90 per diluted share.
Baxter generated $819 million in operating cash flow from continuing operations and $373 million in free cash flow for the year.
“The sale of our Kidney Care business is a major milestone in our transformation,” said Joel Grade, executive vice president and CFO. “With the proceeds allocated toward debt repayment, we are on track to reach our leverage target by the end of 2025. Moving forward, we’ll focus on improving cash flow and investing in our core businesses to accelerate growth.”
Transformation and Leadership Changes
Baxter completed the sale of its Kidney Care business to Carlyle for $3.4 billion in net after-tax proceeds on January 31, 2025. This marks the final step in Baxter’s strategic transformation, which included the divestiture of the BioPharma Solutions business in 2023 and the implementation of a new vertical operating model.
As part of this transformation, Baxter announced key leadership changes. José E. Almeida, former CEO, retired from his executive roles, with Brent Shafer appointed as chair and interim CEO. The company also appointed Heather Knight as executive vice president and COO, as well as interim group president for the Medical Products & Therapies division.
Hurricane Helene Impact and Recovery
In September 2024, Baxter’s North Cove manufacturing site in North Carolina was significantly affected by flooding caused by Hurricane Helene. Despite a temporary production shutdown, the company’s teams worked quickly to restore the facility and ensure continuity of supply for patients. All manufacturing lines at the North Cove site are now back online and producing at pre-hurricane levels.
“We are grateful for the efforts of our teams and the patience of our customers during the recovery process,” said Shafer.
