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Becton, Dickinson(BDX) - 2025 Q2 - Quarterly Results
BDXBecton, Dickinson(BDX)2025-05-01 10:32

Revenue Performance - Revenue for Q2 fiscal 2025 was 5.3billion,representinga4.55.3 billion, representing a 4.5% increase as reported, 6.0% currency-neutral, and 0.9% organic growth[4] - Revenues for Q2 2025 were 5,272 million, representing a 4.5% increase compared to 5,045millioninQ22024[28]−Forthefirstsixmonthsoffiscalyear2025,revenuesreached5,045 million in Q2 2024[28] - For the first six months of fiscal year 2025, revenues reached 10,440 million, a 7.1% increase from 9,751millioninthesameperiodof2024[29]−Totalrevenuesforthefirstquarteroffiscalyear2025reached9,751 million in the same period of 2024[29] - Total revenues for the first quarter of fiscal year 2025 reached 5,272 million, a 4.5% increase compared to 5,045millioninthesameperiodof2024[38]−TotalrevenuesforthesixmonthsendedMarch31,2025,were5,045 million in the same period of 2024[38] - Total revenues for the six months ended March 31, 2025, were 10,440 million, representing a 7.1% increase compared to 9,751millioninthesameperiodof2024[47]−IntheUnitedStates,totalrevenuesincreasedby7.09,751 million in the same period of 2024[47] - In the United States, total revenues increased by 7.0% to 3,108 million from 2,906millionyear−over−year[32]−Internationalrevenuesshowedaslightincreaseof1.22,906 million year-over-year[32] - International revenues showed a slight increase of 1.2% to 2,164 million compared to 2,139millioninthepreviousyear[35]SegmentPerformance−BDMedicalsegmentrevenuegrewby12.72,139 million in the previous year[35] Segment Performance - BD Medical segment revenue grew by 12.7% to 2.76 billion, driven by strong performance in Medication Management Solutions[8] - BD Life Sciences segment reported a revenue decline of 4.3% to 1.25billion,impactedbylowerdemandinDiagnosticSolutions[8]−BDMedicalsegmentreportedtotalrevenuesof1.25 billion, impacted by lower demand in Diagnostic Solutions[8] - BD Medical segment reported total revenues of 2,760 million, up 12.7% from 2,449millionyear−over−year[38]−BDLifeSciencessegmenttotalrevenuesdecreasedby4.32,449 million year-over-year[38] - BD Life Sciences segment total revenues decreased by 4.3% to 1,247 million from 1,304millioninthepreviousyear[38]−BDInterventionalsegmentrevenuesdeclinedby2.21,304 million in the previous year[38] - BD Interventional segment revenues declined by 2.2% to 1,264 million compared to 1,292millioninthesamequarterof2024[38]−BDMedicalorganicrevenueforthethreemonthsendedMarch31,2025,was1,292 million in the same quarter of 2024[38] - BD Medical organic revenue for the three months ended March 31, 2025, was 2,503 million, reflecting a 2.2% increase from 2,449millionin2024[50]−BDMedicalsegmentrevenuesincreasedto2,449 million in 2024[50] - BD Medical segment revenues increased to 5,375 million, a 14.9% increase from 4,679millionin2024,withMedicationDeliverySolutionsgrowingby3.84,679 million in 2024, with Medication Delivery Solutions growing by 3.8%[47] - BD Life Sciences segment reported revenues of 2,545 million, a decrease of 1.8% from 2,592millionin2024,withBiosciencesdecliningby5.22,592 million in 2024, with Biosciences declining by 5.2%[47] Earnings and Guidance - GAAP diluted EPS was 1.07, down 42.2% from the previous year, while adjusted diluted EPS increased by 5.7% to 3.35[6]−AdjusteddilutedEPSguidanceforfiscal2025isnowprojectedtobebetween3.35[6] - Adjusted diluted EPS guidance for fiscal 2025 is now projected to be between 14.06 and 14.34,indicatingayear−over−yeargrowthofapproximately7.014.34, indicating a year-over-year growth of approximately 7.0% to 9.1%[16] - Reported diluted earnings per share (EPS) for the three months ended March 31, 2025, was 1.07, down 42.2% from 1.85in2024[53]−ThecompanyexpectsFY2025reportedrevenuegrowthtobebetween+8.01.85 in 2024[53] - The company expects FY 2025 reported revenue growth to be between +8.0% to +8.5%, with total revenues projected to be approximately 21.8 to 21.9billion[58]−OrganicrevenuegrowthforFY2025isanticipatedtobebetween+3.021.9 billion[58] - Organic revenue growth for FY 2025 is anticipated to be between +3.0% to +3.5%[58] - The company anticipates a reported percentage change in earnings of +7.0% to +9.1% for FY 2025[61] Costs and Expenses - Operating income for Q2 2025 decreased by 25.5% to 546 million from 734millioninQ22024[28]−TotaloperatingcostsandexpensesforQ22025were734 million in Q2 2024[28] - Total operating costs and expenses for Q2 2025 were 4,725 million, an increase of 9.6% from 4,311millioninQ22024[28]−CashandequivalentsasofMarch31,2025,were4,311 million in Q2 2024[28] - Cash and equivalents as of March 31, 2025, were 667 million, down from 1,717millionasofSeptember30,2024[30]−Thecompanyreportedanetcashprovidedbycontinuingoperatingactivitiesof1,717 million as of September 30, 2024[30] - The company reported a net cash provided by continuing operating activities of 857 million for the first six months of 2025[31] - Total assets decreased to 54,467millionasofMarch31,2025,from54,467 million as of March 31, 2025, from 57,286 million as of September 30, 2024[30] Strategic Initiatives - The company plans to invest 2.5billioninU.S.manufacturingcapacityoverthenext5yearstoenhanceitspositioninthemedicaldevicemarket[5]−TheAdvancedPatientMonitoringbusinessunitlaunchedtheHemoSphereAlta™AdvancedMonitoringPlatform,featuringAI−drivenclinicaldecisionsupport[5]−ThecompanysplititsIntegratedDiagnosticSolutionsunitintotwoseparateunitstobetteralignresourceswithbusinessneeds[33]−ThecompanyrestructureditsLifeSciencessegmentbysplittingtheIntegratedDiagnosticSolutionsunitintotwodistinctunitstobetteralignresources[48]RegulatoryandComplianceIssues−ThecompanyreceivedFDAclearanceforthePhasix™STUmbilicalHerniaPatch,markingasignificantadvancementinitsproductofferings[9]−BDwasnamedtoFortune′s2025listofAmerica′sMostInnovativeCompanies,rankinginthetop252.5 billion in U.S. manufacturing capacity over the next 5 years to enhance its position in the medical device market[5] - The Advanced Patient Monitoring business unit launched the HemoSphere Alta™ Advanced Monitoring Platform, featuring AI-driven clinical decision support[5] - The company split its Integrated Diagnostic Solutions unit into two separate units to better align resources with business needs[33] - The company restructured its Life Sciences segment by splitting the Integrated Diagnostic Solutions unit into two distinct units to better align resources[48] Regulatory and Compliance Issues - The company received FDA clearance for the Phasix™ ST Umbilical Hernia Patch, marking a significant advancement in its product offerings[9] - BD was named to Fortune's 2025 list of America's Most Innovative Companies, ranking in the top 25% overall[9] - European regulatory initiative-related costs reached 104 million pre-tax, reflecting compliance efforts with new regulations[62] - The tax impact of specified items and other tax-related adjustments was (297)million,influencingnetearnings[61]−Thecompanyrecorded297) million, influencing net earnings[61] - The company recorded 67 million in accruals impacting revenues due to legal matters and 175millionrelatedtoanSECinvestigation[62]−Futurecostsforproductremediationeffortsincludedchargesof175 million related to an SEC investigation[62] - Future costs for product remediation efforts included charges of 38 million to cost of products sold, indicating ongoing operational challenges[62] Challenges - The company faced significant challenges including macroeconomic conditions, supply chain disruptions, and competitive pressures impacting future performance[27] - Purchase accounting adjustments amounted to 1.503billionpre−tax,impactingreportedearningssignificantly[61]−Integrationcostsincurredwere1.503 billion pre-tax, impacting reported earnings significantly[61] - Integration costs incurred were 23 million pre-tax, while restructuring costs totaled 387millionpre−tax[61]−TransactioncostsrelatedtotheAdvancedPatientMonitoringacquisitionwere387 million pre-tax[61] - Transaction costs related to the Advanced Patient Monitoring acquisition were 48 million pre-tax, with financing costs recorded as (8)millionpre−tax[61]−Product,litigation,andotheritemsaccountedfor8) million pre-tax[61] - Product, litigation, and other items accounted for 346 million pre-tax, affecting overall financial performance[62]