Baxter International Reports Q2 2025 Net Income of $91 Million, Sales Up 4%

Baxter International Inc. reported its financial results for the second quarter and first half of 2025, revealing a net income attributable to stockholders of $91 million, or $0.18 per diluted share, compared to a net loss of $314 million, or $(0.61) per diluted share, in the same period of 2024. For the six months ended June 30, 2025, net income was $217 million, or $0.42 per diluted share, compared to a loss of $277 million, or $(0.54) per diluted share, in the prior year. The company’s net sales for the second quarter increased by 4% to $2.81 billion, up from $2.69 billion in the previous year, while sales for the first half rose 5% to $5.44 billion from $5.18 billion.

The financial performance reflects significant changes compared to the previous fiscal period, particularly due to the sale of Baxter's Kidney Care business, which was completed on January 31, 2025, for approximately $3.80 billion. This transaction has been classified as discontinued operations in the financial statements, with the results of the Kidney Care segment no longer impacting ongoing operations. The company reported a pre-tax gain of $191 million from the sale, contributing to the improved financial results. Additionally, the company incurred $17 million in costs related to Hurricane Helene, which affected operations at its North Cove facility.

Baxter's operational developments included a restructuring of its business segments into Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals, aimed at enhancing operational efficiency. The Medical Products & Therapies segment reported net sales of $1.32 billion for the second quarter, slightly down from $1.32 billion in the prior year, while the Healthcare Systems & Technologies segment saw a 3% increase in sales to $767 million. The Pharmaceuticals segment also experienced a modest increase in sales, reaching $612 million.

The company’s total assets decreased to $21.05 billion as of June 30, 2025, down from $25.78 billion at the end of 2024, primarily due to the reclassification of the Kidney Care business as discontinued operations. Current liabilities also fell significantly, from $6.51 billion to $2.94 billion, reflecting the repayment of debt using proceeds from the sale of the Kidney Care business. Baxter's employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Baxter anticipates continued challenges related to supply chain disruptions and inflationary pressures, which may impact future sales and profitability. The company is focused on optimizing its cost structure and enhancing operational efficiencies to mitigate these challenges. Baxter's management remains committed to executing its strategic initiatives and expects to see gradual improvements in performance as the impacts of recent restructuring and market conditions stabilize.