BD Reports Second Quarter Fiscal 2025 Financial Results

Original from: BD

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced results for its fiscal 2025 second quarter, which ended March 31, 2025.

"Amid a difficult operating environment impacting near-term organic revenue growth, our Q2 results reflect the strength of our business model and ability to exceed our earnings expectations through quality gross margin improvement," said Tom Polen, chairman, CEO and president of BD. "Our BD Excellence operating system is driving continued margin expansion and increasing investment in our commercial organization and innovation, and we believe we are well positioned to accelerate growth as markets recover. As we take decisive mitigation actions to navigate the current macro environment, BD's scale as the largest U.S. manufacturer of medical devices is a significant advantage for long-term value creation."

Recent Business Highlights

· The company announces its intention to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years, further strengthening its position as the largest U.S. manufacturer of medical devices and its commitment to ensuring a resilient U.S. health care system.

· BD Medical: 

 - The Medication Management Solutions business unit announced the BD Pyxis™ MedStation ES was honored with the 2025 Best in KLAS award for Automated Dispensing Cabinets and the BD Alaris™ Infusion System was honored in the Smart Pumps – Traditional category. This recognition underscores BD's market leadership and dedication to safety and innovation across the entire medication use process.

 - The Advanced Patient Monitoring business unit launched its next generation hemodynamic monitoring solution, HemoSphere Alta™ Advanced Monitoring Platform, providing clinicians with AI-driven clinical decision support.

· BD Interventional: 

 - The Surgery business unit announced:

   - FDA 510(k) clearance and the launch of its Phasix™ ST Umbilical Hernia Patch, the industry's first bioabsorbable mesh designed specifically for umbilical hernia repair.

   - A milestone in its clinical trial for the use of bioabsorbable GalaFLEX LITE™ Scaffold in breast implant revision surgery. Treatment of the first patient in the STANCE Investigational Device Exemption (IDE) clinical trial marks a significant advancement in BD's efforts to achieve FDA Premarket Approval for its first breast indication for GalaFLEX LITE™ Scaffold. 

· BD Life Sciences:

 - The Diagnostic Solutions business unit announced FDA 510(k) clearance for its advanced microbiology solution which integrates the BD Phoenix™ Automated Microbiology System, BDXpert™ System and BD Synapsys™ Informatics Solution to support accurate detection of antimicrobial resistance.

· BD named to Fortune's 2025 list of America's Most Innovative Companies, ranking in the top 25% of companies overall.

Second Quarter Fiscal 2025 Operating Results

Geographic Results

Segment Results

The BD Medical segment includes the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS) and Pharmaceutical Systems (PS) business units, and the Advanced Patient Monitoring (APM) business unit. BD Medical performance reflects the revenue contribution from APM, which was formed upon the closing of the acquisition of Critical Care from Edwards Lifesciences on September 3, 2024. BD Medical organic revenue growth reflects mid single-digit growth in MMS and low single-digit growth in MDS and PS.

 - MDS performance reflects strong volume growth in Vascular Access Management and hypodermic products in the U.S., partially offset by the expected impact of volume-based procurement in China.

 - MMS performance reflects double-digit growth in Infusion driven by BD Alaris™ that was partially offset by timing in Dispensing Solutions.

 - PS performance reflects double-digit growth in Biologics that was partially offset by lower market demand for anticoagulant products.

The BD Life Sciences segment includes the Specimen Management (SM), Diagnostic Solutions (DS) and Biosciences (BDB) business units. BD Life Sciences performance reflects declines in DS and BDB that were partially offset by low single-digit growth in SM.

 - SM performance reflects solid growth in the BD Vacutainer™ portfolio in the U.S. that was partially offset by performance in China.

 - DS performance reflects an impact from BD BACTEC™ blood culture as customers were slow to return to prior testing volumes following the resolution of supply disruption, partially offset by double-digit growth in BD MAX™ IVD.

 - BDB performance reflects lower research instrument demand globally, particularly in the government and academic sectors impacted by research funding levels, that was partially offset by continued growth in research reagents.

The BD Interventional segment includes the Surgery (SURG), Peripheral Intervention (PI), and Urology & Critical Care (UCC) business units. BD Interventional performance reflects low single-digit growth in SURG, flat performance in PI and a decline in UCC which includes an outsized prior-year licensing comparison.

 - SURG performance reflects double-digit growth in Phasix™ hernia resorbable scaffold and high single-digit growth in Biosurgery that was partially offset by a pricing adjustment in legacy hernia products in the U.S.

 - PI performance reflects strong growth in the U.S. across all platforms that was partially offset by performance in China. PI performance also reflects the comparison to prior-year licensing revenue.

 - UCC performance reflects an outsized prior-year licensing comparison that was partially offset by high single-digit growth across UCC which was led by double-digit growth in the PureWick™ franchise from the continued adoption of the Male and Female portfolios.

Assumptions and Outlook for Full Year Fiscal 2025

The company updated its fiscal 2025 guidance including the estimated impact of recently announced tariffs.

The company now expects fiscal 2025 revenues to be between $21.8 billion and $21.9 billion compared to its previously issued guidance of $21.7 billion to $21.9 billion. This reflects updated organic revenue growth guidance of 3.0% to 3.5% and an improvement in the estimated impact of foreign currency.

Before the impact of tariffs, the company expects Adjusted Diluted EPS to be consistent with its previously issued guidance of $14.30 to $14.60, which represents growth of 8.8% to 11.0%, and includes absorbing a headwind from translational foreign currency for the full year of approximately $0.05 or 40 basis points. Strong operational performance, driven largely by margin improvement, is enabling the company to fully offset the earnings impact from its updated organic revenue growth expectations. 

Including an estimated tariff impact of approximately $0.25 for the fiscal year the company now expects Adjusted Diluted EPS to be in a range of $14.06 to $14.34, which represents year-over-year growth of approximately 7.0% to 9.1%.

The estimated tariff impact is based on information currently available and tariff programs announced as of April 30, not including announced tariff programs that are delayed or threatened. However, international trade policies, trade restrictions and tariffs are rapidly evolving and there can be no assurance as to how the landscape may change and what the ultimate impact on our guidance and results of operations will be.

Source: BD Reports Second Quarter Fiscal 2025 Financial Results