Medical products maker Baxter cuts 2025 forecast; shares plunge to 19-year low

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(Corrects to remove reference to resumption of Novum pumps shipments in paragraph 4)

By Kamal Choudhury

(Reuters) -Baxter International slashed its 2025 profit forecast and posted disappointing quarterly earnings on Thursday, as lingering fallout from Hurricane Helene and continued hospital fluid conservation weighed on its medical products business.

Shares of the medical products maker tumbled about 23% in morning trading, hitting their lowest level since 2006.

Noting the “softness in demand” for IV fluids – used to deliver medications or nutrients directly into a patient’s bloodstream – CFO Joel Grade told analysts, “While we never want to lower expectations, our overall objective is reducing the outlook to capture more of the potential downside risks.”

Baxter has voluntarily halted shipments of its Novum IQ Large Volume Pump after reports of two deaths and multiple injuries.

The medical products maker now expects adjusted earnings of between $2.42 and $2.52 per share, down from its prior view of $2.47 to $2.55 per share. Analysts had expected $2.52 per share.

Hurricane Helene damaged Baxter’s North Carolina plant last year, disrupting IV solution production and prompting hospitals to conserve fluids. While supply has since been restored, demand remains subdued, the company said.

The company said volume declines in IV solutions significantly impacted operating income and profit per share, with the outlook assuming fluid conservation to remain at 20% below normal levels for the rest of 2025.

“Many investors had feared this scenario given the lack of a pre-announcement following a new CEO in early July,” JPMorgan analyst Robbie Marcus said.

Second-quarter adjusted earnings came in at 59 cents per share, missing estimates of 61 cents. Revenue was $2.81 billion, just shy of the $2.82 billion expected.

Baxter’s pharmaceuticals unit also underperformed, with injectable drug sales down 1% and anesthesia sales falling by low double digits globally.

On tariffs, Baxter lowered its estimated 2025 impact to $40 million, from a previous $60 million to $70 million.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Vijay Kishore)