01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Becton Dickinson & Co. (BDX) reported revenues of $5.272 billiona for the third quarter of fiscal year 2025, a 4.5% increase year-over-year.
This growth was primarily driven by the acquisition of Advanced Patient Monitoring and solid performance in the Medical and Pharmaceutical Systems segments, though partially offset by challenges in the Life Sciences and Interventional segments. Net income for the quarter was $308 millionb, down from $537 million in the prior year period, resulting in diluted EPS of $1.07 compared to $1.85. The company announced its intention to separate its Biosciences and Diagnostic Solutions businesses, a move expected to be completed in fiscal year 2026, which aims to unlock shareholder value.
Despite revenue growth, the decrease in net income was influenced by factors including purchase accounting adjustments, increased restructuring costs, and higher interest expenses related to recent acquisitions. BDX's balance sheet shows $8.67 billionc in current assets and $7.69 billion in current liabilities as of March 31, 2025. The company generated $857 million in net cash from operating activities for the first six months of fiscal year 2025, a decrease from $1.369 billion in the prior year, attributed to changes in working capital, including higher inventory levels and lower accounts payable and accrued expenses.
Significant financing activities included $876 milliond in debt payments and $750 million in share repurchases. The company continues to return capital to shareholders through dividends, with $600 million paid in the first six months of fiscal year 2025.
02—Key points
Key Highlights
- Revenues increased by 4.5% to $5.272 billion in Q3 FY2025, driven by the Advanced Patient Monitoring acquisition and Medical segment growth.
- Net income decreased to $308 million ($1.07 EPS) from $537 million ($1.85 EPS) in Q3 FY2024, impacted by acquisition-related costs and restructuring expenses.
- BDX announced its intention to separate its Biosciences and Diagnostic Solutions businesses, targeting completion in fiscal year 2026.
- Operating cash flow for the first six months of FY2025 was $857 million, down from $1.369 billion in the prior year, reflecting changes in working capital.
- Total debt decreased to $19.27 billion from $20.11 billion at the beginning of the fiscal year, with significant debt payments made during the period.
- The company repurchased $750 million of its common stock and paid $600 million in dividends during the first six months of FY2025.
- The Medical segment showed strong revenue growth (12.7% for the quarter), while Life Sciences (-4.3%) and Interventional (-2.2%) segments experienced revenue declines.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Becton Dickinson & Co kept $0.07.
- Revenue$4.48B100.0%
- Cost of revenue−$2.62B58.5%
- Gross profit$1.86B41.5%
- Operating costs−$1.48B33.0%
- Operating income$383.0M8.5%
- Interest, other & tax−$75.0M1.7%
- Net income$308.0M6.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.48B$5.04B | −11.2% |
| Cost of Revenue | $2.62B$2.74B | −4.5% |
| Gross Profit | $1.86B$2.30B | −19.2% |
| R&D Expenses | $232.00M$299.00M | −22.4% |
| SG&A Expenses | $1.12B$1.19B | −6.4% |
| Operating Expenses | $4.10B$4.31B | −5.0% |
| Operating Income | $383.00M$734.00M | −47.8% |
| Net Income | $308.00M$537.00M | −42.6% |
| EPS (Basic) | $1.07$1.85 | −42.2% |
| EPS (Diluted) | $1.07$1.85 | −42.2% |
| Shares Outstanding (Basic) | 287.29M289.52M | −0.8% |
| Shares Outstanding (Diluted) | 287.74M290.34M | −0.9% |
05—Questions
Frequently Asked Questions
What is the company's strategic outlook regarding its business segments?
Becton Dickinson (BD) has announced its intention to separate its Biosciences and Diagnostic Solutions businesses, a process expected to be completed in fiscal year 2026. This strategic move aims to enhance shareholder value. The company will continue to operate through its Medical, Life Sciences, and Interventional segments, focusing on growth, simplification, and empowerment as per its BD 2025 strategy.
What are the key factors impacting the company's profitability in the current quarter?
The decrease in net income compared to the prior year was influenced by several factors. These include a $162 million fair value step-up adjustment for acquired inventory in the Advanced Patient Monitoring segment, $76 million in charges for product remediation efforts within the Medication Management Solutions unit, and increased interest expenses related to debt incurred for acquisitions. Additionally, integration, restructuring, and transaction expenses have contributed to higher costs.
How is the company managing its debt and capital structure?
BD reported total debt of $19.27 billion as of March 31, 2025, a decrease from $20.11 billion at the start of the fiscal year. The company made significant debt payments totaling $876 million in the first six months of FY2025. The weighted average cost of debt was 3.2%, and total debt represented 42.7% of total capital. The company also continued its share repurchase program, buying back $750 million in stock, and maintained its dividend payments.
What are the main risks and uncertainties facing the company?
BD faces various risks including macroeconomic downturns, inflation, supply chain disruptions, tariffs and trade barriers, geopolitical instability, and regulatory changes, particularly concerning medical devices and sterilization processes (like ethylene oxide). The company is also managing ongoing litigation related to product liability claims and is subject to FDA regulations and consent decrees, most notably concerning its Alaris infusion pump system. The intended separation of business units also introduces integration and execution risks.
06—Continue