Becton, Dickinson and Company (BDX) 7th Annual Evercore ISI HealthCONx Conference summary

Fiscal 2024 performance and 2025 guidance

• Achieved 5% overall growth in fiscal 2024, with most of the portfolio growing nearly 6% despite a low single-digit decline in China.

• Fiscal 2025 guidance set at 4%-4.5% organic growth, assuming further deterioration in China and continued headwinds in tools and Pharm Systems.

• Gross margin improved by about 100 basis points, with strong cash conversion at 82% in 2024 and similar expectations for 2025.

• $1 billion in share buybacks planned for 2025, supporting nearly 10% earnings growth at the midpoint.

• Margin expansion driven by gross margin improvements and healthy reinvestment in the business.

Macroeconomic and geopolitical impacts

• Healthcare utilization remains strong, with no expected changes in demand.

• Administrative and geopolitical changes are being monitored, but healthcare is seen as a bipartisan priority.

• Tariff risks from China and Mexico are considered manageable due to a diversified manufacturing network and minimal import reliance from China.

• Only a small portion of the portfolio was previously sourced from China, now largely replaced.

Segment and regional dynamics

• Headwinds of 125 basis points in 2025 are mainly from Biosciences, Pharm Systems, and China, with conservative assumptions.

• China is expected to see a mid-single-digit decline, with normalization anticipated in the second half of 2025.

• Interventional business, especially PureWick, continues strong double-digit growth, with new product launches and international expansion planned.

• PureWick franchise expected to reach $1 billion by 2030, with reimbursement evidence generation targeted for completion by end of 2025.