Baxter International

Balance sheet resiliency improved after applying ~$3.4 billion net proceeds from the Kidney Care sale to repay debt, lowering interest expense. As of June 30, 2025 Baxter reported long‑term debt (including current maturities) near $9.5 billion and cash about $1.7 billion, implying net debt around $7.8 billion.

The company aims for ~3.0x net leverage by end‑2025. However, modest TTM FCF and product‑quality costs constrain deleveraging speed.

Liquidity is adequate with investment‑grade ratings and undrawn revolver access; commercial paper outstanding at 12/31/24 was repaid in 1Q25. Overall strength is improved but still a key risk to our thesis if operating hiccups persist.