Becton Dickinson

BD generates strong cash flow: we calculate TTM FCF ≈ 2.55 billion dollars through June 30, 2025. Balance sheet: cash and short-term investments ≈ 0.8 billion vs total debt ≈ 19.3 billion at June 30, 2025; net debt roughly 18.5 billion.

Investment-grade ratings (Moody’s Baa2, S&P BBB, Fitch BBB) and management’s deleveraging commitment via RMT proceeds and FCF underpin resilience. Litigation overhangs have eased following the broad Bard hernia mesh settlement and resolution of the SEC matter related to Alaris (175 million dollar penalty recorded), reducing tail risk.

We expect net leverage to trend toward management’s ~2.5x target over time.