Q2 Numbers Look Doable; Still Seeking Clarity on Prospects for Sustained Growth

研报英文原文证据摘录

Q2 Numbers Look Doable; Still Seeking Clarity on Prospects for Sustained Growth

ce. Again, its 2026 growth

guidance for MPT calls for organic sales to be flat to slightly up year over year. Q2 will be the

last quarter before the company laps the headwind from last year's ship hold. We expect base

pump sales to be down year over year in Q2, with the additional risk of returns on top of this

outlook. However, BAX should return to pump revenue growth in the second half of this year,

particularly in Q4.

HST: In Q1, HST sales growth (-2% organic) was hurt by the Front Line Care business, sales

of which were down 4% due to timing aspects within the portfolio pertaining to government

orders and large customer deals as well as some planned global exits in the portfolio. Care

& Connectivity Solutions (CCS) sales were flat in Q1. Patient Support Systems, which is the

largest business within CCS, delivered sales growth in Q1'26 and continues to build momentum,

with a strong capital order book within the US. This was offset in Q1 by a sales decline in Care

Communications, which was affected by the timing of installations. As discussed above, HST's

organic sales growth for the year should be in the low single digits. HST's H2 growth is expected

to come from new product launches, including the Connex 360 monitoring platform and the

Dynamo stretcher. BAX's current US order book also supports the H2'26 growth outlook.

IV Solutions: IV solutions demand declined in the aftermath of Hurricane Helene in September

2024. BAX has done a lot of research to determine the new level of demand for IV solutions

and believes it to be down about 10-15% from pre-Hurricane Helene levels. Accordingly, the

company moved away from its old cost structure for the IV solutions business to accommodate