What Baxter International Inc. told the SEC could break it.

Baxter has faced and may face difficulties obtaining key materials — electromechanical components, active pharmaceutical ingredients, and resins — due to supply chain disruptions and shortages.

“We have faced, and may in the future face, difficulties obtaining supplies of key materials, such as electromechanical components, active ingredients for pharmaceuticals and resins, due to supply chain disruptions and global pandemics (including COVID-19).”

Tariffs drove unfavorable manufacturing variances in Baxter's 2025 cost of sales, and its sole-source supplier relationships limit its ability to respond with alternative or lower-cost raw materials and components.

“Sole source supplier relationships may limit our ability to respond to these tariffs with alternative or lower cost raw materials or component parts.”

Baxter sources certain raw materials and components from single or sole-source suppliers (some on a spot basis with no contract); replacing them may be slow and costly given FDA/global regulatory approval requirements.

“We acquire our components, raw materials, and other requirements for manufacturing from many suppliers and vendors in various countries, including sometimes from ourselves for self-supplied requirements. In certain instances, we use a single source or supplier or there is only a sole source or supplier.”

International sales were $5.12 billion of $11.24 billion total (~46%) in 2025, exposing Baxter to currency translation and foreign economic/political risk across emerging markets and rest-of-world operations.

“Our global net sales totaled $11.24 billion in 2025, an increase of 6% over 2024 on a reported basis and 3% on an operational sales basis. International sales totaled $5.12 billion in 2025, an increase of 7% compared to 2024 on a reported basis and 5% on an operational sales basis.”