Bausch Health Q1 2025 slides: revenue up 6%, EBITDA grows 14% excluding B+L

Bausch Health Companies Inc (NYSE:BHC) reported its eighth consecutive quarter of revenue and adjusted EBITDA growth in its Q1 2025 earnings presentation on April 30, 2025. The company achieved 6% revenue growth and 14% adjusted EBITDA growth for Bausch Health excluding Bausch + Lomb (B+L), despite the stock closing down 4.17% on the day of the announcement.

Quarterly Performance Highlights

Bausch Health (excluding B+L) reported Q1 2025 revenue of $1.12 billion, representing 6% growth on a reported basis and 7% on an organic basis. Adjusted EBITDA increased by 14% to $675 million, demonstrating operating leverage as EBITDA growth outpaced revenue growth.

As shown in the following financial highlights chart, the company also reported that adjusted operating cash flow was $128 million, down slightly versus Q1 2024, consistent with expectations given the timing of interest payments and other outflows:

The company highlighted several key performance metrics in its presentation, including the eighth consecutive quarter of revenue and adjusted EBITDA growth, fifth consecutive quarter of Salix revenue growth, and strong performance in international markets with the ninth consecutive quarter of organic growth for the EMEA region.

Particularly impressive was Solta Medical (TASE:BLWV)’s performance, with 33% organic revenue growth in Q1 2025, including 136% year-over-year organic revenue growth in South Korea and 30% in China:

Segment Analysis

Bausch Health’s performance varied significantly across its business segments. The Salix segment, which represents 48% of Bausch Health revenue (excluding B+L), grew 9% to $542 million, driven by 8% growth in Xifaxan revenue with solid patient demand. Segment profit for Salix increased 13% to $371 million.

The following chart shows the Salix segment’s performance, highlighting Xifaxan’s 8% revenue growth and Trulance’s 20% revenue growth:

The International segment, representing 24% of revenue, experienced a 1% decline in reported revenue to $262 million, although organic revenue grew 5%. Canada showed strong performance with 9% reported growth and 20% organic growth, while LATAM faced challenges with a 14% reported decline despite 2% organic growth:

Solta Medical was the standout performer with 28% reported revenue growth and 33% organic growth, reaching $113 million. Growth was particularly strong in Asia-Pacific markets:

The Diversified segment, which includes Neurology, Dermatology, Generics, and Dentistry, reported 1% revenue growth to $205 million. Within this segment, Neurology showed strong 15% growth driven by Wellbutrin and Aplenzin, while Generics declined 28%:

The following table summarizes revenue and segment profit across all Bausch Health segments (excluding B+L):

Debt Management and Balance Sheet

Bausch Health made progress on debt management during the quarter, with net debt decreasing by approximately $85 million. The company successfully completed a $7.9 billion refinancing in early April to extend near- and medium-term maturities.

As shown in the following debt chart, the company’s debt reduction efforts continued in Q1 2025:

The refinancing has significantly improved the company’s debt maturity profile, pushing major maturities further into the future:

Strategic Initiatives and Outlook

Bausch Health outlined several strategic priorities, including innovation, growth across segments and geographies, operational efficiency, and unlocking value. The company remains committed to evaluating all options for maximizing the value of its Bausch Health and Bausch + Lomb assets.

Key growth initiatives include continued investments in media to support growth in the Salix segment, expansion of Solta in the U.S., Canada, and EMEA, and the U.S. launch of Next-Generation Fraxel at the annual ASLMS conference in April 2025. The company also noted that CABTREO was deemed the second most successful U.S. product launch in 2024 by IQVIA.

In terms of innovation, the RED-C program for the prevention and delay of the first episode of HE remains on track for anticipated early 2026 readout. The company is also expanding into the cardiometabolic market in Latin America, leveraging its expertise and infrastructure.

Bausch Health maintained its full-year 2025 guidance for Bausch Health (excluding B+L), with net revenue expected between $4.95 billion and $5.10 billion (representing 2-6% reported growth) and adjusted EBITDA between $2.625 billion and $2.725 billion. However, the company reduced its adjusted operating cash flow guidance to $825-$875 million from the previous $975-$1,025 million:

The company’s presentation emphasized its consistent strong performance in the first quarter, highlighting the eighth consecutive quarter of growth and momentum across all segments. Despite these positive developments, investors appeared cautious, as reflected in the stock’s decline on the day of the announcement.

Full presentation:

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