Good morning, everyone. Very pleased to welcome the management team from Baxter, Andrew Hider, President and Chief Executive Officer, and Kevin Moran, Head of Investor Relations. Kevin, I know you wanted to make some obligatory comments, so I'll turn it to you, and then we'll jump in. Thank you. Appreciate you having us here today. Just a reminder, we will be making forward-looking statements that are subject to risks and uncertainties. For more information, please check out our website or our SEC filings. Thank you. Back to you, David. Well, hopefully that means maybe we get something good out of you because this is webcast, and you are offering the forward-looking statement disclosure. I guess you can say whatever you want and change your mind tomorrow. I can. Yeah. Quite the hype man right there. Right. Hype man. Well, maybe we could just jump in. Andrew, you've been in the CEO seat coming up on nine months, I think. Maybe just give us some of your reflections on the role. What have you been excited about? What's been disappointing to you as you thought about your expectations coming into the role, and where do you go from here? Yes. Good morning, everyone. Look, first off, that's a three-part question. I'll try to get all three parts correct. If you do a step back, I took this job with the excitement around the potential with Baxter. I'll tell you that that was vetted, and I've known this business for decades. I was able to do a bit of diligence before even entertaining the offer around where Baxter sits with healthcare providers. I'll just say it's a strong brand position, and it's a strong trust position with our customers. When I came on, it was around how do we get Baxter back on track for execution. I like to say say-do ratio. I'm a pretty simple guy. When it comes to execution, it's do you say what you're going to do, and do you deliver what you say? The other piece is we've had a real focus around how to enable that execution with also the rich history that comes with Baxter. I like to say we're almost 100 years old, yet we've got the refreshed view of how we think about the future. With 100 years comes a lot of complexity in how to minimize that. The last piece of this equation around what I was faced with is our view or where we sat with capital allocation and leverage. I'm going to fast-forward to we launched our three-point plan around stabilizing the business, around de-levering the balance sheet, and around driving continuous improvement. To know me, you know that I'm not a light believer in this. I'm a huge believer. I've been part of GE for six years, Danaher for 10, ran a private company, then I took over ATS Corp for almost nine years. It works if you can focus on it. If you can identify the key metrics, and you can enable the key metrics, you can improve the key metrics. We started our journey. The proof points along the way, we launched Baxter GPS, I would say, within six weeks of me being on board. That's Growth and Performance System. We've gone to a decentralized model. As a CEO, I don't like secret decoder rings. I want to know if we're winning and losing in three seconds. We have eight value creators, not seven, not 10, eight. Revenue, margin, free cash flow, ROIC. Top four are financial. Two are wrapped around customer, on-time delivery, and quality. When I talk to our customers, and I do frequently as a CEO, they tell me, "If you deliver me my product on time, highest level of quality, I want to buy more of it." People. Hire from within, so our internal fill rate, and turnover. Track, retain, develop. We've gone decentralized. We've launched our Baxter GPS. We very quickly took the dividend away, and the reason we did was we had stated in 2025 we'd be under three times. Quickly realized that that's not going to be the case, and we took the critical decision around how do we make sure that that is a top priority, because capital allocation is aligned with long-term shareholder value creation. We will take action to drive impact. We now have aligned the business around continuous improvement. Fast-forward, now where do we sit today? I'm almost 10 months on the job. I've visited, I don't know, probably 60%+ of our locations. I've visited many of our customers. What I can tell you, it's starting to take shape. In Q1, we did over 200 continuous improvement events. Over 200. I'll tell you, proof point is when I go on-site, and I see the leaders driving the behavior around red or green. Not pink, purple, or yellow. Red or green. So we know where we're winning, and we know where we need to focus. Then driving kaizens to get back on track. Really, that constant drive to always get better. I'm seeing more and more proof points. We've stated the target this year around our leverage and being approximately three times by the year-end, because that enables us to then utilize other avenues for capital allocation. If you join my leadership team, you get two books. One is "The Outsiders." The reason why you get that book is I want you to know how we think about capital allocation and how we think about operating the business. The other one is "Extreme Ownership." No excuses leadership. Now the path forward. What you're going to see is our drive to always get better. It stems with the path to a high say-do ratio and getting our leverage in point where we can invest at a higher level internally and start the discussion externally. It's rooted through execution. We're making progress. I would say I was pleased with Q1, not happy, but we're making progress in the direction. It's about that constant drive to always get better. I'm just going to say one other item before I turn it over, and I know I'm a little bit long-winded, but it's for a reason. I was recently at one of our facilities where I was walking around with a senior supervisor, and the gentleman was about at his retirement. He was walking through with me, and he was thanking me for bringing GPS. If you don't know this, continuous improvement is everyone, not Andrew Hider. It's everyone within the organization. The reason why he was thanking me, he said, "Andrew, I have been telling my supervisor for the last 10 years, 'If we just focus on this improvement, we can make a much greater impact on the output.'" He said, "I'm about to retire, and I finally had a shot to drive that continuous improvement to make the impact and to see the outcome." He said, "You gave us an environment where if we failed, we just went back to what we did before, but we could improve that. We did. Now we can turn it over for the next person to have a better experience on their operation." It's that mindset, that drive on the culture aspect, that is going to propel us forward. Continuous improvement never stops, and we're just starting on that journey. You gave me a long answer, and I asked a long question. Maybe we dive into some of the details here. I started with stabilizing the business. You're talking about flat growth or approximately flat growth this year. What does stabilize the business mean, and when do you get this company growing again? Yeah, we're recommitted for the year. What we've said is the markets that we're in today are low single digits. We would expect to start to see that. We're lapping a lot of areas this year. We would start to see that as we go into next year. It's very early. The path to 2027, I'm not going to give any guidance on 2027, is through 2026. As we go in the latter half of the year, it's about executing and getting us ready to perform in 2027. If some of the kind of end market headwinds that negatively impacted performance last year, where are we in the IV utilization cycle? Maybe we'll start with that one and then go to a couple of the others. Yeah. This is one. I would say this is a bit of. We had to drill and dive deep into the IV conservation discussion. To give the short answer to a longer question, we originally thought because we'd had experience with challenges like this in the past, that IV was going to just come back. What I can tell you is through three avenues, our internal assessment, an external source, so an external group, my own diligence with customers, this is the new norm. We'll see that kind of flush out this year, so it'll be more stable. As we go into future years, we would expect this to be normal course operation, which is low single-digit growth. We had to do a lot of assessment around this. We right-sized the business. Because once we then identified that this is the new norm, we took the action on the organization to right-size it for where it sits. We've done all that work. We should start to see that get back in line. Okay. Sort of at the new normal, meaning hospital behavior's changed. It's changed for good. That change is now, it's in the rear view mirror fully? Or you still need to go through this year, do you think, to bottom out? Well, obviously we're going to lap some areas. Q1 is a bit of a lap time, and I would say latter half of the year is when we should start to see that come back. We took the action, our inventory role will start to take shape latter half of the year as well. Again, as we exit the year, it should be on a more normal course as we look at that business specifically. Maybe sort of the other business that does stick out is the injectables and NSC franchise. What's happening there, put simplistically, and what's the path to turning it around? A couple items on that. First, when we looked at our pharma business, it also had some of the same dynamics as the ITT business. The fluid conservation also happened in that area. Not only did we have to take the same actions around view of the business, we then looked at it and said, "There's a lot of synergies with those two businesses," and we have combined them. We've now put that in, because it's the same buying behavior, same logo, same area. We've combined those businesses to drive a greater impact. We've now restructured around how we're going to execute for the commercial portion business. That said, there's also a couple internal dynamics. One, and I talked about this on the call. We had an operational site that was challenged. It's been a challenge for a while, ups and downs on performance. We put a team in to drive impact. I'll say early signs, and I was there two weeks ago, we've seen nice turnaround. One quarter, one month isn't a long-term view, but it's moving in the right direction. Not only that, they're seeing the strongest performance in a while. Now it's about how they sustain that impact and continue to drive kaizen after kaizen. We're pleased with the progress on our internal. We have had a challenge on an external. It's a contract manufacturer. We're on site. I've held calls with them. We are working on not only the direct course on this, but then what do we want to think about this long term to make sure it's not a challenge for the future. I can't get into too much detail beyond that, but it is something that's an absolute key focus for us. On the injectable portfolio specifically, that's sort of interesting business. It's pretty good margin. Very good margin. It's also kind of a hamster wheel from a product launch perspective, is that you have to have continuous product launches to stave off natural price decline in a generic market. When you look at your primary competitor, Teva, I feel like every day I'm reading about an FDA approval. How do you get the engine going? I know omedibod isn't probably the answer, given some of the quality issues there. How do you get that engine going? A couple things. First, it's now approval. [omedibod] is a new option for us as we expand, which we're very pleased with that. It took us a long time to get there. Now we're pleased that we can put new product into that facility. The other piece is it's around how we view our investment to launch. Just to give you some insight around how we think about innovation enabling our future, if you look at the 5 points of capital allocation, internal investment generally is one of the higher returns for shareholders over a long period of time. We have not shorted that area. We've kept our investment high there, even while we're going through these other areas to drive our leverage down. This portion of our business, with every other area, they're doing quarterly business reviews with me to make sure they drive and launch new solutions. I would say we lost our track a little bit. The team is very focused on how they're launching new products in this space and what that means. What I can tell you is laser-focused on execution and how we drive higher R&D and lower sustaining on our launch cadence. How about the anesthesia side of the business? I know that that's a franchise that faces some of its competition, some of it is the shift in modality of anesthesia. Where are we in that kind of transition in that franchise, and can that business get back to growth? Yeah. Inhaled anesthesia is a challenging market and challenging space. We lay the business out in three categories. There's the invest and grow, which we expect high return from that invest and grow. There's sustain. I would say our ITT business is in this sustain area around how do we sustain that share position? How do we drive free cash flow in that area? How do we have strong ROIC on our investment? There's a bit around the fix. I would say our inhaled anesthesia, we're in that fixed category. It's a challenge market, challenge space. We're doing the necessary areas of focus. It does take time as far as how do we look at that longer term. I would say, for right now, it's in the fixed category. It's focused on how to out-execute and out-perform in the space. We've got some work to do. Maybe I'll close on compounding before going to the HST business. Compounding has been sort of a consistent standout performer for you. We can talk about the P&L implications later. What's driving the sustained growth in compounding? How much of that is volume versus price? How do you think about where are you in capacity, put another way, how do you keep growing this business? Rough area, and I'm going to do rough area. This market grows mid single digit-ish, obviously with our performance, we've been outpacing that. Largely driven by Australia, New Zealand, U.K. We have a unique position in this space. I would say our team has been laser-focused on how do we bring the value for our customers, make it easy to do business with our business. We've been able to realize that within the growth and within the space. A lot of it's around execution, we've seen that. Now, this business, growth has been good. Free cash flow is good in this area. ROIC is generally good. Margin is the discussion and making sure that we're constantly looking at how do we drive this as profitable growth. I would say that's where you're going to see us focusing on more and more over time because the market's there. It's our ability. Customers are leaning into Baxter providing a solution that helps them and their ability to provide care. We need to also make sure we're looking at the margin as we're looking at growth in the market, in the space. Has the margin of that business been going up or down? I would say it's getting better, but it's not at the pace that we would expect. Is it profitable? Oh, yeah. What I- Nope. Nope. Okay. If I said high single-digit operating margins, would I be wrong? I would say it's profitable, and that's a great way to put it, and it's a high growth area of our business. Okay. All right. I'll reach back into my memory bank. Maybe just going on HST, obviously, business has seen a lot of volatility, but it's also kind of an interesting one because you got a lot of other things masked in there. You have the Bardy franchise, for example, which is a high growth area. You have some other pieces of the puzzle that are smaller in revenue, but much higher in growth. We all think about beds, right? Fine. That's a big business. How do you think about just the growth algorithm in that business and then being able to put enough dollars into the higher growth areas such that they can move the needle. I love that you're calling out some of the areas, of course, that we do internally as well. I would say similar to how we think about the broader Baxter, we put those businesses in the same view. There is going to be invest and grow, sustain, and fix. We actually announced this on the call last quarter, is within our frontline care business, we did some SKU rationalization. There were some SKUs that, guess what? We weren't making money on. We had launched new product solutions that you should shift to, yet we were still offering the product. We're going through the cleanup phase on that. We're not in the business to lose money, therefore, we want to make sure if we have option B as a better option for the patient, for the customer, we should be shifting there, we're going to help our customers shift there. The second piece of that is also shifting to investment around the growth and enablement of growth. You talked about Bardy. I've been on-site. It's a great product set. It's cardiac monitoring. We're excited about this product. There's optionality for how we're thinking about new product launches in this area. We have a strong product set with strong data for the customers, for the patients. We're excited about that space, there's many more in that camp. Oh, by the way, also in our beds business, not to dive into this one as well, we've just launched our new stretcher platform. We did that in a very fast pace with Dynamo, with a significant customer engagement. I'll tell you, when you speak to customers around it, the demand has been very high because they had engagement in the design process to enable and meet what their needs are. Look, there's excitement. The last one I'll just walk through, I would say we've got pieces of the puzzle, we're laying this out, is the connected care piece. Simple numbers, right? The average hospital, 300 beds. Every patient has many areas for data collection. We have a strong position, if you take the 6,000-ish in the U.S., there's a significant opportunity for helping with workflow as customers are looking to maximize their patient care and minimize any challenge with the ability to support that. We're still working on connecting those dots and really enabling the data to impact to how we're going to monetize and how we're going to make sure our customers feel the impact as well as we see the revenue stream. There's a strong potential around that. As I kind of put the top-line outlook together, and I'm going to talk a little bit about the P&L and capital allocation further. Sounds like saying end markets grow, call it low single digits, maybe that's 2%-3% or something like that. This year's kind of a year of stabilization for the company. Growth would be below that 2%-3% level as you kind of work through some of the dynamics that I think have been very well telegraphed, but you see a path back to market growth next year. Okay. That fair enough? That's fair enough. All right. Very helpful. Maybe we turn over to the P&L. One of the conversations that I have with investors a lot, and it's hard to reconcile sometimes, if you even just look at the gross margin. Gross margin's below where company total was before the separation with Vantive, and we've all seen the Vantive P&L, so we know where that sat relative to total Baxter. Can you just help us think about where we are specifically on the gross margin and can you get back to, call it, I don't know, 40% by the end of the year? Sure. Maybe I'll take that one. Certainly acknowledge some of the headwinds we've had at the gross margin line, and I think the Vantive divestiture and the TSA arrangements have added a lot of noise to that with the activity in COGS and getting TSA income below gross margin. We're lapping some of that, and obviously TSAs are going to roll off going forward, and so hopefully we'll have a much cleaner view of what's going on. We've been pretty transparent about some of the headwinds that we faced. In Q1, we talked about the prior year comparison, the reclass from SG&A to COGS. We've talked about tariffs now for a couple of quarters, and we'll begin to lap that as we go into the second half of the year. Finally, we've talked about higher manufacturing costs and including absorption. We're going to cycle through a lot of that in the first half of the year. We gave an operating margin bridge this last quarter from first half to second half. Many of those drivers are relevant at the gross margin line. If you just take big, round numbers, we reported 11% in Q1. We said similar earnings in Q2, so call it 11% first half. Midpoint of our full year guidance, that's over 500 basis points of expansion. First half to second half, about half that is attributable to volume and getting the appropriate level of leverage with that. Said a different way, we are not expecting a Herculean ramp in volume. Think consistent historical levels of volume. Second, cycling through that higher cost inventory. Andrew talked about the cost actions we took to rightsize our support footprint. We expect to have that behind us as we go into the second half of the year. Finally, not gross margin, but the third piece to the operating model walk is realizing the benefits from those cost structure actions that we took earlier in the year. Haven't provided explicit gross margin guidance for the year, but if you take our operating margin guidance and kind of work your way up, the back half is definitely in the ZIP code of the number you referenced. Okay. I had a conversation with someone yesterday kind of walking through the accounting around manufacturing variances. It's sort of like you had to pay the bill twice in the first half of the year. You have the dynamic, I think it's $75 million of capitalized variances that hit the P&L in the first half of the year. That's the difference between first half, second half, yes. The difference. Yep. We had about $20 million in Q1. Okay. You would expect the difference in Q2, so call that north of $50 million, and then the last half. That's why you have flat operating margins despite higher volume, Q1 to Q2? Correct. We said similar earnings in Q2, if you assume incremental volumes on similar earnings, that would actually be slightly dilutive, but I would consider it similar to be appropriate. As we look at the back half of the year, is that a good picture of, I don't know, kind of like a normalized P&L jumping off point, meaning you have the higher manufacturing costs are in the base, the variants have been recognized. Is that a good starting point for what the business looks like? Without providing guidance for 2027, I would say it is a significantly better view of underlying earnings power, we have cycled through many of the headwinds that have plagued 2026. I wouldn't be doing my job if I don't keep pushing. Yeah, you've talked about the $0.14 of headwind on TSA next year. Can you grow earnings? Can you overcome that? Yeah. Look, we've said what we've said, the path to 2027 is through 2026. I want to be very clear, we're not going to share it anymore. I mean, we're confident. We reiterated 2026 on the first call, the year. Our path to getting there is through driving execution. We got to earn that right. We've got to deliver for our shareholders, and we got to show what the business can do. By doing that, puts us in a much better position as we go into future years. I would say we're laser-focused on that. The team is committed, and we're driving the right level of engagement and discussions in the organization. Oh, by the way, we've also said we want to get to approximately 3x, which puts us in a unique position as we start to talk about capital allocation into next year. That's going to give us the ability to look at different levers for the future. The path to 2027 is through 2026, and it's execution. Just to build on that, with respect to TSAs, we've sized what we expect TSA income to be in 2026, $130 million - $140 million. I would say think about that in two buckets. There's a piece of that as soon as the activity stops, we can very quickly stop incurring the cost. Think about direct freight on product or direct headcount that supports it. That can come out very quickly. The other portion relates to kind of more shared costs. Think IT. That takes a little bit more time to pull out. I would just leave you with, we have known about TSAs expiring now. It'll be over two years when we get there. This is not a surprise. We have taken actions. We've talked about the actions we took earlier in January to rightsize our cost support footprint and other actions. Part of this is chipping away at what we know is coming in 2027. Okay. Very helpful. Maybe I want to come on the capital allocation side before we touch on that. One of the things you talked about was the cost actions that the company has taken. The company has taken a lot of cost actions over many years, and multiple changes in reporting structure, vertical, matrix, decentralized. How do you keep people engaged and make sure you have the right people to invest for growth and execute? You talk about the path to 2027 is through 2026. I mean, how do you ensure you, for lack of a better way to put it, keep things together and drive that performance? Yeah. Culture is squishy, but you know it when you see it. I would say I travel a lot around seeing firsthand how our leaders show up. You get a sense of that, and I'm just going to point out, last week I was in Monterrey. I highlighted them because they did a Kaizen event. It was an incredible Kaizen event. I actually, with Baxter, I'm doing our GPS wins, and it talks about different Kaizen events and the impact. I use that as an example because here's a facility that the turnover was very high in the past. When I say very high, it was like 30%+. They're going down to 10-ish% in turnover. That is a massive improvement. It starts with leadership engagement. It starts with a high say-do ratio and driving from the front. If they're not all green, and if they were all green, that'd be a problem for somebody setting the bar high enough. I expect my leaders to stretch their business. They were 70% green, they were 30% red. It's okay to be red, it's not okay to be red and not do something about it. Here I am on-site, and this team, they're red at 30% of their metrics. Oh, by the way, you know my critical eight. The power is not only are they red, they're driving countermeasures. They're looking short term, they're looking long term, they're doing Kaizen events or after Kaizen event to get back on track for their stretch targets. That is a team now, when I leave, I know they're moving in the right direction. The engagement's higher, the turnover is lower, and they're driving the right behaviors around their businesses. When I think about the future of Baxter, and by the way, we're going to be a decentralized business. I view that as the winning strategy around how we execute, because GPS is part of who we are and how we operate. The next question everyone's going to ask me is, "Oh, Andrew, is it done? Is the turnover" No. Everyone says they want to do continuous improvement until they have to do continuous improvement. For a person like me, there are leaders that they step up every year and they say, "I want to set the bar even higher." There's leaders that don't. We know where we're going to gravitate to, and it's that constant drive to always get better. I'm going to look at our leadership team over time to always get better and set that tone at every site, every location, every business unit, to outpace, out drive, and out impact. That's the future of where we're going at Baxter. Excellent. That's a good segue. Final thing I want to talk is, you made a couple references to capital allocation in 2027. I know some of that's mathematical around where your leverage ratio is, but what are you signaling? How do you want people to interpret those comments? You referenced the dividend. What's next? A couple items. Free cash flow is critical to this. Q1. By the way, we all know free cash, inventory management, all that. We're getting better. I would say we're not perfect yet. We need to constantly get better and drive this as an enabler. It's one of our eight value creators. It's a focus. We look at every business, every site, every organization around this. Number two, once you get under three, we look at what's the value creation long-term for shareholders. There's 5 points. We all know them, but let me just walk through them. There's internal investment, there's debt repayment, there's dividend, there's share buybacks, and then there's M&A. [Five] We now have had to limit many of those because we had to get under 3X. If you know this, you knew when I came on, we thought we'd do it in 2025. We had to push that to 2026, and that's why we took the critical action around the dividend. Once we open that up, then we're going to look at what is that value creation, long-term value creation for shareholders. That's when we start to really deploy it, both internally and externally. I would say we're starting to cultivate potential M&A. I'm not saying that's a conclusion. I'm just saying to be in the space, you want to cultivate, and you want to start to build out your capability to understand. When you join the future of Baxter, it's like you're joining a train that's going to Chicago, and this is the last stop. When you're on this, GPS is the North Star, we're going to drive the critical elements of how we execute the business to outperform in the markets. We're starting to set that tone, but it's early. What excites me about that is once you get that internally, you're investing in areas that you can drive, and it's more R&D versus sustainment. By the way, we're doing quarterly business reviews around that. Every R&D leader has to go through that on how we think about that. Future for tuck-ins, how we think about that strategic area of technology and capability with the Baxter brand and the Baxter penetration. It brings value for our customers, drives impact for their market, and allows us to drive continuous improvement on the new potential. Let me try to get one more in here. Yeah in the 15 seconds we have. Would you be buying back stock now if you could, where do share buybacks rank in that priority scheme? You know what, we're at time. What I can tell you is I don't think it's an or discussion. I think it's an and. You can do internal investment, you can do M&A, and you can do buybacks. We're going to look at those as where we trade to make sure that we're constantly looking at the greatest value over time. One can be short-term and one can be long-term, and I don't think it's an or discussion. Thank you so much. Appreciate the time. It's great seeing everyone. Thank you, everybody. Thank you, Andrew. Thank you, Kevin.