“Three months ended March 31, Six months ended March 31, (Millions of dollars) 2026 2025 2026 2025 Medical Essentials segment income $ 574 $ 617 $ 1,142 $ 1,224 Segment income as % of Medical Essentials revenues 34.8 % 39.3 % 35.2 % 38.8 % The Medical Essentials segment's operating income as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 reflected the following: • Lower gross profit margin in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected unfavorable impacts from tariffs, foreign currency translation, and higher labor costs, partially offset by lower manufacturing costs, which resulted from continuous improvement projects, supply chain optimization and other productivity initiatives.”
“Provision for Income Taxes Three Months Ended March 31, 2026 2025 Provision for income taxes $ 41.7 $ 62.2 Provision for income taxes as a percentage of earnings from operations before income taxes 13.1 % 22.6 % The decrease in the effective tax rate for the three months ended March 31, 2026, as compared with the corresponding period, was primarily attributable to discrete benefits recognized from the tax restructuring of certain foreign entities.”
“In addition, BLS’s services are subject to increased price competition that may have an adverse effect on the segment’s profitability and consolidated revenues and net earnings.”