• Q4 2024 Revenue: $979.6 million, up 14.6% year-over-year.
• Full Year 2024 Revenue: $3.37 billion, up 13.6% year-over-year.
• Q4 2024 Organic Revenue Growth: 3.9% year-over-year.
• Full Year 2024 Organic Revenue Growth: 4% year-over-year.
• Q4 2024 Non-GAAP Operating Margin: 18.1%, matching Q4 2023.
• Full Year 2024 Non-GAAP Operating Margin: 15.4%.
• Q4 2024 Non-GAAP EPS: $0.76, up 8.6% from $0.70 in Q4 2023.
• Full Year 2024 Non-GAAP EPS Growth: 11% to 13% expected for 2025.
• Q4 2024 Free Cash Flow: $151.1 million.
• Full Year 2024 Free Cash Flow: $134 million.
• 2025 Revenue Guidance: $3.47 billion to $3.54 billion, representing 3% to 5% reported growth.
• 2025 Non-GAAP Operating Margin Expansion: Approximately 140 basis points improvement expected.
• 2025 Non-GAAP EPS Guidance: $2.67 to $2.72, representing 11% to 13% growth.

• Warning! GuruFocus has detected 4 Warning Signs with BRKR.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bruker Corp (NASDAQ:BRKR) reported a strong Q4 2024 with a 14.6% year-over-year increase in revenues, reaching $979.6 million.
• The company achieved a constant exchange rate (CER) revenue growth of 15.8% year-over-year, with organic growth of 3.9%.
• Bruker Corp (NASDAQ:BRKR) delivered a non-GAAP operating margin of 18.1% in Q4 2024, matching the previous year's margin despite M&A and FX impacts.
• The company has a strong backlog, with over 6 months of revenue, and a book-to-bill ratio of 0.99, indicating solid demand.
• Bruker Corp (NASDAQ:BRKR) is targeting a non-GAAP EPS growth of 11% to 13% for 2025, with a constant exchange rate EPS growth of 14% to 16%.

Negative Points

• Bruker Corp (NASDAQ:BRKR) experienced a decline in Asia Pacific revenue by high single-digit percentage year-over-year in Q4 2024.
• The company faced a non-GAAP effective tax rate increase to 32.5% in Q4 2024, up from 31.3% in the previous year.
• There is uncertainty in the U.S. NIH and academic government market, which could impact future revenues.
• Bruker Corp (NASDAQ:BRKR) anticipates a softer operating margin performance in Q1 2025 due to dilution from the NanoString acquisition.
• The company is facing a 3% foreign exchange headwind for 2025, which could impact reported EPS growth.

Q & A Highlights

Q: Frank, my first question is on the guide. The full year guide is 3% to 4% organic growth, which is higher than expected given the NIH indirect announcements and direct cuts. What gives you confidence in the instrumentation sales? Is it ELITech, AI, aftermarket service, or European offsets? A: Frank Laukien, CEO: There are multiple growth drivers outside the U.S., including biopharma recovery, China stimulus funding, and strong performance in microbiology, semiconductor, AI, and applied markets. We have built in some NIH uncertainty into our guidance, but we are confident in achieving 3% to 4% organic growth and 5% to 7% constant exchange rate revenue growth.

Q: Could you talk about the assumptions in Q1 regarding instrumentation placements and any potential backlog cancellations due to NIH funding cuts? A: Frank Laukien, CEO: We have not heard of any backlog cancellations. We are cautious on Q1, expecting mid-single-digit CER revenue growth and near-flat organic growth. We have built in a cushion for uncertainty, but no specific issues with lab readiness or funding have been reported.

Q: Can you talk about academic government budgets in Europe and China, and the impact of the China stimulus? A: Frank Laukien, CEO: China stimulus funding is expected to be spread out over multiple quarters, with some impact in 2025 and 2026. Europe has been reasonably good recently, and while ACA/GOV may not be great this year, we have other growth drivers that do not depend on ACA/GOV.

Q: For the deal dilution this year, is $0.08 to $0.10 the right way to think about it? A: Gerald Herman, CFO: Yes, you are correct. We are moving from roughly $0.15 to $0.20 plus dilution in 2024 to $0.08 to $0.10 in 2025 on the EPS line, with the goal of near breakeven in 2026.

Q: Do you have an update on biopharma recovery timing? Are you expecting that to be in the second half of this year? A: Frank Laukien, CEO: We expect a gradual recovery in biopharma, starting in the first half of the year and potentially getting stronger in the second half.

Q: Is the expectation still to place 3 to 4 UHF NMRs this year, and what is the geographic concentration of the backlog in BSI? A: Frank Laukien, CEO: We expect to place 3 ultra-high field systems in 2025, with the geographic breakdown of backlog consistent with our overall exposure. The backlog level is over 7 months, similar to the third quarter.

Q: Could you give some puts and takes on the 140 basis points of operating margin expansion, and are you contemplating any potential tariffs in Europe? A: Frank Laukien, CEO: The 140 bps expansion includes some organic headwinds and a little FX tailwind. We have flexibility in manufacturing locations and can respond to tariff changes if needed.

Q: Could you provide an update on the timsTOF platform and its growth prospects for 2025? A: Frank Laukien, CEO: The timsTOF platform is recovering with improved win rates and is expected to grow. It is a meaningful business for us, approaching a $200 million run rate, and we are investing heavily in proteomics and related areas.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.