BRUKER CORP Q2 FY2024 earnings call

• The company delivered excellent revenue growth in Q2 2024 despite soft market conditions, executing on dual strategies of Project Accelerate 2.0 and operational excellence. - Organic revenue growth was well above market, with 5%-7% full-year guidance. - Strategic acquisitions in H1 2024 (Chemspeed, ELITech, NanoString) further accelerate portfolio transformation. Chemspeed is overperforming, ELITech and NanoString are in line with expectations. - NanoString now fully incorporated into 2024 guidance with expected revenue run rate, and cost actions taken to offset margin dilution. - Financials: Q2 2024 reported revenue $800.7 million, up 17.4% with 7.4% organic growth; first half 2024 revenue $1.52 billion, up 11.4% with 4.5% organic growth.

BioSpin Group: In the first half of 2024, revenue was about $400 million and grew in the high-teens percentage, with growth across academic government and industrial research markets, as well as in integrated data solutions and SciY scientific software. CALID Group: Revenue growth of $494 million in the first half of 2024, increased in the high single digits percentage, with growth in optics, molecular spectroscopy and microscopy business, as well as in microbiology and infectious disease driven by the MALDI Biotyper franchise and the newly acquired ELITech molecular diagnostics business. Bruker Nano: Revenue was $493 million in the first half of 2024 and grew in the mid-teens percentage, with strong revenue growth in academic/government and industrial research markets, including recently acquired Bruker Cellular Analysis and NanoString. BEST Segment: Grew in the high single-digit net of intercompany eliminations in the first half of 2024, driven by growth in big science and fusion research projects, as well as RI, EUV technologies for OEM semiconductor lithography tools.

• Full year organic revenue growth expected in the range of 5% to 7%. - Q3 2024 expected mid-single-digit organic revenue growth. - 2024 revenue range $3.38 billion to $3.44 billion, non-GAAP EPS range $2.59 to $2.64. - NanoString now fully included in 2024 guidance, with expected revenue run rate and margin improvements expected.

• Geopolitical risks impacting market demand and supply chain. - Weakness in biopharma demand and delayed purchases in China due to stimulus funding application. - Initial margin and EPS dilution from recent acquisitions.

Q: Puneet Souda asked about financials and market weakness, A: Frank Laukien responded discussing organic growth guide, operating margin, and portfolio strength including semiconductor metrology and diagnostics growth Q: Patrick Donnelly asked about BSI 2Q order dynamics, A: Frank Laukien responded on BSI book-to-bill in mid-0.9 range, organic order growth mid-single digits, and backlog situation Q: Rachel Vatnsdal asked about 3Q guide and China dynamic, A: Frank Laukien responded on mid-single-digit 3Q guide due to China stimulus and biopharma factors Q: Tycho Peterson asked about M&A step-up and IP situation, A: Frank Laukien responded on M&A being small pieces and IP situation with no new developments Q: Doug Schenkel asked about backlog and 2025 EPS targets, A: Gerald Herman responded on backlog coming down and no change in medium-term outlook Q: Josh Waldman asked about segment growth assumptions and timsTOF rollout, A: Frank Laukien responded on segment growth and timsTOF Ultra 2 rollout progress