BRUKER CORP Q4 FY2024 earnings call

• Frank Laukien mentioned Bruker finished 2024 with excellent CER revenue growth and solid organic growth. In 2024, they added strategic spatial biology, molecular diagnostics, and lab automation platforms. Looking to 2025, they had good bookings momentum, started with a solid BSI segment backlog, and received China stimulus orders. They acknowledged NIH and academic government market uncertainty but didn't expect significant reduction in U.S. life science investment. - Gerald Herman discussed Q4 '24 financials: reported revenue up 14.6%, non-GAAP operating margin 18.1%, operating cash flow $189.9 million, free cash flow $151.1 million. Full year 2024 revenue up 13.6%, operating cash flow $251.2 million, free cash flow $134 million.

In the fourth quarter of 2024, Bruker's reported revenues increased 14.6% year-over-year to $979.6 million. Constant exchange rate (CER) revenue growth was 15.8%, with organic growth of 3.9%. BSI segment organic revenue growth in Q4 '24 was 4.5%. For full year 2024, reported revenues increased by 13.6% to $3.37 billion with 14% CER revenue growth. Organic revenue grew 4% year-over-year, with 4.2% organic growth in Scientific Instruments and 1.9% organic growth at BEST. BioSpin Group had revenue of $905.7 million in 2024 with low teens CER growth. CALID Group had $1.1 billion revenue in 2024 with mid-teens CER growth. Bruker NANO's 2024 revenue was $1.1 billion with high teens CER growth. BEST segment revenues grew in the low single-digits in 2024.

• 2025 constant exchange rate revenue growth expected 5%-7%, organic growth 3%-4%, M&A contribution 2%-3%. - Non-GAAP operating margin expansion ~140 bps compared to 2024's 15.4%. - Non-GAAP EPS for 2025 in range $2.67-$2.72 (11%-13% growth vs 2024). - Q1 2025 organic revenue expected near flat with mid-single-digit CER growth, expecting softer operating margin performance due to NanoString acquisition dilution.

• Geopolitical risks, including recent acquisitions' impact on margins and EPS. - Market demand or supply chain uncertainties. - Uncertainty in U.S. NIH and academic government market investment, which was baked into guidance.

Q: Puneet Souda asked about the full year guide and confidence in instrumentation sales.

A: Frank Laukien said there are multiple drivers outside the U.S. like biopharma recovery, China stimulus, and other markets offsetting potential NIH impacts.

Q: Puneet Souda further asked about Q1 instrumentation placements and backlog cancellations.

A: Frank Laukien said no backlog cancellations heard, but Q1 is cautious due to NIH uncertainty.

Q: Elizabeth Speyer asked about academic government budget in Europe and China.

A: Frank Laukien said China stimulus funding is spread out, Europe and other Asia regions are strong.

Q: Julia asked about biopharma recovery timing.

A: Frank Laukien said biopharma recovery is gradual, expected in first half with strength in second half.

Q: Salem asked about timsTOF platform and backlog geographic concentration.

A: Frank Laukien said timsTOF is recovering, backlog geographic composition is consistent with overall mix.

Q: Brandon Couillard asked about timsTOF platform and free cash flow conversion.

A: Frank Laukien said timsTOF is recovering, Gerald Herman discussed FX headwind and cash flow conversion improvement.

Q: Madeline Mollman asked about levers to protect margin and EPS if NIH deteriorates and NIH funding impact on product adoption.

A: Frank Laukien said guidance baked in NIH scenarios, Gerald Herman noted global revenue performance outside U.S.

Q: Rachel Vatnsdal asked about first quarter guide M&A assumptions.

A: Frank Laukien said M&A benefit biggest in Q1, cadence of M&A contribution throughout year.

Q: Tycho Peterson asked about M&A delineation, backlog reduction, and semi acceleration.

A: Frank Laukien said NanoString doing okay, ELITech synergies, semi strong; Gerald Herman noted backlog dynamics.

Q: Subbu Nambi asked about timsTOF growth geography and interactome.

A: Frank Laukien said timsTOF growth in U.S., Europe, Asia Pacific, interactome not affecting product manufacturing in Europe.