Question · Q3 2025
Daniel Gregory Brennan asked for elaboration on the impact of onshoring announcements, specifically how to think about incremental demand for CapEx, capacity, and drug volumes in the U.S., and the potential for equipment uptake from brownfield expansions in 2026. He also inquired about the EPS impact from tariffs, the Q3 favorability, the effect of European tariffs, and the outlook for Q4.
Answer
Chairman, President, and CEO Marc Casper described onshoring as incremental one-time demand for new equipment, initial stocking, and labs, generating demand over the next few years, though overall industry volume isn't changing. He highlighted Thermo Fisher Scientific's stronger presence in new facilities (bioproduction, Solventum filtration, Dynaspin bioreactor) compared to the existing install base, noting the bioproduction business is performing exceptionally well with bookings outpacing revenue. Senior Vice President and CFO Stephen Williamson clarified a $0.11 favorable impact from tariffs and related FX in Q3 compared to prior guidance. For Q4, he stated initial assumptions for tariffs hold, with no significant pickup expected due to increased U.S.-Europe tariff rates.