Executive Summary

Q1 2025 revenue was $801.4M, up 11.0% year-over-year, with CER growth 12.5% and organic growth 2.9%; BSI organic growth was 5.1% while BEST declined, and non-GAAP EPS was $0.47 as expected M&A dilution weighed on margins .
Against S&P Global consensus, Bruker delivered a clean beat on revenue and a modest beat on EPS; revenue came in above the preannounced range, signaling strong execution into the quarter .
Management lowered FY 2025 guidance for organic growth (0–2%) and non-GAAP EPS ($2.40–$2.48) due to U.S. academic funding changes and new tariff headwinds, while outlining price, cost, and supply-chain actions to offset slightly more than half of ~$90M operating profit headwinds in 2025 and fully by 2026 .
Near-term catalyst: Q2 2025 is guided to a transient dip in organic revenue, non-GAAP margin, and non-GAAP EPS before improvement in 2H; execution on mitigation and visibility on academic/tariff policy will drive estimate revisions and stock narrative .

What Went Well and What Went Wrong

What Went Well

“Double-digit reported and CER revenue growth” with $801.4M in revenue and 5.1% organic growth in BSI; proactive cost management supported organic operating margin expansion of ~100 bps year-over-year .
CALID revenue reached $280.1M with mid-20s CER growth, led by microbiology/molecular diagnostics and timsTOF strength; BioSpin delivered mid-teens CER growth with U.K. 1.2 GHz installation and improving biopharma demand .
Management saw strong AI-related bookings, highlighted TSMC as the single largest customer, and reaffirmed portfolio transformation with diagnostics and lab automation contributing steady growth .

What Went Wrong

Non-GAAP operating margin fell to 12.7% (vs. 14.0% LY) and non-GAAP EPS declined to $0.47 (−11.3% YoY), primarily from expected dilution of Q2’24 strategic acquisitions and FX headwinds .
BEST revenue declined to $59.3M (−18.9% YoY; organic −17.7%), with MRI superconductors weak and research instruments facing tough comps .
Management now expects U.S. academic/government revenues down 20–25% in 2025 and flagged a ~$100M revenue headwind from funding changes and tariffs; China stimulus releases are delayed with limited visibility .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$864.4	$979.6	$801.4
GAAP EPS ($)	$0.27	$0.09	$0.11
Non-GAAP EPS ($)	$0.60	$0.76	$0.47
Non-GAAP Gross Margin %	51.2%	52.5%	51.3%
Non-GAAP Operating Margin %	14.9%	18.1%	12.7%

Segment Revenue ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
BioSpin	$233.0	$272.4	$207.8
CALID	$279.4	$320.6	$280.1
Nano	$287.1	$318.3	$256.6
BSI Total	$799.5	$911.3	$744.5
BEST	$68.7	$72.1	$59.3
Eliminations	$(3.8)	$(3.8)	$(2.4)
Total Revenue	$864.4	$979.6	$801.4

KPIs	Q3 2024	Q4 2024	Q1 2025
Organic Revenue Growth Rate (%)	3.1%	3.9%	2.9%
CER Revenue Growth Rate (%)	15.7%	15.8%	12.5%
Non-GAAP Free Cash Flow ($MM)	$5.8	$151.1	$39.0
Backlog (months)	N/A	N/A	~7

Results vs S&P Global Consensus

Metric	Q3 2024 Estimate*	Q3 2024 Actual	Q4 2024 Estimate*	Q4 2024 Actual	Q1 2025 Estimate*	Q1 2025 Actual
Revenue ($USD Millions)	$866.13	$864.4	$965.61	$979.6	$772.47	$801.4
EPS (Primary/Non-GAAP) ($)	$0.602	$0.60	$0.736	$0.76	$0.444	$0.47

Values marked with an asterisk were retrieved from S&P Global.

Highlights: Q1 2025 revenue beat by ~$29M and EPS beat by ~$0.03; Q4 2024 beat both; Q3 2024 was roughly in line on EPS and slightly below on revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($)	FY 2025	$3.47–$3.54B	$3.48–$3.55B	Range slightly higher; mix weaker (see below)
CER Revenue Growth (%)	FY 2025	5%–7%	2.5%–4.5%	Lowered
Organic Revenue Growth (%)	FY 2025	3%–4%	0%–2%	Lowered
Non-GAAP EPS ($)	FY 2025	$2.67–$2.72	$2.40–$2.48	Lowered
Operating Margin (Non-GAAP)	FY 2025	Medium-term expansion (prior cadence)	~Flat YoY; >70 bps organic improvement offset by M&A/FX	Lower cadence
Q2 2025 Outlook	Q2 2025	N/A	Organic revenue low-single-digit decline; CER low-single-digit increase; transient YoY decrease in non-GAAP margin and EPS; 2H improvement expected	New
Dividend	2025	N/A	Quarterly dividend $0.05/share (paid June 27; record June 16)	Maintained/ongoing

Drivers of change: ~$100M revenue headwind from U.S. academic policy/tariffs (net ~$80M after mitigation) and ~$90M operating profit gross headwind (pricing ~$10M, cost ~$30M, supply-chain ~$10M offset in 2025; full offset by 2026) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
AI/semiconductor metrology	Portfolio transformation and above-market growth; semicon strength referenced in strategy	Strong AI-driven bookings; TSMC cited as single largest customer; multi-region onshoring tailwinds	Strengthening
Academic/government funding	Recovery delays in China/biopharma noted; cautious tone	U.S. Aca/Gov down 20–25% expected; orders weakening in Q2–Q3; 7-month backlog provides buffer	Worsening near term
Tariffs/macro	Minimal prior impact disclosed	New tariff regime drives headwinds (~$40M OP from import tariffs, negligible China import effect) and supply network re-engineering actions	New headwind
Biopharma demand	Gradual improvement referenced	Strengthening in Q4–Q1; moderated recovery embedded in guidance due to possible pharma tariffs	Improving, cautious
China stimulus	Delays reduced FY24 benefit	Provinces slow to release funds; Q1 stimulus < $10M; most shifts to FY26 revenue	Uncertain timing
M&A integration	Q4 non-GAAP margin fully offset M&A/FX; scale achieved	Expected dilution persists in Q1; steady progress; cellular analysis/spatial to breakeven ~2026	Progressing
Supply chain/pricing	Not emphasized	Pricing and supply network re-engineering underway; larger benefits in 2H’25/2026	Ramping

Management Commentary

CEO: “Bruker had a solid start to 2025 with double-digit reported and CER revenue growth, 5.1% organic revenue growth in our BSI segment, and better operating margin performance than expected… Proactive cost management helped drive organic operating margin expansion” .
CEO on guidance: “It has become evident that academic market and tariff dynamics will have a meaningful impact in 2025… we are lowering our organic revenue growth and non-GAAP EPS guidance… We expect to resume planned margin expansion and rapid EPS growth in 2026 and beyond” .
CFO: “Non-GAAP operating margin was 12.7%, which included 100 bps of organic operating margin expansion… more than offset by planned M&A dilution… non-GAAP EPS $0.47, down 11.3%” .
CEO on mitigation: “We estimate gross headwinds to 2025 operating profit… about $90M… offset slightly more than half in 2025 via pricing, cost-cutting, and supply network reengineering; fully offset by 2026” .

Q&A Highlights

Pull-forward/cancellations: No tariff-driven pull-forward; U.K. 1.2 GHz installation timing aided Q1; China customers delaying shipments due to 125% import duties; U.S. Aca/Gov delays but no cancellations .
AI offsets: AI-related bookings strong across U.S./Japan/Taiwan/Korea; orders supportive for 2025–2026, with near-term shipments constrained by fab timelines .
Orders/backlog: BSI book-to-bill just below 0.95; order weakness concentrated in Aca/Gov U.S./China; backlog ~7 months provides buffer, expected exit at 6.5–7 months .
Tariff mitigation specifics: ~$30M cost actions already underway; pricing actions targeted; supply-chain/onshoring initiatives staged with bigger impacts in 2026 .
Segment color: BEST expected weak year; RI steady; superconductors softer; biopharma recovery broadening across timsTOF, NMR, spatial, cellular analysis, and automation .

Estimates Context

Q1 2025 delivered a revenue beat ($801.4M vs $772.47M*) and an EPS beat ($0.47 vs $0.444*), reflecting strong execution and resilience despite Aca/Gov and tariff headwinds .
Prior quarters: Q4 2024 beat on both revenue and EPS; Q3 2024 was approximately in line on EPS and slightly below on revenue .
FY 2025 guidance reset implies consensus EPS de-rating and margin cadence pushed into 2026; near-term estimate revisions likely to reflect lower organic growth, FX headwinds, and mitigation phasing .

Values retrieved from S&P Global.

Key Takeaways for Investors

Q1 showed solid top-line and organic margin execution, but non-GAAP EPS/margins reflect expected M&A dilution and FX; headline metrics beat consensus, aided by strong CALID and steady biopharma .
FY 2025 guide reset is the main narrative shift: organic 0–2% and non-GAAP EPS $2.40–$2.48; watch mitigation traction (pricing, cost, supply-chain) and policy clarity for upside into 2026 .
Near-term caution: Q2 guided softer on organic revenue, non-GAAP margin, and EPS before 2H improvement; backlog supports smoothing, but orders in Aca/Gov likely weak through Q3 .
Structural growth vectors intact: AI/semiconductor metrology strength, diagnostics/aftermarket/consumables, and diversified portfolio dampen Aca/Gov/China volatility .
Segment watch: CALID momentum, BioSpin installations, and Nano integration (incl. NanoString) vs. BEST MRI softness; track mix effects on margins .
Estimate dynamics: Expect downward revisions to FY 2025 EPS/margins and organic growth; potential 2026 reacceleration if mitigation and stimulus tailwinds materialize .
Capital returns steady: $0.05 quarterly dividend announced; balance sheet and cash generation improving vs prior year .

BRUKER CORP (BRKR)·Q1 2025 Earnings Summary