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BRUKER CORP (BRKR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 14.6% year-over-year to $979.6M, with 3.9% organic growth and 15.8% CER growth; non-GAAP EPS was $0.76 (+8.6% YoY), while GAAP EPS fell to $0.09 due to acquisition-related charges and lapping a prior-year bargain purchase gain .
  • Non-GAAP operating margin held at 18.1%, with 300 bps organic margin expansion offsetting M&A and FX headwinds; BSI organic growth was 4.5% while BEST declined 2.8% organically .
  • Management initiated FY 2025 guidance: revenue $3.47–$3.54B (+3–5%; CER +5–7%), non-GAAP EPS $2.67–$2.72 (+11–13%; CER +14–16%); expects ~140 bps operating margin expansion in FY25 .
  • Call catalysts: improving semicon metrology demand (organic >20% in Q4), China stimulus orders beginning to flow (~$15M in H2’24), and confidence in margin/EPS expansion despite NIH funding uncertainty; backlog remains “a little over 7 months,” providing cushion .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and CER growth: Q4 revenue +14.6% YoY to $979.6M; CER +15.8%; BSI organic +4.5% (CALID/Nano strength) .
  • Margin resilience: non-GAAP operating margin 18.1% with 300 bps organic margin improvements fully offsetting M&A/FX dilution .
  • Semicon metrology and diagnostics momentum: semicon metrology organic growth >20% in Q4 and low-teens in FY24; microbiology/infectious diagnostics mid-teens in Q4, high single digits FY24; CEO highlighted portfolio transformation and scalability .
  • Quote: “Operational excellence and good progress with the integration of our strategic acquisitions have delivered significant organic operating margin improvements… fully offsetting the initial margin headwinds” .

What Went Wrong

  • GAAP EPS compression: Q4 GAAP EPS $0.09 vs $1.41 prior year, driven by acquisition-related costs and lapping a $0.99 bargain purchase gain in Q4’23 .
  • BEST softness: Q4 BEST revenue $72.1M (-4.1% YoY), organic decline -2.8% net of intercompany eliminations .
  • Estimate comparisons unavailable: S&P Global consensus retrieval was not available due to rate limits; cannot quantify beat/miss versus Street for Q4 [GetEstimates error].
  • Analyst concern: NIH funding uncertainty could pressure U.S. academic demand; management modeled scenarios and baked conservatism into guidance (organic ~flat in Q1’25) .

Financial Results

MetricQ4 2023Q3 2024Q4 2024YoY/CER DetailConsensus (S&P Global)
Revenue ($M)$854.5 $864.4 $979.6 +14.6% YoY; CER +15.8% N/A
GAAP EPS ($)$1.41 $0.27 $0.09 Down on acquisition-related costs; prior-year bargain gain N/A
Non-GAAP EPS ($)$0.70 $0.60 $0.76 +8.6% YoY N/A
Non-GAAP Operating Margin (%)18.1% 14.9% 18.1% 300 bps organic expansion offset M&A/FX N/A
Gross Margin (GAAP, %)50.4% 48.4% 50.4% Non-GAAP: 52.5% N/A
Operating Cash Flow ($M)$205.5 $38.4 $189.9 FCF $151.1M Q4’24 N/A

Segment and Geography

Segment/Geo Revenue ($M)Q4 2023Q4 2024YoY
BSI BioSpin$257.9 $272.4 +$14.5
BSI CALID$257.2 $320.6 +$63.4
BSI Nano$268.5 $318.3 +$49.8
BSI Total$783.6 $911.3 +$127.7
BEST$75.2 $72.1 -$3.1
Eliminations-$4.3 -$3.8 +$0.5
United States$212.2 $261.0 +$48.8
Europe$284.1 $373.1 +$89.0
Asia Pacific$296.2 $278.0 -$18.2
Other$62.0 $67.5 +$5.5

KPIs

KPIQ4 2023Q3 2024Q4 2024
Organic Revenue Growth (%)15.9% 3.1% 3.9%
CER Revenue Growth (%)18.6% 15.7% 15.8%
Non-GAAP Free Cash Flow ($M)$174.0 $5.8 $151.1
Backlog (months, BSI)N/A~>7 months ~>7 months

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($B)FY 2025N/A$3.47–$3.54 (+3–5%; CER +5–7%) Initiated
Organic Revenue Growth (%)FY 2025N/A3–4% Initiated
M&A Contribution (%)FY 2025N/A2–3% Initiated
FX ImpactFY 2025N/A~-2% revenue; ~3% EPS headwind Initiated
Non-GAAP EPS ($)FY 2025N/A$2.67–$2.72 (+11–13%; CER +14–16%) Initiated
Non-GAAP Operating MarginFY 2025N/A~140 bps expansion vs 15.4% FY24 Initiated
Q1 Organic Rev GrowthQ1 2025N/A~flat YoY; CER mid-single digits Commentary
M&A EPS DilutionFY 2025~$0.15–$0.20 in FY24~$0.08–$0.10 in FY25 Less dilutive
DividendQ1 2025$0.05/share (ongoing)$0.05/share payable Mar 28, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Portfolio transformation/M&AQ2: three strategic acquisitions; transformation + ~70% 4-year revenue growth Integration progressing; margins offset M&A dilution; FY25 EPS/margin expansion targeted Positive, integration benefits rising
Biopharma demandQ3: recovery delays; bookings improving Gradual recovery expected starting H1’25, stronger H2’25 Improving into 2H
NIH funding uncertaintyQ3: lower FY24 guide amid recoveries delayed Modeled NIH cuts; baked conservatism; Q1 organic ~flat Managed risk
China stimulusQ3: delays noted ~$15M orders in H2’24; spread across 2025–2026 Tailwind building
Semicon metrologyQ3: strength; advanced packaging for AI/HPC Organic >20% in Q4; low teens FY24; ~$250M annual metrology rev, ~half tied to AI/HPC Strong, sustained
Microbiology & diagnosticsQ3: portfolio benefits Mid-teens growth Q4; high single digits FY24; ELITech performing predictably Solid
timsTOF platform—~$200M business; win rates improving; new launches planned (Omni) Re-accelerating
BacklogQ3: elevated ~>7 months; provides cushion; normalized may settle ~5–5.5 months over time Elevated, stable

Management Commentary

  • CEO: “The year 2024 was transformational… we added key spatial biology, molecular diagnostics and lab automation platforms… For the fourth year in a row, Bruker has delivered well above-market organic and double-digit CER revenue growth” .
  • CEO: “Operational excellence and… integration… delivered significant organic operating margin improvements… fully offsetting initial margin headwinds… confident… double-digit EPS growth in 2025” .
  • CFO: “Q4 non-GAAP operating margin of 18.1%… organic operating margin expansion of 300 bps… fully offset the margin dilutive impact of… M&A and FX” .
  • CEO on semicon: “Organic revenue growth was actually greater than 20% in the fourth quarter… annual [semicon]… north of $250 million… maybe half… tied to HPC and AI” .
  • CEO on backlog: “Backlog level… a little over 7 months… stubbornly high… provides cushion” .

Q&A Highlights

  • Guidance assumptions: NIH exposure <5% modeled; multiple growth drivers (Europe, China stimulus, semicon, microbiology) support 3–4% organic; committed to ~140 bps margin expansion and 11–13% EPS growth despite FX headwind .
  • M&A dilution: EPS dilution expected to improve from ~$0.15–$0.20 in 2024 to ~$0.08–$0.10 in 2025; targeting near breakeven in 2026 .
  • Q1 cadence: Organic revenue roughly flat; CER mid-single digits; margins softer due to NanoString year-over-year dilution; strengthening expected from Q2 onward .
  • timsTOF: Business ~$200M with improving win rates; new product launches expected (e.g., Omni) with geographic strength in U.S./EU and meaningful APAC contribution .
  • China stimulus flow-through: modest levels baked into FY25; revenue benefits skew to 2H’25 and 1H’26 .

Estimates Context

  • Street consensus comparisons were not available; an S&P Global estimates request could not be completed due to rate limits. As a result, beat/miss versus consensus cannot be quantified for Q4 2024 at this time [GetEstimates error].

Key Takeaways for Investors

  • Q4 showcased resilient margin execution amid integration: non-GAAP operating margin held at 18.1% with organic expansion offsetting M&A/FX, underpinning FY25 target of ~140 bps further expansion .
  • Demand mix favors semicon metrology and diagnostics; continued strength in CALID/Nano and semicon AI/HPC tailwinds should support growth while BEST remains a watch item .
  • Near-term caution on NIH: management embedded conservatism (Q1 organic ~flat), but backlog (>7 months) and China stimulus provide buffer; monitor cadence improvement from Q2 .
  • EPS trajectory improving: non-GAAP EPS grew YoY in Q4; FY25 guide implies double-digit EPS growth despite FX; M&A dilution moderating to ~$0.08–$0.10 in FY25 .
  • Cash generation rebounded in Q4: operating cash flow $189.9M; non-GAAP FCF $151.1M—supports deleveraging and buybacks/dividends ($0.05/share declared) .
  • Watch execution in spatial biology/cellular analysis/timsTOF launches against biopharma recovery pace; strengthened pipeline suggests improving growth vectors into 2H .
  • Absent consensus data, focus on internal KPIs (organic/CER growth, margin expansion, FCF) and segment momentum for trading; semicon/diagnostics narratives are key stock drivers .