Group 1 - The article discusses the monitoring of newly listed preferred stocks and baby bonds in their initial days [1] - It invites active investors to join a free trial and engage in discussions with experienced traders [1] Group 2 - The article does not provide specific investment recommendations or advice [2] - It emphasizes that past performance is not indicative of future results [2]

Core Viewpoint - Bruker Corporation's recent earnings report indicates a decline in both adjusted earnings per share and revenues, raising concerns about future performance and prompting a downward revision of financial guidance for 2025 [2][10][11]. Financial Performance - Adjusted EPS for Q2 2025 was 32 cents, down 38.5% year over year, and missed the Zacks Consensus Estimate by 3.03% [2]. - Q2 revenues were $797.4 million, a decrease of 0.4% year over year, but slightly exceeded the Zacks Consensus Estimate by 0.11% [3]. - Organic revenues fell by 7% when excluding the positive impacts from acquisitions and foreign currency rates [3]. Geographic Revenue Breakdown - U.S. revenues decreased by 8.5% year over year to $222.9 million [4]. - European revenues fell by 1.2% to $272.5 million, while Asia Pacific revenues increased by 6.8% to $242.1 million [4]. Segment Analysis - Revenues in the BSI segment decreased by 0.3% to $733.2 million, with the BioSpin Group experiencing a 10.2% decline to $195.3 million due to weaker demand [5]. - CALID's revenues rose by 7.6% to $285.8 million, attributed to prior-year acquisitions, while NANO group revenues dipped slightly by 0.2% to $252.1 million [6]. - The BEST segment's revenues fell by 4.1% to $66.3 million, impacted by softness in the clinical MRI market [6]. Margin Performance - Gross profit declined by 6.9% to $357.9 million, with gross margin contracting by 315 basis points to 44.9% due to a 5.6% rise in the cost of revenues [7]. - Adjusted operating profit was $26.3 million, down 63% year over year, with adjusted operating margin contracting by 558 basis points to 3.2% [8]. Financial Position - Cash and cash equivalents at the end of Q2 2025 were $92 million, down from $184.2 million at the end of Q1 [9]. - Total long-term debt increased to $2.44 billion from $2.11 billion at the end of the previous quarter [9]. - Cumulative net cash used in operating activities was $127.5 million, compared to a cash inflow of $1.1 million during the same period last year [9]. 2025 Guidance - The company has revised its revenue guidance for 2025 to a range of $3.43-$3.50 billion, down from the previous estimate of $3.48-$3.55 billion, indicating a projected growth of 2% to 4% year over year [10][11]. - Adjusted EPS guidance for the year is now expected to be between $1.95 and $2.05, down from $2.40-$2.48 [11]. Estimate Trends - Consensus estimates have trended downward, with a significant shift of -38.69% noted in the past month [12]. VGM Scores - Bruker currently holds a poor Growth Score of F, a Momentum Score of F, and a Value Score of F, placing it in the fifth quintile for investment strategy [13]. Outlook - The downward trend in estimates suggests a challenging outlook for the stock, reflected in its Zacks Rank of 5 (Strong Sell) [14].

Core Insights - The domestic liquid chromatography-mass spectrometry (LC-MS) market in China is experiencing a "dual increase" in both volume and value, with 396 units awarded in tenders amounting to 1.252 billion yuan in the first half of 2025, indicating a shift towards high-end products [5][10][25] - The global mass spectrometry market reached $7.46 billion in sales in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 6.5%, potentially reaching $10.91 billion by 2031 [3] Market Demand Expansion - In the first half of 2025, the LC-MS market showed a total of 396 units awarded, a year-on-year increase of 27.74%, with a total tender amount of 1.252 billion yuan, reflecting a 33.33% increase, indicating a clear trend towards high-end product procurement [5][10] - Monthly trends reveal a "wave-like" progression, with significant spikes in January and June due to budget releases and project initiations [8] - The average tender price for LC-MS equipment rose to 3.162 million yuan, up from 3.029 million yuan in the previous year, indicating a growing demand for high-end products [5] Procurement Unit Analysis - Higher education research institutions and the healthcare system are the main drivers of the market, with universities purchasing 152 units (38.4% of total) worth 538 million yuan (43.0% of total) [10] - The healthcare system procured 105 units (26.5% of total) for 308 million yuan (24.6% of total), driven by the expansion of clinical mass spectrometry applications [10] Regional Tender Analysis - The procurement landscape shows a "strong East, weak West" pattern, with East China, Central South, and North China accounting for 74.8% of total tenders [13] - East China remains the most active region, benefiting from the construction of national medical centers, with Guangdong province leading in procurement across various sectors [13] Brand Landscape - The market is dominated by seven major imported brands, with imported LC-MS instruments accounting for 86.39% of total tenders, significantly outpacing domestic brands [14][18] - Thermo Fisher and SCIEX lead the market, together holding over 60% of the market share, with Thermo Fisher achieving a tender amount of 318 million yuan [18] Domestic Brand Development - Domestic manufacturers are showing rapid growth, with nearly 25 companies entering the market, demonstrating significant advantages in specific application areas [21] - Notable domestic brands like Hangzhou Kailai and Shandong Yingsheng have made significant inroads in the clinical testing market [22][24] - The increasing demand for high-end equipment in research institutions indicates a shift in market dynamics, with domestic brands gaining recognition [25]

Group 1 - The article emphasizes the importance of diversifying viewpoints in stock analysis and investing, referencing the Japanese proverb "他山之石" which highlights the value of multiple perspectives [1] - It suggests that understanding fundamental aspects is crucial for investment success, akin to how a rock supports a mountain [1] - The author expresses a commitment to covering a wide range of assets to identify the best investment opportunities [1] Group 2 - The article includes a disclosure indicating a beneficial long position in the shares of BRKR and TECH, either through stock ownership or derivatives [2] - It clarifies that the article reflects the author's own opinions and is not influenced by compensation from any company mentioned [2] - The disclosure also states that the author has no business relationship with any of the companies discussed [2]

Core Insights - Bruker Corporation reported adjusted earnings per share (EPS) of 32 cents for Q2 2025, a decline of 38.5% year over year, missing the Zacks Consensus Estimate by 3.03% [1][7] - The company's revenues for Q2 2025 were $797.4 million, down 0.4% year over year, but slightly above the Zacks Consensus Estimate by 0.11% [2][7] - Bruker has lowered its full-year guidance for 2025 due to weak demand and other market challenges [10][11] Revenue Analysis - Q2 2025 revenues were $797.4 million, reflecting a 0.4% decrease year over year, with organic revenues down 7% after accounting for acquisitions and foreign currency impacts [2][11] - U.S. revenues fell 8.5% to $222.9 million, while Asia Pacific revenues increased by 6.8% to $242.1 million [3][7] - The BSI segment's revenues decreased by 0.3% to $733.2 million, with the BioSpin Group experiencing a 10.2% decline [4][5] Margin Performance - Gross profit decreased by 6.9% to $357.9 million, with gross margin contracting by 315 basis points to 44.9% due to a 5.6% rise in the cost of revenues [6][8] - Adjusted operating profit fell 63% to $26.3 million, with the adjusted operating margin contracting by 558 basis points to 3.2% [8][12] Financial Position - At the end of Q2 2025, Bruker had cash and cash equivalents of $92 million, down from $184.2 million at the end of Q1 2025 [9] - Total long-term debt increased to $2.44 billion from $2.11 billion in the previous quarter [9] Guidance and Future Outlook - The company expects full-year 2025 revenues in the range of $3.43-$3.50 billion, down from previous estimates of $3.48-$3.55 billion, indicating a year-over-year growth of approximately 2% to 4% [11] - Adjusted EPS for the year is now projected to be between $1.95 and $2.05, a reduction from earlier estimates of $2.40-$2.48 [11][12] - Bruker has initiated a cost savings initiative aimed at reducing annual costs by $100 million to $120 million for fiscal year 2026 [13]

[PART I. CONDENSED FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20CONDENSED%20FINANCIAL%20INFORMATION) This section presents Bruker Corporation's unaudited condensed consolidated financial statements and related notes [ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=Item%201%3A%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Bruker Corporation's unaudited condensed consolidated financial statements and detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides a detailed overview of the company's financial position, presenting assets, liabilities, and equity Unaudited Condensed Consolidated Balance Sheets (in millions) | ASSETS (in millions) | June 30, 2025 | December 31, 2024 | Change | Percentage Change | | :--------------------- | :------------ | :---------------- | :----- | :---------------- | | Cash and cash equivalents | $92.0 | $183.4 | $(91.4) | -49.8% | | Accounts receivable, net | $522.6 | $565.5 | $(42.9) | -7.6% | | Inventories | $1,218.3 | $1,067.8 | $150.5 | 14.1% | | Total current assets | $2,162.7 | $2,053.2 | $109.5 | 5.3% | | Property, plant and equipment, net | $758.5 | $669.3 | $89.2 | 13.3% | | Goodwill and intangible assets, net | $2,618.8 | $2,419.8 | $199.0 | 8.2% | | Total assets | $6,339.8 | $5,806.7 | $533.1 | 9.2% | | **LIABILITIES & EQUITY (in millions)** | **June 30, 2025** | **December 31, 2024** | **Change** | **Percentage Change** | | Current portion of long-term debt and finance lease obligations | $55.7 | $32.5 | $23.2 | 71.4% | | Accounts payable | $243.0 | $234.1 | $8.9 | 3.8% | | Deferred revenue and customer advances | $478.1 | $438.2 | $39.9 | 9.1% | | Total current liabilities | $1,347.4 | $1,281.3 | $66.1 | 5.2% | | Long-term debt | $2,379.6 | $2,061.8 | $317.8 | 15.4% | | Redeemable noncontrolling interests | $47.4 | $18.1 | $29.3 | 161.9% | | Total shareholders' equity | $1,819.4 | $1,797.1 | $22.3 | 1.2% | | Total liabilities, redeemable noncontrolling interests and shareholders' equity | $6,339.8 | $5,806.7 | $533.1 | 9.2% | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance, including revenue, gross profit, operating income, and net income Unaudited Condensed Consolidated Statements of Operations (in millions, except per share data) | (in millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :----------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Product revenue | $634.7 | $654.4 | $(19.7) | -3.0% | | Service and other revenue | $162.7 | $146.3 | $16.4 | 11.2% | | **Total revenue** | **$797.4** | **$800.7** | **$(3.3)** | **-0.4%** | | Total cost of revenue | $439.5 | $416.1 | $23.4 | 5.6% | | **Gross profit** | **$357.9** | **$384.6** | **$(26.7)** | **-6.9%** | | Total operating expenses | $346.0 | $336.5 | $9.5 | 2.8% | | **Operating income** | **$11.9** | **$48.1** | **$(36.2)** | **-75.3%** | | Interest and other income (expense), net | $(11.4) | $(24.2) | $12.8 | -52.9% | | Income before income taxes | $0.5 | $23.9 | $(23.4) | -97.9% | | Income tax provision (benefit) | $(3.1) | $16.1 | $(19.2) | -119.3% | | **Consolidated net income** | **$4.2** | **$7.6** | **$(3.4)** | **-44.7%** | | Net income attributable to Bruker Corporation | $7.6 | $7.6 | $0.0 | 0.0% | | Basic EPS | $0.05 | $0.05 | $0.00 | 0.0% | | Diluted EPS | $0.05 | $0.05 | $0.00 | 0.0% | | (in millions, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Product revenue | $1,278.0 | $1,241.3 | $36.7 | 3.0% | | Service and other revenue | $320.8 | $281.1 | $39.7 | 14.1% | | **Total revenue** | **$1,598.8** | **$1,522.4** | **$76.4** | **5.0%** | | Total cost of revenue | $849.7 | $785.0 | $64.7 | 8.2% | | **Gross profit** | **$749.1** | **$737.4** | **$11.7** | **1.6%** | | Total operating expenses | $705.4 | $624.5 | $80.9 | 13.0% | | **Operating income** | **$43.7** | **$112.9** | **$(69.2)** | **-61.3%** | | Interest and other income (expense), net | $(18.1) | $(17.4) | $(0.7) | 4.0% | | Income before income taxes | $25.6 | $95.5 | $(69.9) | -73.2% | | Income tax provision (benefit) | $5.6 | $35.9 | $(30.3) | -84.4% | | **Consolidated net income** | **$21.0** | **$59.6** | **$(38.6)** | **-64.8%** | | Net income attributable to Bruker Corporation | $25.0 | $58.5 | $(33.5) | -57.3% |\ | Basic EPS | $0.16 | $0.40 | $(0.24) | -60.0% | | Diluted EPS | $0.16 | $0.40 | $(0.24) | -60.0% | [Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents comprehensive income (loss), including net income and other comprehensive income components Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Consolidated net income | $4.2 | $7.6 | $(3.4) | -44.7% | | Foreign currency translation gain (loss) after income taxes | $132.3 | $(28.9) | $161.2 | -557.8% | | Gain (loss) on designated hedging instruments after income taxes | $(148.9) | $(7.5) | $(141.4) | 1885.3% | | Total other comprehensive income (loss) | $(20.1) | $(36.5) | $16.4 | -44.9% | | Total Comprehensive income (loss) | $(15.9) | $(28.9) | $13.0 | -45.0% | | Total Comprehensive income (loss) attributable to Bruker Corporation | $(16.4) | $(28.7) | $12.3 | -42.9% | | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Consolidated net income | $21.0 | $59.6 | $(38.6) | -64.8% | | Foreign currency translation gain (loss) after income taxes | $203.1 | $(106.1) | $309.2 | -291.4% |\ | Gain (loss) on designated hedging instruments after income taxes | $(187.5) | $54.6 | $(242.1) | -443.4% | | Total other comprehensive income (loss) | $11.5 | $(51.0) | $62.5 | -122.5% | | Total Comprehensive income (loss) | $32.5 | $8.6 | $23.9 | 277.9% | | Total Comprehensive income (loss) attributable to Bruker Corporation | $31.5 | $8.5 | $23.0 | 270.6% | [Unaudited Condensed Consolidated Statements of Redeemable Noncontrolling Interests and Shareholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Redeemable%20Noncontrolling%20Interests%20and%20Shareholders'%20Equity) This section outlines changes in redeemable noncontrolling interests and shareholders' equity, including net income and repurchases - Total shareholders' equity **increased from $1,797.1 million** at December 31, 2024, to **$1,819.4 million** at June 30, 2025, driven by **$7.6 million** consolidated net income, **$5.3 million** stock-based compensation, and **$7.6 million** cash dividends paid[16](index=16&type=chunk) - Redeemable noncontrolling interests significantly **increased from $18.1 million** at December 31, 2024, to **$47.4 million** at June 30, 2025, primarily due to certain other acquisitions[16](index=16&type=chunk) - The company repurchased **200,731 shares** for **$10.0 million** during the six months ended June 30, 2025[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities for the six-month periods Unaudited Condensed Consolidated Statements of Cash Flows (in millions) | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Consolidated net income | $21.0 | $59.6 | $(38.6) | -64.8% | | Depreciation and amortization | $106.5 | $79.9 | $26.6 | 33.3% | | Net cash provided by (used in) operating activities | $(62.5) | $22.9 | $(85.4) | -372.9% | | Purchases of property, plant and equipment | $(47.3) | $(46.0) | $(1.3) | 2.8% | | Cash paid for acquisitions, net of cash acquired | $(69.5) | $(1,576.5) | $1,507.0 | -95.6% | | Net cash used in investing activities | $(117.2) | $(1,629.1) | $1,511.9 | -92.8% | | Net cash provided by financing activities | $44.3 | $1,307.5 | $(1,263.2) | -96.6% | | Effect of exchange rate changes on cash | $44.9 | $(19.7) | $64.6 | -327.9% | | Net decrease in cash, cash equivalents and restricted cash | $(90.5) | $(318.4) | $227.9 | -71.6% | | Cash, cash equivalents and restricted cash at end of period | $96.2 | $173.2 | $(77.0) | -44.5% | - Net cash used in operating activities for the six months ended June 30, 2025, was **$(62.5) million**, a significant **decrease from $22.9 million** provided in the same period of 2024, primarily due to changes in operating assets and liabilities and lower consolidated net income[19](index=19&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - Net cash used in investing activities **decreased substantially from $(1,629.1) million** in 2024 to **$(117.2) million** in 2025, mainly due to significantly lower cash paid for acquisitions[19](index=19&type=chunk)[166](index=166&type=chunk) - Net cash provided by financing activities **decreased from $1,307.5 million** in 2024 to **$44.3 million** in 2025, largely due to reduced proceeds from long-term debt and public offerings of common stock in the current period[19](index=19&type=chunk)[167](index=167&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the financial statements, covering business, policies, acquisitions, and debt [1. Description of Business](index=9&type=section&id=1.%20Description%20of%20Business) This note describes Bruker Corporation's core business, scientific instruments, analytical solutions, and operating segments - Bruker Corporation develops, manufactures, and distributes high-performance scientific instruments and analytical/diagnostic solutions for life and materials exploration at microscopic, molecular, and cellular levels[20](index=20&type=chunk) - The Company operates through four reportable segments: Bruker Scientific Instruments (BSI) BioSpin, BSI CALID, BSI NANO, and Bruker Energy & Supercon Technologies (BEST), each focusing on distinct technologies and market applications[21](index=21&type=chunk) [2. Recent Accounting Pronouncements](index=11&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This note outlines recent FASB accounting standard updates and their potential impact on financial reporting - The FASB issued ASU No. 2024-04 in November 2024, clarifying accounting for induced conversions of convertible debt, effective for annual periods after December 15, 2025, with the Company evaluating its impact[24](index=24&type=chunk) - ASU No. 2024-03, issued in November 2024, requires disaggregation disclosures for income statement expenses, effective for annual periods after December 15, 2026, with the Company evaluating its impact[25](index=25&type=chunk) - ASU No. 2023-09, issued in December 2023, enhances income tax disclosures, effective for annual periods after December 15, 2024, with the Company evaluating its impact[26](index=26&type=chunk) [3. Acquisitions](index=11&type=section&id=3.%20Acquisitions) This note details recent acquisitions, including consideration, acquired assets, and their contribution to revenue and goodwill - During the three months ended June 30, 2025, Bruker completed various acquisitions, including Recipe (CALID segment), for a total consideration of **$105.0 million**, net of cash acquired, with key acquired assets including customer relationships (**$30.1 million**) and technology (**$20.7 million**)[27](index=27&type=chunk)[30](index=30&type=chunk) - For the six months ended June 30, 2025, 2025 acquisitions contributed **$3.8 million** in revenue and resulted in pre-tax losses of **$0.8 million**[35](index=35&type=chunk) - In 2024, material acquisitions included NanoString Technologies (BSI NANO), ELITechGroup (BSI CALID), and Chemspeed Technologies (BSI BBIO), totaling **$1,635.8 million** in consideration, net of cash acquired, significantly expanding the company's portfolio in spatial biology, molecular diagnostics, and laboratory automation[37](index=37&type=chunk)[38](index=38&type=chunk) - Goodwill from 2024 acquisitions totaled **$958.0 million**, representing expected synergies and expansion of product sales[37](index=37&type=chunk)[40](index=40&type=chunk) - The Company finalized the valuation of NanoString and ELITechGroup acquisitions in Q2 2025, with no further material adjustments[43](index=43&type=chunk) [4. Minority and Equity-method Investments](index=21&type=section&id=4.%20Minority%20and%20Equity-method%20Investments) This note discusses minority and equity-method investments, including aggregate fair value and significant acquisitions - As of June 30, 2025, the aggregate amount of equity investments without readily determinable fair value was **$38.7 million**, and during the six months ended June 30, 2025, the Company completed four minority investments totaling **$3.9 million** in consideration[54](index=54&type=chunk) - In 2024, the Company acquired a **30% equity interest** in NovAliX for **$34.1 million**, accounted for using the equity method, and recognized a liability of **$16.0 million** for a potential future acquisition of the remaining interest[55](index=55&type=chunk) [5. Goodwill and Intangible Assets](index=21&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) This note provides details on goodwill and intangible assets, including changes, amortization, and impairment charges Goodwill (in millions) | Goodwill (in millions) | Amount | | :--------------------- | :----- | | Balance at December 31, 2024 | $1,507.3 | | Current period additions | $49.0 | | Foreign currency effect | $92.7 | | Balance at June 30, 2025 | $1,649.2 | Intangible Assets (in millions) | Intangible Assets (in millions) | June 30, 2025 Net Carrying Amount | December 31, 2024 Net Carrying Amount | Change | | :------------------------------ | :-------------------------------- | :------------------------------------ | :----- | | Existing technology and related patents | $459.5 | $433.2 | $26.3 | | Customer relationships | $458.1 | $425.0 | $33.1 | | Trade names | $44.8 | $44.8 | $0.0 | | Other | $7.2 | $9.5 | $(2.3) | | Total Intangible assets | $969.6 | $912.5 | $57.1 | - Amortization expense for intangible assets was **$31.5 million** for Q2 2025 (vs. **$25.1 million** in Q2 2024) and **$58.8 million** for H1 2025 (vs. **$41.3 million** in H1 2024)[58](index=58&type=chunk) - The Company recognized impairment charges of **$6.8 million** for Q2 2025 and **$7.2 million** for H1 2025 to write off certain intangible assets, with no such charges in the prior year[59](index=59&type=chunk) [6. Revenue](index=22&type=section&id=6.%20Revenue) This note presents revenue by geography and recognition method, along with contract liabilities and performance obligations Revenue by End Customer Geography (in millions) | Revenue by End Customer Geography (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | United States | $222.9 | $243.7 | $(20.8) | -8.5% | | Germany | $59.1 | $83.5 | $(24.4) | -29.2% | | Europe excluding Germany | $213.4 | $192.3 | $21.1 | 11.0% | | China | $114.7 | $120.4 | $(5.7) | -4.7% | | Asia Pacific excluding China | $127.4 | $106.2 | $21.2 | 20.0% | | Other | $59.9 | $54.6 | $5.3 | 9.7% | | **Total revenue** | **$797.4** | **$800.7** | **$(3.3)** | **-0.4%** | | Revenue by End Customer Geography (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :--------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | United States | $440.3 | $438.5 | $1.8 | 0.4% | | Germany | $120.2 | $150.3 | $(30.1) | -20.0% | | Europe excluding Germany | $437.5 | $370.4 | $67.1 | 18.1% | | China | $215.9 | $236.1 | $(20.2) | -8.6% | | Asia Pacific excluding China | $258.8 | $213.2 | $45.6 | 21.4% | | Other | $126.1 | $113.9 | $12.2 | 10.7% | | **Total revenue** | **$1,598.8** | **$1,522.4** | **$76.4** | **5.0%** | Revenue Recognition (in millions) | Revenue Recognition (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Revenue recognized at a point in time | $675.1 | $686.5 | $(11.4) | -1.7% | | Revenue recognized over time | $122.3 | $114.2 | $8.1 | 7.1% | | **Total revenue** | **$797.4** | **$800.7** | **$(3.3)** | **-0.4%** | | Revenue Recognition (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Revenue recognized at a point in time | $1,353.8 | $1,295.0 | $58.8 | 4.5% | | Revenue recognized over time | $245.0 | $227.4 | $17.6 | 7.7% | | **Total revenue** | **$1,598.8** | **$1,522.4** | **$76.4** | **5.0%** | - Contract liabilities **increased from $538.2 million** at December 31, 2024, to **$584.1 million** at June 30, 2025, with approximately **$232.5 million** of the December 31, 2024, balance recognized as revenue during the six months ended June 30, 2025[62](index=62&type=chunk) - Remaining performance obligations were **$2,109.1 million** at June 30, 2025, with the majority expected to be recognized as revenue within the next twelve months[62](index=62&type=chunk) [7. Business Segment Information](index=23&type=section&id=7.%20Business%20Segment%20Information) This note provides financial information by business segment, including revenue, operating income, and capital expenditures Segment Revenue (in millions) | Segment Revenue (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :---------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | BSI BioSpin | $195.3 | $217.5 | $(22.2) | -10.2% | | BSI CALID | $285.8 | $265.6 | $20.2 | 7.6% | | BSI NANO | $252.1 | $252.5 | $(0.4) | -0.2% | | BEST | $66.3 | $69.1 | $(2.8) | -4.1% | | **Total segment revenue** | **$799.5** | **$804.7** | **$(5.2)** | **-0.6%** | | Segment Operating Income (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | BSI BioSpin | $23.1 | $46.6 | $(23.5) | -50.4% | | BSI CALID | $53.3 | $58.4 | $(5.1) | -8.7% | | BSI NANO | $9.4 | $19.2 | $(9.8) | -51.0% | | BEST | $7.2 | $10.6 | $(3.4) | -32.1% | | **Total segment operating income** | **$93.0** | **$134.8** | **$(41.8)** | **-31.0%** | | Segment Revenue (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :---------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | BSI BioSpin | $403.1 | $400.3 | $2.8 | 0.7% | | BSI CALID | $565.9 | $493.5 | $72.4 | 14.7% | | BSI NANO | $508.7 | $492.9 | $15.8 | 3.2% | | BEST | $125.6 | $142.2 | $(16.6) | -11.7% | | **Total segment revenue** | **$1,603.3** | **$1,528.9** | **$74.4** | **4.9%** | | Segment Operating Income (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | BSI BioSpin | $60.2 | $81.2 | $(21.0) | -25.9% | | BSI CALID | $114.7 | $109.5 | $5.2 | 4.7% | | BSI NANO | $32.6 | $49.0 | $(16.4) | -33.5% | | BEST | $14.2 | $18.8 | $(4.6) | -24.5% | | **Total segment operating income** | **$221.6** | **$258.5** | **$(36.9)** | **-14.3%** | Capital Expenditures (in millions) | Capital Expenditures (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :--------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | BSI BioSpin | $2.3 | $3.8 | $(1.5) | -39.5% | | BSI CALID | $5.5 | $6.4 | $(0.9) | -14.1% | | BSI NANO | $13.2 | $4.0 | $9.2 | 230.0% | | BEST | $2.4 | $6.3 | $(3.9) | -61.9% | | Corporate | $6.9 | $4.0 | $2.9 | 72.5% | | **Total capital expenditures** | **$30.3** | **$24.5** | **$5.8** | **23.7%** | | Capital Expenditures (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | BSI BioSpin | $5.5 | $3.4 | $2.1 | 61.8% | | BSI CALID | $13.9 | $11.8 | $2.1 | 17.8% | | BSI NANO | $18.1 | $10.2 | $7.9 | 77.5% | | BEST | $7.2 | $13.9 | $(6.7) | -48.2% | | Corporate | $11.6 | $6.7 | $4.9 | 73.1% | | **Total capital expenditures** | **$56.3** | **$46.0** | **$10.3** | **22.4%** | Depreciation and Amortization (in millions) | Depreciation and Amortization (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | BSI BioSpin | $11.2 | $10.4 | $0.8 | 7.7% | | BSI CALID | $23.4 | $15.4 | $8.0 | 51.9% | | BSI NANO | $17.1 | $15.9 | $1.2 | 7.5% | | BEST | $2.4 | $2.1 | $0.3 | 14.3% | | Corporate | $2.0 | $1.3 | $0.7 | 53.8% | | **Total depreciation and amortization** | **$56.1** | **$45.1** | **$11.0** | **24.4%** | | Depreciation and Amortization (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | BSI BioSpin | $21.6 | $18.6 | $3.0 | 16.1% | | BSI CALID | $43.2 | $25.1 | $18.1 | 72.1% | | BSI NANO | $33.8 | $29.3 | $4.5 | 15.4% | | BEST | $4.5 | $4.1 | $0.4 | 9.8% | | Corporate | $3.4 | $2.8 | $0.6 | 21.4% | | **Total depreciation and amortization** | **$106.5** | **$79.9** | **$26.6** | **33.3%** | [8. Weighted Average Shares Outstanding](index=25&type=section&id=8.%20Weighted%20Average%20Shares%20Outstanding) This note details weighted average common shares outstanding for basic and diluted EPS, including anti-dilutive exclusions Weighted Average Shares Outstanding (in millions of shares) | (amounts in millions of shares) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------ | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Weighted average common shares outstanding - basic | 151.6 | 147.4 | 4.2 | 2.8% | | Weighted average common shares outstanding - diluted | 151.7 | 148.0 | 3.7 | 2.5% | | (amounts in millions of shares) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Weighted average common shares outstanding - basic | 151.6 | 146.3 | 5.3 | 3.6% | | Weighted average common shares outstanding - diluted | 151.8 | 147.0 | 4.8 | 3.3% | - Anti-dilutive stock options and unvested restricted stock units excluded from diluted EPS calculation were **0.5 million** and **0.6 million shares**, respectively, for the three months ended June 30, 2025[69](index=69&type=chunk) [9. Other Charges, Net](index=27&type=section&id=9.%20Other%20Charges%2C%20Net) This note outlines other charges, net, including acquisition-related expenses, litigation, restructuring, and IT costs Other Charges, Net (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Acquisition-related expenses, net | $2.8 | $17.5 | $(14.7) | -84.0% | | Acquisition-related litigation charges | $4.0 | $1.4 | $2.6 | 185.7% | | Restructuring charges | $2.9 | $1.2 | $1.7 | 141.7% | | Information technology transformation costs | $2.8 | $1.9 | $0.9 | 47.4% | | Other | $1.9 | $1.0 | $0.9 | 90.0% | | **Other charges, net** | **$14.4** | **$23.0** | **$(8.6)** | **-37.4%** | | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Acquisition-related expenses, net | $9.0 | $21.6 | $(12.6) | -58.3% | | Acquisition-related litigation charges | $22.6 | $1.5 | $21.1 | 1406.7% | | Restructuring charges | $10.5 | $4.7 | $5.8 | 123.4% | | Information technology transformation costs | $5.8 | $2.7 | $3.1 | 114.8% | | Other | $3.4 | $3.4 | $0.0 | 0.0% | | **Other charges, net** | **$51.3** | **$33.9** | **$17.4** | **51.3%** | - The **decrease in other charges, net** for Q2 2025 was primarily due to lower acquisition-related expenses, partially offset by increased restructuring charges[70](index=70&type=chunk) - The **increase in other charges, net** for H1 2025 was mainly driven by **$22.6 million** in acquisition-related litigation charges and higher restructuring costs[70](index=70&type=chunk) [10. Restructuring](index=27&type=section&id=10.%20Restructuring) This note details restructuring costs and changes in reserves, including severance and exit costs, and future program expectations Restructuring Costs (in millions) | Restructuring Costs (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Cost of revenues | $4.4 | $4.9 | $(0.5) | -10.2% | | Other charges, net | $2.9 | $1.2 | $1.7 | 141.7% | | **Total** | **$7.3** | **$6.1** | **$1.2** | **19.7%** | | Restructuring Costs (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Cost of revenues | $7.0 | $8.6 | $(1.6) | -18.6% | | Other charges, net | $10.5 | $4.7 | $5.8 | 123.4% | | **Total** | **$17.5** | **$13.3** | **$4.2** | **31.6%** | Changes in Restructuring Reserves (in millions) | Changes in Restructuring Reserves (in millions) | Total | Severance | Exit Costs | | :---------------------------------------------- | :---- | :-------- | :--------- | | Balance at December 31, 2024 | $7.2 | $4.6 | $2.6 | | Restructuring charges | $13.7 | $11.6 | $2.1 | | Cash payments | $(12.1) | $(7.8) | $(4.3) | | Other, non-cash adjustments and foreign currency effect | $0.9 | $0.8 | $0.1 | | Balance at June 30, 2025 | $9.7 | $9.2 | $0.5 | - In Q2 2025, the Company initiated a corporate-wide restructuring program across multiple functions and geographies, with additional charges anticipated in Q3 and Q4 2025, expected to be completed by 2026[74](index=74&type=chunk) [11. Interest and Other Income (Expense), Net](index=29&type=section&id=11.%20Interest%20and%20Other%20Income%20(Expense)%2C%20Net) This note presents interest and other income (expense), net, including interest, impairment of investments, and foreign currency Interest and Other Income (Expense), Net (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Interest income | $2.7 | $2.4 | $0.3 | 12.5% | | Interest expense | $(15.7) | $(15.7) | $0.0 | 0.0% | | Impairment of minority investments | $0.0 | $(20.2) | $20.2 | -100.0% | | Exchange gains (losses), net on foreign currency transactions | $1.4 | $9.0 | $(7.6) | -84.4% | | Other income | $0.2 | $0.3 | $(0.1) | -33.3% | | **Interest and other income (expense), net** | **$(11.4)** | **$(24.2)** | **$12.8** | **-52.9%** | | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Interest income | $5.8 | $5.0 | $0.8 | 16.0% | | Interest expense | $(28.8) | $(20.7) | $(8.1) | 39.1% | | Impairment of minority investments | $(1.9) | $(20.2) | $18.3 | -90.6% | | Exchange gains (losses), net on foreign currency transactions | $5.7 | $17.9 | $(12.2) | -68.2% | | Other income | $1.1 | $0.6 | $0.5 | 83.3% | | **Interest and other income (expense), net** | **$(18.1)** | **$(17.4)** | **$(0.7)** | **4.0%** | [12. Provision for Income Taxes](index=30&type=section&id=12.%20Provision%20for%20Income%20Taxes) This note details income tax provision (benefit) and effective tax rates, including impacts from jurisdictional mix and new legislation Provision for Income Taxes (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Income tax provision (benefit) | $(3.1) | $16.1 | $(19.2) | -119.3% | | Effective tax rates | Not meaningful | 67.4% | N/A | N/A | | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :-------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Income tax provision (benefit) | $5.6 | $35.9 | $(30.3) | -84.4% | | Effective tax rates | 21.9% | 37.6% | -15.7% | -41.7% | - The effective tax rate for Q2 2025 was **not meaningful** due to one-time favorable discrete events, while for H1 2025, it **decreased to 21.9% from 37.6%** in H1 2024, primarily due to changes in jurisdictional mix and net favorable discrete activities[76](index=76&type=chunk) - The OECD Pillar Two Framework Model Rules **increased the effective tax rate by 2.3%** for the six months ended June 30, 2025[80](index=80&type=chunk) - New legislation, including the U.S. One Big Beautiful Bill Act (OBBBA) and a gradual reduction in Germany's corporate income tax rate, will be assessed and recorded in Q3 2025[81](index=81&type=chunk)[82](index=82&type=chunk) [13. Inventories](index=31&type=section&id=13.%20Inventories) This note provides a breakdown of inventories, including raw materials, work-in-process, finished goods, and demonstration units Inventories (in millions) | Inventories (in millions) | June 30, 2025 | December 31, 2024 | Change (Millions) | Change (%) | | :------------------------ | :------------ | :---------------- | :---------------- | :--------- | | Raw materials | $427.4 | $388.7 | $38.7 | 10.0% | | Work-in-process | $394.0 | $348.9 | $45.1 | 12.9% | | Finished goods | $273.2 | $228.5 | $44.7 | 19.6% | | Demonstration units | $123.7 | $101.7 | $22.0 | 21.6% | | **Total Inventories** | **$1,218.3** | **$1,067.8** | **$150.5** | **14.1%** | - Finished goods inventory-in-transit **increased from $53.6 million** at December 31, 2024, to **$77.9 million** at June 30, 2025[83](index=83&type=chunk) [14. Other Current Assets](index=31&type=section&id=14.%20Other%20Current%20Assets) This note details other current assets, including unbilled receivables, income taxes receivable, prepaid expenses, and derivatives Other Current Assets (in millions) | Other Current Assets (in millions) | June 30, 2025 | December 31, 2024 | Change (Millions) | Change (%) | | :--------------------------------- | :------------ | :---------------- | :---------------- | :--------- | | Unbilled receivables | $112.4 | $93.6 | $18.8 | 20.1% | | Income and other taxes receivable | $99.4 | $34.5 | $64.9 | 188.1% | | Prepaid expenses | $49.7 | $35.1 | $14.6 | 41.6% | | Deposits with vendors | $32.8 | $26.1 | $6.7 | 25.7% | | Interest rate cross-currency swap agreements | $7.3 | $10.7 | $(3.4) | -31.8% | | Lease receivable | $4.3 | $7.6 | $(3.3) | -43.4% | | Other assets | $23.9 | $28.9 | $(5.0) | -17.3% | | **Total Other current assets** | **$329.8** | **$236.5** | **$93.3** | **39.4%** | [15. Debt](index=32&type=section&id=15.%20Debt) This note outlines debt obligations, including term loans, senior notes, revolving credit facilities, and covenant compliance Debt Obligations (in millions) | Debt Obligations (in millions) | June 30, 2025 | December 31, 2024 | Change (Millions) | Change (%) | | :----------------------------- | :------------ | :---------------- | :---------------- | :--------- | | 2024 term loan agreements | $554.0 | $489.4 | $64.6 | 13.2% | | 2019 term loan agreement | $255.8 | $263.3 | $(7.5) | -2.8% | | Note Purchase Agreements (NPA – Senior notes) | $1,461.7 | $1,264.8 | $196.9 | 15.6% | | CHF revolving loan | $122.1 | $27.5 | $94.6 | 344.0% | | Other loans | $15.2 | $11.9 | $3.3 | 27.7% | | Unamortized debt issuance costs | $(2.8) | $(3.1) | $0.3 | -9.7% | | **Total notes and loans outstanding** | **$2,416.0** | **$2,076.8** | **$352.2** | **16.9%** | | Finance lease obligations | $19.3 | $17.5 | $1.8 | 10.3% | | **Total debt** | **$2,435.3** | **$2,094.3** | **$341.0** | **16.3%** | | Current portion of long-term debt and finance lease obligations | $(55.7) | $(32.5) | $(23.2) | 71.4% | | **Total long-term debt, less current portion** | **$2,379.6** | **$2,061.8** | **$317.8** | **15.4%** | - The Company's total debt **increased by $341.0 million** to **$2,435.3 million** at June 30, 2025, from **$2,094.3 million** at December 31, 2024[85](index=85&type=chunk) - Proceeds from long-term debt for the six months ended June 30, 2025, were **$2.9 million**, significantly **lower than $805.7 million** in the prior year, while repayments were **$22.3 million**[88](index=88&type=chunk) - As of June 30, 2025, the Company had **$777.2 million** available under its **$900.0 million** revolving credit facility and was in compliance with all debt covenants[89](index=89&type=chunk) [16. Fair Value of Financial Instruments](index=34&type=section&id=16.%20Fair%20Value%20of%20Financial%20Instruments) This note presents the fair value of financial instruments, categorizing assets and liabilities by Level 1, 2, and 3 inputs Financial Instruments at Fair Value (in millions) | Financial Instruments at Fair Value (in millions) | June 30, 2025 Total | Level 1 | Level 2 | Level 3 | | :---------------------------------------------- | :------------------ | :------ | :------ | :------ | | **Assets:** | | | | | | Time deposits and money market funds | $0.6 | $0.6 | $0.0 | $0.0 | | Interest rate and cross-currency swap agreements | $9.2 | $0.0 | $9.2 | $0.0 | | Forward currency contracts | $0.2 | $0.0 | $0.2 | $0.0 | | **Total assets recorded at fair value** | **$10.0** | **$0.6**| **$9.4**| **$0.0**| | **Liabilities:** | | | | | | Contingent consideration | $13.9 | $0.0 | $0.0 | $13.9 | | Hybrid instruments liabilities | $83.6 | $0.0 | $0.0 | $83.6 | | Interest rate and cross-currency swap agreements | $42.8 | $0.0 | $42.8 | $0.0 | | Forward currency contracts | $3.3 | $0.0 | $3.3 | $0.0 | | Equity interest purchase option liability | $17.0 | $0.0 | $0.0 | $17.0 | | **Total liabilities recorded at fair value** | **$160.6** | **$0.0**| **$46.1**| **$114.5**| - The majority of assets measured at fair value are **Level 2** (interest rate and cross-currency swap agreements, forward currency contracts), while most liabilities are **Level 3** (contingent consideration, hybrid instruments liabilities, equity interest purchase option liability)[90](index=90&type=chunk) [17. Derivative Instruments and Hedging Instruments](index=35&type=section&id=17.%20Derivative%20Instruments%20and%20Hedging%20Instruments) This note describes the company's use of derivative instruments for hedging foreign exchange, interest rate, and commodity risks - Bruker uses cross-currency interest rate swap agreements and long-term debt as net investment hedges to manage foreign exchange rate risk from non-U.S. operations[92](index=92&type=chunk) - Interest rate risk on variable rate debt is managed through cross-currency interest rate swaps designated as cash flow hedges[94](index=94&type=chunk) - Commodity hedge contracts are used to minimize volatility from copper price fluctuations on copper-based superconductor sales[95](index=95&type=chunk) Derivatives (in millions) | Derivatives (in millions) | June 30, 2025 Notional (in USD) | June 30, 2025 Fair Value | December 31, 2024 Notional (in USD) | December 31, 2024 Fair Value | | :------------------------ | :------------------------------ | :----------------------- | :-------------------------------- | :----------------------- | | Designated as hedging instruments | $1,916.5 | $(249.8) | $1,716.3 | $(3.9) | | Not designated as hedging instruments | $1,009.5 | $(3.1) | $920.5 | $5.5 | | **Total derivatives** | **$2,926.0** | **$(252.9)** | **$2,636.8** | **$1.6** | Gain (Loss) in Interest and Other Income (Expense), Net (in millions) | Gain (Loss) in Interest and other income (expense), net (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Derivatives not designated as hedging instruments | $(25.3) | $(6.9) | $(20.9) | $(6.2) | | Derivatives designated as cash flow hedging instruments | $1.8 | $2.6 | $3.7 | $5.3 | | Derivatives designated as net investment hedging instruments | $3.0 | $4.0 | $6.2 | $8.2 | | **Total** | **$(22.3)** | **$(2.9)** | **$(14.7)** | **$2.0** | [18. Contingent Consideration](index=37&type=section&id=18.%20Contingent%20Consideration) This note details contingent consideration liabilities, including changes in fair value and recognition in acquisition expenses Contingent Consideration Liabilities (in millions) | Contingent Consideration Liabilities (in millions) | Amount | | :------------------------------------------------- | :----- | | Balance at December 31, 2024 | $17.3 | | Current period adjustments | $0.9 | | Current period settlements | $(5.0) | | Foreign currency effect | $0.7 | | Balance at June 30, 2025 | $13.9 | - Changes in fair value of contingent consideration are recognized in 'Acquisition-related expenses, net' within 'Other Charges, net'[98](index=98&type=chunk) [19. Hybrid instruments liabilities](index=38&type=section&id=19.%20Hybrid%20instruments%20liabilities) This note explains hybrid instrument liabilities related to noncontrolling interests, including valuation methods and inputs Hybrid Instruments Liability (in millions) | Hybrid Instruments Liability (in millions) | Amount | | :--------------------------------------- | :----- | | Balance at December 31, 2024 | $78.1 | | Current period adjustments | $1.7 | | Foreign currency effect | $3.8 | | Balance at June 30, 2025 | $83.6 | - Hybrid instrument liabilities relate to agreements with noncontrolling interest holders, granting the Company the right to purchase and holders the right to sell remaining ownership at contractually defined redemption values[99](index=99&type=chunk) - Valuation of hybrid instrument liabilities uses Level 3 unobservable inputs, including Revenue Risk Premium (**1.6% - 12.6%**) and EBITDA Risk Premium (**10.1% - 25.1%**)[100](index=100&type=chunk) [20. Commitments and Contingencies](index=38&type=section&id=20.%20Commitments%20and%20Contingencies) This note discusses the company's legal matters, claims, governmental investigations, and a significant litigation settlement - The accrual for legal matters deemed probable and estimable **decreased from $86.0 million** at December 31, 2024, to **$27.3 million** at June 30, 2025[104](index=104&type=chunk) - In May 2025, the Company settled litigation with 10x Genomics, Inc. related to NanoString's products, agreeing to pay **$68.0 million** in four quarterly installments and ongoing royalties, resolving lawsuits in multiple countries[106](index=106&type=chunk) [21. Shareholders' Equity](index=40&type=section&id=21.%20Shareholders'%20Equity) This note provides information on shareholders' equity, including common stock, repurchase programs, and stock-based compensation - As of June 30, 2025, the Company had **151,715,927 shares** of common stock outstanding[107](index=107&type=chunk) - The 2023 Share Repurchase Program, authorizing up to **$500.0 million**, expired in May 2025 with **$359.9 million** remaining, and the Company repurchased **$10.0 million** of common stock during the six months ended June 30, 2025[109](index=109&type=chunk)[110](index=110&type=chunk) - The Bruker Corporation 2026 Incentive Compensation Plan was approved in May 2025, effective February 19, 2026, authorizing the issuance of up to **12,000,000 shares** of common stock for various awards[114](index=114&type=chunk) Stock-Based Compensation Expense (in millions) | Stock-Based Compensation Expense (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options | $0.5 | $0.4 | $1.0 | $0.9 | | Restricted stock units | $4.8 | $4.4 | $9.5 | $8.6 | | Employee Stock Purchase Plan | $0.4 | $0.3 | $0.8 | $0.5 | | **Total stock-based compensation expense** | **$5.7** | **$5.1** | **$11.3** | **$10.0** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses Bruker Corporation's financial condition and results of operations, covering consolidated results, non-GAAP measures, segment performance, liquidity, and capital resources [Overview](index=45&type=section&id=Overview) This overview describes Bruker's global business as a scientific instrument developer and highlights factors influencing operating results - Bruker is a global developer, manufacturer, and distributor of high-performance scientific instruments and analytical/diagnostic solutions for life and materials exploration at microscopic, molecular, and cellular levels[121](index=121&type=chunk) - The company's operating results can fluctuate due to factors such as supply chain challenges, working capital needs, capital investments, tax/accounting rule changes, foreign currency exchange rates, commodity prices, geopolitical tensions, and the timing of customer orders and governmental programs[119](index=119&type=chunk)[123](index=123&type=chunk) [Consolidated Results](index=45&type=section&id=Consolidated%20Results) This section presents the company's GAAP financial performance, including revenue, gross profit, operating income, and cash flow GAAP Financial Measures (in millions) | GAAP Financial Measures (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :-------------------- | :------------- | | Revenue | $797.4 | $800.7 | $(3.3) | -0.4% | | Gross Profit | $357.9 | $384.6 | $(26.7) | -6.9% | | Gross Profit Margin | 44.9% | 48.0% | -3.1% | -6.5% | | Operating Income | $11.9 | $48.1 | $(36.2) | -75.3% | | Operating Income Margin | 1.5% | 6.0% | -4.5% | -75.0% | | Net cash provided by (used by) operating activities | $(127.5) | $1.1 | $(128.6) | -11690.9% | | GAAP Financial Measures (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (Millions) | YoY Change (%) | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Revenue | $1,598.8 | $1,522.4 | $76.4 | 5.0% | | Gross Profit | $749.1 | $737.4 | $11.7 | 1.6% | | Gross Profit Margin | 46.9% | 48.4% | -1.5% | -3.1% | | Operating Income | $43.7 | $112.9 | $(69.2) | -61.3% | | Operating Income Margin | 2.7% | 7.4% | -4.7% | -63.5% | | Net cash provided by (used by) operating activities | $(62.5) | $22.9 | $(85.4) | -372.9% | [Non-GAAP Financia

Core Viewpoint - Bruker Corporation reported disappointing second-quarter financial results, missing both earnings and sales expectations, and subsequently lowered its FY2025 guidance [1][2][3] Financial Performance - Quarterly earnings were reported at 32 cents per share, below the analyst consensus estimate of 44 cents per share [1] - Quarterly sales amounted to $797.40 million, missing the analyst consensus estimate of $810.43 million [1] Guidance Revision - FY2025 adjusted EPS guidance was cut from a range of $2.40-$2.48 to $1.95-$2.05 [2] - FY2025 sales guidance was lowered from $3.480 billion-$3.550 billion to $3.430 billion-$3.500 billion [2] Market Conditions - Demand for life-science research instruments is currently under pressure, particularly in the US academic market, biopharma, and industrial markets [3] - Factors such as tariffs and currency headwinds have impacted performance, which could not be offset by price and cost actions [3] Analyst Reactions - Stifel analyst Daniel Arias maintained a Hold rating and reduced the price target from $48 to $40 [6] - Wells Fargo analyst Brandon Couillard maintained an Overweight rating and lowered the price target from $60 to $50 [6]

Core Insights - Bruker reported revenue of $797.4 million for the quarter ended June 2025, reflecting a year-over-year decline of 0.4% and an EPS of $0.32 compared to $0.52 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $796.5 million by 0.11%, while the EPS fell short of the consensus estimate of $0.33 by 3.03% [1] Financial Performance Metrics - Organic revenue growth for Bruker was -7%, significantly below the three-analyst average estimate of -1.9% [4] - Bruker Scientific Instruments (BSI) experienced an organic revenue decline of -7.2%, compared to the -2% average estimate from two analysts [4] - Bruker Energy & Supercon Technologies (BEST) reported organic revenue growth of -4.8%, which was better than the -6.8% estimated by two analysts [4] - Revenue eliminations amounted to -$2.1 million, better than the three-analyst average estimate of -$5.88 million, representing a year-over-year change of -47.5% [4] - Revenue for Bruker Energy & Supercon Technologies (BEST) was $66.3 million, slightly below the $67.51 million average estimate from three analysts, marking a year-over-year decline of 4.1% [4] Stock Performance - Bruker's shares have returned -10.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Bruker's reported revenues for Q2 2025 decreased by 0.4% year over year to $797.4 million, with an organic revenue decline of 7% [16][26][27] - Non-GAAP diluted EPS was $0.32, down 39% from $0.52 in 2024, primarily due to organic revenue decline, tariff impacts, and foreign exchange headwinds [18][29] - Non-GAAP operating margin was 9%, a decrease of 480 basis points year over year, impacted by lower revenue absorption and additional costs [18][28] Business Line Data and Key Metrics Changes - The Scientific Instruments (BSI) segment experienced a 7.2% organic revenue decline, with BSI Systems declining roughly 10% [27][28] - The CALID Group revenue increased in the low teens percentage, driven by strong growth in microbiology and infection diagnostics [20] - BEST revenues declined in the low teens percentage due to softness in the clinical MRI market [21] Market Data and Key Metrics Changes - Americas revenue declined in the low double digits percentage, while European revenue also saw a similar decline [27] - Asia Pacific revenue grew in the low single digits percentage, despite a low single-digit decline in China [27] - EMEA region revenue was up in the high single digits percentage [27] Company Strategy and Development Direction - The company is expanding cost-saving initiatives, aiming to reduce annual costs by €100 million to €120 million, affecting all business areas [14][31] - Bruker is focused on reaccelerating growth in the post-genomic era, particularly in biopharma drug discovery tools [12][24] - The company anticipates a return to organic revenue growth of 200 to 300 basis points above market levels beyond 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the life science research instruments market is under pressure due to U.S. academic funding headwinds and delays in China stimulus [8][9] - The company expects a flat constant exchange rate revenue growth and an organic revenue decline of 2% to 4% for fiscal year 2025 [15][32] - Management remains cautiously optimistic about a partial recovery in fiscal year 2026, driven by significant margin improvements and cost reduction initiatives [35] Other Important Information - The company is observing tariff settlements and anticipates that global biopharma and industrial companies will accelerate investments once uncertainties are resolved [11][12] - Bruker is leveraging its backlog, which has slightly decreased from seven months to 6.5 months, to manage revenue expectations [39][98] Q&A Session Summary Question: Why is the backlog not helping this year? - Management indicated that while the backlog is being utilized, production and delivery times are planned and locked in by customers, leading to a slight decrease in backlog duration from seven months to 6.5 months [39] Question: What is the expectation for ultra-high field revenue recognition? - Management does not expect ultra-high field revenue recognition in Q3 but anticipates it in Q4 [43] Question: Why were cost-saving initiatives not initiated sooner? - Management explained that initial savings programs were started earlier in the year, but the expansion of cost-saving measures was necessary due to emerging headwinds [48][50] Question: What is the outlook for fiscal year 2026? - Management expressed uncertainty about growth in 2026 but emphasized the commitment to significant margin expansion and EPS growth regardless of market conditions [51][56] Question: How is the company addressing the free cash flow burn in Q2? - Management noted unusual outflows related to tax payments, which are not expected to recur, and anticipates a return to normal cash flow levels [65][66] Question: What is the visibility into the Q4 ramp? - Management acknowledged that Q4 typically sees a significant ramp, but visibility remains challenging due to current market conditions [101]

Financial Data and Key Metrics Changes - Bruker's reported revenues for Q2 2025 decreased by 0.4% year over year to $797.4 million, with an organic revenue decline of 7% [14][24][25] - Non-GAAP operating margin for Q2 2025 was 9%, a decrease of 480 basis points year over year due to lower revenue absorption, additional tariff costs, and currency headwinds [15][26] - Diluted non-GAAP EPS for Q2 2025 was $0.32, down 39% from $0.52 in Q2 2024 [15][27] Business Line Data and Key Metrics Changes - The Scientific Instruments (BSI) segment experienced a 7.2% organic revenue decline, with BSI Systems down approximately 10% [25][26] - The CALID Group revenue increased in the low teens percentage, driven by strong growth in microbiology and infection diagnostics [18] - BEST revenues declined in the low teens percentage due to softness in the clinical MRI market [19] Market Data and Key Metrics Changes - Americas revenue declined in the low double digits percentage, while European revenue also saw a similar decline [25] - Asia Pacific revenue grew in the low single digits percentage, despite a low single-digit decline in China [25] - EMEA region revenue was up in the high single digits percentage [25] Company Strategy and Development Direction - The company is expanding cost-saving initiatives, aiming to reduce annual costs by €100 million to €120 million, affecting all business areas [12][29] - Bruker is focused on reaccelerating growth and enhancing market share in the post-genomic era, particularly in biopharma drug discovery tools [22][23] - The company anticipates a return to organic revenue growth of 200 to 300 basis points above market once economic uncertainties abate [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the life science research instruments market is under pressure due to U.S. academic funding headwinds and delays in China stimulus [6][7] - The company expects a flat constant exchange rate revenue growth and an organic revenue decline of 2% to 4% for fiscal year 2025 [12][30] - Management remains cautiously optimistic about a partial recovery in fiscal year 2026, driven by significant margin improvements and cost reduction initiatives [23][33] Other Important Information - The company reported a significant decline in operating cash flow of $85 million, primarily due to the timing of tax payments [28] - The backlog has slightly decreased from seven months to 6.5 months, indicating some utilization of backlog [38][98] Q&A Session Summary Question: Why is the backlog not helping this year? - Management indicated that while the backlog is being utilized, production and delivery times are planned and locked in by customers, leading to a slight decrease in backlog from seven months to 6.5 months [38] Question: What is the expectation for the UHF magnets in Q3 or Q4? - Management does not expect revenue recognition for ultra-high field magnets in Q3 but anticipates it in Q4 [41] Question: What is the commitment to cost savings? - Management confirmed a commitment to the €100 million to €120 million cost savings, independent of market conditions or recovery [49] Question: What are the expectations for fiscal year 2026? - Management expressed that while they hope for some modest growth or partial recovery, they are preparing for a no growth scenario and expect significant margin expansion regardless [55] Question: How is the free cash flow burn in Q2? - Management noted unusual outflows related to tax payments, which are not expected to recur, and anticipates a return to normal cash flow [63] Question: What is the outlook for U.S. academic funding? - Management expects U.S. academic government funding to be down 20% to 25% for fiscal year 2025, with no predictions for fiscal year 2026 [92]