Danaher(DHR) - 2025 Q1 - Quarterly Results

Q1 2025 Performance and Outlook Q1 2025 Key Results Danaher's Q1 2025 results surpassed expectations, driven by strong bioprocessing and molecular diagnostics, with revenue at $5.7 billion and non-GAAP adjusted diluted EPS at $1.88 - Management stated that Q1 2025 revenue, earnings, and cash flow exceeded expectations, highlighting momentum in bioprocessing and better-than-expected respiratory demand in the molecular diagnostics business[2] Q1 2025 Financial Highlights | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Revenues | $5.7 billion | -1.0% | | Non-GAAP Core Revenue | Flat | 0.0% | | Net Earnings | $1.0 billion | - | | GAAP Diluted EPS | $1.32 | - | | Non-GAAP Adjusted Diluted EPS | $1.88 | - | | Operating Cash Flow | $1.3 billion | - | | Non-GAAP Free Cash Flow | $1.1 billion | - | 2025 Outlook Danaher forecasts low-single-digit non-GAAP core revenue growth for Q2 2025, maintaining full-year guidance of approximately 3% growth and initiating adjusted diluted EPS guidance of $7.60 to $7.75 Q2 and Full Year 2025 Guidance | Period | Metric | Guidance | | :--- | :--- | :--- | | Q2 2025 | Non-GAAP Core Revenue Growth (YoY) | Low-single digits | | Full Year 2025 | Non-GAAP Core Revenue Growth (YoY) | ~3.0% | | Full Year 2025 | Non-GAAP Adjusted Diluted EPS | $7.60 - $7.75 | - The company provides guidance on a non-GAAP basis due to the difficulty in estimating certain components of GAAP measures, such as currency translation, acquisitions, and discrete tax items[3] Financial Statements Consolidated Condensed Statements of Earnings (GAAP) In Q1 2025, Danaher's GAAP sales decreased to $5.74 billion from $5.80 billion, with net earnings falling to $954 million, or $1.32 per diluted share Q1 2025 vs Q1 2024 Statement of Earnings (in millions, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $5,741 | $5,796 | | Gross Profit | $3,511 | $3,487 | | Operating Profit | $1,274 | $1,312 | | Net Earnings | $954 | $1,088 | | Diluted EPS | $1.32 | $1.45 | Non-GAAP Financial Measures & Reconciliations Reconciliation of GAAP to Non-GAAP EPS Danaher's Q1 2025 GAAP diluted EPS of $1.32 was adjusted to a non-GAAP diluted EPS of $1.88, primarily due to amortization of intangibles and fair value losses on investments Q1 2025 EPS Reconciliation (GAAP to Non-GAAP) | Description | Per Share Amount ($) | | :--- | :--- | | Diluted Net Earnings Per Common Share (GAAP) | $1.32 | | Amortization of acquisition-related intangible assets | $0.57 | | Fair value net losses on investments | $0.12 | | Impairments | $0.02 | | Gain on a product line disposition | ($0.01) | | Tax effect of adjustments | ($0.13) | | Discrete tax adjustments | ($0.01) | | Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $1.88 | Segment Performance In Q1 2025, Biotechnology drove growth with a 7.0% non-GAAP core sales increase, offset by declines in Life Sciences and Diagnostics, resulting in flat total company non-GAAP core sales Q1 2025 Year-over-Year Growth by Segment | Segment | Total Sales Growth (GAAP) | Core Sales Growth (Non-GAAP) | | :--- | :--- | :--- | | Biotechnology | 6.0% | 7.0% | | Life Sciences | (3.5)% | (4.0)% | | Diagnostics | (3.0)% | (1.5)% | | Total Company | (1.0)% | — % | Cash Flow Reconciliation Net cash from operating activities decreased to $1.30 billion in Q1 2025, resulting in non-GAAP free cash flow of $1.06 billion after capital expenditures Q1 2025 vs Q1 2024 Cash Flow (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $1,299 | $1,739 | | Less: Capital expenditures | ($245) | ($291) | | Free cash flow (non-GAAP) | $1,060 | $1,448 |