The Cooper Companies(COO) - 2025 Q2 - Quarterly Results

Revenue and Growth - Revenue increased 6% year-over-year to $1,002.3 million, with CooperVision revenue up 5% to $669.6 million and CooperSurgical revenue up 8% to $332.7 million[3] - CooperVision's revenue by geography: Americas at $282.4 million (up 7%), EMEA at $248.6 million (up 5%), and Asia Pacific at $138.6 million (up 3%)[6] - CooperSurgical's office and surgical revenue increased 13% to $205.8 million, while fertility revenue rose 3% to $126.9 million[9] - Net sales for Q2 2025 reached $1,002.3 million, a 6% increase year-over-year compared to $942.6 million in Q2 2024[39] - CooperVision reported net sales of $669.6 million in Q2 2025, reflecting a 7% organic growth rate[41] - CooperSurgical achieved net sales of $332.7 million in Q2 2025, with an organic growth rate of 7% after accounting for a 2% impact from acquisitions and divestitures[41] - Fiscal year 2025 total revenue guidance is set at $4,107 - $4,146 million, with organic growth of 5% to 6%[14] Earnings and Margins - Non-GAAP diluted EPS of $0.96, up $0.11 or 14% from last year's second quarter[3] - Gross margin improved to 68% from 67% in the previous year, driven by efficiency gains[4] - Operating margin increased to 18% compared to 17% in the prior year, with non-GAAP operating margin at 25%, up from 24%[4] - Operating income for Q2 2025 was $184.8 million, an increase from $161.7 million in Q2 2024, indicating improved operational efficiency[39] - Net income for the six months ended April 2025 was $192.0 million, compared to $170.1 million in the prior year, showing a solid growth trajectory[39] - Earnings per share (diluted) for Q2 2025 remained stable at $0.44, consistent with Q2 2024[39] Cash Flow and Financial Management - Free cash flow for the quarter was $18.1 million, after capital expenditures of $78.1 million[5] - The company repurchased $40.6 million of common stock, approximately 537.2 thousand shares, at an average price of $75.60[10] - The company’s interest expense decreased to $24.2 million in Q2 2025 from $28.9 million in Q2 2024, indicating improved financial management[39] Assets and Liabilities - Total current assets increased to $2,125.7 million as of April 30, 2025, up from $1,951.5 million on October 31, 2024, representing a growth of approximately 8.9%[37] - Goodwill increased to $3,864.7 million as of April 30, 2025, compared to $3,838.4 million on October 31, 2024, reflecting an increase of about 0.7%[37] - Total liabilities decreased to $4,125.5 million as of April 30, 2025, down from $4,231.6 million on October 31, 2024, indicating a reduction of approximately 2.5%[37] - Deferred tax assets decreased to $2,141.7 million as of April 30, 2025, from $2,210.3 million on October 31, 2024, a decline of about 3.1%[37] Research and Development - Research and development expenses increased to $45.5 million in Q2 2025, up from $38.9 million in Q2 2024, highlighting a commitment to innovation[39] Corporate Developments and Workforce - The company has a workforce of more than 16,000 and sells products in over 130 countries, impacting over fifty million lives each year[29] - The company plans to host an audio webcast to discuss its second quarter results and current corporate developments, indicating transparency and engagement with stakeholders[28] Other Financial Information - Acquisition and integration-related charges in fiscal 2025 amounted to $3.5 million for redundant personnel costs and $4.8 million for professional services fees[21] - Employee severance costs in the six months ended April 30, 2024, totaled $8.1 million, indicating ongoing restructuring efforts[25] - The company recorded $16.7 million in gains and losses on minority interest investments in the three months ended April 30, 2025, with a significant loss of $15.7 million on disposal of a minority interest investment[26] - The company reported no exit of business charges in the three and six months ended April 30, 2025, suggesting stability in operations[23] - The provision for income taxes increased to $56.8 million in Q2 2025, compared to $41.1 million in Q2 2024, reflecting higher income levels[39]