Danaher(DHR) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Overview Danaher reported strong Q2 2025 results with $5.9 billion revenue and $1.80 adjusted EPS, driven by Bioprocessing growth, and updated full-year guidance Financial & Operational Highlights Danaher exceeded Q2 2025 expectations with 3.5% revenue growth to $5.9 billion and $1.80 adjusted diluted EPS, driven by Bioprocessing - CEO Rainer M. Blair credited the strong quarterly performance to the Danaher Business System, robust growth in the Bioprocessing business, and disciplined cost management[2] Q2 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Revenues | $5.9 billion | +3.5% | | Non-GAAP Core Revenue | - | +1.5% | | Net Earnings | $555 million | - | | Diluted EPS (GAAP) | $0.77 | - | | Adjusted Diluted EPS (Non-GAAP) | $1.80 | - | | Operating Cash Flow | $1.3 billion | - | | Free Cash Flow (Non-GAAP) | $1.1 billion | - | Business Outlook for Q3 and Full Year 2025 Danaher projects low-single-digit core revenue growth for Q3 2025, maintains 3% full-year core revenue outlook, and raises full-year adjusted diluted EPS guidance to $7.70-$7.80 - For Q3 2025, the company anticipates non-GAAP core revenue to grow in the low-single digits year-over-year[4] - The full-year 2025 non-GAAP core revenue growth expectation remains unchanged at approximately 3% year-over-year[4] - The company increased its full-year 2025 adjusted diluted net earnings per common share guidance to a new range of $7.70 to $7.80, up from the previous guidance of $7.60 to $7.75[4] Financial Statements This section presents unaudited Consolidated Condensed Statements of Earnings for Q2 and H1 2025, detailing sales, costs, and net earnings Consolidated Condensed Statements of Earnings Danaher's Q2 2025 sales rose to $5.94 billion, but increased SG&A led to a decline in operating profit to $760 million and net earnings to $555 million Q2 Financial Performance Comparison ($ in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $5,936 | $5,743 | | Gross Profit | $3,523 | $3,428 | | Operating Profit | $760 | $1,168 | | Net Earnings | $555 | $907 | | Diluted EPS | $0.77 | $1.22 | First Half Financial Performance Comparison ($ in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales | $11,677 | $11,539 | | Gross Profit | $7,034 | $6,915 | | Operating Profit | $2,034 | $2,480 | | Net Earnings | $1,509 | $1,995 | | Diluted EPS | $2.10 | $2.68 | Non-GAAP Financial Measures & Reconciliations This section reconciles GAAP to non-GAAP financial measures, including EPS, sales growth by segment, and free cash flow, explaining their utility for investors Reconciliation of GAAP to Non-GAAP EPS Danaher reconciles Q2 2025 GAAP Diluted EPS of $0.77 to Non-GAAP Adjusted Diluted EPS of $1.80, primarily due to amortization and impairment charges Q2 2025 EPS Reconciliation (GAAP to Non-GAAP) | Description | Per Share Amount | | :--- | :--- | | Diluted Net Earnings Per Common Share (GAAP) | $0.77 | | Amortization of acquisition-related intangible assets | $0.59 | | Fair value net losses on investments | $0.06 | | Impairments | $0.60 | | Tax effect of adjustments & discrete tax items | ($0.23) | | Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $1.80 | - Impairment charges in Q2 2025 included a $432 million pretax charge related to a trade name in the Life Sciences segment[20] Sales Growth by Segment Q2 2025 saw Biotechnology lead with 8.0% total sales growth, while Life Sciences experienced a core sales decline, contributing to 3.5% total company sales growth Q2 2025 % Sales Growth vs. Q2 2024 | Segment | Total Sales Growth (GAAP) | Core Sales Growth (Non-GAAP) | | :--- | :--- | :--- | | Biotechnology | 8.0% | 6.0% | | Life Sciences | 0.5% | (2.5)% | | Diagnostics | 2.0% | 2.0% | | Total Company | 3.5% | 1.5% | H1 2025 % Sales Growth vs. H1 2024 | Segment | Total Sales Growth (GAAP) | Core Sales Growth (Non-GAAP) | | :--- | :--- | :--- | | Biotechnology | 7.0% | 6.5% | | Life Sciences | (1.5)% | (3.5)% | | Diagnostics | (0.5)% | 0.0% | | Total Company | 1.0% | 1.0% | Cash Flow Reconciliation Danaher's Q2 2025 operating cash flow was $1.34 billion, resulting in non-GAAP free cash flow of $1.09 billion after capital expenditures Free Cash Flow Calculation ($ in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $1,338 | $1,417 | | Less: Capital expenditures (GAAP) | ($248) | ($287) | | Plus: Capital disposals (GAAP) | $4 | $1 | | Free cash flow (non-GAAP) | $1,094 | $1,131 | Statement Regarding Non-GAAP Measures Management uses non-GAAP measures like core sales and adjusted EPS to assess performance and profitability by excluding volatile items for consistent comparisons - Management uses non-GAAP measures to assess operating performance, understand long-term profitability trends, identify underlying growth, and evaluate the ability to generate cash[28][29] - Key items excluded from non-GAAP measures include amortization of acquisition-related intangible assets, discrete restructuring charges, currency translation effects, and the impact of acquisitions and divestitures to facilitate more consistent comparisons[29] Other Information This section provides details for the investor conference call and webcast, alongside the standard forward-looking statements disclaimer Conference Call and Webcast Information An investor conference call and webcast are scheduled for July 22, 2025, at 8:00 a.m. ET to discuss Q2 results and guidance - An investor conference call to discuss Q2 results and guidance is scheduled for 8:00 a.m. ET on the day of the release[5] - Webcast, presentation slides, and replay information are available on the 'Investors' section of Danaher's website[5][6] Forward-Looking Statements This legal disclaimer cautions that forward-looking statements, including financial guidance, are subject to significant risks and uncertainties that could alter actual results - The release contains forward-looking statements, including financial guidance for Q3 and the full year 2025, which are not guarantees of future performance[12] - A number of factors could cause actual results to differ materially, including global economic conditions, competition, ability to integrate acquisitions, and geopolitical risks[12]