Labcorp(US:LH)2025-07-24 10:52Financial Performance - Labcorp reported Q2 2025 revenue of $3.53 billion, a 9.5% increase from $3.22 billion in Q2 2024[4] - Diluted EPS for Q2 2025 was $2.84, up from $2.43 in Q2 2024, while adjusted EPS increased to $4.35 from $3.94[4] - Operating income increased to $394.5 million for the three months ended June 30, 2025, compared to $294.8 million in the prior year, reflecting a 33.8% growth[31] - Net earnings attributable to Labcorp Holdings Inc. were $237.9 million, a 15.5% increase from $205.3 million in the same quarter of 2024[31] - Basic earnings per share rose to $2.85, up from $2.44 in the same quarter last year, marking a 16.8% increase[31] - Adjusted operating income for the same period was $531.6 million, compared to $479.9 million in 2024, reflecting an increase of 10.8%[41] - Adjusted net income for the six months ended June 30, 2025, was $688.5 million, compared to $644.2 million in 2024, an increase of 6.9%[41] - The company’s adjusted net income per share for the three months ended June 30, 2025, was $4.35, up from $3.94 in 2024[41] Guidance and Future Outlook - The company raised its full-year revenue guidance to a range of 7.5% to 8.6%, with the midpoint raised by 70 basis points[4] - Adjusted EPS guidance was updated to a range of $16.05 to $16.50, with the midpoint raised by $0.23[4] - Free cash flow guidance was set at $1.13 billion to $1.28 billion, with the midpoint raised by $25 million[4] - Labcorp's guidance for 2025 includes expectations for continued growth, although specific figures were not disclosed in the provided content[26] - The company is focused on future business strategies, including potential acquisitions and partnerships to enhance growth opportunities[26] Operational Highlights - Operating cash flow for Q2 2025 was $620.6 million, compared to $561.1 million in Q2 2024[11] - The company performed over 700 million tests annually, supporting 75% of new drugs approved by the FDA in 2024[25] - Net cash provided by operating activities for the six months ended June 30, 2025, was $639.1 million, compared to $531.3 million in 2024, marking a 20.3% increase[38] - The company reported a net increase in cash and cash equivalents of $277.9 million for the three months ended June 30, 2025[38] Segment Performance - Diagnostics Laboratories segment revenues reached $2,748.8 million, a 8.9% increase from $2,524.9 million in 2024[38] - Biopharma Laboratory Services segment revenues grew to $784.8 million, up 11% from $707.0 million in the prior year[38] Acquisitions and Partnerships - The company announced the acquisition of select assets from Incyte Diagnostics and BioReference Health, furthering its market expansion[7] - Labcorp expanded partnerships with hospitals and health systems, enhancing access to comprehensive testing services[4] Product Development - Labcorp launched new tests in oncology, including Labcorp® Plasma Detect™ and PGDx elio® plasma focus™ Dx, enhancing its product offerings[7] Balance Sheet and Capital Expenditures - Labcorp's total debt at the end of the quarter was $5.58 billion, with cash and cash equivalents of $0.65 billion[12] - Total assets decreased to $18,059.9 million as of June 30, 2025, down from $18,379.0 million at the end of 2024[33] - Current liabilities decreased to $2,716.8 million from $3,330.2 million at the end of 2024, indicating improved liquidity[33] - Capital expenditures for the three months ended June 30, 2025, were $77.9 million, down from $128.2 million in the same period of 2024[38]