IDEXX(US:IDXX)2026-02-02 11:39Revenue Growth - Fourth quarter revenue reached $1,091 million, a 14% increase year-over-year, with 12% organic growth, driven by a 15% increase in Companion Animal Group (CAG) revenue[3] - Full year revenue totaled $4,304 million, marking a 10% increase as reported and organically, with CAG Diagnostics recurring revenue growing by 9% reported and 8% organic[5] - Revenue for Q4 2025 was $1,090,579,000, an increase of 14.3% compared to $954,288,000 in Q4 2024[46] - Total revenue for Q4 2025 reached $1,090,579, a 14.3% increase from $954,288 in Q4 2024[48] - Total revenue for the full year 2025 was $4,303,702, a 10.4% increase from $3,897,504 in 2024[48] - The company's organic revenue growth was 9.6%, with a notable 14.5% growth in international markets[50] Earnings and Profitability - Earnings per diluted share (EPS) for the fourth quarter were $3.08, reflecting an 18% increase as reported and 17% on a comparable basis, supported by a 150 basis point expansion in operating margin[4] - Expected EPS for 2026 is projected to be between $14.29 and $14.80, representing a growth of 9% to 13% as reported and 10% to 14% on a comparable basis[7] - The diluted earnings per share (EPS) for Q4 2025 was $3.08, an 18% increase compared to $2.62 in Q4 2024[35] - Comparable EPS, excluding certain adjustments, was $2.92 for Q4 2025, up 17% from $2.49 in Q4 2024[35] - The company anticipates a comparable EPS growth of 14% for the full year 2026, adjusted for share-based compensation and currency impacts[36] Operating Performance - Gross profit increased by 15% as reported, with a gross margin of 60.3%, reflecting a 50 basis point expansion[16] - Operating margin for the fourth quarter was 28.9%, an increase of 150 basis points compared to the prior year[17] - Operating profit for Q4 2025 was $315,605 thousand, reflecting a 21% increase year-over-year[31] - Income from operations for Q4 2025 was $315,605, a 20.6% increase from $261,686 in Q4 2024, with an operating margin of 28.9%[48] - The company reported a full-year income from operations of $1,360,031, up 20.5% from $1,128,337 in 2024[48] Future Projections - The company projects 2026 revenue guidance between $4,632 million and $4,720 million, indicating a growth of 7.6% to 9.6% reported and 7.0% to 9.0% organic[7] - CAG Diagnostics recurring revenue growth for 2026 is anticipated to be between 8.6% and 10.6% reported and 8.0% to 10.0% organic, supported by sustained execution drivers[18] - Projected full year 2026 operating margin is expected to expand by approximately 30 basis points due to favorable currency exchange rate changes[31] Cash Flow and Capital Expenditures - Free cash flow for the year ended December 31, 2025, was calculated by deducting approximately $125 million in capital expenditures from net cash provided by operating activities of approximately $1,182 million[41] - The company expects projected purchases of property and equipment for 2026 to be around $180 million, impacting future free cash flow[41] - Free cash flow for 2025 was $1,057,129, up from $808,079 in 2024[56] Balance Sheet and Equity - Total assets increased to $3,350,759 from $3,293,443, showing a solid balance sheet position[52] - The company’s total stockholders' equity rose to $1,605,383, up from $1,595,313 in 2024[52] - Long-term debt, net of current portion, decreased to $374,842 thousand as of December 31, 2025, from $449,786 thousand as of December 31, 2024[57] - Total shareholders' equity as of December 31, 2025, was $1,605,383 thousand, up from $1,595,313 thousand as of December 31, 2024[57] Research and Development - Research and development expenses for the full year 2025 were $251,207,000, up from $219,792,000 in 2024[46] Legal and Other Matters - The company concluded a litigation matter with a payment of approximately $80 million, impacting its financial position[45]