Labcorp(US:LH)2026-02-17 11:54Financial Performance - Labcorp reported a revenue growth of over 7% in 2025, with Q4 revenue at $3.52 billion compared to $3.33 billion in Q4 2024, and full-year revenue at $13.95 billion versus $13.01 billion in 2024[4] - Diluted EPS for Q4 2025 was $1.98, up from $1.70 in Q4 2024, and full-year diluted EPS increased to $10.46 from $8.84[4] - Adjusted EPS for Q4 2025 was $4.07, compared to $3.45 in Q4 2024, with full-year adjusted EPS rising to $16.44 from $14.57[4] - Net earnings attributable to Labcorp Holdings Inc. for the year ended December 31, 2025, were $876.5 million, up 17.5% from $746.0 million in 2024[28] - Basic earnings per common share increased to $10.54 for the year ended December 31, 2025, compared to $8.89 in 2024, reflecting an 18.6% growth[28] - Net earnings for Q4 2025 reached $164.9 million, up from $143.6 million in Q4 2024, representing a growth of 9.1%[32] Guidance and Projections - Labcorp provided 2026 guidance with expected revenue between $14.61 billion and $14.79 billion, representing a midpoint growth of 5.4%[4] - The company anticipates adjusted EPS for 2026 to be between $17.55 and $18.25, indicating a midpoint growth of 8.9%[4] - Free cash flow for 2026 is projected to be between $1.24 billion and $1.36 billion, with a midpoint growth of 7.8%[4] Operational Highlights - Labcorp expanded partnerships by signing or closing 13 transactions in 2025, enhancing its position in the market[4] - The company launched over 130 innovative new tests in 2025, including advancements in oncology and women's health[4] - The company performed over 750 million tests globally in 2025, supporting more than 85% of new drugs approved by the FDA[22] Capital and Investments - Labcorp announced a strategic investment to build a new 500,000 square foot Central Laboratory facility to meet growing demand[4] - The company repurchased $225 million of common stock in Q4 2025, totaling $450 million for the full year[5] - Capital expenditures for Q4 2025 were $123.9 million, compared to $112.1 million in Q4 2024, representing an increase of 15.9%[32] Financial Position - Total assets as of December 31, 2025, were $18,392.7 million, slightly up from $18,379.0 million in 2024[30] - The company's total liabilities decreased to $9,756.0 million in 2025 from $10,312.5 million in 2024, indicating a reduction of approximately 5.4%[30] - Labcorp's cash and cash equivalents decreased to $532.3 million in 2025 from $1,518.7 million in 2024, a decline of 64.9%[30] - The company reported a decrease in cash and cash equivalents to $532.3 million at the end of Q4 2025 from $1,518.7 million at the end of Q4 2024[32] Profitability Metrics - The company's gross profit for the year ended December 31, 2025, was $4,012.5 million, representing a 10.7% increase from $3,624.4 million in 2024[28] - Labcorp's operating income for the year ended December 31, 2025, was $1,384.7 million, a significant increase of 27.4% from $1,086.7 million in 2024[28] - Adjusted net income for the year ended December 31, 2025, was $1,377.2 million, up from $1,230.3 million in 2024, reflecting a growth of 11.9%[38] - Adjusted operating income for the consolidated segment in Q4 2025 was $487.7 million, up from $423.2 million in Q4 2024, marking a growth of 15.2%[38] - The adjusted operating margin for the consolidated segment improved to 13.9% in Q4 2025 from 12.7% in Q4 2024[34] Restructuring and Charges - The company incurred restructuring and other charges of $110.8 million in Q4 2025, compared to $11.4 million in Q4 2024[38]