Revvity (RVTY) 2025 Conference Summary Company Overview - **Company**: Revvity (RVTY) - **Date**: May 13, 2025 - **Industry**: Life Sciences Tools and Diagnostics Key Points 1. Q1 Performance and Guidance - The first quarter showed solid performance despite a different macro environment than initially assumed for 2025 guidance [4][5] - The diagnostics and software businesses performed exceptionally well, contributing to the overall strength of the portfolio [4][5] - The company maintained full-year guidance despite a weaker macro backdrop due to prudent initial guidance [5] 2. Tariff Impact and Mitigation Strategies - Gross tariff headwinds were estimated at $135 million, with a net impact of approximately $0.12 on EPS after operational mitigation [6][12] - The majority of tariff impacts are expected in the second quarter, with operational mitigation strategies being implemented [6][12] - The company has a dual manufacturing strategy to enhance supply chain resiliency, including a GMP facility in San Diego and another outside the US [10] 3. Academic and Government Market Exposure - Academic and government customers account for 12% of global revenue, with over 5% in the US [21] - There is cautiousness in these segments due to uncertainties around indirect expense reimbursements and NIH funding levels [22][24] 4. Pharma and Biotech Market Trends - The pharma and biotech sectors showed positive growth in Q1, but there is uncertainty due to macroeconomic factors and tariffs [28] - Instrumentation sales are expected to face continued pressure, particularly from mid and large-sized pharma customers [29][30] 5. Geographic Performance - China represents 16% of total revenue, with diagnostics showing high single-digit growth while life sciences experienced a slight decline [34] - The company anticipates continued choppiness in the China life sciences market but modest growth in diagnostics [34][35] 6. Software Business Strength - The software business is highlighted as a major area of strength, with new product launches and a focus on large molecule capabilities [48][49] - The company is expanding into new customer groups and markets, such as material science, which has shown good traction [49] 7. Margin Expectations and Cost Management - The company expects balanced margin expectations for the year, with temporary belt-tightening measures in place to mitigate tariff impacts [50][51] - There are no plans for additional structural cost reductions, but ongoing monitoring will occur [51] 8. Capital Allocation and M&A Strategy - Revvity has adopted a balanced approach to capital deployment, including share buybacks and selective M&A opportunities [55][56] - The company is cautious about M&A in the current market, noting that private companies are not in a rush to sell despite lower valuations [57][59] 9. Underappreciated Aspects of Revvity - The company’s differentiated portfolio and execution capabilities are not fully recognized in the market [61][62] - There is potential for margin expansion that has yet to be demonstrated due to current market pressures [62][63] 10. Future Outlook - The company remains optimistic about its long-term growth potential, particularly in the reagents business and software capabilities [41][48] - Continued execution and clarity in macroeconomic conditions are essential for demonstrating the company's margin expansion opportunities [63] This summary encapsulates the key insights and data points from the Revvity conference, providing a comprehensive overview of the company's current performance, challenges, and strategic outlook.

Core Viewpoint - The company identifies the U.S. market as the most important for power sports products, with plans to increase the proportion of products shipped from Mexico and Thailand to the U.S. market [1] Group 1 - In 2024, the company's revenue from the U.S. market has decreased to below 30%, with the overall impact being manageable [1] - Tariff increases do not directly affect sales but will raise costs [1] - The company's factory in Mexico plays a crucial role in responding to the trade war [1] Group 2 - The company plans to further increase the proportion of products shipped from Mexico and Thailand to the U.S. [1] - There will be an enhancement in local component development and procurement in Mexico to improve supply chain resilience and cost competitiveness [1] - The company aims to reduce reliance on the U.S. market by continuously expanding into non-U.S. markets and accelerating the development of two-wheeled and extreme sports businesses [1]