Danaher (NYSE:DHR) Q4 2025 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsDoug Schenkel - Managing Director of Life Science Tools and DiagnosticsJohn Bedford - VP of Investor RelationsMatt McGrew - EVP and CFOMichael Ryskin - Managing DirectorPatrick Donnelly - Managing DirectorRainer Blair - President and CEOScott Davis - Chairman and CEOTycho Peterson - Managing Director of Global EquitiesConference Call ParticipantsDan Brennan - Senior Equity Research Analyst and Managing DirectorDan Leon ...

Financial Data and Key Metrics Changes - For the full year 2025, sales were $24.6 billion, with core revenue increasing by 2% and adjusted diluted net earnings per common share rising by 4.5% to $7.80 [7][8] - The adjusted operating profit margin was 28.2%, and free cash flow generated was $5.3 billion, resulting in a free cash flow to net income conversion ratio of approximately 145% [7][8] - In Q4 2025, sales reached $6.8 billion, with core revenue growth of 2.5% [11] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6%, while discovery and medical declined at a high single-digit rate due to prior year comparisons and funding constraints [13][14] - Bioprocessing core revenue grew high single digits, driven by strong demand for monoclonal antibodies [14][15] - In diagnostics, core revenue increased by 2%, with clinical diagnostics growing mid-single digits [18] Market Data and Key Metrics Changes - Core revenues in developed markets increased low single digits, with North America flat and Western Europe up mid-single digits [12] - High growth markets saw mid-single digit increases, with solid growth outside of China, which experienced a low single-digit decline [12] Company Strategy and Development Direction - The company expects gradual end market improvements to continue, supported by a differentiated portfolio and the Danaher Business System [7][23] - Focus on innovation and new product introductions, with approximately 25% year-over-year growth in new product revenue [11][8] - Anticipation of core revenue growth in the range of 3%-6% for 2026, with adjusted diluted EPS guidance set at $8.35-$8.50 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the bioprocessing market, driven by robust FDA approvals and increasing demand for biologics [16][23] - The company remains cautious about the academic and government demand, which has been muted but stable [6][17] - Management highlighted the importance of a recovering biotech funding environment for the life sciences business [91][92] Other Important Information - The company has maintained a strong free cash flow generation for 34 consecutive years, exceeding a 100% conversion ratio [8] - The company is well-positioned for M&A opportunities, with a constructive environment and strong cash flow generation [64][66] Q&A Session Summary Question: Guidance for core revenue growth - Management confirmed a core revenue growth guidance of 3%-6% for 2026, with bioprocessing expected to remain strong at high single digits [27][28] Question: Bioprocessing order book and growth - The order book supports high single-digit growth for bioprocessing, with equipment orders showing sequential growth [33][34] Question: Strength in SCIEX and end market recovery - SCIEX experienced mid-single-digit growth, driven by innovation and improvement in the pharma end market [40][41] Question: Margin expectations for 2026 - Management expects margins to follow core growth, with benefits from cost actions expected to materialize in the second half of the year [42][43] Question: Biotech funding impact on life sciences - The biotech segment is sensitive to funding improvements, which could enhance order volumes [91][92] Question: Reshoring trends in bioprocessing - Management noted ongoing discussions about reshoring, indicating a potential long-term investment cycle in bioprocessing [94][95]

Summary of Merck KGaA Conference Call Company Overview - **Company**: Merck KGaA, Darmstadt, Germany - **Industry**: Healthcare, Life Science, Electronics - **Key Growth Pillars**: Process Solutions, Rare Diseases, Semiconductor Solutions [4][5] Core Insights and Arguments - **Growth Strategy**: Merck is positioned in innovation-driven markets, focusing on three key growth pillars which are expected to drive significant shareholder value [4][5] - **M&A Activity**: The company has a strong history of mergers and acquisitions, which will continue to be a part of their strategy for growth and portfolio management [5][9] - **Global Presence**: Merck operates in over seven countries with a balanced sales distribution across major economic regions, enhancing resilience against geopolitical changes [7][5] Financial Performance - **Sales Growth**: Consistent sales growth has been achieved over the past 15 years, with the exception of 2023 due to the COVID-19 pandemic [8] - **2025 Guidance**: The company confirmed its 2025 guidance and indicated a gradual improvement in end markets for both life science and electronics [10][21] - **Midterm Growth Outlook**: Expected mid-single-digit growth for the group, with key growth drivers projected to achieve low double-digit growth [11][21] Sector-Specific Insights Life Science - **New Organizational Structure**: A new customer-centric organizational design was implemented to enhance service delivery and customer interaction [12][13][34] - **Market Growth**: Process Solutions is expected to grow at 9%-10%, driven by demand for monoclonal antibodies and novel modalities [13][14] - **Challenges**: Short-term headwinds include muted performance in China and cautious behavior in the U.S. academic market [32][33] Healthcare - **Rare Diseases**: The acquisition of SpringWorks has strengthened Merck's position in rare diseases, with products like Ogsiveo and pimicotinib showing strong market potential [16][18][19] - **Fertility Business**: The fertility segment, particularly Pergoveris, is expected to contribute to growth, with a five-year CAGR of 20% outside the U.S., Japan, and China [25][26] - **Competition**: The company remains confident in its product offerings despite competition, particularly in the rare disease segment [27][30] Electronics - **Semiconductor Solutions**: This segment is crucial for AI advancements, representing 80% of electronic sales, with significant growth expected in advanced packaging [19][20] - **Market Trends**: The demand for advanced nodes and new materials is driving growth in the semiconductor market [20] Additional Important Points - **Investment Focus**: Merck aims to concentrate resources on growth pillars while maintaining cash generation for further investments [22][21] - **M&A Strategy**: The company is focused on external innovation, particularly in healthcare, to drive future growth [37][38] - **Customer-Centric Approach**: The new organizational model aims to simplify customer interactions and improve service levels, which has received positive feedback [34][35] Conclusion Merck KGaA is strategically positioned for growth across its key sectors, with a focus on innovation, customer-centricity, and disciplined portfolio management. The company is optimistic about its future prospects, particularly in rare diseases and semiconductor solutions, while navigating short-term challenges in certain markets.

Core Viewpoint - Repligen Corporation will participate in the J.P. Morgan 2026 Healthcare Conference, highlighting its focus on bioprocessing technology leadership [1]. Group 1: Company Overview - Repligen Corporation is a global life sciences company that develops and commercializes innovative bioprocessing technologies and systems for manufacturing biological drugs [3]. - The company serves biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide [3]. - Key focus areas include Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins [3]. - The corporate headquarters is located in Waltham, Massachusetts, with manufacturing sites primarily in the U.S. and additional sites in Estonia, France, Germany, Ireland, the Netherlands, and Sweden [3]. Group 2: Conference Participation - Olivier Loeillot, President and CEO, will present an overview of the company on January 13 at 2:15 p.m. PT during the conference [1]. - A live webcast of the conference presentations will be available on Repligen's Investor Relations website, with a replay accessible for a limited time after the event [2].

Core Insights - Repligen Corporation will participate in the 8th Annual Evercore Healthcare Conference from December 2-4, 2025, in Coral Gables, Florida, with CFO Jason Garland leading an analyst discussion on December 3 at 1:20 p.m. ET [1] - A live webcast of the conference will be available on Repligen's Investor Relations website, with a replay option for a limited time post-event [2] Company Overview - Repligen Corporation is a global life sciences company specializing in innovative bioprocessing technologies and systems aimed at enhancing the manufacturing efficiency of biological drugs [3] - The company serves biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide, focusing on areas such as Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins [3] - The corporate headquarters is located in Waltham, Massachusetts, with manufacturing sites primarily in the U.S. and additional key locations in Estonia, France, Germany, Ireland, the Netherlands, and Sweden [3]

Core Insights - Avantor, Inc. has launched pre-engineered PUPSIT assemblies and a comprehensive sterile sampling suite aimed at enhancing bioprocessing flexibility and reducing contamination risks while accelerating in-process decisions [1][4] Product Features - The sterile sampling suite features modular, multi-sample configurations that minimize line breaks and operator intervention, with standardized bills of materials to streamline setup and qualification [2][3] - PUPSIT assemblies integrate supplier-agnostic components that connect seamlessly with common filtration trains, simplifying implementation and maintaining closed flow paths to reduce setup variability [3][4] Market Needs - Biopharmaceutical manufacturers require configurable and easy-to-implement solutions that perform consistently across different scales, which the new products from Avantor aim to address [5] - The combination of the newly launched NFSS and EVSS with existing products positions Avantor's sampling platform as one of the most comprehensive solutions for bioprocessing sampling applications [5] Company Overview - Avantor is a leading life science tools company providing mission-critical products and services to the life sciences and advanced technology industries, supporting research, development, and production activities globally [6]

Financial Data and Key Metrics Changes - Sales for the third quarter were $6.1 billion, with a 3% core revenue growth year-over-year [8][10] - Gross profit margin was 58.2%, and adjusted operating profit margin increased by 40 basis points to 27.9% year-over-year [9][10] - Adjusted diluted net earnings per share were $1.89, reflecting a 10% increase year-over-year [10] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6.5% [13] - Core revenue in bioprocessing grew high single digits, with double-digit growth in consumables [14] - Core revenue in diagnostics increased by 3.5%, with significant growth in clinical diagnostics and Cepheid's non-respiratory test menu [18] Market Data and Key Metrics Changes - Core revenues in developed markets were up mid-single digits, while high growth markets saw low single-digit growth, impacted by a mid-single-digit decline in China [8][9] - The demand for monoclonal antibodies remains robust, supporting long-term growth in the biologics market [15][16] Company Strategy and Development Direction - The company is focused on leveraging the Danaher Business System to drive productivity gains and invest in innovation, particularly in digital and AI initiatives [7][8] - A new share repurchase program was approved, allowing for the purchase of up to 35 million additional shares [10][23] - The long-term outlook for the biologics market is positive, with expectations of continued strong demand growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in pharma R&D spending, although it remains below historical levels [7][8] - For 2026, the company expects core revenue growth in the range of 3%-6%, assuming modest recovery across end markets [20][21] - The company anticipates respiratory revenue at Cepheid to be approximately $1.7 billion in 2026, consistent with expectations for 2025 [22] Other Important Information - The company generated $1.4 billion in free cash flow during the quarter, with a year-to-date free cash flow to net income conversion ratio of 146% [10] - Significant investments in innovation led to the launch of several new products aimed at enhancing competitive positioning [10][11] Q&A Session Summary Question: Insights on fiscal year 2026 guidance - Management provided a range of 3%-6% for top-line growth, emphasizing the need for modest recovery in end markets [26][28] Question: Concerns regarding China diagnostics and VBP - Management indicated a manageable headwind of $75 million-$100 million for next year, reflecting confidence in navigating policy changes [35][37] Question: Equipment recovery in biotechnology - Management noted increased confidence among pharma customers regarding equipment investments, although orders have not yet materialized [45][46] Question: Expectations for Beckman and Cepheid in diagnostics - Management expects mid-single-digit growth for Beckman and consistent performance for Cepheid outside of respiratory [47][48] Question: Impact of reshoring on capital demand - Management anticipates continued investment in capital equipment driven by regionalization and reshoring trends [100][101]

Financial Data and Key Metrics Changes - The company reported sales of $6.1 billion in Q3 2025, achieving a 3% core revenue growth year-over-year [8][10] - Gross profit margin for Q3 was 58.2%, with an adjusted operating profit margin of 27.9%, up 40 basis points year-over-year [9][10] - Adjusted diluted net earnings per share were $1.89, reflecting a 10% increase year-over-year [10] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6.5%, while core revenue in discovery and medical grew low single digits [14][18] - Bioprocessing core revenue grew high single digits, driven by double-digit growth in consumables, although equipment revenue declined in the high teens year-over-year [15][16] - Core revenue in diagnostics increased by 3.5%, with clinical diagnostics up low single digits and Cepheid's core revenue up mid single digits [19][20] Market Data and Key Metrics Changes - Core revenues in developed markets were up mid single digits, while high growth markets saw low single-digit growth, impacted by a mid single-digit decline in China [8][9] - The company noted a modest recovery in pharma R&D spending, although it remains below historical levels [7][18] Company Strategy and Development Direction - The company is focused on leveraging the Danaher Business System to drive productivity gains and mitigate geopolitical pressures [8][24] - Continued investment in innovation, particularly in digital and artificial intelligence initiatives, is a priority to strengthen long-term competitive positioning [8][10] - The long-term outlook for the biologics market remains healthy, driven by increasing global production of biological medicines, particularly monoclonal antibodies [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong Q3 results and the ability to exceed revenue, earnings, and cash flow expectations [7][10] - The company expects core revenue growth in the low single-digit percentage range for Q4 2025 and maintains its full-year adjusted diluted EPS guidance of $7.70 to $7.80 [21][22] - For 2026, the company anticipates core revenue growth in the 3% to 6% range, assuming modest recovery across end markets [22][23] Other Important Information - The company generated $1.4 billion in free cash flow in Q3 and $3.5 billion year-to-date, resulting in a free cash flow to net income conversion ratio of 146% [10][24] - A new share repurchase program was approved, authorizing the purchase of up to 35 million additional shares of common stock [10][24] Q&A Session Summary Question: What are the expectations for fiscal year 2026? - Management indicated a range of 3% to 6% top-line growth for 2026, with a focus on modest recovery in end markets [27][30] Question: What factors could influence the 3% versus 6% growth? - The company noted that improvements in the market and policy environment would be key to achieving higher growth [28][30] Question: How is the company addressing the challenges in the diagnostics segment, particularly in China? - Management acknowledged a conservative view on diagnostics in China, expecting a manageable headwind of $75 million to $100 million [36][37] Question: What is the outlook for the biotechnology equipment market? - There is cautious optimism for equipment investments, with management noting increased confidence among pharma customers regarding capital investments [45][46] Question: How does the company view capital deployment between M&A and share repurchases? - The company maintains a strong bias towards M&A but is also open to share repurchases when valuations are attractive [81][82]

Financial Data and Key Metrics Changes - Sales for the third quarter were $6.1 billion, with a 3% core revenue growth year-over-year [7] - Gross profit margin was 58.2%, and adjusted operating profit margin increased by 40 basis points to 27.9% year-over-year [8] - Adjusted diluted net earnings per share were $1.89, reflecting a 10% increase year-over-year [8] - Free cash flow generated in the quarter was $1.4 billion, with a year-to-date free cash flow to net income conversion ratio of 146% [9] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6.5% [12] - Core revenue in bioprocessing grew high single digits, driven by strong demand for consumables, while equipment revenue declined in the high teens year-over-year [13] - Core revenue in life sciences decreased by 1%, with consumables facing declines due to lower demand from major customers [16] - Core revenue in diagnostics increased by 3.5%, with significant growth in clinical diagnostics outside of China [18] Market Data and Key Metrics Changes - Core revenues in developed markets were up mid-single digits, while high growth markets saw low single-digit growth, primarily affected by a decline in China [7][8] - The biotechnology and life sciences businesses in China experienced declines due to volume-based procurement and reimbursement policy changes [8] Company Strategy and Development Direction - The company is focused on leveraging the Danaher Business System to drive productivity gains and mitigate geopolitical pressures [6] - Continued investment in innovation, particularly in digital and artificial intelligence initiatives, is a priority to strengthen long-term competitive positioning [6] - The long-term outlook for the biologics market remains healthy, with expectations of strong demand growth for monoclonal antibodies [15] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in pharma R&D spending, although it remains below historical levels [5] - The company expects cautious equipment spending through the remainder of the year due to uncertainties in the policy environment [14] - For 2026, the company anticipates core revenue growth in the range of 3% to 6%, assuming modest recovery across end markets [20][21] Other Important Information - The company deployed approximately $2 billion for share repurchases and announced a new program to buy up to 35 million additional shares [9] - Several new product launches were highlighted, including advancements in bioprocessing and diagnostics [10][12] Q&A Session Summary Question: What are the expectations for fiscal year 2026? - Management indicated a range of 3% to 6% core revenue growth, with a focus on modest recovery in end markets [28][34] Question: What factors could influence the 3% versus 6% growth? - The company highlighted the need for improved market conditions and clarity in investment decisions from customers [34][35] Question: How is the company addressing the challenges in the diagnostics segment, particularly in China? - Management acknowledged a conservative view on the diagnostics business in China, expecting manageable headwinds [43][44] Question: What is the outlook for the biotechnology segment? - The company expects high single-digit growth in bioprocessing, driven by strong demand for monoclonal antibodies [48][49] Question: How does the company view capital deployment between M&A and share repurchases? - There is a strong bias towards M&A, but the company remains open to share buybacks at current levels [94]

Financial Data and Key Metrics Changes - Sales for the third quarter were $6.1 billion, with a core revenue growth of 3% year over year [9] - Adjusted diluted net earnings per share were $1.89, reflecting a 10% increase year over year [10] - Free cash flow generated in the quarter was $1.4 billion, with a year-to-date free cash flow to net income conversion ratio of 146% [10] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6.5%, while core revenue in life sciences decreased by 1% [14][18] - Core revenue in diagnostics increased by 3.5%, with clinical diagnostics showing low single-digit growth outside of China [20] - Bioprocessing core revenue grew in high single digits, driven by strong demand for consumables [15] Market Data and Key Metrics Changes - Core revenues in developed markets were up mid-single digits, while high growth markets saw low single-digit growth, with a mid-single-digit decline in China [9] - Demand from academic and government customers remained soft but stable, impacting life sciences consumables [19] Company Strategy and Development Direction - The company is focused on leveraging the Danaher Business System to drive productivity gains and invest in innovation, particularly in digital and AI initiatives [7][25] - The long-term outlook for the biologics market remains strong, driven by increasing global production of biological medicines [17] - The company is maintaining a strong bias towards M&A while also considering share repurchases as a capital allocation strategy [93] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in pharma R&D spending, although it remains below historical levels [6] - For 2026, the company expects core revenue growth in the range of 3% to 6%, assuming modest recovery across end markets [23] - The company anticipates respiratory revenue at Cepheid to be approximately $1.7 billion in 2026, consistent with expectations for 2025 [24] Other Important Information - The company deployed approximately $2 billion towards share repurchases in the quarter and has authorized an additional buyback program for up to 35 million shares [10] - New product launches in biotechnology and diagnostics are expected to enhance competitive positioning and support customer needs [11][13] Q&A Session Summary Question: Insights on fiscal year 2026 guidance - Management provided context on the 3% to 6% growth range, indicating that a modest recovery in end markets is expected, with bioprocessing growth trends remaining strong [31][35] Question: Concerns regarding China diagnostics and VBP - Management indicated that they are managing headwinds from VBP and expect a modest impact of $75 to $100 million for the next year [44] Question: Equipment recovery in biotechnology - Management noted that while there is increased activity and discussions with pharma customers, actual orders have not yet materialized, leading to a cautious outlook for equipment spending [55] Question: Clarification on diagnostics growth expectations - Management expects mid-single-digit growth for Beckman outside of China and anticipates continued growth in Cepheid's non-respiratory business [57][58] Question: Impact of recent policy changes on capital investment - Management observed increased confidence among pharma executives regarding capital investments due to stabilizing tariffs and workable solutions for policy discussions [76]