Financial Data and Key Metrics Changes - In the first quarter, sales grew 4% as reported and 7% in constant currency, landing at the high end of guidance [11][26] - Earnings per share (EPS) reached $2.25 on a non-GAAP basis, reflecting low single-digit growth and high single-digit growth in constant currency terms [12][29] - GAAP EPS was $2.03, with gross margin at 58.2% and adjusted operating margin at 25.5% [29][37] Business Line Data and Key Metrics Changes - Instrument sales grew 11%, driven by mid-teens growth in both liquid chromatography and mass spectrometry, particularly in pharma and industrial end markets [12][27] - Recurring revenue increased mid-single digits, consistent with expectations for a quarter with two fewer days [12][28] - The chemistry consumables business saw MaxPeak Premier columns grow more than 30% [16] Market Data and Key Metrics Changes - In China, sales grew 5%, led by double-digit growth in industrial and academic/government applications [12][27] - Asia grew 13% overall, with China specifically growing 5%, while the Americas grew 6% and Europe grew low single digits [27] - The pharma segment saw double-digit growth in Asia and the Americas, with 3% growth in Europe [26] Company Strategy and Development Direction - The company is focused on three guiding principles: staying close to customers, enhancing competitive position through innovation, and supporting employees [10] - The company raised its full-year constant currency sales growth guidance to 5% to 7% due to better-than-expected first-quarter performance [22][33] - The company is well-positioned to benefit from US pharma reshoring initiatives and tariff-related capacity shifts [21][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 objectives despite recent tariffs, with no expected impact on original EPS guidance [38][40] - The company anticipates high single-digit earnings growth this year, supported by strong sales volume and favorable foreign exchange movements [11][25] - Management noted that the pharma industry remains attractive, with strong innovation and customer spending [52][72] Other Important Information - The company established a cross-functional task force to assess tariff exposure and implement mitigation plans, limiting the net impact of tariffs to a modest $10 million on adjusted operating margin for 2025 [24][36] - Free cash flow for the first quarter was $234 million, representing 35% of sales, with a net debt position of approximately $1.1 billion [30][31] Q&A Session Summary Question: Can you discuss the replacement cycle dynamics in pharma biotech? - Management noted strong double-digit growth in instruments, particularly in large pharma, with the replacement cycle well underway [46] Question: Have you seen any change in behavior related to tariffs from pharma customers? - Management indicated no significant change in behavior, with strong momentum continuing through the quarter [51] Question: What are your expectations for pricing this year? - Management expects 200 basis points of like-for-like pricing gains, with additional surcharges related to tariffs contributing another 50 basis points [57][59] Question: How do you view the growth in India? - Management reported close to 20% revenue growth in India, driven by strong demand from generics manufacturers [19][62] Question: What is the impact of tariffs on your supply chain? - Management detailed that the gross impact of tariffs is $45 million, with various mitigation strategies already in place [66][70] Question: What is the outlook for the academic and government segment? - Management indicated that this segment is small, accounting for about 3% of total revenue, and has been adjusted for a significant decline for the rest of the year [85][87]