Danaher Reports First Quarter 2025 Results
Danaher (NYSE: DHR) has reported its Q1 2025 financial results, with net earnings of $1.0 billion ($1.32 per diluted share) and non-GAAP adjusted diluted earnings of $1.88 per share. Revenues saw a slight decrease of 1.0% to $5.7 billion, while non-GAAP core revenue remained flat year-over-year. The company generated strong cash flows with operating cash flow of $1.3 billion and non-GAAP free cash flow of $1.1 billion.
Looking ahead, Danaher expects low-single-digit core revenue growth for Q2 2025 and maintains its full-year 2025 core revenue growth projection of approximately 3%. The company has initiated full-year adjusted diluted earnings guidance of $7.60 to $7.75 per share.
Danaher (NYSE: DHR) ha comunicato i risultati finanziari del primo trimestre 2025, con un utile netto di 1,0 miliardi di dollari (1,32 dollari per azione diluita) e un utile diluito rettificato non-GAAP di 1,88 dollari per azione. I ricavi hanno registrato una leggera diminuzione dell'1,0% attestandosi a 5,7 miliardi di dollari, mentre i ricavi core rettificati non-GAAP sono rimasti stabili rispetto all'anno precedente. L'azienda ha generato flussi di cassa solidi con un flusso di cassa operativo di 1,3 miliardi di dollari e un flusso di cassa libero non-GAAP di 1,1 miliardi di dollari.
Guardando al futuro, Danaher prevede una crescita dei ricavi core a una cifra bassa per il secondo trimestre 2025 e conferma la previsione di crescita dei ricavi core per l'intero 2025 intorno al 3%. La società ha inoltre avviato una guida sugli utili diluiti rettificati per l'intero anno compresa tra 7,60 e 7,75 dollari per azione.
Danaher (NYSE: DHR) ha presentado sus resultados financieros del primer trimestre de 2025, con ganancias netas de 1.000 millones de dólares (1,32 dólares por acción diluida) y ganancias diluidas ajustadas no-GAAP de 1,88 dólares por acción. Los ingresos disminuyeron ligeramente un 1,0% hasta 5.700 millones de dólares, mientras que los ingresos principales ajustados no-GAAP se mantuvieron estables respecto al año anterior. La compañía generó fuertes flujos de efectivo con un flujo operativo de efectivo de 1.300 millones de dólares y un flujo de caja libre no-GAAP de 1.100 millones de dólares.
De cara al futuro, Danaher espera un crecimiento de ingresos principales de un dígito bajo para el segundo trimestre de 2025 y mantiene su proyección de crecimiento de ingresos principales para todo el año 2025 en aproximadamente un 3%. La empresa ha iniciado una guía de ganancias diluidas ajustadas para todo el año de 7,60 a 7,75 dólares por acción.
Danaher (NYSE: DHR)는 2025년 1분기 재무 실적을 발표했으며, 순이익은 10억 달러 (희석 주당 1.32달러), 비-GAAP 조정 희석 주당순이익은 1.88달러를 기록했습니다. 매출은 1.0% 소폭 감소하여 57억 달러를 기록했으며, 비-GAAP 핵심 매출은 전년 대비 변동이 없었습니다. 회사는 13억 달러의 영업 현금 흐름과 11억 달러의 비-GAAP 자유 현금 흐름을 창출했습니다.
앞으로 Danaher는 2025년 2분기에 낮은 한 자릿수 핵심 매출 성장률을 예상하며, 2025년 전체 핵심 매출 성장률을 약 3%로 유지할 계획입니다. 또한 연간 조정 희석 주당순이익 가이던스를 7.60달러에서 7.75달러로 제시했습니다.
Danaher (NYSE : DHR) a publié ses résultats financiers du premier trimestre 2025, avec un bénéfice net de 1,0 milliard de dollars (1,32 dollar par action diluée) et un bénéfice dilué ajusté non-GAAP de 1,88 dollar par action. Les revenus ont légèrement diminué de 1,0 % pour atteindre 5,7 milliards de dollars, tandis que les revenus de base ajustés non-GAAP sont restés stables d'une année sur l'autre. L'entreprise a généré des flux de trésorerie solides avec un flux de trésorerie opérationnel de 1,3 milliard de dollars et un flux de trésorerie libre non-GAAP de 1,1 milliard de dollars.
Pour l'avenir, Danaher prévoit une croissance des revenus de base à un chiffre faible pour le deuxième trimestre 2025 et maintient sa projection de croissance des revenus de base pour l'ensemble de l'année 2025 à environ 3 %. La société a lancé une prévision de bénéfice dilué ajusté pour l'année complète comprise entre 7,60 et 7,75 dollars par action.
Danaher (NYSE: DHR) hat seine Finanzergebnisse für das erste Quartal 2025 veröffentlicht, mit einem Nettogewinn von 1,0 Milliarden US-Dollar (1,32 US-Dollar je verwässerter Aktie) und einem nicht-GAAP bereinigten verwässerten Gewinn von 1,88 US-Dollar je Aktie. Die Umsätze gingen leicht um 1,0 % auf 5,7 Milliarden US-Dollar zurück, während die nicht-GAAP Kernumsätze im Jahresvergleich stabil blieben. Das Unternehmen generierte starke Cashflows mit einem operativen Cashflow von 1,3 Milliarden US-Dollar und einem nicht-GAAP freien Cashflow von 1,1 Milliarden US-Dollar.
Für die Zukunft erwartet Danaher ein Kernumsatzwachstum im niedrigen einstelligen Bereich für das zweite Quartal 2025 und bestätigt die Prognose für das gesamte Jahr 2025 mit einem Kernumsatzwachstum von etwa 3 %. Das Unternehmen hat eine Jahresprognose für den bereinigten verwässerten Gewinn von 7,60 bis 7,75 US-Dollar je Aktie abgegeben.
- Strong cash flow generation with $1.3B operating cash flow
- Bioprocessing segment shows continued momentum
- Better-than-expected respiratory demand in molecular diagnostics
- Q1 results exceeded company expectations
- Maintained positive full-year guidance of 3% core revenue growth
- 1.0% year-over-year revenue decline to $5.7B
- Flat non-GAAP core revenue growth
- More dynamic (challenging) macro environment noted since year start
Insights
Danaher reports quarterly results exceeding internal targets despite 1% revenue decline, maintains full-year guidance amid "dynamic" macro environment.
Danaher's Q1 2025 performance presents a mixed but generally stable picture. The company reported net earnings of
Cash flow generation remains a bright spot, with
Looking forward, Danaher maintained its full-year 2025 core revenue growth outlook of approximately
The contrast between current flat core growth and projected
This appears to be a quarter of resilience rather than robust growth, with the company's strong cash generation and maintained outlook balancing the current growth stagnation.
Key First Quarter 2025 Results
- Net earnings were
$1.0 billion $1.32 $1.88 - Revenues decreased
1.0% to$5.7 billion - Operating cash flow was
$1.3 billion $1.1 billion
Rainer M. Blair, President and Chief Executive Officer, stated, "Revenue, earnings, and cash flow exceeded our expectations in the first quarter–highlighted by continued momentum in bioprocessing and better-than-expected respiratory demand in our molecular diagnostics business. Our team also continued to execute very well, leveraging the Danaher Business System to accelerate innovation, drive share gains, and deliver meaningful productivity improvements."
Blair continued, "While the macro backdrop has become more dynamic since the start of the year, it's in times like these that Danaher's positioning and capabilities truly stand out. We believe that the combination of our team's DBS-driven execution, resilient portfolio and strong balance sheet will continue to differentiate Danaher in 2025 and beyond."
Second Quarter and Full Year 2025 Outlook
The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines. In addition, we do not reconcile forecasted adjusted diluted net earnings per common share (or components thereof) to the comparable GAAP measure because of the difficulty in estimating the other components (in addition to the items identified in the prior sentence) that would be reflected in any forecasted GAAP diluted net earnings per common share, such as investment gains and losses and discrete tax items.
For the second quarter 2025, the Company anticipates that non-GAAP core revenue will grow low-single digits year-over-year. For full year 2025, there is no change to the Company's expectation that non-GAAP core revenue will grow approximately
Conference Call and Webcast Information
Danaher will discuss its first quarter results and financial guidance for the second quarter and full year 2025 during its investor conference call today starting at 8:00 a.m. ET. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available in the same section of Danaher's website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing 800-245-3047 within the
ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Our businesses partner closely with customers to solve many of the most important health challenges impacting patients around the world. Danaher's advanced science and technology - and proven ability to innovate - help enable faster, more accurate diagnoses and help reduce the time and cost needed to sustainably discover, develop and deliver life-changing therapies. Focused on scientific excellence, innovation and continuous improvement, our approximately 63,000 associates worldwide help ensure that Danaher is improving quality of life for billions of people today, while setting the foundation for a healthier, more sustainable tomorrow. Explore more at www.danaher.com.
NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS
In addition to the financial measures prepared in accordance with
In addition, our Quarterly Report on Form 10-Q for the first quarter of 2025, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Danaher's website (www.danaher.com).
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, including the statements regarding the Company's anticipated financial results for the second quarter and full year 2025, momentum in the bioprocessing business, the Company's positioning for the future and anticipated differentiation and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: the impact of tariffs and related actions recently implemented by the
DANAHER CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (unaudited) | |||
Three-Month Period Ended | |||
March 28, 2025 | March 29, 2024 | ||
Sales | $ 5,741 | $ 5,796 | |
Cost of sales | (2,230) | (2,309) | |
Gross profit | 3,511 | 3,487 | |
Operating costs: | |||
Selling, general and administrative expenses | (1,858) | (1,807) | |
Research and development expenses | (379) | (368) | |
Operating profit | 1,274 | 1,312 | |
Nonoperating income (expense): | |||
Other income (expense), net | (79) | (36) | |
Interest expense | (72) | (65) | |
Interest income | 6 | 60 | |
Earnings before income taxes | 1,129 | 1,271 | |
Income taxes | (175) | (183) | |
Net earnings | $ 954 | $ 1,088 | |
Net earnings per common share: | |||
Basic | $ 1.33 | $ 1.47 | |
Diluted | $ 1.32 | $ 1.45 | |
Average common stock and common equivalent shares outstanding: | |||
Basic | 716.3 | 740.6 | |
Diluted | 720.8 | 748.6 | |
This information is presented for reference only. A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website (www.danaher.com). |
DANAHER CORPORATION | |||
Diluted Net Earnings Per Common Share and Adjusted Diluted Net Earnings Per Common Share | |||
Three-Month Period Ended | |||
March 28, 2025 | March 29, 2024 | ||
Diluted Net Earnings Per Common Share (GAAP) | $ 1.32 | $ 1.45 | |
Amortization of acquisition-related intangible assetsA | 0.57 | 0.54 | |
Fair value net (gains) losses on investmentsB | 0.12 | 0.05 | |
ImpairmentsC | 0.02 | — | |
Gain on a product line dispositionD | (0.01) | — | |
Acquisition-related itemsE | — | 0.03 | |
Tax effect of the above adjustmentsF | (0.13) | (0.11) | |
Discrete tax adjustmentsG | (0.01) | (0.05) | |
Rounding | — | 0.01 | |
Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $ 1.88 | $ 1.92 | |
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures | |
A | Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): |
Three-Month Period Ended | |||
March 28, 2025 | March 29, 2024 | ||
Pretax | $ 410 | $ 407 | |
After-tax | 340 | 336 | |
B | Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above): |
Three-Month Period Ended | |||
March 28, 2025 | March 29, 2024 | ||
Pretax | $ 90 | $ 37 | |
After-tax | 68 | 28 | |
C | Impairment charges related to a facility in the Biotechnology segment recorded in the three-month period ended March 28, 2025 ( |
D | Gain on a product line disposition in the three-month period ended March 28, 2025 ( |
E | Costs incurred for the fair value adjustment to inventory related to the acquisition of Abcam plc for the three-month period ended March 29, 2024 ( |
F | This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of each adjustment item by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
G | Discrete tax adjustments and other tax-related adjustments for the three-month period ended March 28, 2025, include the impact of net discrete tax benefits of |
Sales (Decline) Growth by Segment and Core Sales Growth (Decline) by Segment | |||||||
% Change Three-Month Period Ended March 28, 2025 vs. Comparable 2024 Period | |||||||
Segments | |||||||
Total Company | Biotechnology | Life Sciences | Diagnostics | ||||
Total sales (decline) growth (GAAP) | (1.0) % | 6.0 % | (3.5) % | (3.0) % | |||
Impact of: | |||||||
Acquisitions/divestitures | (0.5) % | — % | (2.0) % | 0.5 % | |||
Currency exchange rates | 1.5 % | 1.0 % | 1.5 % | 1.0 % | |||
Core sales growth (decline) (non-GAAP) | — % | 7.0 % | (4.0) % | (1.5) % | |||
Forecasted Core Sales Growth and Adjusted Diluted Net Earnings Per Common Share | |||
% Change Three- | % Change Year | ||
Core sales growth (non-GAAP) | +Low-single digit | ~ | |
Year Ending December 31, 2025 | ||
Adjusted diluted net earnings per common share (non-GAAP) |
Cash Flow and Free Cash Flow ($ in millions) | |||
Three-Month Period Ended | |||
March 28, 2025 | March 29, 2024 | ||
Total Cash Flow: | |||
Net cash provided by operating activities (GAAP) | $ 1,299 | $ 1,739 | |
Total cash used in investing activities (GAAP) | $ (242) | $ (321) | |
Total cash used in financing activities (GAAP) | $ (1,255) | $ (133) | |
Free Cash Flow: | |||
Net cash provided by operating activities (GAAP) | $ 1,299 | $ 1,739 | |
Less: payments for additions to property, plant & equipment (capital expenditures) | (245) | (291) | |
Plus: proceeds from sales of property, plant & equipment (capital disposals) | 6 | — | |
Free cash flow (non-GAAP) | $ 1,060 | $ 1,448 | |
We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of plant, property and equipment ("capital disposals"). |
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation's ("Danaher" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:
- with respect to Adjusted Diluted Net Earnings Per Common Share, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
- with respect to core sales, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
- with respect to free cash flow (the "FCF Measure"), understand Danaher's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's debt service requirements and other non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).
Management uses the non-GAAP measures referenced above to measure the Company's operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share and the FCF Measure in the Company's executive compensation program.
The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
- With respect to Adjusted Diluted Net Earnings Per Common Share:
- Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
- Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Danaher Business System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Danaher's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
- Other Adjustments: With respect to the other items excluded from Adjusted Diluted Net Earnings Per Common Share, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Danaher's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to core sales, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to the FCF Measure, we deduct payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.
The Company provides forecasted sales only on a non-GAAP core revenue basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines. The Company does not reconcile forecasted adjusted diluted net earnings per common share (or components thereof) to the comparable GAAP measure because of the difficulty in estimating the other components (in addition to items identified in the prior sentence) that would be reflected in any forecasted GAAP diluted net earnings per common share, such as investment gains and losses and discrete tax items.
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SOURCE Danaher Corporation
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