Bruker Corporation, a Delaware-based company, filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The company reported total revenue of $1.43 billion, a 10% increase from the previous year. Net income was $243 million, a 15% increase from the previous year. The company’s gross margin was 54.1%, and its operating margin was 18.5%. As of December 31, 2024, the company had cash and cash equivalents of $543 million and total debt of $1.23 billion. The company’s market value was $6.64 billion as of June 28, 2024. The report also includes information on the company’s executive compensation, corporate governance, and other matters.
Overview of Bruker’s Financial Performance
Bruker Corporation is a leading developer, manufacturer, and distributor of high-performance scientific instruments and analytical solutions. The company operates four main business segments: the Bruker Scientific Instruments (BSI) BioSpin Segment, the BSI CALID Segment, the BSI NANO Segment, and the Bruker Energy & Supercon Technologies (BEST) Segment.
In the fiscal year ended December 31, 2024, Bruker made several strategic acquisitions, including ELITechGroup, NanoString, and Chemspeed. These acquisitions have enabled Bruker to expand its capabilities in areas like molecular diagnostics, life science analytical instruments, and lab automation.
Consolidated Financial Results
Bruker’s consolidated revenue for the year ended December 31, 2024, was $3,366.4 million, up 13.6% from the prior year. This revenue growth was driven by strong demand for the company’s differentiated instruments and solutions, as well as contributions from recent acquisitions.
Metric | 2024 | 2023 |
---|---|---|
Revenue | $3,366.4 million | $2,964.5 million |
Revenue Growth Rate | 13.6% | 17.1% |
Gross Profit | $1,649.5 million | $1,513.3 million |
Gross Profit Margin | 49.0% | 51.0% |
Operating Income | $253.1 million | $436.9 million |
Operating Income Margin | 7.5% | 14.7% |
Net Cash Provided by Operating Activities | $251.3 million | $350.1 million |
The company’s non-GAAP measures, which exclude the impact of certain one-time or non-recurring items, provide additional insight into Bruker’s financial performance:
Non-GAAP Metric | 2024 | 2023 |
---|---|---|
Constant-exchange rate (CER) Currency Revenue | $3,379.5 million | $2,953.3 million |
CER Currency Revenue Growth Rate | 14.0% | 16.7% |
Non-GAAP Gross Profit | $1,736.9 million | $1,547.6 million |
Non-GAAP Gross Profit Margin | 51.6% | 52.2% |
Non-GAAP Operating Income | $518.0 million | $546.3 million |
Non-GAAP Operating Income Margin | 15.4% | 18.4% |
Non-GAAP Free Cash Flow | $136.0 million | $243.2 million |
The decrease in non-GAAP operating margins in 2024 was primarily due to lower margin mix and increased costs related to the 2024 acquisitions. The company’s free cash flow also declined year-over-year, mainly due to lower net income and significant acquisition-related expenses.
Segment Performance
Bruker’s four reportable segments performed as follows:
BSI BioSpin Segment
BSI CALID Segment
BSI NANO Segment
BEST Segment
Non-GAAP Adjustments and Other Charges
Bruker’s non-GAAP financial measures exclude the impact of certain one-time or non-recurring items, including:
These non-GAAP adjustments totaled $264.9 million in 2024, up from $97.4 million in 2023, primarily due to increased acquisition-related costs and litigation charges.
Liquidity and Capital Resources
Bruker ended 2024 with $183.4 million in cash and cash equivalents, down from $488.3 million at the end of 2023. This decrease was primarily due to $1,599.6 million in cash used for acquisitions, $115.3 million in capital expenditures, and $48.3 million in minority investments, partially offset by $973.7 million in proceeds from long-term debt and $403.0 million from a public offering of common stock.
The company’s net cash provided by operating activities was $251.3 million in 2024, down from $350.1 million in 2023, mainly due to lower net income and higher working capital requirements.
Bruker has a $900 million revolving credit facility, of which $872.2 million was undrawn as of December 31, 2024. The company also has $2.1 billion in total outstanding debt.
Critical Accounting Policies and Estimates
Bruker’s critical accounting policies and estimates include:
Revenue Recognition
Income Taxes
Business Combinations
Impairment
Market Risks
Bruker is exposed to various market risks, including:
Foreign Currency Risk
Interest Rate Risk
Commodity Price Risk
The company selectively uses financial instruments to mitigate these market risks.
Outlook
Bruker’s financial performance in 2024 was impacted by a mix of positive and negative factors. The company’s revenue growth was driven by strong demand for its differentiated products and contributions from recent acquisitions, but profitability was pressured by unfavorable margin mix, increased costs related to acquisitions, and unfavorable foreign exchange movements.
Going forward, Bruker will need to effectively integrate its recent acquisitions, manage supply chain challenges, and navigate a potentially more challenging macroeconomic environment. The company’s ability to maintain its technological edge, control costs, and capitalize on growth opportunities in its key markets will be critical to its future success.