Press release·03/03/2025 23:43:02

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

• Revenue increased 13.4% to $905.7 million, driven by strong demand for NMR instruments across academia, government, and biopharma markets, as well as revenue from the Chemspeed acquisition.
• Gross profit margin decreased to 50.1% from 52.6% due to unfavorable mix and foreign exchange impacts.
• Operating income margin decreased to 17.4% from 24.5%, also impacted by the lower gross margins.

BSI CALID Segment

• Revenue increased 13.9% to $1,093.5 million, reflecting strong demand for the company’s microbiology, infection diagnostics, and optics products, partially offset by softness in academia, government, and China markets.
• Gross profit margin decreased to 54.3% from 57.7%, primarily due to the mix impact of acquisitions and unfavorable foreign exchange.
• Operating income margin decreased to 16.5% from 21.8%, driven by the lower gross margins.

BSI NANO Segment

• Revenue increased 16.6% to $1,098.3 million, driven by strong demand in semiconductor metrology as well as revenue from the NanoString and Bruker Cellular acquisitions, partially offset by softer demand from biopharma.
• Gross profit margin decreased to 49.2% from 51.6%, impacted by the mix of acquired businesses.
• Operating income margin decreased significantly to 0.2% from 11.6%, reflecting the lower gross margins.

BEST Segment

• Revenue increased slightly by 0.8% to $283.0 million, with growth in accelerator and fusion technologies offset by softness in clinical MRI superconductors.
• Gross profit margin increased to 21.7% from 18.8%, and operating income margin increased to 12.3% from 11.5%.

Non-GAAP Adjustments and Other Charges

Bruker’s non-GAAP financial measures exclude the impact of certain one-time or non-recurring items, including:

• Restructuring costs
• Acquisition-related costs
• Purchased intangible amortization
• Acquisition-related litigation charges
• Other costs

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

• Allocating transaction prices to multiple performance obligations
• Determining the timing of revenue recognition, particularly for customized systems or services
• Assessing the collectability of receivables

Income Taxes

• Estimating the realizability of deferred tax assets
• Determining liabilities for uncertain tax positions

Business Combinations

• Measuring the fair value of acquired assets and liabilities
• Assessing the recoverability of goodwill and intangible assets

Impairment

• Evaluating the recoverability of goodwill and indefinite-lived intangible assets

Market Risks

Bruker is exposed to various market risks, including:

Foreign Currency Risk

• A significant portion of Bruker’s revenue is generated outside the United States, primarily in Europe and Asia, exposing the company to fluctuations in foreign exchange rates.
• If the U.S. dollar strengthens against other currencies, it could make Bruker’s products less competitive in markets where business is transacted in local currencies.

Interest Rate Risk

• Bruker has $2.1 billion in total outstanding debt, which exposes the company to interest rate fluctuations.

Commodity Price Risk

• Bruker’s operations are affected by changes in the prices of certain raw materials and components, such as copper.

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.