Bruker (BRKR) investor relations material

Executive summary

• Q2 2025 organic revenue declined 7% year-over-year, with reported revenue down 0.4% to $797.4M, driven by weak demand in biopharma, industrial, and academic markets, and impacted by tariffs and FX headwinds.

• Non-GAAP EPS fell 38.5% to $0.32, and operating margin dropped to 9% due to lower revenue, tariffs, and restructuring costs.

• Major cost reduction initiatives announced, targeting $100M–$120M in annualized savings by FY26, with most benefits expected in FY26.

• FY25 guidance lowered: flat constant currency revenue, 2–4% organic revenue decline, and non-GAAP EPS down 15–19% year-over-year.

• Acquisitions and new product launches in proteomics and metabolomics supported revenue growth and competitive positioning.

Financial highlights

• Q2 2025 reported revenue: $797.4M, down 0.4% year-over-year; organic revenue down 7%.

• Q2 2025 non-GAAP operating margin: 9%, down 480 bps year-over-year; gross margin: 44.9% (GAAP), down from 48.0%.

• Q2 2025 non-GAAP EPS: $0.32, down 38.5% from $0.52 in Q2 2024; GAAP EPS flat at $0.05.

• First half 2025 revenues up 5% to $1.6B, but organic revenue declined 2.3%.

• Free cash outflow for H1 2025 was $(109.8)M, mainly due to tax timing, lower advances, and higher CapEx.

Outlook and guidance

• FY25 revenue expected at $3.43B–$3.5B, with organic revenue down 2–4% and reported growth of 2–4% from acquisitions and FX tailwinds.

• FY25 non-GAAP EPS guidance: $1.95–$2.05, down 15–19% year-over-year; midpoint lowered from prior guidance.

• Operating margin for FY25 expected to decline by ~210 bps, with FX and tariffs as key headwinds.

• FY26 expected to deliver ~300 bps margin improvement and double-digit EPS growth from cost reductions, even if revenue remains flat.

• Additional restructuring charges expected in Q3 and Q4 2025, with cost-saving activities to be completed by 2026.