QuidelOrtho (QDEL) investor relations material

Key financial and strategic highlights

• Achieved two consecutive quarters of strong margin improvement, with over 400 basis points increase year-over-year to start 2025.

• Announced closure of a major manufacturing facility in New Jersey, expected to further enhance operating margins in coming years.

• Pivoted molecular product development from Savannah to Lex, aiming for faster, lower-risk menu expansion and higher margins.

• Base business, including labs and immunohematology, continues to deliver mid-single-digit growth as projected.

• COVID revenue declines have largely stabilized, with future revenues expected to be consistent and predictable.

Business segment performance and growth drivers

• Lab strategy focuses on small to mid-size hospitals, leveraging integrated analyzers for both chemistry and immunoassays.

• Automation and integrated analyzers are driving high single to low double-digit growth in installed base, with significant runway remaining.

• Immunoassay growth opportunities are strongest in emerging markets like Latin America, Asia Pacific, and Eastern Europe.

• Molecular business to expand with Lex, targeting respiratory and women's health panels, with limited cannibalization of existing products.

• Transfusion medicine is shifting focus to immunohematology as donor screening winds down, removing a revenue headwind by early 2026.

Operational initiatives and margin improvement

• Significant cost reductions achieved through a 9% workforce reduction and indirect procurement savings of $30–50 million.

• Direct procurement and facility closure in 2027 expected to drive EBITDA margin from 19.5% in 2024 to mid-high 20% by 2027.

• Debt refinancing has improved financial flexibility, with staggered maturities and friendlier covenants.

• Leverage ratio expected to return to 2.5–3.5x by early 2027, in line with margin improvement timeline.