Bio-Techne (TECH) Q4 2024 earnings summary

Executive summary

• Fourth quarter organic revenue grew 1% (2% reported) to $306.1 million, with full year organic revenue up 1% (2% reported) to $1.2 billion amid challenging funding and market conditions.

• Four growth verticals—proteomics, cell and gene therapy, spatial biology, and molecular diagnostics—drove performance, enabling outperformance versus peers.

• End markets showed stabilization, with biopharma and academia declining low single digits, and China continuing its recovery.

• Diagnostics & Genomics segment delivered 9% organic growth (15% reported) in Q4 and 6% organic (12% reported) for the year.

• The company remains confident in its differentiated portfolio and expects to benefit from market normalization.

Financial highlights

• Q4 revenue was $306.1 million, up 2% year-over-year reported and 1% organic; full year net sales up 2% to $1.2 billion.

• Adjusted EPS was $0.49 (down from $0.55), GAAP EPS was $0.25 (down from $0.47) year-over-year.

• Adjusted gross margin was 71.1% (down 50 bps), adjusted operating margin was 33.5% (down 360 bps year-over-year, up 50 bps sequentially).

• Cash from operations was $75.5 million in Q4 and $299.0 million for FY2024, up 18% year-over-year.

• Q4 GAAP operating income fell 52% to $45.8 million; GAAP operating margin dropped to 15.0% from 31.4%.

Outlook and guidance

• Fiscal 2025 expected to be a year of gradual recovery, with low single-digit growth in the first half and potential acceleration to high single digits in the second half.

• Adjusted operating margin for FY25 will face a 100 bps headwind from incentive compensation reinstatement, with margins improving in the second half.

• Long-term objectives remain double-digit growth and adjusted operating margins above 35%.

• Management expects continued outperformance as life science research end-markets stabilize and return to historical growth rates.