Bruker (BRKR) Goldman Sachs 45th Annual Global Healthcare Conference summary

Financial performance and outlook

• Achieved three consecutive years of double-digit organic growth, with 2024 guidance at 5%-7% organic growth, outpacing industry trends.

• Medium-term guidance targets 6%-8% organic growth for 2025-2027, assuming market recovery.

• EPS is projected to grow 15%+ annually from 2025 to 2027, supported by acquisitions and core business strength.

• Aftermarket revenue is expected to rise from 27% to 35% of total revenue by 2027, driven by consumables and diagnostics.

• Backlog remains elevated at 7.5 months, normalizing over the next two years, reflecting strong bookings.

Strategic acquisitions and market positioning

• Recent acquisitions, including NanoString and ELITech, expand capabilities in spatial biology and diagnostics, enhancing recurring revenue.

• Integration of Biognosys and PreOmics strengthens automation, consumables, and software in proteomics.

• Spatial biology strategy now includes transcriptomics and genomics, with a comprehensive product and service offering.

• Diagnostics business, now 15%-20% of revenue, leverages ELITech’s sample-to-answer systems and MALDI Biotyper platform.

• Focus on high-growth, niche markets in the post-genomic era, aiming for leadership in proteomics and spatial biology.

End markets and geographic trends

• Academic and government markets represent about 40% of revenue, with a shift toward medical center research funding.

• U.S. academic funding is healthy but only 25% of the global market; strong trends in Europe, China, and Japan.

• China stimulus expected to impact revenues from 2025 onward, favoring large academic projects and innovation-driven spending.

• Current activity in China is high, with significant planning for large-scale instrument purchases.

• Semiconductor metrology tools now comprise 8% of revenue, supporting AI and high-performance computing growth.