Bruker (BRKR) Stifel 2024 Healthcare Conference summary

Growth performance and outlook

• Achieved 3.8% organic revenue growth in Q3 2024, outperforming peers and maintaining a two-year stack in line with medium-term guidance.

• 2024 growth projected at 4%, with challenging comps from prior years; expectation to remain 200–300 basis points above market.

• Growth outlook for 2025 is 3–4% organic, with potential upside from China stimulus and biopharma recovery.

• Semi metrology and industrial cleantech segments are performing well and provide additional tailwinds.

Biopharma and end market trends

• Biopharma exposure is 15–20%, with a target to increase to 20–25% through acquisitions and focus on drug discovery.

• Biopharma market remains soft, with no expected snapback until possibly late 2025; focus remains on high-end discovery instruments.

• Uptake of high-end proteomics instruments like timsTOF is strong, but overall biopharma recovery is expected to be gradual.

China market and stimulus impact

• China accounts for just under 15% of revenue; about two-thirds of 2024 guidance revision attributed to China softness.

• Tariff impacts remain uncertain, but past experience and unique product positioning provide resilience.

• Early signs of stimulus activity in China, especially in BioSpin, with expected order conversion in Q4 2024 or Q1 2025, impacting H2 2025 and possibly 2026.

• Both large and benchtop NMR systems, as well as software and automation, are expected to benefit from stimulus and industrial demand.