Cencora (COR) Q4 2024 earnings summary

Executive summary

• Delivered strong fiscal 2024 results with adjusted diluted EPS up 14.8% to $13.76 and Q4 adjusted EPS up 16.8% to $3.34 year-over-year, driven by U.S. Healthcare Solutions and specialty product sales.

• Announced acquisition of Retina Consultants of America (RCA), expanding MSO and specialty capabilities.

• Leadership transition with Bob Mauch as CEO and Steve Collis as Executive Chairman.

• Continued investments in distribution infrastructure, technology, automation, and ESG initiatives to support innovation and operational efficiency.

Financial highlights

• Q4 consolidated revenue reached $79.1 billion, up 14.7% year-over-year; full-year revenue was $294.0 billion, up 12.1%.

• Q4 adjusted operating income rose 6.3% to $851 million; full-year adjusted operating income up 10.9% to $3.6 billion.

• Q4 gross profit was $2.5 billion, up 10.6%, with adjusted gross margin at 3.10%, down 24 basis points year-over-year.

• Q4 net interest expense decreased 66% to $21 million, aided by higher investment income and lower borrowings.

• Adjusted free cash flow reached $3.1 billion; $1.5 billion in share repurchases completed.

Outlook and guidance

• Fiscal 2025 adjusted diluted EPS expected in the range of $14.80–$15.10, representing 8%–10% growth.

• Revenue growth projected at 7%–9% and adjusted operating income growth at 5%–6.5% for both segments.

• Guidance excludes impact of RCA acquisition, which will be incorporated post-close.

• Adjusted free cash flow expected between $2.0 billion and $3.0 billion; capital expenditures around $600 million.

• Weighted average diluted shares outstanding expected at approximately 196 million.