Danaher (DHR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 3.0% year-over-year to $5.8 billion, with core revenue up 0.5% and acquisitions contributing 2.5%.

• Net earnings from continuing operations were $818 million, with diluted EPS of $1.12 and adjusted diluted EPS of $1.71, nearly flat year-over-year.

• Free cash flow was $1.2 billion for Q3, up 12% year-over-year, and $3.8 billion year-to-date.

• Bioprocessing and Cepheid delivered strong performance, while portfolio transformation and acquisitions strengthened the life sciences and diagnostics focus.

• Net earnings declined year-over-year due to a $222 million impairment charge in Life Sciences and higher operating expenses.

Financial highlights

• Q3 2024 sales were $5.8 billion (up 3.0% year-over-year); gross profit margin was 58.7%; adjusted operating profit margin was 27.5%.

• Net earnings from continuing operations were $818 million, with a margin of 14.1%.

• Adjusted EBITDA margin was 30.5% in Q3 2024.

• Free cash flow to net income conversion ratio was 135% year-to-date.

• Operating cash flow for Q3 was $1.5 billion; cash and equivalents at quarter end were $2.6 billion.

Outlook and guidance

• Core revenue is expected to decline low single digits for Q4 and full year 2024; adjusted operating profit margin projected at approximately 29%–30%.

• Gradual recovery in bioprocessing and life sciences is expected to continue into 2025, pending Q4 trends and China stimulus impact.

• Effective tax rate for the remainder of 2024 projected at approximately 17.5%.