Danaher (DHR) Q4 2024 earnings summary

Executive summary

• 2024 ended with stronger-than-expected core revenue in all segments, driven by bioprocessing and life sciences instruments momentum, with portfolio transformation creating a focused life sciences and diagnostics innovator.

• Q4 2024 revenue grew 2.0% year-over-year to $6.54B, with core growth of 1.0%; full-year revenue was flat at $23.9B, with core sales down 1.5%.

• Adjusted operating profit margin rose 90 bps to 29.6% in Q4, and was 28.6% for the full year; adjusted diluted EPS was $2.14 in Q4 and $7.48 for FY 2024.

• Free cash flow for 2024 was $5.3 billion, with a free cash flow to net income conversion ratio of ~135%.

• Operating cash flow for 2024 was $6.7 billion, up 3% year-over-year.

Financial highlights

• Q4 adjusted operating profit was $1.93B, up from $1.84B in Q4 2023; FY adjusted operating profit was $6.84B, nearly flat year-over-year.

• Q4 gross profit margin was 59.5%, up 50 bps year-over-year; full year gross margin was 59.5%.

• Q4 adjusted EBITDA margin was 32.4%; FY 2024 adjusted EBITDA margin was 31.7%.

• Q4 net earnings from continuing operations were $1.09B (16.6% margin); full year net earnings were $3.9B.

• Q4 operating cash flow increased 27% to $2.0B; Q4 free cash flow up 29.5% to $1.5B.

Outlook and guidance

• Full year 2025 core revenue expected to increase approximately 3% year-over-year, with a 2% headwind from USD strengthening.

• Full-year 2025 adjusted operating profit margin expected at ~28.5%.

• Q1 2025 core revenue expected to decline low single digits year-over-year; Q1 adjusted operating profit margin ~26.5%.

• Bioprocessing expected to deliver 6%-7% core growth in 2025, consistent with Q4 2024.

• Life Sciences segment expected to start slow in Q1 due to tough comps, with improvement each quarter.