IDEXX Laboratories (IDXX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $954M, up 6% year-over-year, with net profit of $262M and diluted EPS of $2.62; full year revenue was $3,898M–$3.90B, up 6%, and EPS was $10.67.

• CAG Diagnostics recurring revenue grew 7% organically in Q4 and full year, with strong performance in consumables, software, and premium instrument placements.

• Major product launches included IDEXX InVue DX and IDEXX Cancer DX, with strong customer interest and nearly 1,600 preorders for InVue DX by year-end.

• Customer retention remained high, with over 97% retention rates and double-digit international growth, especially in Europe and Asia-Pacific.

• Growth supported by net customer gains, high diagnostic intensity per visit, and new business formation.

Financial highlights

• Q4 organic revenue growth was 6%, with CAG up 6%–7%, LPD up 7%–9%, and water up 8%–9%.

• Q4 operating margin was 27%–27.4%; full year margin was 29%, up 60 bps on a comparable basis.

• Q4 EPS was $2.62, up 10%–13% on a comparable basis; full year EPS was $10.67, up 12% on a comparable basis.

• Free cash flow for 2024 was $808M (91% of net income); $849M–$859M allocated to share repurchases.

• Gross margin for Q4: 59.8%, up 130–140 bps; full year: 61.0%, up 120 bps.

Outlook and guidance

• 2025 revenue guidance: $4,055M–$4,170M (4%–7% reported, 6%–9% organic growth), with CAG diagnostic recurring revenue expected to grow 5%–8% organically.

• 2025 EPS guidance: $11.74–$12.24, up 8%–12% on a comparable basis and 10%–15% as reported, including a $0.21 FX headwind.

• Operating margin outlook for 2025: 31%–31.5% reported, with 30–80 bps improvement on a comparable basis and 200–250 bps reported expansion.

• Free cash flow conversion expected at 85%–90% of net income; $1.5B planned for share repurchases.

• Q1 2025 organic revenue growth expected at 4%–6%, with a 2%–4% reported growth range.