Labcorp (LH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 5.3% year-over-year to $3.35 billion, driven by organic growth and acquisitions, with Diagnostics up 6.0% and Biopharma Laboratory Services (BLS) up 1.5%.

• Adjusted EPS increased to $3.84, while net earnings attributable to shareholders were $212.8 million, down from $228.0 million in Q1 2024.

• Adjusted EBITDA for Q1 2025 reached $560.6 million, and adjusted operating income was $469 million (14% margin).

• Strategic priorities advanced through new test launches, technology innovation, and several acquisitions and partnerships in diagnostics and oncology.

• Quarterly dividend of $0.72 per share announced, payable June 11, 2025.

Financial highlights

• Q1 2025 revenue: $3.35B, up 5.3% year-over-year; organic growth 3.7%, acquisitions 2.1%, FX -0.5%.

• Adjusted operating income: $469M (14% margin), up from $453M last year; gross profit $973.7M (non-GAAP).

• Net earnings: $212.8M ($2.52 per diluted share); adjusted net income: $324M; adjusted EPS $3.84, up from $3.68.

• Operating cash flow: $19M; free cash flow use of $107.5M, improved from $163.6M use last year.

• Capital expenditures: $126M; full-year capex expected at 3.8% of revenue.

Outlook and guidance

• 2025 revenue growth guidance: 6.7%–8.0% for enterprise; Diagnostics up 6.5%–7.7%; BLS up 3.0%–5.0%.

• Adjusted EPS guidance: $15.70–$16.40, midpoint growth of 10%, up 7.7%–12.5% from 2024.

• Free cash flow guidance: $1.10–$1.25B, unchanged; expected to be weighted to the second half.

• Margin expansion expected in both Diagnostics and BLS segments for the full year.

• Capital expenditures to remain consistent, focused on core business growth and integration.