Labcorp (LH) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 9.8% to $3.33 billion, with full-year revenue up 7.0% to $13.01 billion, driven by organic and inorganic growth, innovation, and acquisitions.

• Adjusted EPS for Q4 was $3.45 (up 4.5%), and full-year adjusted EPS was $14.57 (up 7.5%).

• Closed or signed 10 transactions, including key acquisitions in genetic testing and regional laboratory services.

• Launched new diagnostic and specialty tests, including Plasma Detect, MS, H5 bird flu, and gastric cancer diagnostics.

• Expanded leadership in high-growth markets such as oncology, women's health, neurology, and autoimmune disease.

Financial highlights

• Q4 adjusted operating income was $423.2 million (12.7% margin), up 7.2% year-over-year; full-year adjusted operating income was $1.80 billion (13.8% margin).

• Q4 operating cash flow was $777 million, up 34.1% year-over-year; free cash flow for Q4 was $665 million, and full-year free cash flow was $1.1 billion.

• Adjusted EPS for Q4 was $3.45, a 5% increase year-over-year.

• Capital expenditures for the year were $489.9 million, up 8.0%.

• Foreign exchange had a minor negative impact on consolidated revenue growth.

Outlook and guidance

• 2025 revenue guidance: $13.88–$14.05 billion, up 6.7–8.0% versus 2024; diagnostics up 6.5–7.7%, biopharma up 3.0–5.0%.

• Adjusted EPS guidance for 2025 is $15.60–$16.40, implying 10% growth at the midpoint.

• Free cash flow guidance for 2025 is $1.10–$1.25 billion, weighted to the second half.

• Margins expected to improve in both diagnostics and biopharma segments.