QuidelOrtho (QDEL) Citi's 2024 Global Healthcare Conference summary

2025 outlook and margin expansion

• Preliminary 2025 guidance suggests 100–200 basis points of adjusted EBITDA margin expansion over 2024’s midpoint of 19.5%.

• Labs expected to deliver mid-single-digit growth; immunohematology low single-digit growth; donor screening winding down, creating a revenue headwind.

• SARS revenue stabilizing at endemic levels, but a $20 million government contract will not recur in 2025.

• Full, detailed 2025 guidance to be provided in February after Q4 closes.

Cost savings and operational efficiency

• $100 million in annualized cost savings, mostly labor-related, will be fully realized in 2025.

• Three tranches of cost reductions: post-merger synergies, 2024 headcount reductions, and procurement initiatives.

• Procurement savings (indirect in 2025, direct into 2026) expected to further improve margins.

• Ongoing organizational flattening and regional consolidation to drive continued headcount reductions.

Margin improvement trajectory

• Margin improvement to mid- to high-20s EBITDA is a two- to three-year journey, driven by procurement, SAVANNA scaling, and donor screening wind-down.

• SAVANNA is currently a margin headwind; accretive impact expected from 2026 onward.

• Full donor screening wind-down will contribute 50–100 basis points of margin improvement by 2026.