Summary of Bruker (BRKR) 2025 Conference Call Company Overview - **Company**: Bruker Corporation (BRKR) - **Event**: 2025 Conference Call held on June 04, 2025 Key Industry Insights - **Industry**: Mass Spectrometry and Proteomics - **Market Trends**: The mass spectrometry market is experiencing significant innovation, particularly in proteomics and metabolomics, with a focus on high sensitivity and throughput solutions [3][10][12] Core Product Innovations 1. **TIMS Ultra and AIP**: - New product launched to enhance MSMS sensitivity and bandwidth, allowing for more peptides and proteins to be analyzed [5][7] - Significant advancements in single-cell proteomics, enabling analysis of smaller cells than previously possible [8] 2. **TIMS Metabo Instrument**: - Aimed at the high-resolution accurate mass market for small molecules, targeting applications in PFAS research, toxicology, and metabolomics [11][12] - Expected to double the market opportunity for Bruker, potentially reaching a $200 million market share [15] 3. **TIMS Omni**: - A revolutionary mass spectrometer combining TIMS technology with Omni Trap, enabling top-down proteomics and functional proteomics [17][18] - Positioned to create a new category in mass spectrometry with no direct competition [19] Financial Outlook - **Revenue Guidance**: Anticipated moderate growth in 2026, with expectations of organic growth between 6% to 8% [32] - **Cost Management**: Bruker is implementing cost-cutting measures, including reducing operational costs in European sites and optimizing R&D spending [33][35] Market Dynamics - **Academic Market**: Anticipated decline in academic spending by 20-25% due to budget constraints, impacting overall revenue [22][30] - **Defense and Homeland Security**: Notable growth in the detection business for radiological and chemical threats, with potential revenue increases of $20 million next year [38][39] Emerging Markets and Opportunities - **Semiconductor and AI**: Strong demand in metrology for high-performance computing and AI applications, expected to grow from 8% to potentially 12% of total revenue [45][46] - **China Market**: Potential for stimulus-driven growth in high-end research tools, although timing remains uncertain [51][52] Strategic Developments - **Cell Analysis and Diagnostics**: Launch of a new benchtop product aimed at broadening market access for antibody discovery and cell line selection [54][55] - **Spatial Biology**: Continued investment in spatial biology technologies, enhancing capabilities in multi-omics and improving throughput and detection efficiency [61][62] Conclusion - Bruker is positioned for growth through innovative product offerings in mass spectrometry and proteomics, despite facing challenges in academic funding and market uncertainties. The company is strategically focusing on high-growth areas such as biopharma, diagnostics, and advanced manufacturing technologies.

Financial Data and Key Metrics Changes - The meeting confirmed that a quorum was present with over 95% of shares entitled to vote represented [3][4] - The compensation of $20.24 paid to named executive officers was approved by a non-binding advisory vote [10] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed in the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the meeting Company Strategy and Development Direction and Industry Competition - The company proposed the adoption of the 2026 Incentive Compensation Plan, indicating a focus on aligning executive compensation with long-term performance [7][10] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The appointment of PricewaterhouseCoopers as the independent registered public accounting firm for fiscal year 2025 was ratified [10] - Four Class I directors were elected to hold office until the 2028 Annual Meeting of Stockholders [10] Q&A Session All Questions and Answers - No questions were raised during the meeting, and the formal business concluded without further discussion [11][12]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 1934 For the transition period from to Commission File Number 000-30833 BRUKER CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3110160 (State or other jurisdiction of incorporation or organization) Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 O ...

Bruker (BRKR) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Joe Kostka - Director, Head of Investor RelationsFrank Laukien - Chairman, CEO & PresidentGerald Herman - Executive VP & CFOPuneet Souda - Senior MDMichael Ryskin - Managing DirectorPatrick Donnelly - Managing DirectorTycho Peterson - Managing Director, Global EquitiesLuke Sergott - Director - Healthcare Equity ResearchSubbu Nambi - Managing DirectorDoug Schenkel - Managing Director Conference Call Participants Rachel Vatnsdal ...

Bruker (BRKR) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Good day, and welcome to the Bruker Corporation First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Joe Director of Investor Relations. Please go ahead. Speaker1 Good morning. I would like to welcome everyone to Bruker Corpo ...

Safe Harbor Statement Any statements contained in this presentation which do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our fiscal year 2025 and beyond financial outlook, our outlook for reported revenue growth, organic revenue growth, M&A revenue growth contributions, CER currency revenue growth, margin i ...

Financial Results - Bruker Corporation announced preliminary revenue for Q1 2025, with figures subject to finalization before the May 7, 2025 release[5] - The preliminary financial results are unaudited and may undergo significant changes upon completion of financial closing procedures[6] - The company emphasizes that undue reliance should not be placed on these preliminary estimates due to their preliminary nature[8]

ST. LOUIS, April 23, 2025 (GLOBE NEWSWIRE) -- Solis Agrosciences, the trusted partner for high-quality AgTech research services, announced that it has hired Crystal Winkeler as Chief Business Officer. Winkeler will join Solis on May 1 to drive the company's commercial team and help lead efforts to develop and acquire new offerings. "Solis has assembled an impressive team, offerings, and customer base," said Winkeler. "I am thrilled to join the business at this important growth stage." "Crystal is a proven t ...

Technology and Innovation - The company reported successful installations of three 1.2 GHz NMR systems, enhancing ultra-high field access for studies in structural biology, pharmacology, and cellular biology[17]. - The acquisition of Spectral Instruments Imaging and Chemspeed Technologies AG was completed, expanding technological capabilities and product portfolio in preclinical imaging and lab automation[18][19]. - The minority investment in NovAliX aims to enhance expertise in structural biology and biophysics within the preclinical Contract Research Organization space[20]. - The company launched several new technologies in 2024, including the NIR-spectrometer BEAM and the next-generation Multi-Purpose Analyzer (MPA-III)[33]. - The introduction of machine learning algorithms and cloud-based applications, such as Novor V2.0 and TwinScape™, supports advancements in immunopeptidomics and quality control[33]. - The BSI BioSpin Segment focuses on high-value applications in structural proteomics, drug discovery, and biopharmaceutical research, catering to diverse customer needs[15]. - The BSI CALID Segment includes mass spectrometry solutions for various markets, including food safety, environmental analysis, and clinical diagnostics[31]. - The automation portfolio supports lab digitalization and connectivity, improving efficiency and compliance in research and quality control[28]. - The comprehensive software suite facilitates digitalization and AI readiness, integrating robotics and automation technologies for transformative lab solutions[29]. - The acquisition of Tornado Spectral Systems Inc. enhanced the Raman spectrometers product line with patented HTVS™ technology for improved chemical identification and quantification[35]. - The acquisition of Nanophoton Corporation added advanced Raman microscopes to the Bruker Optics division, significantly reducing measurement time by several hundred times[35]. - The acquisition of Dynamic Biosensors GmbH expanded the biophysical analytics portfolio, focusing on molecular interactions and kinetics[35]. - The acquisition of ELITechGroup complemented the MALDI BioTyper® platform, establishing Bruker as a growing specialist in infectious disease diagnostics[35]. - The BSI NANO Segment includes advanced X-ray instruments for determining the characteristics of matter and three-dimensional molecular structures[50]. - The BSI NANO Segment's XRD systems contribute to reduced development cycles for new products in various industries, including catalysts and semiconductors[53]. - The BSI NANO Segment's XRF systems provide qualitative and quantitative analysis of elemental composition, covering nearly all elements in the periodic table[54]. - The acquisition of NanoString Technologies led to the creation of the Bruker Spatial Biology division, enhancing capabilities in spatial transcriptomics and gene expression analysis[52]. - The Bruker Spatial Biology division offers technologies for elucidating gene and protein expression in a spatial context, aiding in biomarker development[50]. - The SC-XRD systems determine the three-dimensional structures of both small chemical molecules and larger biomolecules, critical for molecular analysis[57]. - The company offers a range of µCT systems that provide 3D imaging with resolution down to the sub-micron level, used in materials research and life sciences[58]. - EDS systems allow for simultaneous analysis of all elements in the periodic table, with applications in nanotechnology and materials analysis[59]. - EBSD systems provide quantitative microstructure analysis with sub-micron resolution, applicable in industries such as aerospace and automotive[60]. - S-OES instruments enable comprehensive metals analysis, widely used in production control laboratories[61]. Financial Performance and Revenue - The company maintains a diverse customer base with no single customer accounting for more than 10% of revenue in the last three fiscal years[81]. - The sales cycle for high-end research products typically ranges from three to twenty-four months, while industrial products range from two weeks to six months[78]. - The company has higher revenue levels in the fourth quarter, influenced by customer budgeting cycles[80]. - Revenue from U.S. operations represented approximately 28% of total consolidated revenue for fiscal 2024, up from 26% in 2023[124]. - Revenue from operations in Europe accounted for approximately 35% of total consolidated revenue for fiscal 2024, compared to 33% in 2023[124]. - Revenue from operations in the Asia Pacific region represented approximately 29% of total consolidated revenue for fiscal 2024, down from 33% in 2023[124]. - A significant portion of revenue is derived from U.S. academic institutions and research organizations, which rely on government funding, including NIH grants[129]. - International sales accounted for approximately 72% of total consolidated revenue for fiscal 2024, down from 74% in 2023[130]. - The company recorded net losses from currency translation adjustments of $79.6 million in 2024, while gaining $76.2 million in 2023[135]. - The company has not recorded impairments to goodwill for the years ended December 31, 2024, 2023, and 2022, but did incur an impairment loss for intangible assets during fiscal 2024[137]. - The company employed 11,396 full-time employees as of December 31, 2024, up from 9,707 in 2023, reflecting a growth in workforce[109]. - Total remaining performance obligations as of December 31, 2024, and 2023 were approximately $2,090.4 million and $2,226.7 million, respectively, indicating a decrease driven by lower BEST order bookings[107]. Market and Competitive Landscape - The company faces competition from various established firms across multiple segments, necessitating continuous innovation and technological advancement[82]. - The company faces substantial competition, with competitors potentially developing more effective products, which could lead to pricing pressure[141]. - A significant portion of sales are capital purchases, and any reduction in capital spending by customers could significantly decrease demand for the company's products[145]. - The company is dependent on investment in life science research, and any decline in funding could adversely affect revenue generation[142]. - The company is experiencing inflationary pressures and may increase product prices to offset these costs, which could impact demand[127]. - The company is subject to risks associated with geopolitical tensions, which could negatively affect business operations and financial condition[127]. - The imposition of tariffs by the United States on imported goods could increase costs and lower gross margins for the company[131]. - The new U.S. presidential administration has imposed or threatened tariffs ranging from 10-25% on various countries and products, potentially increasing costs[128]. - Supply chain issues have resulted in significant additional costs and manufacturing inefficiencies, adversely impacting revenue and operating results[120]. - The company has ceased operations in Russia due to adverse economic impacts from the conflict with Ukraine[127]. Regulatory and Compliance Risks - The company is subject to various regulatory requirements, including compliance with the FDA, which governs product-related activities and may result in significant costs if not adhered to[195]. - Compliance with GDPR and other data protection regulations poses risks, including potential fines for non-compliance[132]. - The transition from the European Union IVD Directive to the IVD Regulation (EU) 2017/746 requires recertification of products by May 2025, indicating a stricter regulatory environment[195]. - The company is subject to inquiries from various government agencies, which may divert management resources and impact revenue generation[196]. - The company is subject to export control laws, and failure to comply could delay shipments and adversely affect revenues[192]. Operational Challenges - The company relies on a limited number of suppliers and contract manufacturers, which could lead to delays and increased costs, adversely affecting revenues and profitability[175]. - Supply shortages and price increases of raw materials, particularly copper and niobium titanium, could negatively impact gross profits and production costs for superconducting products[177][178]. - The company faces risks related to dependence on third-party distributors, which could harm revenue and increase expenses if key distributors are lost[172]. - The reliance on liquid helium for superconducting magnets is subject to price fluctuations and shortages, potentially impacting profit margins[179]. - Disruptions at manufacturing facilities could harm customer relationships and impede revenue generation[146]. - The dependence on contract manufacturing may lead to challenges in meeting demand and maintaining product quality, affecting market reputation[173][174]. Strategic Initiatives and Investments - The company has received government grants from Germany and the United States for early-stage research and development projects, retaining non-exclusive rights to developed technologies[90]. - The company maintains a substantial patent portfolio, which is a strategic priority for competitive advantage, and intends to file additional patent applications as appropriate[96]. - The company is committed to talent development, offering various learning opportunities and a global performance management process to enhance employee skills[112][113]. - The company has ongoing collaborations and joint technology development agreements, including with Allegheny Technologies Incorporated for niobium-based superconductors[89]. - The company acquired 28 businesses from January 1, 2022, to December 31, 2024, to expand its technology base and product offerings[199]. Financial Obligations and Tax Risks - As of December 31, 2024, the company had an outstanding aggregate principal amount of debt totaling approximately $2.1 billion, with an additional $872.2 million available under its existing credit facility[152]. - The company’s ability to satisfy its debt obligations depends on future operating performance and economic conditions, with a significant portion of cash generated from foreign operations, amounting to $419.3 million held by foreign subsidiaries[152]. - Changes in the effective income tax rate could adversely affect the company's results, with the Inflation Reduction Act of 2022 introducing a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases, effective January 1, 2023[154]. - The OECD's Pillar Two model rules for a global minimum tax regime will be effective in stages starting January 1, 2024, which may increase tax complexity and uncertainty for the company[155]. - The company is subject to international tax risks, including potential double taxation and high withholding taxes on distributions from foreign subsidiaries, which could adversely affect earnings and cash flows[158]. Corporate Governance and Shareholder Matters - The ownership of shares is highly concentrated, with the Laukien family owning approximately 32% of outstanding common stock, which could lead to volatility in share price and influence over corporate decisions[168]. - The Board of Directors declared a quarterly dividend of $0.05 per share, payable in March 2025, but future dividends may be reduced or eliminated to fund growth or conserve capital[170]. - The company is highly dependent on key personnel, and the loss of such individuals could significantly delay or prevent the achievement of business objectives[169]. Cybersecurity and Information Security - The company has established a global Information Security Incident Response Team (ISIRT) to manage cybersecurity incidents and mitigate risks[206]. - As of December 31, 2024, no identified risk has required activation of the ISIRT, indicating effective management of cybersecurity threats[207]. - The company has implemented cybersecurity training for employees, which is mandatory at least annually to mitigate risks associated with cybersecurity threats[208]. Real Estate and Facilities - Principal properties include 272,000 sq ft in Wissembourg, France, and 456,000 sq ft in Faellanden, Switzerland, both owned[212]. - Total owned and leased properties across various locations include 1,500,000 sq ft dedicated to research, application, and development[212]. - The company has significant operations in Germany, with properties totaling approximately 1,000,000 sq ft across multiple cities[212]. - The U.S. operations include leased properties totaling 326,100 sq ft, with key locations in California and New Jersey[212]. Legal and Compliance Matters - Legal proceedings as of December 31, 2024, are detailed in Note 26 of the consolidated financial statements[213].

Financial Data and Key Metrics Changes - Bruker reported Q4 2024 revenues of $979.6 million, a 14.6% year-over-year increase, with constant exchange rate (CER) revenue growth of 15.8% [16][35] - For the full year 2024, revenues increased by 13.6% to $3.37 billion, with CER revenue growth of 14% and organic growth of 4% [19][42] - Non-GAAP diluted EPS for Q4 2024 was $0.76, up 8.6% from $0.70 in Q4 2023 [17][38] - Non-GAAP operating margin for Q4 2024 was 18.1%, matching Q4 2023, with a 300 basis point organic operating margin expansion [17][37] Business Line Data and Key Metrics Changes - BioSpin Group revenue for 2024 was $905.7 million, with low teens percentage growth in CER, driven by strong performance in Europe and the Americas [22] - CALID Group revenue reached $1.1 billion, with mid-teens percentage CER growth, primarily in microbiology and infection diagnostics [23] - Bruker NANO's revenue also hit $1.1 billion, growing in the high teens percentage CER, supported by semiconductor metrology [24] - BEST revenues grew in the low single digits percentage, driven by accelerator and FUSION technologies, but faced softness in clinical MRI superconductors [25] Market Data and Key Metrics Changes - Americas revenue grew in the low single-digit percentage, while European revenue increased in the mid-teens range, and Asia Pacific revenue declined in the high single-digit percentage year-over-year [35] - The company experienced strong market trends in diagnostics and semiconductor metrology, with signs of a biopharma recovery [14][35] Company Strategy and Development Direction - Bruker is focused on a multiyear transformation into a growth-oriented industry leader, emphasizing higher margin potential and rapid EPS increases [12][32] - The company aims for constant exchange rate revenue growth of 5% to 7% in 2025, with 3% to 4% organic growth and contributions from M&A [14][44] - Bruker is committed to a 140 basis point operating profit margin improvement in 2025, targeting non-GAAP EPS growth of 11% to 13% [14][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in the U.S. NIH and academic government market but remains confident in other growth drivers such as biopharma recovery and China stimulus funding [13][56] - The company expects a gradual recovery in the biopharma sector, with improvements anticipated in the first half of 2025 [77] - Management has built reasonable contingencies into their guidance to account for potential NIH funding reductions [110][112] Other Important Information - Bruker completed strategic acquisitions in 2024 to access large addressable markets, enhancing its portfolio with spatial biology, molecular diagnostics, and lab automation [31][32] - The company generated $189.9 million in operating cash flow in Q4 2024, with free cash flow of $151.1 million [39][40] - Bruker plans to return capital to shareholders through its existing share buyback program [40] Q&A Session Summary Question: Confidence in instrumentation sales despite NIH cuts - Management indicated that NIH funding is less than 5% of their exposure and has sufficient growth drivers outside the U.S. to support their guidance [54][56] Question: Academic government budget in Europe and China - Management noted that China is experiencing stimulus funding spread over multiple quarters, while Europe has shown reasonable performance [68][70] Question: Impact of NIH funding deterioration on margins and EPS - Management has modeled potential declines in NIH funding and believes they have built reasonable contingencies into their guidance [110][112] Question: Update on biopharma recovery timing - Management expects a gradual recovery in the biopharma sector, starting in the first half of 2025 [77] Question: Geographic concentration of backlog in BSI - The backlog is consistent with the company's geographic exposure, with a significant backlog level providing a cushion against uncertainties [83][84] Question: Operating margin expansion assumptions - Management targets around 140 basis points of expansion, factoring in organic headwinds and FX impacts [88][89]