Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2024 Results

Thermo Fisher Scientific Inc. (NYSE:TMO), the world leader in serving science, today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter and Full Year 2024 Highlights

• Fourth quarter revenue grew 5% to $11.40 billion.
• Fourth quarter GAAP diluted earnings per share (EPS) grew 14% to $4.78.
• Fourth quarter adjusted EPS grew 8% to $6.10.

• Full year revenue was $42.88 billion, flat versus prior year.
• Full year GAAP diluted earnings per share (EPS) grew 7% to $16.53.
• Full year adjusted EPS grew 1% to $21.86.

• Further strengthened our industry leadership throughout the year by advancing our trusted partner status with customers, gaining market share and delivering differentiated financial performance, including strong revenue and earnings growth in the fourth quarter.

• Advanced our proven growth strategy, launching a range of high-impact, innovative new products in 2024, highlighted by the groundbreaking Thermo Scientific™ Iliad™ (Scanning) Transmission Electron Microscope, the Thermo Scientific™ Stellar™ mass spectrometer, the Thermo Scientific™ Dionex™ Inuvion™ Ion Chromatography system, and the Applied Biosystems™ MagMAX™ Sequential DNA/RNA kit. During the fourth quarter, we launched the Thermo Scientific™ iCAP™ MX Series ICP-MS, an inductively coupled mass spectrometry platform designed to streamline trace elemental analysis for environmental, food, industrial and research laboratories; and new additions to the Gibco™ CTS™ Detachable Dynabeads™ platform to further enhance cell therapy development and production.

• Continued to strengthen our industry-leading commercial engine and deepen our trusted partner status with customers to accelerate their innovation and enhance their productivity. Highlights included the introduction of Accelerator™ Drug Development in the fourth quarter. This integrated offering combines our unique expertise and capabilities in clinical research services and contract manufacturing to streamline the drug development process, enabling increased speed, simplicity and scalability, helping our customers to improve the return on their R&D investments. During the year, we also continued to expand collaborations with our customers, highlighted by the recently announced partnership with the University of Arkansas for Medical Sciences (UAMS) to establish the Thermo Fisher Scientific Center of Excellence for Proteomics at UAMS and, earlier in the year, the partnership with the National Cancer Institute on the myeloMATCH precision medicine umbrella trial.

• Continued to successfully execute our capital deployment strategy in 2024. During the year we completed the acquisition of Olink, a leading provider of advanced solutions for proteomics research. Additionally in the year, we returned $4.6 billion of capital to shareholders through stock buybacks and dividends.

"We finished 2024 with excellent financial performance, delivering strong growth on the top and bottom line in the fourth quarter," said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific. "We drove meaningful share gain and enabled the success of our customers, by leveraging our proven growth strategy and PPI Business System, capping off another year of differentiated performance."

Casper added, "We are in a great position to deliver excellent performance in 2025 as we continue to create value for all of our stakeholders and build an even brighter future for our company."

Fourth Quarter 2024

Revenue for the quarter grew 5% to $11.40 billion in 2024 versus $10.89 billion in the same quarter of 2023. Organic revenue growth was 4% and Core organic revenue growth was 5%.

GAAP Earnings Results

GAAP diluted EPS in the fourth quarter of 2024 was $4.78, versus $4.20 in the same quarter last year. GAAP operating income for the fourth quarter of 2024 was $2.02 billion, compared with $1.85 billion in the year-ago quarter. GAAP operating margin was 17.7%, compared with 17.0% in the fourth quarter of 2023.

Non-GAAP Earnings Results

Adjusted EPS in the fourth quarter of 2024 was $6.10, versus $5.67 in the fourth quarter of 2023. Adjusted operating income for the fourth quarter of 2024 was $2.72 billion, compared with $2.55 billion in the year-ago quarter. Adjusted operating margin was 23.9%, compared with 23.4% in the fourth quarter of 2023.

Full Year 2024

Revenue for the full year was $42.88 billion in 2024 versus $42.86 billion in 2023. Organic revenue and Core organic revenue growth were flat.

GAAP Earnings Results

Full year GAAP diluted EPS was $16.53, versus $15.45 in 2023. GAAP operating income for the full year 2024 was $7.34 billion, compared with $6.86 billion in 2023. GAAP operating margin was 17.1%, compared with 16.0% for 2023.

Non-GAAP Earnings Results

Adjusted EPS for the full year 2024 was $21.86, versus $21.55 for 2023. Adjusted operating income for the full year was $9.71 billion, compared with $9.81 billion in 2023. Adjusted operating margin was 22.6%, compared with 22.9% in 2023.

Annual Guidance for 2025

The company will provide 2025 financial guidance during its earnings conference call this morning at 8:30 a.m. Eastern Time.

Use of Non-GAAP Financial Measures

Adjusted EPS, adjusted net income, adjusted operating income, adjusted operating margin, free cash flow, organic revenue growth and Core organic revenue growth are non-GAAP measures that exclude certain items detailed after the tables that accompany this press release, under the heading "Supplemental Information Regarding Non-GAAP Financial Measures." The reconciliations of GAAP to non-GAAP financial measures are provided in the tables that accompany this press release.

Note on Presentation

Certain amounts and percentages reported within this press release are presented and calculated based on underlying unrounded amounts. As a result, the sum of components may not equal corresponding totals due to rounding.

Conference Call

Thermo Fisher Scientific will hold its earnings conference call today, January 30, 2025 at 8:30 a.m. Eastern Time. During the call, the company will discuss its financial performance, as well as future expectations. To listen, call (833) 470-1428 within the U.S. or (404) 975-4839 outside the U.S. The access code is 706921. You may also listen to the call live on the "Investors" section of our website, www.thermofisher.com. The earnings press release and related information can also be found in that section of our website under the heading "Financials". A replay of the call will be available under "News, Events & Presentations" through February 13, 2025.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

Safe Harbor Statement

The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, may not materialize as expected. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q, which are on file with the SEC and available in the "Investors" section of our website under the heading "SEC Filings." While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if estimates change and, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

Supplemental Information Regarding Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures such as organic revenue growth, which is reported revenue growth, excluding the impacts of acquisitions/divestitures and the effects of currency translation. We also report Core organic revenue growth, which is reported revenue growth, excluding the impacts of COVID-19 testing revenue, and excluding the impacts of acquisitions/divestitures and the effects of currency translation. We report these measures because Thermo Fisher management believes that in order to understand the company's short-term and long-term financial trends, investors may wish to consider the impact of acquisitions/divestitures, foreign currency translation and/or COVID-19 testing on revenues. Thermo Fisher management uses these measures to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods.

We report adjusted operating income, adjusted operating margin, adjusted net income, and adjusted EPS. We believe that the use of these non-GAAP financial measures, in addition to GAAP financial measures, helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company's core operating performance, especially when comparing such results to previous periods, forecasts, and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes. To calculate these measures we exclude, as applicable:

• Certain acquisition-related costs, including charges for the sale of inventories revalued at the date of acquisition, significant transaction/acquisition-related costs, including changes in estimates of contingent acquisition-related consideration, and other costs associated with obtaining short-term financing commitments for pending/recent acquisitions. We exclude these costs because we do not believe they are indicative of our normal operating costs.

• Costs/income associated with restructuring activities and large-scale abandonments of product lines, such as reducing overhead and consolidating facilities. We exclude these costs because we believe that the costs related to restructuring activities are not indicative of our normal operating costs.

• Equity in earnings/losses of unconsolidated entities; impairments of long-lived assets; and certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, including gains/losses on investments, the sale of businesses, product lines, and real estate, significant litigation-related matters, curtailments/settlements of pension plans, and the early retirement of debt. We exclude these items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

• The expense associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of up to 20 years. Exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.

• The noncontrolling interest and tax impacts of the above items and the impact of significant tax audits or events (such as changes in deferred taxes from enacted tax rate/law changes), the latter of which we exclude because they are outside of our normal operations and difficult to forecast accurately for future periods.

We report free cash flow, which is operating cash flow excluding net capital expenditures, to provide a view of the continuing operations' ability to generate cash for use in acquisitions and other investing and financing activities. The company also uses this measure as an indication of the strength of the company. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.

Thermo Fisher Scientific does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort items such as the timing and amount of future restructuring actions and acquisition-related charges as well as gains or losses from sales of real estate and businesses, the early retirement of debt and the outcome of legal proceedings. The timing and amount of these items are uncertain and could be material to Thermo Fisher Scientific's results computed in accordance with GAAP.

The non-GAAP financial measures of Thermo Fisher Scientific's results of operations and cash flows included in this press release are not meant to be considered superior to or a substitute for Thermo Fisher Scientific's results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the tables above.

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Media Contact Information:

Sandy Pound

Thermo Fisher Scientific

Phone: 781-622-1223

E-mail: [email protected]

Investor Contact Information:

Rafael Tejada

Thermo Fisher Scientific

Phone: 781-622-1356

E-mail: [email protected]