Tue, Apr 22, 10:03 AM (27 days ago)
**Danaher Corporation (DHR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $5.741 billion, down 1.0% YoY. - **Net Earnings:** $954 million, down 12.4% YoY. - **EPS:** $1.32, down 9.6% YoY. - **Operating Profit Margin:** 22.2%, down 40 basis points YoY. - **Cash Flow from Operations:** $1.299 billion, down 25.4% YoY. **Segment Performance:** - **Biotechnology:** Sales up 6.0% YoY, operating profit margin up 610 basis points YoY. - **Life Sciences:** Sales down 3.5% YoY, operating profit margin down 150 basis points YoY. - **Diagnostics:** Sales down 3.0% YoY, operating profit margin down 350 basis points YoY. **Geographical Performance:** - **Developed Markets:** Sales down 1% YoY, core sales slightly down. - **High-Growth Markets:** Sales flat YoY, core sales up at a low-single digit rate. **Profit Margins & Cash Flow:** - **Gross Profit Margin:** 61.2%, up 100 basis points YoY. - **Operating Expenses:** SG&A expenses up 1.2% YoY, R&D expenses up 3.0% YoY. - **Cash Flow from Investing Activities:** -$242 million, improved by $79 million YoY. - **Cash Flow from Financing Activities:** -$1.255 billion, increased cash used by $1.122 billion YoY due to share repurchases. **Uncertainties & Future Operations:** - **Tariffs:** Anticipates incremental tariff costs of several hundred million dollars in 2025. - **Currency Exchange Rates:** Decreased reported sales by 1.5% YoY. - **Stock Repurchase:** Repurchased 4.5 million shares for approximately $1.1 billion in Q1 2025. - **Dividends:** Declared a regular quarterly dividend of $0.32 per share. **Trends & Outlook:** - **Core Sales:** Flat YoY, with higher core sales in Biotechnology offset by declines in Life Sciences and Diagnostics. - **Operating Profit Margin:** Decreased due to product mix, reduced leverage, and currency exchange rates. - **Effective Tax Rate:** 15.5%, down from 14.4% YoY due to discrete tax benefits. - **Comprehensive Income:** Increased by $2.5 billion YoY, driven by foreign currency translation gains. **Future Operations Impact:** - Danaher expects end-market demand for the remainder of 2025 to be relatively consistent with Q1 2025. - The company will continue to focus on productivity improvements, cost savings, and strategic acquisitions to offset tariff impacts and maintain profitability.