DHR - Earnings call transcript Q4 2024

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Operator

My name is Madison, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's Fourth Quarter 2024 Earnings Results Conference Call. [Operator Instructions] I will now turn the call over to Mr. John Bedford, Vice President of Investor Relations. Mr. your begin may you conference. Bedford,

John Bedford

Matt and Good Officer. the and joining Vice and on for With morning, Chief and us Financial Officer; President everyone, call. our today us Blair, Executive thanks are Chief our McGrew, Executive President Rainer

all of Earnings. to financial that and portion our on website, XX, a the heading available next supplementing call, XXXX. call the A replay presentation website earnings G The later heading February performance point remain out and call will Quarterly like our SEC and Regulation the other release, quarterly call. section also the under historical note reconciliations today's Investors future will of information under audio our Events will on I'd www.danaher.com, be until and are this archived until today details anticipated of slide containing the required by of Presentations this our available section be Investors and of archived the

submitted and period-to-period describe also certain and XXXX, increases pending the metrics certain available markets. relate the to certain year-over-year. factors to which materials only During performance. relate describe remarks references supplemental for or describe materials these more We financial the may are products applications company-specific continuing performance. supplemental The impacted of additional factors fourth all in certain that or to have financial references and impacted otherwise significant quarter results regulatory noted, of year-over-year year-over-year and Unless all in we metrics devices are decreases approvals from operations to in that and presentation, will

made, These we that we required to meaning developments materially uncertainties, statements make federal date are might to our of and forward-looking statements During statements any laws, law. number statements update or speak may only assume and forward-looking the do will the forth as a as subject from actual any statements, the of forward-looking or that make not anticipate regarding and SEC future. they today. except risks by in securities events results we occur filings, the those are call, differ statements of within including forward-looking forward-looking These in including set will any the that obligation or believe we

With call to that, to like I'd over turn Rainer. the

Rainer Blair

Well, thank you, call good the and joining today. on everyone John, and appreciate we morning, us you

So performance Sciences in positive encouraged core finished particularly of revenue of instruments all Life segments. quarter by business better-than-anticipated strong with in in our our X businesses. momentum our we And another improving the bioprocessing we and were

disciplined flow margin Our drove also cash team's execution solid and profit expansion. operating

with demonstrated which Now navigate a throughout commitment Danaher leading enabled XXXX, dynamic our System, XX,XXX and to us executing to the unwavering environment. associates successfully an operating Business

also our it delivered success. their improvements Now innovations drove which both process Danaher our meaningful not across businesses, customers, only impactful sustainable of long-term positioning for are dedication for

focused long-term Now XXXX beginning and has a life portfolio than diagnostics and Danaher a at sciences beyond, point is better our cash our to growth, of looking in in since history. shaped us XX-year with any believe The the pandemic margin innovator flow transformation the and profile. we re-rated into positioned

create on human DBS technology well impact of positive value with us Our power meaningful paired long-term talented a team, science and our making positions portfolio, differentiated the while to health. and shareholder

look closer our at financial year that, with So let's results. full XXXX take a

core X.X%. revenue and declined billion, $XX.X were Sales

of profit were flat $X.XX. adjusted XX.X% margin common adjusted year-over-year net Our operating and per earnings essentially diluted share was

earnings important flow of flow of approximately resulting billion and free to the the generation XXrd one Strong free which flow net cash speaks exceeded $X.X the also in to of to flow most net models. XXX% income a cash cash year Danaher XXX%. at business of income consecutive cash XXXX our free conversion We and metrics generated and conversion, marks ratio differentiated free of is quality

$X deployed includes capital through X approximately towards quarters second shares of purchased third we XX start and shares million million the fourth million billion This XXXX. of XXXX, repurchase Danaher the in in and XXXX shares into of the stock. the quarter Now and common into and January approximately of approximately purchased XX

We remained the acquisitions front, active also the M&A strategic on completing year. during several

technologies long-term competitive our further these us success. Now sustained and strengthen acquisitions innovative for and position bring that advantages solutions

year, associated critical of therapy our address helping work. access the Cephea is customers we critical efficiencies that make [ several Cephea investments patient technologies potential constraints Now increase introduced cell the innovation to also to these launch to customers' groundbreaking in are through cell which the ] therapy continue substantial therapies. cost In enabling advancing throughout the capacity Cytiva the CAR-T platform and platform, with life-saving manufacturing gained manufacturing. The have biotechnology,

pharmaceutical Coulter introduced culture development In cell And immunoassay the next-generation researchers therapies [ faster. the is XXXx market the in glad bring ] simplifies automated Beckman for XXXX, Diagnostics and more faster ultimately system, enabling strides accelerates Life analyzer. DxI the menus [ patient on XXXX expanding the Coulter Sciences, way greater in traditional SitmVT diagnosis Beckman enabling made ] cell line than accurate sensitivity high-resolution With diagnostics. Life DxI Sciences paving virus to precision Diagnostics, the to significant our immunoassay and process systems, which

growth of the the around examples innovation is how world. helping and health just impacting some important engine few most long-term patients driving a solve are customers challenges These of our

our let's detail. fourth now XXXX more quarter So results in to turn

single-digit up China. with a than America low and in High-growth digits single Western essentially billion X% were market performance core a in delivered single-digit markets of Europe. $X.X fourth outside ] solid low mid-single-digit [ revenue with quarter, revenues low -- core in more North decline a were Sales in Geographically, were growth. developed decline China, the flat in offsetting

profit XX gross XX.X%. for year-over-year increased the Our margin points quarter to basis fourth

year-over-year, of Adjusted we cost generated net margin Our ] of points profit [ the billion driven diluted initiatives. up cash free impact quarter. $X.X per the X.X% primarily of savings share XX.X% adjusted positive operating was up flow in basis were XX and earnings by of $X.XX

and now what at closer end you So the color a we're across give our some portfolio seeing results segments. market in take on let's look our

Biotechnology commercialized revenue low with single digits. high the into business momentum quarter. in were sequentially. high remained by our growth. consecutive Revenue single consumables, as digits and improved, up primarily [indiscernible] recovery subdued while increased discovery demand, by our capital book, was We order driven this Core which encouraged medical represents bioprocessing the digits with sequential continue sustained for by businesses year robust and high bioprocessing, be in customers the our the digits up continued in In cautious single grew quarter segment order single-digit double quarter supported the high year-over-year, positive the And our sixth of through to spending. growth their therapies. gradual fourth particularly demand

as challenges Now in in environment. funding a faced weak China, ongoing underlying but difficult levels stable customers were relatively activity

antibodies. yields The ] was with largest long-term our and same therapies on support and very business, approvals efficiency, and which making time, patents monoclonal today customers long Cytiva's adoption. outlook innovation and the we're on more increasing expire, enhancing accessible XX% continued we're treatments confidence for customers, our trends, [ comprised we in EA investment Monoclonal progress more near production making life-saving comprehensive revenues an bioprocessing and market increasing for XXXX healthy high-volume than broader antibodies, the a area engine biosimilar record our in underlying franchise. for of new coupled With At believe are focused positioned well development remain manufacturing the portfolio for bioprocessing driving as and reinforces our our the to our term.

customers revenue Europe, Core Sciences [ Life Now XX% Instrument was and our modest saw segment. challenging modest exceeding see market our the investments. to turning did expectations. pharma at be to and applied continue U.S. ongoing a revenue our while stimulus our In improvements the China, cautious remain in conditions ]. In customers. their benefit we with from up program, Core increased as Sciences demand slightly business Life we

Stellaris Spectraplex potential of cutting-edge researchers of of ] deeper ], Microsystems platform imaging and introduction -- the microscopy therapeutic [ in advancing identification spatial aiding gain enables XD and in the in disease for the targets. October, progression to spatial organization, ] with In its Leica interactions [ [ biology. cellular Spectraplex the confocal a solution insights expanded understanding

next-generation proteins, plasmas in Now core business in quarter. across writing declined Growth declines basic the gene consumables and products research by editing our sequencing genomics revenue and solutions. in offset than and more was

Moving to our Diagnostics segment. Core revenue decreased X%.

collectively leverage across core accurate gains patient low clinical GT way driven scanners looking a pathology digital to timely record predictive increasingly clinicians number XXX more as its single-digit diagnostics this are diagnosis. advanced delivered quarter, led its core placed and Notably, to and Our digital staining with productivity strength algorithms of deliver Leica has by businesses pathology. XX% and growth. nearly the histology, [indiscernible] growth, revenue slide

partnership artificial recently ], aims expertise software. global in with with diagnostics established leadership To Indica Indica This [ software pathology development capabilities, Biosystems' in pathology digital further strategic the intelligence. Labs' Leica global enhance in by to and Leica Labs instrumentation cancer of accelerate footprint next-generation a extensive combining AI-powered a partnership leader enterprise and

essentially mid-single-digit this volume-based the [indiscernible]. of impact China, the by at procurement assays revenue Core revenue of for in research disease offset XXXX. use-only flat, Beckman neurodegenerative month, Diagnostics on cutting-edge introduced Earlier with several DxI Beckman was research core outside growth

insights with exceptional such into and neurodegenerative providing assays to disease. biomarkers researchers these specificity, Now detect allow quantify Alzheimer's emerging valuable and conditions as sensitivity

transform -- Drug and breakthrough disease. families Alzheimer's. this outcomes ultimately designation ] of [ identifying beta leading granted by clinicians assay with the reflects patients affected to Food PTAOXXX test manage in potential to designed U.S. device the diagnose addition, devastating designation patients to Alzheimer's, aid amyloid improved to and In Beckman's for XXX Beckman's and patients how This

In revenue quarter adoption mid-teens utilization increasing reagent portfolio. system of core contributed Cepheid's Molecular in to menu another and growth core nonrespiratory Diagnostics,

products by enables customers value the growth increasingly prescribe growth or at office quickly the as multiplex need adopting the turnaround diagnose health -- multiple delivered accurately growth MVP. rapid reducing point double-digit multiplex The are visits. quarter VP to to these and panel women's of its highlights Cepheid's care. [ rapid in infections since introduction led physicians and the ] for over vaginitis of in sexual our treatments, All panel health diagnostics of targeted XX% clinicians

volumes a favorable now opportunities ahead our enabling in of and grew high digits XXXX, women's test Flu X-in-X Now is than COVID-XX, respiratory is unlocking beyond significant expand single business as we Cepheid's $XXX both as Cepheid million approximately is growth and RSV. XX,XXX continue of saw our globally. clinical instruments of base B how for A, Flu long-term of exceeded revenue by and our MVP quarter expectation more installed we in the opportunities $XXX a setting. Cepheid's mix example the higher In outpatient great to improved health outcomes, and million underscores

new of sites, placement by health In recent seen clinical hospital care delivery and This clinics beyond cares. outcomes network care and as customers the at urgent their we've reduce alternate expansion networks. improve integrated instruments care quarters, across costs customers and accelerating the standardizing helps such

of our and With growth. long-term the well menu leading global positioned continued a Cepheid the installed market sustained expansion pipeline, robust innovation the largest base, for is on test

at let's briefly and Now XXXX. ahead year full the the look first expectations for quarter

year anticipate For XXXX, growth the X%. we approximately revenue of full core

approximately revenue expect we dollar. U.S. the an addition, In of due headwind strengthening X% to recent

adjusted range. We expect single-digit year the full In revenue percentage to approximately expect operating profit XX.X%. also we quarter, margin decline the of in core first the low

expect approximately the margin of operating profit we quarter Additionally, adjusted first XX.X%.

into we XXXX. to on with pleased and up, building our -- fourth this move to So quarter performance as momentum wrap we are

to to team executed the a strong continuing future. financial Our environment dynamic for successfully results through invest deliver while

our ahead, today, a positioned growth opportunities with we're in and highly lineup this better that organic to building foundation. transformation the upon growth, paired franchises portfolio, stronger markets. with flow attractive company cash expanded a positioned tremendous very are has -- end And in continue outstanding for long higher created well -- our Looking of margins

team of sheet, combination powerful strong to by talented System, balance to the portfolio, come. value shareholder deliver long-term powered Business all With the and well our Danaher positioned we feel years leading for

back turn So call the with to over John. I'll that,

John Bedford

our questions. comments. concludes now we're formal That Rainer. for ready Operator, Thanks,

Operator

Nephron with [Operator Research. first Instructions] from our take will question Meehan And we Jack

Jack Meehan

the start for starting of questions. most for digits I'm up in where guide down by more digging getting XXXX. That's to Life Going into the pacing, mid-singles, Sciences Notably, low year. the to getting the just single

in is stands look just when you out, back-half return you XQ the in growth? will of businesses that more at the year just terms or is weighted? anything operating ramp? As the notable Or there, Is reasonable? to And there out call it

Rainer Blair

So the Jack, and question. thanks for

to -- the and the take digits, life environment. with -- reasonably where approach down. a up little low see we're single Life be and Pall tools that, XXXX bit assuming it's Sciences, prudent guide for For genomics will one yes, noise of right a and segment given the and But we for external now XXXX up science

do the point. is each So this would we to But we'll a as phasing, today, sit better. starting And better. we expect little where get a possibly probably good we quarter think about

Matt McGrew

Just QX, like mid-single down of you said, digits. it's kind

kind are industrial business, sequentially going saw in down, we of of really probably They're a in in into kind were step QX with and is that of from Life kind we if here the and of Sciences, QX. to some will, they in lot also it think you negative there. be QX. year-over-year really comp the from flattish of double-digit ramp we both big projects I a here of then there QX is Pall, grower as in then up big QX, the the things issue And particular, some kind head

Given move the and in kind pretty high $X But core at kind that is of of single we almost business, it of the of think size the low digits. good it's the needle. tools does billion, still shape end

Jack Meehan

Great.

alluded today? a could lot the seeing in state and that administration And U.S. And little then, you're academic headlines. a market of Was you did bit. way Rainer, topic, set to Okay. a that has the influence Obviously, how the guide? funding of the it been curious had hot the what you in you change government if give us you

Rainer Blair

business-friendly. which the in And administration, of the secular election towards well, general, is of view has portfolio, couple trends our Diagnostics. more to our know it's of and positioned Jack. here attractive the environment been be we So changed Life the only certainly, expect Sciences we'd weeks But not growth new most in

we're going to Business System for sure, Science And and And Life we said, likely we guide as puts some takes. you to Danaher XXXX. talked There's can to for this. be in portfolio continue plan leverage confident But we've here and the about and our that the outperform.

Matt McGrew

to that But Rainer like of one -- the out has segment. where that's the fair it's around said, noise noise seen Jack, is the is been the because think this Life where in Sciences that around we've it higher call segment around I most noise

of So we're some account. that I think trying into noise to take

I it's that. starting approach to that given think to probably thought fairly mostly probably fair it's see Life some to of say news. I in Sciences, is about took where here the it we recent going we -- the And be prudent a you year think how

Operator

And of our we from will question take next America. Michael Bank Ryskin with

Michael Ryskin

for First, you to out want segment. Diagnostics I touch when called on the

of I little think there shortfall guide. the versus a in there's bit a the expectation

called Cepheid respiratory. specifically You out

China, steady X.X talked sort for [indiscernible] a year million you year. expecting I fiscal for looking $XXX for were per think, And the X.XX $XX 'XX. versus, versus of year You're in you cadence in million of then previously, about

the well? and EVP little pretty And just in quickly. just So changed come talk do bit it think 'XX? through a you those Sounded headwinds in changed -- talk you through both EVP? how what quarter 'XX fourth the in One can just is as

is a endemic? number? So but I in Why respiratory And then sort a Cepheid right you while like is little new at okay, you It X COVID. just settled years respiratory, feels say, down did normal point X.X talked so mean do that why about going of X.XX we've forward? new this for this the what post like We're the the -- isn't XXXX. bit. for

are you making revise in what to seeing So you January that?

Matt McGrew

me let I capture can if see all Mike, Yes. that.

is that we versus XXX VBP [ before, ] that correct. the thought first, So XX

of X so think XX in we I in in -- thought. think we years XXX saw up probably the X XXX we that but instead here now, QX, and 'XX

that's think right. I So

as that doing just why the straight also to and stance QX some saw and cuts. from it after QX, how in in get aggressive mean, reimbursement I VBP more far lot we just accelerated and outside of did As central things in of do really sort going a particularly VBP other some government China,

of of come almost kind in is through, really think quarter, late we I that November, the combination This a tenders reimbursement the here December so phenomenon. the in cuts saw frankly. And the accelerated

as and forward. that our of guide kind about came think we So through informed going

We X. respiratory we The range [ about thought endemic X about in the here we're a at saw a season From billion. that, we like last right, for X perspective state. last We've And was of normal was respiratory you're normal we ], years an school, to that years, did a here, had we always then $X couple a the you return sort of a dip, if then of will. and and in big of in work, to double respiratory typical season one spike sort and February. saw return a September, bit as return school usually to January October had another people

didn't that We really see year. this

going [ see we're not pattern that go here did we're a And that respiratory so a now, like normal in are seeing ] back the it spike to of IOI QX much normally was that see of assuming kind as -- we in we we up to like where bit do.

I little others, testing X but what different real from We not perspective, rate. COVID. X some was bit over better did season, But We like had couple more pretty better, that So is respiratory a it feel endemic prior the no to the of testing than years. a versus that's not. last comfortable

seen, with pretty probably comfortable X number. new a maybe the -- I going given versus X be think to it's X being but just pretty proven wrong, some we've regular we're feel normal respiratory. I So I X, of X still sort what pretty

Michael Ryskin

a I Okay. and in follow-up squeeze on if bioprocess biotechnology. could And

talked in first year biotechnology, X% the for saying about You quarter.

talked we business. about the like single-digit So more year. a being of steady -- high mean, it maybe I seems throughout

of that, for wasn't really X%. delta of more it Sort of an if not there for the instrumentation maybe would Is the rate just thinking be part like X% -- you at that it? So there? X%,

instrumentation, And year? demand you through the holding subdued, it that coming Just any are just really to if consumables the and as back if continues sort -- signs go back? that? Any is the there? also back so, that like if what's Why is of be of

Rainer Blair

biggest year-over-year we of what orders well numbers, quarters X orders in quarter had talk business terms ], and seeing of We probably we've growth. about but in bioprocessing XX% the and now normally [ I'll orders the orders don't first the growth, tell high of we're the that growth even in consecutive by growth. you, there were in single-digit over X very encouraged orders years one the

up So think sets the bioprocessing we very nicely.

to to Now to X% saw large still expect XXXX. but improvement And in consumables And X% in back smaller well, back do your with to what your customers not essentially also look, growth as point, we so that. we quarter. essentially the core we question. driving similar customers fourth in to we're normal seeing That's are there with they're here see some normal, to what

normal. And also then to not it's better it quite equipment, relates as but back to

and So we underway. to recovery by really continue be we're clearly is the seeing what encouraged

Operator

will Scott with from we Melius take our And Research. next Davis question

Scott Davis

kind make lever and just broaden or of guys? a to ubiquitous. does in So broader computing guys increases to think that? just lots a people be do be maybe direction talking But But about from your ability was sense It tests that into of call. you of those of will. a of I materially you guys to kind them What fixate you into in disappointing. guidance, the Cepheid. little could do capability meaningfully something the to some really power we more can about different rest I'm because that sure for out What you test build-out when go going ability Cepheid. I'm of than wanted about think seeing the may AI for on It get

Rainer Blair

the to Scott. of quickly is R&D, on the the aspect And of of how that and only your that and plan how but in for it assay well research here, top the course, evidence throughout question, also certainly not of, and thanks you get ] in of applying Well, into We're our to of artificial application the need development we're corporation [ market get decision time intelligence more question, to integrated development. the that also systems the assays, so broadly and research much we support terms we're technical accelerate to building. essentially,

only Indica to is like saw example just Another by is to diagnostics that supported but takes to they clearly, see. helping you artificial where us in normally things us see not where the might Biolabs intelligence, those pathology diagnosis, not biosystems, faster a a do journey that digital pathologists with that deal make

cycle down throughout R&D definitely as are the corporation, well. significantly the here, we and investing path times but accelerating certain So

Scott Davis

ahead does Okay. they when however, where That's helpful. Aldevron, completely you do the different still and deal But step And of model misheard guys, of it, where we I sounds just Are that. little Abcam versus It backwards, a model bit as the may deals? those pronounce we taken like but deal on close a a you follow-up. have those? sit guys maybe

Matt McGrew

No.

on close. a still Abcam, we're old. new, year pretty think That's I only Scott. That's pretty still about

pretty we're think I So close tracking there. much

Working hard we I still out. think genomics do in round to in and we genomics. We're to take that. ultimately, disappointing. other try any themselves of close a It's we're that then genomics. has markets model. going deal to are sort the it with want end be business of it's to the We to to it But to need sure make gap. well bit to on And Aldevron, to be longer a own. largely, way behind. there's don't little proving behind are than that say But that going

it when If though a will. of levels, sort have We you're to beyond current I business that ramp feel you science, to that market fantastic well the it life have think the is really take does and of as in genomics business. positioned We're presence.

would business up to own think say So the to are of we're working that behind for it's But we I hard back catch for sure. the long right but the model, I you. kind on term, deal

Operator

TD from question next the take will Dan Cowen. Brennan we with And

Daniel Brennan

moment, a question. just back for to bioprocess on Mike's starting just Maybe

really the order quarter. growth about talked strong fourth in You

it for had your just much growth maybe business? the such call quarter, Can portend really 'XX us, stronger remind linkage you revenues? and probably XX. XX or in third orders north so And same think bioprocess in you of thing shouldn't north of that the the forward strong second half order for the our I for is Rainer, -- between thinking growth growth

Rainer Blair

it mean, us I certainly Well, sets well. up

Some able their that on in for second of has our lead customers the get to orders and we're the of half and for do implications deliver times very XXXX, others that with early shorter the first half.

we of So year. we orders recovery in about think here is supports but also what essentially in segments. and again, all for as guide our guide positioned clearly both developed, our really course, we're are is we And seeing where that the underway, our here, the competitively like

Daniel Brennan

it. Got

And next picture maybe patent explorations versus I the are X big The prior just Okay. know question. set of then a to grow kind years, pharma X.

your is I remarks, to bioproduction benefit talked business. of the your about bigger. biosimilars think 'XX you particularly prepared And in

these you expirations? impact we kind think do of maybe the of tailwind these think be a a going patent of between about if more on and about headwind, R&D-related -- areas? overall Danaher's separating want how to bioprocess Are Just your growth or to

Rainer Blair

those. growth, by benefit more the there well Well, still bottom, business more that that monoclonal bioprocessing, is business we and the which top it's is, that and drive volume. and about that critical forward, are train. drives to what of participating approved can And talked you and expect positioned really is of going the really antibodies about we're XX% momentum there. the We've as think driven understand we all represents both monoclonal of we volume being of And the antibodies in number

been patient penetrate that those about groups kinds to have -- a to even therapies, kind of or to for that's think unable to these for biosimilars starting have payers buy you not as therapies, So tailwind us. afford these other heretofore pay of been able

biosimilars to is so category understand. an And important

What's the cannot in end product interesting about biologics, be biosimilars, once characterized. perfectly again,

the lock down So tend to regulators consistency the to there. ensure test

the patients. approved to getting to been a biosimilar so previously try speed use to inputs manufacturers delay by have to that regulators will minimum those And of market even to ensure and

higher Danaher. biosimilars, So tailwind for volumes,

Operator

from And we take Research. Wolfe Schenkel next with will question our Doug

Douglas Schenkel

to pivot to start philosophical So kind I question. of then want over a and on Diagnostics

little So rate. incremental this X% I'm on right? that's why evidence first Is we on this rate And And a if growth math kind doing I when higher? of guidance headwind and headwinds, what's that Diagnostic see getting believe then implies you're Diagnostics. I respiratory high right normalized implied into to think that your the bit isn't VBP So embedded not, single-digit the targeting? and the topic. you core is back If the would growth of still diagnostic that an

The second of I'll way one, which just is question. philosophy guidance the the get out

how were XX. At Street you around you to the time, guided at X expectations beginning think progressed XX. go year, if have at if I'm So right, essentially back And doing and beginning the over to you go was around estimates the the look if XX Yesterday, X XX. of EPS I back the XXXX at of XXXX, Street XX. math last was

how a factor potential stock what much I'm end continuing are philosophy standpoint? keep things for does these to it seems EBITDA this markets as into to do biggest year, wondering an of earnings to it's like And upside? the direction. improve? wrong So biggest the in just sources moving guidance work are are to especially -- guidance estimates And your hard your what related and that, the risks from the when

Matt McGrew

sure. Yes,

if that. captured me Let I all see

the right. think here of kind China, about maybe for we guide. Diagnostics, you think I I far of just you're sort if Diagnostics I high-single are As think goes, mean outside digits of as mid- to

you're think right. So I

is mean, pretty we're VBP would much be. the we respiratory zone I we the thought think in and I with where big think the piece of I China headwinds.

those think pieces. the are I X So

digits. to close or are where single high would So we which where thought I desire think we're we be, we inspire to be is

feel perspective good pretty we a outside respiratory. and Diagnostics really about So we're are from what I where of in in China seeing

and as I when of philosophy. about kind look guess, necessarily as backwards mean, guidance don't I guidance philosophy we goes, I -- I far think

telling that and we noise we for And will. always setting internal a particular, especially segment what try year. expectations some I that news seeing, a that think, into talked can I just in around for about, what early noise here. and your our of we level try I right, think like Life there's maybe at think factors setting the purposes, are to overdrive, We bottoms-up and my of and I include and prudent, and we to structure we're are kind that cost make if in we want try it the but guidance. into incorporate the businesses do perspective purposes I us, probably to been Sciences. only incorporate news Currently, be sure we're that a planning you that not some internally from do

sort overall of our that's philosophy. So

I as -- stock things would down, that the some work to in going work there doesn't earnings things. but are stimulus through that when in were well we external bioprocessing and had understand I as some other China

them. I worked think we through

I pretty the of think structure. done cost job a good we've managing

profile perspective, that -- in a from we our margin despite we've really years where been the I row, a is. fact think X margin I down like

and we're that. about the moment from That's that So thought you tell do always continue build we how seeing We information. up. and give the it and what you try look, and we've bottom -- to it in

Operator

And we from with Kumar will question Vijay take our Evercore. next

Vijay Kumar

in which what you Maybe I rest is stop mentioned something Pall. mentioned, Sciences my could think you around different Rainer, versus We'll maybe question, Life anything -- if there there. I the Was QX. year? is? of Maybe QX headwind QX, think you on the one-off elaborate the

Rainer Blair

a giving specifically. at very, talked with QX more about millions Matt project. that talk here fourth we so And Diagnostics. first that. of one-off in quarter as large, Pall, a guide remain the And effect along us the of just general, And quarter looking the here, about exception things quarter, again, the first were that's in XXXX, year, tens in some the the had the in the prior other very really energy with of we same they trends

the exit So rate. bioprocessing, growth, with core consistent that's X%, X% QX

of comp rest quarter, And be the Pall, Life a getting expected go, talked the segment the sciences, first minute here in off the is just we sector. they're to here about a here in start to ago. the slower consistent and tools

of in a China and really changes the we Matt procurement second of respiratory some to saw slower fourth X quarter, One was and the start the the volume-based meaningful But described season. is in those. in Diagnostics acceleration

and diagnostics, bring of a ] basis that together to [ high IO growing XXX XXXX. exception talked headwind single to the versus respiratory, with procurement mid- everywhere between just are we digits You the market QX volume-based that's as But about China. point

that quarter first see as topic, we So to thereafter expect certainly better. the in every we be and and this view quarter an isolated

Vijay Kumar

contemplated one on my much being just QX like Understood. And is on Maybe a remind us is follow-up is and maybe criteria. share of your that big capital in M&A How repurchase. of Looks year? QX deployment. assuming the rest

think I the about deal activity there's been picking in space. some chatter tool

So how you is looking guys? the for pipeline

Matt McGrew

Vijay. Yes,

buy in for will. back you so. over So or so ] AT-X We of billion about X we about spilled did and if shares [ started into QX QX, $X.X collectively, QX, million in kind

So [indiscernible]. that is

Rainer Blair

And as out we that the no see deal there, doubt. see in funnels well. activity our more Yes. front, And on we

we're active all So very across cultivating assets. segments, X

valuations getting the it pockets some we're see to as starting to everywhere, And are better. but bit relates a where little environment, not

So Vijay, around of the I've philosophy market very our course, then, up. or the in be end as the model we right disciplined we're do as those we have the valuation always and the deal where secular the well. our to got sheet with like way to to with framework, work well assets drivers. growth we has remain And here, balance to sets feel positioned going company

we sheet good. disciplined. to remain going positioned. Balance more are looks active. good about Markets We're we're So little where a feel

Operator

last we Rachel question will JPMorgan. take Vatnsdal with from And our

Rachel Vatnsdal Olson

ask to -- control and earlier So expecting of I wanted us through, got cytometry flow headlines mass impacted this some on this walk month Danaher to surrounding are this Can be you all? the by at export you spec. we that

that sector more from were Life insulated a of the viewed as more was controls. some core then conceptually, And Sciences usually

expect how potentially to other do list So see about well? that thinking And we the could instruments you going risk are you forward? added as here the

Rainer Blair

thanks question. the Rachel, for

published So meaningful have the been really us. that controls recently for export not are current

for export years. more speaking, differently. has many positioned is required And category generally this portfolio Our licenses

done expanded So it's that technologies. a Sciences really new bit is the they've include Life what some not other little but for category to

normal particularly administration, date, of reviewed think and do. to meaningful we don't expect I what not a go So regularly But kind the of here have any course seen during are we anything as process the export to at we forward, standard these controls adjusted. different least than impact and

Rachel Vatnsdal Olson

a my multipart And I Got follow-up, here bioprocessing. have question just it. on then

So the is underway. you that mentioned recovery

about exiting of we the what portion? should throughout for bioprocessing? pace in think how growth And So be at year the that we year can in this really recovery

first comp just year? you appreciate some multiyear the areas, some the You other but easy thinking part of some embedded, stacks. X-year those then And also the of of how especially in about have are

lot And what I bioprocessing? quarter at lastly, that's guys -- assuming this seasonality in then you for are standard know there. point a on

Rainer Blair

Rachel. Thanks,

and the is in category start off more me portfolio. well bioprocessing time that really with Let recovery we're nearly bioprocessing it one underway, of every the in seeing

development the That core how out. positive we've then on is a a way our X% guide basis. the see here. the set we here perspective So year And starting the we'll we're how growth see up that throughout year. essentially That's plays to X% on quarterly said,

what makes talked growth is that the you to at rate. multiyear see growth do, its is we've sort stack, this If long-term high look and this line that of single-digit which rate, as a that in shows market with the math sense about you'll right

and like right So that sure momentum the building we perspective, this we think here. fact that is the is the

Matt McGrew

And always QX have business where than goes, the QX. in sort lightest. that bit we We QX. step-up as Rachel, a a lower is of And sort That's in as usually in QX do the there phenomenon we a business. is kind seasonality of of that see far of

the obviously in that but is trajectory see where And and step of normal down QX some we QX a didn't step-up a QX. pandemic then a that to happen,

of QX, in QX, sort in down in up bit up a little QX your point, low So QX. is step and then big a

Operator

remarks. allotted I now And the any appears have to program we our questions. you. presenters reached closing our time Thank or turn will it back additional for that for

John Bedford

everybody. day all you, questions. for We're Thank around

Operator

does your This today's participation. conclude you. you for Thank Thank presentation.

time. any at disconnect may You

Danaher (DHR) 29 Jan 252024 Q4 Earnings call transcript