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.
Condensed Consolidated Statements of
Income (unaudited)
Three months ended
December 31,
% of
December 31,
% of
(Dollars in millions except per share
amounts)
2024
Revenues
2023
Revenues
Revenues
$
11,395
$
10,886
Costs and operating expenses:
Cost of revenues (a)
6,492
57.0
%
6,390
58.7
%
Selling, general and administrative
expenses (b)
1,846
16.2
%
1,672
15.4
%
Amortization of acquisition-related
intangible assets
438
3.8
%
563
5.2
%
Research and development expenses
374
3.3
%
327
3.0
%
Restructuring and other costs (c)
228
2.0
%
80
0.7
%
Total costs and operating expenses
9,379
82.3
%
9,032
83.0
%
Operating income
2,016
17.7
%
1,854
17.0
%
Interest income
227
309
Interest expense
(316
)
(390
)
Other income/(expense) (d)
14
(33
)
Income before income taxes
1,941
1,740
Benefit from/(provision for) income taxes
(e)
(150
)
(133
)
Equity in earnings/(losses) of
unconsolidated entities
33
(1
)
Net income
1,824
1,606
Less: net income/(losses) attributable to
noncontrolling interests and redeemable noncontrolling interest
(f)
(6
)
(24
)
Net income attributable to Thermo Fisher
Scientific Inc.
$
1,830
16.1
%
$
1,630
15.0
%
Earnings per share attributable to Thermo
Fisher Scientific Inc.:
Basic
$
4.79
$
4.22
Diluted
$
4.78
$
4.20
Weighted average shares:
Basic
382
387
Diluted
383
388
Reconciliation of adjusted operating
income and adjusted operating margin
GAAP operating income
$
2,016
17.7
%
$
1,854
17.0
%
Cost of revenues adjustments (a)
22
0.2
%
22
0.2
%
Selling, general and administrative
expenses adjustments (b)
16
0.1
%
31
0.3
%
Restructuring and other costs (c)
228
2.0
%
80
0.7
%
Amortization of acquisition-related
intangible assets
438
3.8
%
563
5.2
%
Adjusted operating income (non-GAAP
measure)
$
2,720
23.9
%
$
2,550
23.4
%
Reconciliation of adjusted net
income
GAAP net income attributable to Thermo
Fisher Scientific Inc.
$
1,830
$
1,630
Cost of revenues adjustments (a)
22
22
Selling, general and administrative
expenses adjustments (b)
16
31
Restructuring and other costs (c)
228
80
Amortization of acquisition-related
intangible assets
438
563
Other income/expense adjustments (d)
(11
)
14
Benefit from/(provision for) income taxes
adjustments (e)
(138
)
(111
)
Equity in earnings/losses of
unconsolidated entities
(33
)
1
Noncontrolling interests adjustments
(f)
(14
)
(27
)
Adjusted net income (non-GAAP measure)
$
2,338
$
2,203
Reconciliation of adjusted earnings per
share
GAAP diluted EPS attributable to Thermo
Fisher Scientific Inc.
$
4.78
$
4.20
Cost of revenues adjustments (a)
0.06
0.06
Selling, general and administrative
expenses adjustments (b)
0.04
0.08
Restructuring and other costs (c)
0.60
0.20
Amortization of acquisition-related
intangible assets
1.14
1.45
Other income/expense adjustments (d)
(0.03
)
0.04
Benefit from/(provision for) income taxes
adjustments (e)
(0.36
)
(0.29
)
Equity in earnings/losses of
unconsolidated entities
(0.08
)
0.00
Noncontrolling interests adjustments
(f)
(0.04
)
(0.07
)
Adjusted EPS (non-GAAP measure)
$
6.10
$
5.67
Reconciliation of free cash
flow
GAAP net cash provided by operating
activities
$
3,289
$
3,723
Purchases of property, plant and
equipment
(480
)
(405
)
Proceeds from sale of property, plant and
equipment
17
11
Free cash flow (non-GAAP measure)
$
2,826
$
3,329
Business Segment Information
Three months ended
December 31,
% of
December 31,
% of
(Dollars in millions)
2024
Revenues
2023
Revenues
Revenues
Life Sciences Solutions
$
2,604
22.9
%
$
2,469
22.7
%
Analytical Instruments
2,186
19.2
%
2,037
18.7
%
Specialty Diagnostics
1,157
10.2
%
1,105
10.2
%
Laboratory Products and Biopharma
Services
5,936
52.1
%
5,719
52.5
%
Eliminations
(487
)
-4.3
%
(444
)
-4.1
%
Consolidated revenues
$
11,395
100.0
%
$
10,886
100.0
%
Segment income and segment income
margin
Life Sciences Solutions
$
952
36.6
%
$
895
36.2
%
Analytical Instruments
666
30.5
%
587
28.8
%
Specialty Diagnostics
273
23.6
%
264
23.9
%
Laboratory Products and Biopharma
Services
828
14.0
%
804
14.0
%
Subtotal reportable segments
2,720
23.9
%
2,550
23.4
%
Cost of revenues adjustments (a)
(22
)
-0.2
%
(22
)
-0.2
%
Selling, general and administrative
expenses adjustments (b)
(16
)
-0.1
%
(31
)
-0.3
%
Restructuring and other costs (c)
(228
)
-2.0
%
(80
)
-0.7
%
Amortization of acquisition-related
intangible assets
(438
)
-3.8
%
(563
)
-5.2
%
Consolidated GAAP operating income
$
2,016
17.7
%
$
1,854
17.0
%
(a) Adjusted results in 2024 and 2023
exclude charges for the sale of inventory revalued at the date of
acquisition and accelerated depreciation on manufacturing assets to
be abandoned due to facility consolidations.
(b) Adjusted results in 2024 and 2023
exclude certain third-party expenses, principally
transaction/integration costs related to recent acquisitions,
charges/credits for changes in estimates of contingent acquisition
consideration, and charges associated with product liability
litigation. Adjusted results in 2024 also exclude $3 of accelerated
depreciation on fixed assets to be abandoned due to facility
consolidations.
(c) Adjusted results in 2024 and 2023
exclude restructuring and other costs consisting principally of
severance, impairments of long-lived assets, charges for
environmental-related matters, net charges/credits for
pre-acquisition litigation and other matters, net gains/losses on
the sale of real estate, and abandoned facility and other expenses
of headcount reductions and real estate consolidations.
(d) Adjusted results in 2024 and 2023
exclude net gains/losses on investments.
(e) Adjusted results in 2024 and 2023
exclude incremental tax impacts for the reconciling items between
GAAP and adjusted net income, incremental tax impacts as a result
of tax rate/law changes, and the tax impacts from audit
settlements. Adjusted results in 2023 also exclude $14 of net
charges for pre-acquisition matters.
(f) Adjusted results exclude the
incremental impacts for the reconciling items between GAAP and
adjusted net income attributable to noncontrolling interests.
Note:
Consolidated depreciation expense is $304
and $276 in 2024 and 2023, respectively.
Organic and Core organic revenue
growth
Three months ended
December 31, 2024
Revenue growth
5
%
Acquisitions
1
%
Currency translation
0
%
Organic revenue growth (non-GAAP
measure)
4
%
COVID-19 testing revenue
0
%
Core organic revenue growth (non-GAAP
measure)
5
%
Note:
For more information related to non-GAAP
financial measures, refer to the section titled “Supplemental
Information Regarding Non-GAAP Financial Measures” of this
release.
Condensed Consolidated Statements of
Income (unaudited)
Year ended
December 31,
% of
December 31,
% of
(Dollars in millions except per share
amounts)
2024
Revenues
2023
Revenues
Revenues
$
42,879
$
42,857
Costs and operating expenses:
Cost of revenues (a)
24,818
57.9
%
25,295
59.0
%
Selling, general and administrative
expenses (b)
7,003
16.3
%
6,569
15.3
%
Amortization of acquisition-related
intangible assets
1,952
4.6
%
2,338
5.5
%
Research and development expenses
1,390
3.2
%
1,337
3.1
%
Restructuring and other costs (c)
379
0.9
%
459
1.1
%
Total costs and operating expenses
35,542
82.9
%
35,998
84.0
%
Operating income
7,337
17.1
%
6,859
16.0
%
Interest income
1,078
879
Interest expense
(1,390
)
(1,375
)
Other income/(expense) (d)
12
(65
)
Income before income taxes
7,037
6,298
Benefit from/(provision for) income taxes
(e)
(657
)
(284
)
Equity in earnings/(losses) of
unconsolidated entities
(42
)
(59
)
Net income
6,338
5,955
Less: net income/(losses) attributable to
noncontrolling interests and redeemable noncontrolling interest
(f)
3
(40
)
Net income attributable to Thermo Fisher
Scientific Inc.
$
6,335
14.8
%
$
5,995
14.0
%
Earnings per share attributable to Thermo
Fisher Scientific Inc.:
Basic
$
16.58
$
15.52
Diluted
$
16.53
$
15.45
Weighted average shares:
Basic
382
386
Diluted
383
388
Reconciliation of adjusted operating
income and adjusted operating margin
GAAP operating income
$
7,337
17.1
%
$
6,859
16.0
%
Cost of revenues adjustments (a)
47
0.1
%
95
0.2
%
Selling, general and administrative
expenses adjustments (b)
(8
)
0.0
%
59
0.1
%
Restructuring and other costs (c)
379
0.9
%
459
1.1
%
Amortization of acquisition-related
intangible assets
1,952
4.6
%
2,338
5.5
%
Adjusted operating income (non-GAAP
measure)
$
9,707
22.6
%
$
9,810
22.9
%
Reconciliation of adjusted net
income
GAAP net income attributable to Thermo
Fisher Scientific Inc.
$
6,335
$
5,995
Cost of revenues adjustments (a)
47
95
Selling, general and administrative
expenses adjustments (b)
(8
)
59
Restructuring and other costs (c)
379
459
Amortization of acquisition-related
intangible assets
1,952
2,338
Other income/expense adjustments (d)
(19
)
50
Benefit from/(provision for) income taxes
adjustments (e)
(329
)
(645
)
Equity in earnings/losses of
unconsolidated entities
42
59
Noncontrolling interests adjustments
(f)
(19
)
(46
)
Adjusted net income (non-GAAP measure)
$
8,380
$
8,364
Reconciliation of adjusted earnings per
share
GAAP diluted EPS attributable to Thermo
Fisher Scientific Inc.
$
16.53
$
15.45
Cost of revenues adjustments (a)
0.12
0.24
Selling, general and administrative
expenses adjustments (b)
(0.02
)
0.15
Restructuring and other costs (c)
0.99
1.18
Amortization of acquisition-related
intangible assets
5.09
6.03
Other income/expense adjustments (d)
(0.05
)
0.13
Benefit from/(provision for) income taxes
adjustments (e)
(0.86
)
(1.66
)
Equity in earnings/losses of
unconsolidated entities
0.11
0.15
Noncontrolling interests adjustments
(f)
(0.05
)
(0.12
)
Adjusted EPS (non-GAAP measure)
$
21.86
$
21.55
Reconciliation of free cash
flow
GAAP net cash provided by operating
activities
$
8,667
$
8,406
Purchases of property, plant and
equipment
(1,400
)
(1,479
)
Proceeds from sale of property, plant and
equipment
57
87
Free cash flow (non-GAAP measure)
$
7,324
$
7,014
Business Segment Information
Year ended
December 31,
% of
December 31,
% of
(Dollars in millions)
2024
Revenues
2023
Revenues
Revenues
Life Sciences Solutions
$
9,631
22.5
%
$
9,977
23.3
%
Analytical Instruments
7,463
17.4
%
7,263
16.9
%
Specialty Diagnostics
4,512
10.5
%
4,405
10.3
%
Laboratory Products and Biopharma
Services
23,157
54.0
%
23,041
53.8
%
Eliminations
(1,885
)
-4.4
%
(1,829
)
-4.3
%
Consolidated revenues
$
42,879
100.0
%
$
42,857
100.0
%
Segment income and segment income
margin
Life Sciences Solutions
$
3,503
36.4
%
$
3,420
34.3
%
Analytical Instruments
1,955
26.2
%
1,908
26.3
%
Specialty Diagnostics
1,159
25.7
%
1,124
25.5
%
Laboratory Products and Biopharma
Services
3,090
13.3
%
3,358
14.6
%
Subtotal reportable segments
9,707
22.6
%
9,810
22.9
%
Cost of revenues adjustments (a)
(47
)
-0.1
%
(95
)
-0.2
%
Selling, general and administrative
expenses adjustments (b)
8
0.0
%
(59
)
-0.1
%
Restructuring and other costs (c)
(379
)
-0.9
%
(459
)
-1.1
%
Amortization of acquisition-related
intangible assets
(1,952
)
-4.6
%
(2,338
)
-5.5
%
Consolidated GAAP operating income
$
7,337
17.1
%
$
6,859
16.0
%
(a) Adjusted results in 2024 and 2023
exclude charges for inventory write-downs associated with
large-scale abandonment of product lines, accelerated depreciation
on manufacturing assets to be abandoned due to facility
consolidations, and charges for the sale of inventory revalued at
the date of acquisition.
(b) Adjusted results in 2024 and 2023
exclude certain third-party expenses, principally
transaction/integration costs related to recent acquisitions,
charges/credits for changes in estimates of contingent acquisition
consideration, and charges associated with product liability
litigation. Adjusted results in 2024 also exclude $7 of accelerated
depreciation on fixed assets to be abandoned due to facility
consolidations.
(c) Adjusted results in 2024 and 2023
exclude restructuring and other costs consisting principally of
severance, impairments of long-lived assets, charges for
environmental-related matters, net charges for pre-acquisition
litigation and other matters, net gains/losses on the sale of real
estate, and abandoned facility and other expenses of headcount
reductions and real estate consolidations. Adjusted results in 2023
also exclude $26 of contract termination costs associated with
facility closures.
(d) Adjusted results in 2024 and 2023
exclude net gains/losses on investments.
(e) Adjusted results in 2024 and 2023
exclude incremental tax impacts for the reconciling items between
GAAP and adjusted net income, incremental tax impacts as a result
of tax rate/law changes and the tax impacts from audit settlements.
Adjusted results in 2023 also exclude $14 of net charges for
pre-acquisition matters.
(f) Adjusted results exclude the
incremental impacts for the reconciling items between GAAP and
adjusted net income attributable to noncontrolling interests.
Notes:
Consolidated depreciation expense is
$1,156 and $1,068 in 2024 and 2023, respectively.
For more information related to non-GAAP
financial measures, refer to the section titled “Supplemental
Information Regarding Non-GAAP Financial Measures” of this
release.
Organic and Core organic revenue
growth
Year ended
December 31, 2024
Revenue growth
0
%
Acquisitions
0
%
Currency translation
0
%
Organic revenue growth (non-GAAP
measure)
0
%
COVID-19 testing revenue
-1
%
Core organic revenue growth (non-GAAP
measure)
0
%
Note:
For more information related to non-GAAP
financial measures, refer to the section titled “Supplemental
Information Regarding Non-GAAP Financial Measures” of this
release.
Condensed Consolidated Balance Sheets
(unaudited)
December 31,
December 31,
(In millions)
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
4,009
$
8,077
Short-term investments
1,561
3
Accounts receivable, net
8,191
8,221
Inventories
4,978
5,088
Other current assets
3,399
3,200
Total current assets
22,137
24,589
Property, plant and equipment, net
9,306
9,448
Acquisition-related intangible assets,
net
15,533
16,670
Other assets
4,492
3,999
Goodwill
45,853
44,020
Total assets
$
97,321
$
98,726
Liabilities, redeemable noncontrolling
interest and equity
Current liabilities:
Short-term obligations and current
maturities of long-term obligations
$
2,214
$
3,609
Other current liabilities
11,118
10,403
Total current liabilities
13,332
14,012
Other long-term liabilities
5,257
6,564
Long-term obligations
29,061
31,308
Redeemable noncontrolling interest
120
118
Total equity
49,551
46,724
Total liabilities, redeemable
noncontrolling interest and equity
$
97,321
$
98,726
Condensed Consolidated Statements of
Cash Flows (unaudited)
Year ended
December 31,
December 31,
(In millions)
2024
2023
Operating activities
Net income
$
6,338
$
5,955
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
3,108
3,406
Change in deferred income taxes
(1,209
)
(1,300
)
Other non-cash expenses, net
808
882
Changes in assets and liabilities,
excluding the effects of acquisitions
(379
)
(537
)
Net cash provided by operating
activities
8,667
8,406
Investing activities
Purchases of property, plant and
equipment
(1,400
)
(1,479
)
Proceeds from sale of property, plant and
equipment
57
87
Proceeds from cross-currency interest rate
swap interest settlements
252
70
Acquisitions, net of cash acquired
(3,132
)
(3,660
)
Purchases of investments
(3,396
)
(208
)
Proceeds from sales and maturities of
investments
1,770
15
Other investing activities, net
8
33
Net cash used in investing activities
(5,841
)
(5,142
)
Financing activities
Net proceeds from issuance of debt
1,204
5,942
Repayment of debt
(3,607
)
(5,782
)
Proceeds from issuance of commercial
paper
—
1,620
Repayment of commercial paper
—
(1,935
)
Purchases of company common stock
(4,000
)
(3,000
)
Dividends paid
(583
)
(523
)
Other financing activities, net
195
56
Net cash used in financing activities
(6,792
)
(3,622
)
Exchange rate effect on cash
(91
)
(82
)
Decrease in cash, cash equivalents and
restricted cash
(4,057
)
(440
)
Cash, cash equivalents and restricted cash
at beginning of period
8,097
8,537
Cash, cash equivalents and restricted cash
at end of period
$
4,040
$
8,097
Free cash flow (non-GAAP measure)
$
7,324
$
7,014
Note:
For more information related to non-GAAP
financial measures, refer to the section titled “Supplemental
Information Regarding Non-GAAP Financial Measures” of this
release.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130392076/en/
Media Contact Information: Sandy Pound Thermo Fisher Scientific
Phone: 781-622-1223 E-mail: sandy.pound@thermofisher.com
Investor Contact Information: Rafael Tejada Thermo Fisher
Scientific Phone: 781-622-1356 E-mail:
rafael.tejada@thermofisher.com
Grafico Azioni Thermo Fisher Scientific (NYSE:TMO)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Thermo Fisher Scientific (NYSE:TMO)
Storico
Da Feb 2024 a Feb 2025
