Labcorp Announces 2025 Second Quarter Results
Labcorp (NYSE: LH) reported strong Q2 2025 results with revenue of $3.53 billion, up 9.5% from Q2 2024. The company achieved diluted EPS of $2.84 and adjusted EPS of $4.35, marking a 10.4% increase year-over-year.
Based on strong performance, Labcorp raised its full-year 2025 guidance, with revenue growth now expected at 7.5% to 8.6%, adjusted EPS range of $16.05 to $16.50, and free cash flow projected between $1.13-$1.28 billion. The company expanded through strategic acquisitions, including assets from Incyte Diagnostics and BioReference Health, while launching innovative oncology tests and expanding its consumer offerings.
The company maintained its shareholder returns with a $0.72 quarterly dividend and $200 million in share repurchases during Q2.
Labcorp (NYSE: LH) ha riportato risultati solidi nel secondo trimestre del 2025 con ricavi pari a 3,53 miliardi di dollari, in crescita del 9,5% rispetto al secondo trimestre del 2024. L'azienda ha registrato un utile diluito per azione di 2,84 dollari e un utile rettificato per azione di 4,35 dollari, segnando un incremento del 10,4% su base annua.
Grazie a queste performance positive, Labcorp ha rivisto al rialzo le previsioni per l'intero 2025, prevedendo una crescita dei ricavi compresa tra il 7,5% e l'8,6%, un utile rettificato per azione tra 16,05 e 16,50 dollari e un flusso di cassa libero stimato tra 1,13 e 1,28 miliardi di dollari. L’azienda ha ampliato la sua presenza attraverso acquisizioni strategiche, inclusi asset di Incyte Diagnostics e BioReference Health, oltre a lanciare test innovativi in oncologia e a espandere le offerte rivolte ai consumatori.
Labcorp ha inoltre mantenuto il ritorno agli azionisti con un dividendo trimestrale di 0,72 dollari e un programma di riacquisto azionario da 200 milioni di dollari nel secondo trimestre.
Labcorp (NYSE: LH) reportó sólidos resultados en el segundo trimestre de 2025, con ingresos de
Basándose en este sólido desempeño, Labcorp elevó su guía para todo el año 2025, con un crecimiento de ingresos esperado entre 7.5% y 8.6%, un rango de EPS ajustado de $16.05 a $16.50 y un flujo de caja libre proyectado entre $1.13 y $1.28 mil millones. La compañía se expandió mediante adquisiciones estratégicas, incluyendo activos de Incyte Diagnostics y BioReference Health, además de lanzar pruebas innovadoras en oncología y ampliar sus ofertas para consumidores.
La empresa mantuvo su retorno a los accionistas con un dividendo trimestral de $0.72 y recompras de acciones por $200 millones durante el segundo trimestre.
Labcorp (NYSE: LH)는 2025년 2분기 실적에서 매출 35억 3천만 달러를 기록하며 2024년 2분기 대비 9.5% 성장한 강력한 성과를 발표했습니다. 회사는 희석 주당순이익(EPS) 2.84달러와 조정 EPS 4.35달러를 달성하며 전년 대비 10.4% 증가를 보였습니다.
이러한 호조에 힘입어 Labcorp는 2025년 연간 가이던스를 상향 조정했으며, 매출 성장률은 7.5%에서 8.6%, 조정 EPS는 16.05달러에서 16.50달러 범위, 자유 현금 흐름은 11억 3천만 달러에서 12억 8천만 달러 사이로 예상하고 있습니다. 회사는 Incyte Diagnostics와 BioReference Health의 자산 인수를 포함한 전략적 인수를 통해 확장했으며, 혁신적인 종양학 검사 출시와 소비자 대상 서비스 확대도 진행했습니다.
또한 회사는 분기별 0.72달러 배당금과 2분기 동안 2억 달러 규모의 자사주 매입을 통해 주주 환원을 유지했습니다.
Labcorp (NYSE : LH) a annoncé de solides résultats pour le deuxième trimestre 2025 avec un chiffre d'affaires de 3,53 milliards de dollars, en hausse de 9,5 % par rapport au deuxième trimestre 2024. La société a réalisé un bénéfice par action dilué de 2,84 dollars et un bénéfice par action ajusté de 4,35 dollars, soit une augmentation de 10,4 % en glissement annuel.
Grâce à cette performance solide, Labcorp a relevé ses prévisions pour l’ensemble de l’année 2025, avec une croissance du chiffre d’affaires désormais attendue entre 7,5 % et 8,6 %, un bénéfice par action ajusté compris entre 16,05 et 16,50 dollars, et un flux de trésorerie disponible projeté entre 1,13 et 1,28 milliard de dollars. L’entreprise s’est développée par des acquisitions stratégiques, incluant des actifs d’Incyte Diagnostics et de BioReference Health, tout en lançant des tests innovants en oncologie et en élargissant son offre destinée aux consommateurs.
La société a maintenu ses retours aux actionnaires avec un dividende trimestriel de 0,72 dollar et un rachat d’actions de 200 millions de dollars au cours du deuxième trimestre.
Labcorp (NYSE: LH) meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Umsatz von 3,53 Milliarden US-Dollar, was einem Anstieg von 9,5 % gegenüber dem zweiten Quartal 2024 entspricht. Das Unternehmen erzielte ein verwässertes Ergebnis je Aktie (EPS) von 2,84 US-Dollar und ein bereinigtes EPS von 4,35 US-Dollar, was einem Anstieg von 10,4 % im Jahresvergleich entspricht.
Aufgrund der starken Leistung hat Labcorp seine Prognose für das Gesamtjahr 2025 angehoben, mit einem erwarteten Umsatzwachstum von 7,5 % bis 8,6 %, einer bereinigten EPS-Spanne von 16,05 bis 16,50 US-Dollar und einem prognostizierten freien Cashflow zwischen 1,13 und 1,28 Milliarden US-Dollar. Das Unternehmen hat sich durch strategische Akquisitionen, darunter Vermögenswerte von Incyte Diagnostics und BioReference Health, erweitert und gleichzeitig innovative Onkologietests eingeführt und sein Angebot für Verbraucher ausgebaut.
Das Unternehmen setzte seine Aktionärsrenditen mit einer vierteljährlichen Dividende von 0,72 US-Dollar und Aktienrückkäufen im Wert von 200 Millionen US-Dollar im zweiten Quartal fort.
- Revenue increased 9.5% to $3.53 billion in Q2 2025
- Adjusted EPS grew 10.4% to $4.35
- Operating margin expanded 200 basis points to 11.2%
- Free cash flow increased to $542.7 million from $432.9 million
- Strategic acquisitions expanding market presence in multiple regions
- Raised full-year guidance for revenue, adjusted EPS, and free cash flow
- Total debt remains high at $5.58 billion
- Adjusted operating margin constrained by Invitae performance
Insights
Labcorp delivers strong Q2 with 9.5% revenue growth, margin expansion, and raised 2025 guidance amid strategic acquisitions and innovations.
Labcorp delivered exceptional Q2 2025 results, with revenue climbing
Particularly impressive is the adjusted EPS of
The Diagnostics Laboratories segment, Labcorp's largest business, grew revenue by
The Biopharma Laboratory Services segment demonstrated even stronger growth at
Free cash flow increased significantly to
Management's decision to raise full-year guidance reflects confidence in continued momentum, with enterprise revenue growth now projected at
Labcorp's ongoing innovation, exemplified by new oncology tests like Plasma Detect and PGDx elio plasma focus Dx, strengthens its market position in high-growth specialty areas while its digital pathology capabilities and consumer-initiated testing options demonstrate forward-thinking adaptation to evolving healthcare trends.
Raises Full-Year Guidance
- Financial results from Operations for second quarter 2025 versus second quarter 2024:
- Revenue:
$3.53 billion $3.22 billion - Diluted EPS:
$2.84 $2.43 - Adjusted EPS:
$4.35 $3.94
- Revenue:
- Raised Enterprise Revenue, Adjusted EPS and Free Cash Flow guidance:
- Revenue guidance narrowed to
7.5% to8.6% ; midpoint raised by 70 basis points - Adjusted EPS range narrowed to
$16.05 $16.50 $0.23 - Free Cash Flow range of
$1.13 billion $1.28 billion $25 million
- Revenue guidance narrowed to
- Broadened our partnerships with hospitals, health systems and regional/local labs and enhanced access to comprehensive testing and laboratory services
- Introduced several new tests in high-growth specialty areas including oncology
"Labcorp had a very strong second quarter, delivering double-digit topline growth, while expanding margins across both segments," said Adam Schechter, chairman and CEO of Labcorp. "We brought innovative tests to market, and applied our leadership in science and technology to drive growth, enhance the customer experience and improve our operations. We remain committed to delivering sustained value to our customers, employees and shareholders as we execute on our long-term strategy. Based upon our performance in the first half and our momentum going into the second half of the year, we're raising our guidance."
In the second quarter, Labcorp advanced its position as a partner of choice for hospitals, health systems and regional/local laboratories:
- Announced an agreement to acquire select assets of Incyte Diagnostics' clinical and anatomic pathology testing businesses in the Pacific Northwest.
- Continued to progress the acquisition of select oncology and clinical testing assets from BioReference Health.
- Subsequent to quarter end, Labcorp announced an agreement to acquire select assets of the outreach business from Community Health Systems across 13 states.
Labcorp also continued to incorporate the power of science, innovation and technology across the organization during or subsequent to the quarter:
- Expanded its oncology portfolio with key launches including Labcorp® Plasma Detect™, a liquid biopsy test that assesses colon cancer recurrence risk and PGDx elio® plasma focus™ Dx, the first-and-only FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance.
- Continued to advance its leading position in Alzheimer's disease, and plans in the coming weeks to offer Fujirebio FDA-cleared biomarker test that aids in diagnosing the disease.
- Expanded its consumer offerings by launching several consumer-initiated tests through Labcorp OnDemand, including tests that measure an individual's cortisol and leptin levels, and introducing a new and improved Ovia app, providing women with a single platform to support their health journey.
- Introduced Labcorp Whole Health Solutions for functional medicine, integrative medicine and primary care practices. The solution offers specialized test panels and a test menu of more than 1,000 scientifically backed biomarkers.
- Added digital pathology capabilities in Central Labs, including advanced image scanning to preserve critical sample data and AI-powered solutions to provide analysis on large datasets instantly.
On July 10, 2025, the company announced a quarterly cash dividend of
Additionally, Labcorp raised 2025 guidance for enterprise revenue, adjusted EPS and free cash flow primarily driven by currency, as well as the underlying strength of its businesses.
LABCORP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED RESULTS
| |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2024 | Delta | 2025 | 2024 | Delta | ||||||
Revenue Summary (Dollars in billions) | |||||||||||
Total Revenue | $ 3.53 | $ 3.22 | 9.5 % | $ 6.87 | $ 6.40 | 7.4 % | |||||
Organic(1) | 5.4 % | 3.7 % | |||||||||
Acquisitions, net of Divestitures | 3.5 % | 3.6 % | |||||||||
Foreign Exchange | 0.6 % | 0.1 % | |||||||||
(1) Organic revenue is no longer broken out between the Base Business and COVID-19 Testing. | |||||||||||
Earnings Summary (Dollars in millions, except per share data) | |||||||||||
Operating Income ("OI") | $ 394.5 | $ 294.8 | $ 720.5 | $ 616.1 | |||||||
OI as % of Revenue | 11.2 % | 9.2 % | 200 bps | 10.5 % | 9.6 % | 90 bps | |||||
Adjustments (2) | $ 137.1 | $ 185.1 | $ 280.1 | $ 316.6 | |||||||
Adjusted Operating Income ("AOI") (3) | $ 531.6 | (4) | $ 479.9 | $ 1,000.6 | $ 932.7 | ||||||
AOI as % of Revenue | 15.1 % | (5) | 14.9 % | 20 bps | 14.6 % | 14.6 % | — bps | ||||
Net Earnings Attributable to Labcorp Holdings Inc. | $ 237.9 | $ 205.3 | $ 450.7 | $ 433.3 | |||||||
Diluted EPS | $ 2.84 | $ 2.43 | $ 5.36 | $ 5.13 | |||||||
Adjusted EPS (3) | $ 4.35 | $ 3.94 | 10.4 % | $ 8.19 | $ 7.62 | 7.5 % | |||||
(2) Adjustments include amortization, impairment charges, restructuring charges, and special items. | |||||||||||
(3) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. | |||||||||||
(4) The increase in adjusted operating income was due to organic demand as the company leveraged well on revenue growth. | |||||||||||
(5) Adjusted operating margin was constrained by Invitae. | |||||||||||
LABCORP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED RESULTS | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Cash Flow Summary (Dollars in millions) | |||||||
Operating Cash Flow | $ 620.6 | $ 561.1 | $ 639.1 | $ 531.3 | |||
Capital Expenditures | 77.9 | 128.2 | 203.9 | 262.0 | |||
Free Cash Flow | $ 542.7 | (1) | $ 432.9 | $ 435.2 | $ 269.3 | ||
(1) The increase in free cash flow was driven by higher earnings and the timing of capital expenditures. | |||||||
Capital Allocation Summary
- At the end of the quarter, Labcorp's cash and cash equivalents balance was
$0.65 billion $5.58 billion - During the quarter, the company invested
$25.0 million $59.9 million $200.0 million
LABCORP HOLDINGS INC. AND SUBSIDIARIES Diagnostics Laboratories Segment Summary
| |||||
Three Months Ended June 30, | |||||
2025 | 2024 | Delta | |||
Revenue Summary (Dollars in billions) | |||||
Total Revenue | $ 2.75 | $ 2.52 | 8.9 % | ||
Organic(1) | 4.5 % | ||||
Acquisitions, net of Divestitures | 4.5 % | ||||
Foreign Exchange | (0.1 %) | ||||
(1) Organic revenue is no longer broken out between the Base Business and COVID-19 Testing. | |||||
Earnings Summary (2) (Dollars in millions) | |||||
Adjusted Operating Income ("AOI") (3) | $ 482.8 | $ 441.5 | |||
AOI as % of Revenue | 17.6 % | (4) | 17.5 % | 10 bps | |
(2) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. | |||||
(3) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. | |||||
(4) Adjusted operating margin was constrained by Invitae. | |||||
Three Months Ended June 30, 2025 | ||||
Requisition | Price/Mix | |||
Volume Delta (5) | Delta (5) | |||
Metrics Summary | ||||
Total | 4.9 % | 4.0 % | ||
Organic (6) | 3.4 % | 1.1 % | ||
Acquisitions, net of Divestitures | 1.5 % | 3.0 % | ||
Foreign Exchange | — % | (0.1) % | ||
(5) Column shows changes versus the three months ended June 30, 2024. | ||||
(6) Organic price/mix includes lab management agreements. | ||||
LABCORP HOLDINGS INC. AND SUBSIDIARIES Biopharma Laboratory Services Segment Summary
| |||||||
Three Months Ended June 30, | |||||||
2025 | 2024 | Delta | |||||
Revenue Summary (Dollars in millions) | |||||||
Total Revenue | $ 784.8 | $ 707.0 | 11.0 % | (1) | |||
Organic | 7.8 % | ||||||
Foreign Exchange | 3.2 % | ||||||
(1) Early Development revenue growth of | |||||||
Earnings Summary (2) (Dollars in millions) | |||||||
Adjusted Operating Income ("AOI") (3) | $ 123.3 | (4) | $ 107.4 | ||||
AOI as % of Revenue | 15.7 % | 15.2 % | 50 bps | (4) | |||
(2) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. | |||||||
(3) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. | |||||||
(4) Adjusted operating income and margin increase was primarily driven by organic demand and operating efficiencies. | |||||||
As of | ||
June 30, 2025 | ||
Metrics Summary (Dollars in billions) | ||
TTM Net Orders | $ 3.34 | |
TTM Book to Bill | 1.11 | |
Backlog | $ 8.71 | (5) |
Next Twelve Months Forecast Backlog Conversion | $ 2.71 | |
(5) Backlog increased |
Guidance for 2025
Labcorp is updating 2025 full year guidance to reflect its second quarter performance and full year outlook. The following guidance assumes foreign exchange rates effective as of June 30, 2025, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.
(Dollars in billions, except per share data) | |||||||
Previous | Updated | ||||||
Results | 2025 Guidance | 2025 Guidance | |||||
2024 | Low | High | Low | High | |||
Revenue | |||||||
Labcorp Enterprise (1)(2) | 6.7 % | 8.0 % | 7.5 % | 8.6 % | |||
Diagnostics Laboratories(3) | 6.5 % | 7.7 % | 7.0 % | 8.0 % | |||
Biopharma Laboratory Services (4) | 3.0 % | 5.0 % | 6.1 % | 7.5 % | |||
Adjusted EPS | |||||||
Free Cash Flow | |||||||
(1) 2025 Guidance includes an impact from foreign currency translation of | |||||||
(2) Enterprise level revenue is presented net of intersegment transaction eliminations. | |||||||
(3) 2025 Guidance includes an impact from foreign currency translation of ( | |||||||
(4) 2025 Guidance includes an impact from foreign currency translation of | |||||||
Use of Adjusted Measures
The company has provided in this press release and accompanying tables "adjusted" financial information that has not been prepared in accordance with GAAP, including adjusted net income, adjusted EPS (or adjusted net income per share), adjusted operating income, adjusted operating margin, free cash flow, and certain segment information. The company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the company's operational performance. The company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the company's financial results with the financial results of other companies. However, the company notes that these adjusted measures may be different from and not directly comparable to the measures presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures and an identification of the components that comprise "special items" used for certain adjusted financial information are included in the tables accompanying this press release.
The company today is providing an investor relations presentation with additional information on its business and operations, which is available in the investor relations section of the company's website at www.Labcorp.com. Analysts and investors are directed to the website to review this supplemental information.
A conference call discussing Labcorp's quarterly results will be held today at 9:00 a.m. ET and is available by registering at this link, which will provide a dial-in number and unique PIN to access the call. It is recommended that participants join 10 minutes prior to the start of the call, although participants may register and join at any time during the call. A live webcast of Labcorp's quarterly conference call on July 24, 2025, will be available at the Labcorp Investor Relations website beginning at 9:00 a.m. ET. This webcast will be archived and accessible through July 11, 2026.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 70,000 employees serve clients in approximately 100 countries, provided support for
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2025 guidance and related assumptions, (ii) the impact of various factors on operating and financial results, including the projected impact of global economic and market conditions on the company's businesses, operating results, cash flows and/or financial condition, (iii) future business strategies, (iv) expected savings, synergies and other benefits to the Company, customers or patients from acquisitions and other transactions and partnerships, and (v) opportunities for future growth.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control, including without limitation: (i) the effect of the holding company reorganization on the company's business generally; (ii) the failure to receive tax-free treatment with respect to the spin-off of the company's Clinical Development and Commercialization Services business, now Fortrea Holdings Inc. for
The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
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- Tables to Follow -
LABCORP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Millions, Except Per Share Data)
| |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | $ 3,527.3 | $ 3,220.9 | $ 6,872.4 | $ 6,397.5 | |||
Cost of revenues | 2,481.1 | 2,294.5 | 4,878.2 | 4,573.8 | |||
Gross profit | 1,046.2 | 926.4 | 1,994.2 | 1,823.7 | |||
Selling, general, and administrative expenses | 579.3 | 557.8 | 1,125.3 | 1,066.2 | |||
Amortization of intangibles and other assets | 68.3 | 62.2 | 137.9 | 122.3 | |||
Goodwill and other asset impairments | — | — | — | 2.5 | |||
Restructuring and other charges | 4.1 | 11.6 | 10.5 | 16.6 | |||
Operating income | 394.5 | 294.8 | 720.5 | 616.1 | |||
Other (expense) income: | |||||||
Interest expense | (57.1) | (47.6) | (113.1) | (94.5) | |||
Investment income | 1.7 | 1.3 | 8.2 | 4.2 | |||
Equity method loss, net | (1.7) | (0.3) | (2.0) | (0.2) | |||
Other, net | (32.7) | 19.5 | (33.7) | 39.5 | |||
Earnings from operations before income taxes | 304.7 | 267.7 | 579.9 | 565.1 | |||
Provision for income taxes | 66.4 | 62.1 | 128.6 | 131.2 | |||
Net earnings | 238.3 | 205.6 | 451.3 | 433.9 | |||
Less: Net earnings attributable to the noncontrolling interest | (0.4) | (0.3) | (0.6) | (0.6) | |||
Net earnings attributable to Labcorp Holdings Inc. | $ 237.9 | $ 205.3 | $ 450.7 | $ 433.3 | |||
Earnings per common share: | |||||||
Basic earnings per common share | $ 2.85 | $ 2.44 | $ 5.40 | $ 5.15 | |||
Diluted earnings per common share | $ 2.84 | $ 2.43 | $ 5.36 | $ 5.13 | |||
Weighted-average basic common shares outstanding | 83.4 | 84.1 | 83.5 | 84.1 | |||
Weighted-average diluted common shares outstanding | 83.9 | 84.3 | 84.1 | 84.5 | |||
LABCORP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Millions)
| |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 647.3 | $ 1,518.7 | |
Accounts receivable, net | 2,120.6 | 1,944.1 | |
Unbilled services | 156.1 | 152.9 | |
Supplies inventory | 508.1 | 493.2 | |
Prepaid expenses and other | 655.1 | 697.6 | |
Total current assets | 4,087.2 | 4,806.5 | |
Property, plant, and equipment, net | 3,133.8 | 3,045.4 | |
Goodwill, net | 6,551.1 | 6,369.7 | |
Intangible assets, net | 3,494.4 | 3,488.9 | |
Joint venture partnerships and equity method investments | 160.4 | 16.3 | |
Other assets, net | 633.0 | 652.2 | |
Total assets | $ 18,059.9 | $ 18,379.0 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 793.0 | $ 875.8 | |
Accrued expenses and other | 835.8 | 871.2 | |
Unearned revenue | 398.0 | 392.2 | |
Short-term operating lease liabilities | 186.1 | 184.6 | |
Short-term finance lease liabilities | 4.3 | 6.1 | |
Short-term borrowings and current portion of long-term debt | 499.6 | 1,000.3 | |
Total current liabilities | 2,716.8 | 3,330.2 | |
Long-term debt | 5,077.3 | 5,331.2 | |
Operating lease liabilities | 713.1 | 676.3 | |
Financing lease liabilities | 65.6 | 74.3 | |
Deferred income taxes and other tax liabilities | 354.5 | 383.1 | |
Other liabilities | 643.2 | 517.4 | |
Total liabilities | 9,570.5 | 10,312.5 | |
Commitments and contingent liabilities | |||
Noncontrolling interest | 16.7 | 14.3 | |
Shareholders' equity: | |||
Common stock, 82.9 and 83.4 shares outstanding at June 30, 2025, and | 7.5 | 7.6 | |
Additional paid-in capital | 1.8 | 2.8 | |
Retained earnings | 8,498.0 | 8,303.4 | |
Accumulated other comprehensive loss | (34.6) | (261.6) | |
Total shareholders' equity | 8,472.7 | 8,052.2 | |
Total liabilities and shareholders' equity | $ 18,059.9 | $ 18,379.0 | |
LABCORP HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions)
| |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net earnings | $ 238.3 | $ 205.6 | $ 451.3 | $ 433.9 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 170.3 | 156.9 | 337.1 | 311.4 | |||
Stock compensation | 34.1 | 30.8 | 66.9 | 62.4 | |||
Operating lease right-of-use asset expense | 50.8 | 44.5 | 99.4 | 88.6 | |||
Goodwill and other asset impairments | — | — | — | 2.5 | |||
Deferred income taxes | (6.1) | (19.6) | (12.2) | (39.1) | |||
Other, net | 38.0 | 39.6 | 46.1 | 36.6 | |||
Change in assets and liabilities (net of effects of acquisitions and divestitures): | |||||||
Decrease (increase) in accounts receivable | 30.9 | (5.1) | (139.9) | (192.2) | |||
Decrease (increase) in unbilled services | 0.9 | (37.1) | 4.8 | 26.8 | |||
(Increase) decrease in supplies inventory | (11.9) | 28.3 | (3.5) | 27.7 | |||
Decrease in prepaid expenses and other | 12.8 | 46.5 | 57.8 | 21.6 | |||
Increase (decrease) in accounts payable | 67.0 | 69.4 | (80.6) | (51.7) | |||
Increase (decrease) in unearned revenue | 0.2 | 10.8 | (8.7) | (30.8) | |||
Decrease in accrued expenses and other | (4.7) | (9.5) | (179.4) | (166.4) | |||
Net cash provided by operating activities | 620.6 | 561.1 | 639.1 | 531.3 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (77.9) | (128.2) | (203.9) | (262.0) | |||
Proceeds from sale of assets | 1.9 | 0.1 | 2.4 | 0.2 | |||
Proceeds from sale or distribution of equity affiliates or other investments | 6.9 | — | 6.9 | — | |||
Proceeds from sale of business | — | — | — | 13.5 | |||
Purchase of equity affiliates or other investments | (15.0) | (23.0) | (172.0) | (36.7) | |||
Acquisition of businesses, net of cash acquired | (10.0) | (33.9) | (63.5) | (293.1) | |||
Net cash used for investing activities | (94.1) | (185.0) | (430.1) | (578.1) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments on senior notes | — | — | (1,000.0) | — | |||
Proceeds from revolving credit facilities | — | 698.7 | 64.8 | 951.9 | |||
Payments on revolving credit facilities | — | (721.3) | (64.8) | (932.1) | |||
Proceeds from accounts receivable securitization | — | — | 225.0 | — | |||
Net share settlement tax payments from issuance of stock to employees | (3.5) | (23.1) | (29.0) | (37.8) | |||
Net proceeds from issuance of stock to employees | — | — | 25.7 | 26.7 | |||
Dividends paid | (59.9) | (60.4) | (121.5) | (122.5) | |||
Purchase of common stock | (200.0) | (100.0) | (200.0) | (100.0) | |||
Other, net | (4.0) | (3.9) | (7.3) | (7.9) | |||
Net cash used for financing activities | (267.4) | (210.0) | (1,107.1) | (221.7) | |||
Effect of exchange rate changes on Cash and cash equivalents | 18.8 | (0.3) | 26.7 | (3.2) | |||
Net increase (decrease) in Cash and cash equivalents | 277.9 | 165.8 | (871.4) | (271.7) | |||
Cash and cash equivalents at beginning of period | 369.4 | 99.3 | 1,518.7 | 536.8 | |||
Cash and cash equivalents at end of period | $ 647.3 | $ 265.1 | $ 647.3 | $ 265.1 | |||
LABCORP HOLDINGS INC. AND SUBSIDIARIES Condensed Combined Non-GAAP Segment Information (Dollars in Millions)
| |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Diagnostics Laboratories | |||||||
Revenues | $ 2,748.8 | $ 2,524.9 | $ 5,378.4 | $ 5,004.6 | |||
Adjusted operating income | $ 482.8 | $ 441.5 | $ 910.3 | $ 859.4 | |||
Adjusted operating margin | 17.6 % | 17.5 % | 16.9 % | 17.2 % | |||
Biopharma Laboratory Services | |||||||
Revenues | $ 784.8 | $ 707.0 | $ 1,506.1 | $ 1,417.9 | |||
Adjusted operating income | $ 123.3 | $ 107.4 | $ 230.2 | $ 207.3 | |||
Adjusted operating margin | 15.7 % | 15.2 % | 15.3 % | 14.6 % | |||
Consolidated | |||||||
Revenues | $ 3,527.3 | $ 3,220.9 | $ 6,872.4 | $ 6,397.5 | |||
Adjusted segment operating income | $ 606.1 | $ 548.9 | $ 1,140.5 | $ 1,066.7 | |||
Unallocated corporate expense | (74.5) | (69.0) | $ (139.9) | $ (134.0) | |||
Consolidated adjusted operating income | $ 531.6 | $ 479.9 | $ 1,000.6 | $ 932.7 | |||
Adjusted operating margin | 15.1 % | 14.9 % | 14.6 % | 14.6 % | |||
The consolidated revenue and adjusted segment operating income are presented net of intersegment transaction eliminations and other amounts not used in determining segment performance. Adjusted operating income and adjusted operating margin are non-GAAP measures. See the subsequent reconciliation of non-GAAP financial measures.
LABCORP HOLDINGS INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (Dollars and Shares in Millions, Except Per Share Data)
| ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Adjusted Operating Income | ||||||||
Operating income | $ 394.5 | $ 294.8 | $ 720.5 | $ 616.1 | ||||
Amortization of intangibles and other assets (a) | 68.3 | 62.2 | 137.9 | 122.3 | ||||
Restructuring and other charges (b) | 4.1 | 11.6 | 10.5 | 16.6 | ||||
Acquisition and disposition-related costs (c) | 15.1 | 25.1 | 44.2 | 46.0 | ||||
Launchpad costs (d) | 17.2 | 31.5 | 37.3 | 40.4 | ||||
Asset impairments (e) | — | — | — | 2.5 | ||||
Other | 31.9 | 31.8 | 46.4 | 43.5 | ||||
TSA reimbursement (f) | 0.5 | 22.9 | 3.8 | 45.3 | ||||
Adjusted operating income | $ 531.6 | $ 479.9 | $ 1,000.6 | $ 932.7 | ||||
Adjusted operating profit margin | 15.1 % | 14.9 % | 14.6 % | 14.6 % | ||||
Adjusted Net Income | ||||||||
Net income | $ 237.9 | $ 205.3 | $ 450.7 | $ 433.3 | ||||
Impact of adjustments to operating income | 137.1 | 185.1 | 280.1 | 316.6 | ||||
Loss on venture fund investments, net (g) | 32.7 | 1.5 | 36.1 | 5.7 | ||||
Gain on sale of business (h) | — | — | — | (4.9) | ||||
TSA reimbursement (f) | (0.5) | (22.9) | (3.8) | (45.3) | ||||
Other | 0.7 | 0.3 | 0.7 | 0.3 | ||||
Income tax impact of adjustments (i) | (43.4) | (37.3) | (75.3) | (61.5) | ||||
Adjusted net income | $ 364.5 | $ 332.0 | $ 688.5 | $ 644.2 | ||||
Weighted-average diluted common shares outstanding | 83.9 | 84.3 | 84.1 | 84.5 | ||||
Adjusted net income per share | $ 4.35 | $ 3.94 | $ 8.19 | $ 7.62 | ||||
(a) | Amortization of intangible assets acquired as part of business acquisitions. |
(b) | Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions and facilities and contract termination costs within the organization in connection with our LaunchPad initiatives, and acquisitions or dispositions of businesses by the company. |
(c) | Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses, impact of delayed contract or license transfers, and other integration or disposition related activities. |
(d) | LaunchPad costs include non-capitalized costs associated with the implementation of systems, consolidation of processes, and consulting costs incurred as part of various business process improvement initiatives. |
(e) | The company impaired certain fixed assets which are no longer realizable by the business. |
(f) | Represents transition services fees charged to Fortrea Holdings Inc. related to administrative and IT systems support. The costs to provide these services are included in operating income but the service fees are included in other income. |
(g) | The company makes investments in companies or investment funds developing promising technology related to its operations. The company recorded net gains and losses related to several distributions from venture funds, increases in the market value of investments, and impairments of other investments due to the underlying performance of the investments. |
(h) | The company recorded a gain on the disposition of the Beacon Laboratory Benefits Solutions business. |
(i) | Income tax impact of adjustments calculated based on the tax rate applicable to each item. |
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SOURCE Labcorp Holdings Inc
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