IDEXX Laboratories (IDXX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $954M, up 6% year-over-year, with net profit of $262M and diluted EPS of $2.62; full year revenue totaled $3,898M, up 6%, with net profit of $1,128M and EPS of $10.67, up 12% on a comparable basis, despite a $0.56 per share litigation expense.

• CAG Diagnostics recurring revenue grew 7% organically in Q4 and full year, with strong performance in consumables and software, and a 9% expansion in global premium instrument installed base.

• Launched IDEXX InVue DX and Cancer DX panel, with double-digit growth in cloud-native software placements and expansion of the VELO pet-owner engagement app.

Financial highlights

• Q4 organic revenue growth: 6%; CAG diagnostic recurring revenue: 7% organic growth; Q4 gross margin: 59.8%, up 130–140 bps; full year operating margin: 29%.

• Free cash flow for 2024: $808M (91% of net income); capital spending: $121M (3% of revenue); share repurchases: $849M–$859M for the year.

• Q4 operating margin at high end of guidance; Q4 operating margin: 27%–27.4%.

Outlook and guidance

• 2025 revenue guidance: $4,055M–$4,170M (4%–7% reported, 6%–9% organic growth); CAG diagnostic recurring revenue expected to grow 5%–8% organically.

• 2025 EPS guidance: $11.74–$12.24, up 8%–12% on a comparable basis and 10%–15% as reported.

• Operating margin outlook: 31%–31.5% reported, with 30–80 bps improvement year over year on a comparable basis.

• Free cash flow conversion expected at 85%–90% of net income; $1.5B planned for share repurchases in 2025.

• Foreign exchange expected to have a 2% negative impact on 2025 revenue and EPS growth.