Stryker (SYK) Q4 2024 earnings summary

Executive summary

• Organic sales growth exceeded 10% for both Q4 and the full year, with strong double-digit growth across multiple business units and geographies.

• Adjusted EPS grew 16% in Q4 and 15% for the full year, reflecting robust earnings and margin expansion, while reported EPS declined due to significant impairment charges in the Spine business.

• Announced the divestiture of the spinal implants business and the pending acquisition of Inari Medical, expanding into the peripheral vascular market.

• Major product launches and active M&A activity enhanced positioning in high-growth markets.

• Leadership transition: CFO Glenn Boehnlein retiring, to be succeeded by Preston Wells.

Financial highlights

• Q4 organic sales growth was 10.2% (U.S. 10.9%-11.8%, International 7.2%-7.9%).

• Full-year organic sales growth was 10.2% (U.S. 10.6%-11.0%, International 7.9%-8.8%).

• Adjusted EPS: $4.01 in Q4 (up 15.9% YoY), $12.19 for the year (up 15% YoY).

• Adjusted operating margin improved by 200 bps in Q4 and 110 bps for the year; Q4 adjusted margin was 29.2%, full-year 25.3%.

• Cash from operations reached $4.2 billion for 2024, up $531 million YoY.

Outlook and guidance

• 2025 organic net sales growth expected at 8%-9%.

• Adjusted EPS guidance for 2025 is $13.45-$13.70, excluding Inari impact.

• Adjusted operating margin for 2025 expected at 26.3%.

• Inari acquisition expected to close by end of February, funded by cash and new debt, contributing ~$590 million in sales (10 months) and diluting adjusted EPS by $0.20-$0.30.

• Foreign currency expected to negatively impact 2025 sales by ~1% and EPS by $0.10-$0.15.