Agilent Technologies : Q4'24 Results Presentation

Published: 2024-11-25 16:18:10 ET A

Agilent Technologies

Q4 FY2024

Financial Results Overview

Agilent Q4 2024 Results

Revenue

Operating Margin

EPS

$1.70B

27.4%(2)

$1.46(2)

+0.8% reported

-40 basis points y/y

+6% y/y

-0.3% core(1)(2)

+0.5% FX, +0.6% M&A

Capital Allocation

$481M operating cash flow | $859M towards M&A | $93M invested in capex

$335M to purchase 2.4M shares | $68M in dividends

Insights

We are seeing continued steady improvement in our markets, with 400+ bps sequential quarterly step-up in YoY core revenue growth. Recurring revenue in services and analytical lab consumables continues to deliver with +mid-single digit growth globally while posting positive growth across all end markets and regions.

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Q4'24 Financial Results Overview

Agilent FY24 Results

Revenue

Operating Margin

EPS

$6.51B

26.4%(2)

$5.29(2)

-4.7% reported

-100 basis points y/y

-3% y/y

-4.7% core(1)(2)

-0.1% FX, +0.1% M&A

Capital Allocation

$1.8B operating cash flow | $0.9B in M&A | $0.4B invested in capex

$1.2B to purchase 8.4M shares | $0.3B in dividends

Insights

Challenging market conditions persisted across FY24 as many customers took a conservative approach towards new capital purchases. Despite this reduced demand for new instruments indicators of customer lab activity remained strong, with services and analytical lab consumables growing mid-single digit during the year ex-China. The struggling China macro environment presented particularly difficult conditions in that region.

Proactive P&L management helped to mitigate top-line challenges on profitability, delivering leveraged EPS growth.

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Q4'24 Financial Results Overview

Q4 Revenue by Geography, Product Type and Segment

Geography

Product Type

Segment

Americas

Europe

Consumables

Instruments

LSAG

ACG

Services

27%

Informatics

25%

40%

36%

49%

64%

33%

26%

Asia Pacific

DGG

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Q4'24 Financial Results Overview

FY24 Revenue by Geography, Product Type and Segment

Geography

Product Type

Segment

Americas

Europe

Consumables

Instruments

LSAG

ACG

Services

27%

Informatics

25%

40%

36%

50%

64%

33%

25%

Asia Pacific

DGG

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Q4'24 Financial Results Overview

Q4 Revenue by End Market

Q4 Core Growth(1) Results by End Market

Academic &

Diagnostics &

Chemicals &

Environmental &

Pharma

Advanced

Food

Government

Clinical

Forensics

Materials

-1%

-1%

+7%

+1%

-3%

-6%

Improving market for

Results improve

Strong high-single

Solid growth in Asia-

Commercial labs

Slowdown in US

instruments and

versus soft Q3 as

digit growth in

Pacific helps to

continued to be

Federal government

continued solid

growth rebounds in

Cancer Dx and

mitigate softer

conservative on

spending challenges

performance by

Europe and Asia-

improved

conditions in the

capital equipment

Americas growth,

services and

Pacific sees

performance in

Americas and

spending,

despite excellent

analytical lab

sequential

Genomics drives the

Europe.

with services and

high-40s growth

consumables drives

improvement.

excellent results.

consumables growth

performance in PFAS

nice sequential

helping to partially

globally.

improvement.

offset.

Share of Agilent Revenue by End Market(2)

35%

Pharma

9%

Academic & Gov

15%

Diagnostics & Clinical

22%

Chemicals & Advanced Materials

9%

Food

10%

Environmental & Forensics

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Q4'24 Financial Results Overview

Q4 & FY24 Results by Segment

Life Sciences and Applied Markets Group

Revenue

Growth

Operating Margin

Insights

Q424

$833M

-1% Reported

28.0%(3)

Q4 revenue was in-linewith expectations as instrument growth rates continue to see

-1% Core (1)(2)

-60 bps y/y

steady improvement. LSAG results continue to be bolstered by strong performance in

FY24

$3,215M

-8% Reported

27.3%(3)

analytical lab consumables, which grew mid-single digit or better across all end markets

and regions.

-8% Core (1)(2)

-260 bps y/y

Agilent CrossLab Group

Revenue

Growth

Operating Margin

Insights

Q424

$426M

+5% Reported

32.6%(3)

Another strong quarter for ACG which grew year over year and sequentially in every

+5% Core (1)(2)

+90 bps y/y

end market, and across all regions globally. Continued double-digit contract growth

FY24

$1,644M

+5% Reported

31.9%(3)

supports the resilient growth profile of this business and demonstrates the tremendous

value our customers experience with the best-in-class CrossLab services team.

+5% Core (1)(2)

+240 bps y/y

Diagnostics and Genomics Group

Revenue

Growth

Operating Margin

Insights

Q424

$442M

-1% Reported

21.2%(3)

Revenue was slightly ahead of expectations, with strong high-singledigit growth in

-3% Core (1)(2)

-150 bps y/y

our Cancer Dx business and improved results in Genomics offset by expected softness

FY24

$1,651M

-6% Reported

19.4%(3)

in Cell Analysis and NASD.

-6% Core (1)(2)

-130 bps y/y

(1) Core growth is reported growth adjusted for the effects of acquisitions and divestitures, and FX. (2) Presented on a non-GAAP basis; reconciliations to closest GAAP equivalent provided. (3) Presented on a non-GAAP basis.

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Q4'24 Financial Results Overview

Our New Market-focused Organizational Structure

Life Sciences and

Diagnostics Markets

Group (LDG)

FY24 Revenue

~$2.5B

Product Platforms

LC

LCMS

CDMO (NASD+BioVectra)

Cell Analysis

Genomics

Pathology

Companion Diagnostics

Agilent CrossLab

Group (ACG)

FY24 Revenue

~$2.7B

Product Platforms

Analytical Lab Consumables

Services

Software

Lab Automation

Applied Markets Group

(AMG)

FY24 Revenue

~$1.3B

Product Platforms

GC

GCMS

Spectroscopy

Certified Pre-owned

Instruments

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Q4'24 Financial Results Overview

Guidance and Forward-looking Considerations

Based on forecasted currency exchange rates

Q1 25 Guidance(1)

Low End

High End

FY 25 Guidance(1)

Low End

High End

Net Revenue ($M)

$1,650

$1,680

Net Revenue ($M)

$6,790

$6,870

Core Revenue Growth (2)

-2.0%

-0.2%

Core Revenue Growth (2)

+2.5%

+3.5%

-0.3% FX, +1.8% M&A

-0.2% FX, +2.0% to +2.2% M&A

includes -2% Lunar New Year impact

EPS

$1.25

$1.28

EPS

$5.54

$5.61

FY25 Financial Considerations

Net Interest + Other Income/Expense: $25M of expense ($2M expense for Q1)

Guidance assumes diluted share counts of 286M for Q1 and for the full year

Operating Cash Flow of $1.6-1.7B and CapEx of $0.45B

Shareholder Returns: $287M in dividends. Anti-dilutive share repurchases at a minimum.(3)

EPS Guidance includes $0.05 of dilution from BIOVECTRA and associated financing

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Q4'24 Financial Results Overview

Disclaimer

Agilent Technologies Inc. published this content on November 25, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 25, 2024 at 21:17:25.609.