10-KPeriod: FY2024

THERMO FISHER SCIENTIFIC INC. Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:TMO

Summary

Thermo Fisher Scientific Inc. reported relatively flat revenue for the year ended December 31, 2024, compared to the previous year, with consolidated revenues of $42.88 billion. While GAAP operating income saw a 7% increase to $7.34 billion, adjusted operating income slightly decreased by 1% to $9.71 billion. Diluted earnings per share (EPS) on a GAAP basis increased by 7% to $16.53, while adjusted EPS grew by 1% to $21.86. The company experienced a significant decline in COVID-19 related sales, which impacted the Life Sciences Solutions segment with a 3% revenue decrease. However, growth in Analytical Instruments and Specialty Diagnostics, alongside a slight increase in Laboratory Products and Biopharma Services, helped offset these declines. Strategic investments in innovation and commercial capabilities were noted as drivers for growth in academic, government, industrial, and applied markets, despite a muted macroeconomic environment impacting most end markets and geographies.

Financial Highlights

55 data points
Beta

Revenue

$42.88B

Net Income

$6.34B

14.8% Net Margin

EPS (Diluted)

$16.53

Total Assets

$97.32B

Cash & Equivalents

$4.04B

Free Cash Flow

$7.27B

Financial Statements
Beta
Revenue$42.88B
R&D Expenses$1.39B
SG&A Expenses$8.60B
Operating Expenses$35.54B
Operating Income$7.34B
Net Income$6.34B
EPS (Basic)$16.58
EPS (Diluted)$16.53
Shares Outstanding (Basic)382.00M
Shares Outstanding (Diluted)383.00M

Key Highlights

  • 1Consolidated revenues remained stable at $42.88 billion for the year ended December 31, 2024, showing a 0% change from the prior year, primarily due to a decline in COVID-19 related product sales.
  • 2GAAP operating income increased by 7% to $7.34 billion, while adjusted operating income slightly decreased by 1% to $9.71 billion, reflecting the impact of strategic investments and business mix.
  • 3Diluted Earnings Per Share (EPS) on a GAAP basis rose 7% to $16.53, and adjusted EPS increased 1% to $21.86, indicating solid profitability.
  • 4The Life Sciences Solutions segment experienced a 3% organic revenue decline, largely attributable to the moderation of COVID-19 related revenue.
  • 5The Analytical Instruments segment saw a 3% organic revenue increase, driven by strong performance in electron microscopy, while Specialty Diagnostics grew 2% organically.
  • 6Laboratory Products and Biopharma Services reported flat organic revenue growth, with contributions from the research and safety channel and clinical research business offset by reduced COVID-19 vaccine and therapy activity.
  • 7Thermo Fisher Scientific repurchased $4.00 billion of its common stock during 2024 and paid $0.58 billion in cash dividends, demonstrating a commitment to returning capital to shareholders.

Frequently Asked Questions

Thermo Fisher Scientific reported stable revenues of $42.88 billion for the year ended December 31, 2024, with a 0% change compared to 2023. GAAP operating income grew 7% to $7.34 billion, and GAAP diluted EPS increased 7% to $16.53. Adjusted operating income saw a slight 1% decrease to $9.71 billion, while adjusted EPS increased 1% to $21.86. The company faced headwinds from a muted macroeconomic environment and a decline in COVID-19 related sales.

The Life Sciences Solutions segment experienced a 3% organic revenue decline, mainly due to reduced COVID-19 related revenue. The Analytical Instruments segment grew 3% organically, led by electron microscopy. Specialty Diagnostics saw a 2% organic revenue increase, driven by immunodiagnostics and transplant diagnostics. The Laboratory Products and Biopharma Services segment reported flat organic revenue growth, impacted by reduced COVID-19 vaccine and therapy activity.

Thermo Fisher's growth strategy is built on three pillars: high-impact innovation, trusted customer partnerships, and an unparalleled commercial engine. The company actively deploys capital through mergers and acquisitions and shareholder returns via share buybacks and dividends. In 2024, they repurchased $4.00 billion of stock and paid $0.58 billion in dividends. The company also indicated planned capital expenditures for property, plant, and equipment between $1.4 billion and $1.7 billion for 2025.

Key risks identified include the potential impact of declines or cyclicality in the markets served, general economic conditions and related uncertainties (such as inflation), risks associated with international sales and operations including currency fluctuations, the need for continuous product development and adaptation to technological change, reliance on sole or limited suppliers, potential disruptions to IT systems and cybersecurity threats, and the ability to attract and retain a skilled workforce. Additionally, the company highlighted risks related to government regulations, compliance with laws governing government contracts, and product liability.