Latest news with #Ignite
Yahoo
5 days ago
- Business
- Yahoo
A Q2 Earnings Call: Mixed Revenue Performance, Margin Pressure, and Strategic Updates
Life sciences tools company Agilent Technologies (NYSE:A) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 6% year on year to $1.67 billion. Its non-GAAP EPS of $1.31 per share was 3.6% above analysts' consensus estimates. Is now the time to buy A? Find out in our full research report (it's free). Revenue: $1.67 billion (6% year-on-year growth) Adjusted EPS: $1.31 vs analyst estimates of $1.26 (3.6% beat) Adjusted Operating Income: $419 million vs analyst estimates of $409.9 million (25.1% margin, 2.2% beat) Revenue Guidance for Q2 CY2025 is $1.66 billion at the midpoint, above analyst estimates of $1.65 billion Management reiterated its full-year Adjusted EPS guidance of $5.58 at the midpoint Operating Margin: 18%, down from 23.1% in the same quarter last year Organic Revenue rose 5.1% year on year (-7.4% in the same quarter last year) Market Capitalization: $31.61 billion Agilent's second quarter results reflected broad-based growth across most end markets and geographies, with particular strength in China, India, and environmental testing. CEO Padraig McDonnell attributed the 6% year-on-year revenue growth to stable demand for core instruments, continued recovery in the biopharma segment, and robust performance in pathology and PFAS (per- and polyfluoroalkyl substances) testing. Management also highlighted progress in its digital ecosystem, noting a 12% increase in digital orders, and pointed to operational changes—including the Ignite transformation initiative—that drove early wins in pricing and procurement. While most end markets performed as expected, academia and government remained soft, and management described the macroeconomic and geopolitical environment as 'highly dynamic,' underscoring ongoing uncertainty. Looking forward, Agilent's guidance is shaped by ongoing tariff risks, a cautious approach to macroeconomic uncertainty, and confidence in its operational initiatives. Management maintained its full-year core growth and adjusted EPS outlook, citing the ability to offset incremental tariff costs through supply chain adjustments, pricing, and Ignite-driven efficiencies. CFO Bob McMahon noted, 'A combination of supply chain moves, surcharges, and savings will allow us to fully mitigate tariff costs by next year.' The company expects continued momentum in PFAS testing, accelerating growth in its CDMO (contract development and manufacturing organization) segment, and further gains from newly launched products such as the Infinity III LC system and Seahorse XF Flex analyzer. However, management cautioned that near-term growth may be uneven given the dynamic external environment and timing of customer orders. Management pointed to diverse geographic and product performance, with China and environmental testing outpacing expectations, while transformative operational initiatives helped offset mounting tariff pressures. China and India outperformance: China delivered 10% growth, benefiting from stable demand and a favorable Lunar New Year comparison, while India posted high-teens growth. Management opened its first India solution center to support local demand for advanced testing and regulatory compliance. PFAS testing momentum: Agilent saw more than 70% year-over-year growth in PFAS testing, driven by global regulatory expansion and product innovation. The company cited its Infinity III and 6495D systems as increasingly critical for customers seeking sensitive, robust PFAS detection in water, food, and industrial materials. Biopharma and CDMO progress: The NASD (Nucleic Acid Solutions Division) and BIOVECTRA businesses reported high single-digit and high teens growth, respectively. Management highlighted improved visibility on future orders, with the BIOVECTRA acquisition expanding Agilent's presence in GLP-1 and complex chemistries manufacturing. Operational transformation via Ignite: The Ignite initiative enabled enterprise-wide pricing, organizational streamlining, and procurement centralization, leading to over $130 million in expected profit contribution for the year. The company achieved full-year pricing realization targets within six months and projects $80 million in annualized savings from organizational changes. Tariff mitigation and supply chain agility: Agilent's tariff task force responded quickly to shifts in US, China, and EU tariffs by moving production, centralizing procurement, and implementing targeted price surcharges. Management expects to fully offset tariff impacts in 2026, with minimal net impact for this year despite potential new EU tariff increases. Agilent's outlook for the coming quarters hinges on successful tariff mitigation, continued product innovation, and steady demand in core end markets, balanced against macroeconomic uncertainty. Tariff mitigation and pricing actions: Management anticipates covering all incremental tariff costs in 2025 through a blend of supply chain adjustments, strategic pricing surcharges, and Ignite-driven procurement savings. The company expects these actions to fully neutralize tariff impacts by next year, though the evolving trade landscape remains a risk. Momentum in PFAS and CDMO segments: Agilent projects ongoing strength in PFAS testing, driven by expanding global regulations and the company's technology leadership. The CDMO segment (NASD and BIOVECTRA) is expected to deliver double-digit growth in the second half, supported by a healthy order backlog and accelerating commercialization of new manufacturing programs. Replacement cycles and product launches: The adoption of new instruments, notably the Infinity III LC system, is fueling replacement cycles across pharma, environmental, and food testing labs. Management highlighted higher attach rates for services and consumables, and expects sales momentum to build as customers upgrade aging systems over the next several quarters. In the coming quarters, the StockStory team will watch for (1) sustained momentum in PFAS testing and CDMO segment order growth, (2) evidence that Ignite-driven cost savings and pricing actions are offsetting tariff impacts and supporting margin stability, and (3) the pace of customer adoption for new instruments like the Infinity III LC system. Progress in these areas will be key to tracking Agilent's ability to navigate external headwinds and deliver on its operational commitments. Agilent currently trades at a forward P/E ratio of 19.1×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Agilent Braces For Potential US-EU Tariff Hike, Maintains Annual Outlook
Agilent Technologies Inc. (NYSE:A) reported second-quarter 2025 sales of $1.67 billion on Wednesday, almost in line with the consensus of $1.63 billion, representing growth of 6% reported and up 5.3% core year-over-year. The Life Sciences and Diagnostics Markets Group (LDG) reported second-quarter revenue of $654 million, an increase of 8% reported and 3% core year-over-year. LDG's operating margin for the quarter was 19.7%. The Agilent CrossLab Group (ACG) reported second-quarter revenue of $713 million, an increase of 7% reported and 9% core year-over-year. ACG's operating margin for the quarter was 32.4%. The Applied Markets Group (AMG) reported second-quarter revenue of $301 million, a decrease of 1% reported and flat core year-over-year. AMG's operating margin for the quarter was 19.5%.The analytical and clinical laboratory technologies provider reported adjusted earnings of $1.31 per share, up from $1.22 a year ago, beating the consensus of $1.26. 'The Agilent team delivered strong second-quarter results in a highly dynamic market environment,' said Agilent President and CEO Padraig McDonnell. 'That is in large part due to our Ignite Transformation, which is driving our financial success as it's become our core enterprise delivery engine and operating model. Ignite represents a decisive shift to fuel accelerated profitable growth and operational excellence at Agilent.' The company's operating margin was 25.1% as it absorbed some incremental tariff costs. In the earnings conference call, McDonnell said, 'Through our tariff task force enabled by our Ignite operating model, we feel that we are able to mitigate most of the impact in 2025 and fully mitigate in 2026 even when considering recent developments on the U.S.-EU tariffs.' Agilent reaffirmed fiscal 2025 adjusted earnings of $5.54-$5.61 per share compared to the consensus of $5.55. The company raised sales guidance from $6.68 billion-$6.76 billion to $6.73 billion-$6.81 billion compared to the consensus of $6.73 billion. The full-year revenue outlook represents growth of 3.4%-4.6% reported while maintaining core growth of 2.5%-3.5% Based on the current tariff rates, Agilent estimates that the gross incremental tariff exposure in the second half will be $50 million. This is on top of the roughly $10 million already absorbed in the first half. The company anticipates potential additional tariff impacts if U.S.-EU tariffs increase, which could add $40 million in gross exposure in the second half of 2025. The outlook for third-quarter revenue is expected to be $1.65 billion-$1.68 billion versus a consensus of $1.65 billion, representing a growth of 4.2% to 6.1% reported and up 1.7% to 3.6% core. Agilent sees Q3 adjusted earnings of $1.35-$1.37 versus a consensus of $1.39. Price Action: A stock is trading higher by 5.52% to $117 premarket at last check Thursday. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? AGILENT TECHNOLOGIES (A): Free Stock Analysis Report This article Agilent Braces For Potential US-EU Tariff Hike, Maintains Annual Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Business Wire
6 days ago
- Business
- Business Wire
Agilent Reports Second-Quarter Fiscal Year 2025 Financial Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.67 billion for the second quarter ended April 30, 2025, representing growth of 6.0% reported and up 5.3% core (1) compared with the second quarter of 2024. "(The Ignite Transformation) represents a decisive shift to fuel accelerated profitable growth and operational excellence at Agilent.' Share Second-quarter GAAP net income was $215 million, or $0.75 per share. This compares with $308 million, or $1.05 per share, in the second quarter of 2024. Non-GAAP (2) net income was $373 million, or $1.31 per share during the quarter, compared with $356 million or $1.22 per share during the year-ago quarter. 'The Agilent team delivered strong second-quarter results in a highly dynamic market environment,' said Agilent President and CEO Padraig McDonnell. 'That is in large part due to our Ignite Transformation, which is driving our financial success as it's become our core enterprise delivery engine and operating model. Ignite represents a decisive shift to fuel accelerated profitable growth and operational excellence at Agilent.' Financial Highlights In the first quarter of 2025, Agilent implemented certain changes to its segment reporting structure. Prior-period segment information has been recast to reflect these changes. These changes have no impact on Agilent's consolidated financial statements. Life Sciences and Diagnostics Markets Group The Life Sciences and Diagnostics Markets Group (LDG) reported second-quarter revenue of $654 million, an increase of 8% reported and 3% core (1) year-over-year. LDG's operating margin for the quarter was 19.7%. Agilent CrossLab Group The Agilent CrossLab Group (ACG) reported second-quarter revenue of $713 million, an increase of 7% reported and 9% core (1) year-over-year. ACG's operating margin for the quarter was 32.4%. Applied Markets Group The Applied Markets Group (AMG) reported second-quarter revenue of $301 million, a decrease of 1% reported and flat core (1) year-over-year. AMG's operating margin for the quarter was 19.5%. Full Year 2025 and Q3 Outlook Full-year revenue outlook is now in the range of $6.73 billion to $6.81 billion, representing growth of 3.4% to 4.6% reported, while maintaining growth of 2.5% to 3.5% core (1). Non-GAAP EPS (3) is expected in the range of $5.54 to $5.61 per share. The outlook for third-quarter revenue is expected to be in the range of $1.645 billion to $1.675 billion, representing growth of 4.2% to 6.1% reported and up 1.7% to 3.6% core (1). Non-GAAP EPS (3) is expected in the range of $1.35 to $1.37 per share. The outlook is based on forecasted currency exchange rates. Conference Call Agilent's management will present additional details regarding the company's second-quarter 2025 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the 'Q2 2025 Agilent Technologies Inc. Earnings Conference Call' link on the Agilent Investor Relations website. The replay of the call will remain on the company site for 90 days. About Agilent Technologies Agilent Technologies Inc. (NYSE: A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent's full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.51 billion in fiscal year 2024 and employs approximately 18,000 people worldwide. Information about Agilent is available at To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook. Forward-Looking Statements This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent's growth prospects, business, financial results, revenue, non-GAAP earnings guidance for Q3 and fiscal year 2025, and the effects of its new organizational structure, operational transformation and market-focused strategy. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent's customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its operational transformation, market-focused strategy and cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the impact relating to or arising from changes to tariffs, import/export or trade policies; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended January 31, 2025. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement. (1) Core revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. Reconciliations between GAAP revenue and core revenue for Q2 fiscal year 2025 are set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core revenue growth rate as projected for Q3 fiscal year 2025 and full fiscal year 2025 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided for the projection. (2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of restructuring and other related costs, asset impairments, intangibles amortization, transformational initiatives, acquisition and integration costs and net (gain) loss on equity securities. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure. (3) Non-GAAP earnings per share as projected for Q3 fiscal year 2025 and full fiscal year 2025 exclude primarily the estimated impacts of non-cash intangibles amortization, transformational initiatives, and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $25 million per quarter. AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY April 30, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,486 $ 1,329 Accounts receivable, net 1,366 1,324 Inventory 991 972 Other current assets 365 334 Total current assets 4,208 3,959 Property, plant and equipment, net 1,912 1,778 Goodwill 4,474 4,477 Other intangible assets, net 495 547 Long-term investments 135 175 Other assets 934 910 Total assets $ 12,158 $ 11,846 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 517 $ 540 Employee compensation and benefits 347 368 Deferred revenue 628 544 Short-term debt 146 45 Other accrued liabilities 374 398 Total current liabilities 2,012 1,895 Long-term debt 3,349 3,345 Retirement and post-retirement benefits 126 130 Other long-term liabilities 535 578 Total liabilities 6,022 5,948 Total Equity: Stockholders' equity: Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding — — Common stock; $0.01 par value, 2,000,000,000 shares authorized; 283,936,028 shares at April 30, 2025 and 285,193,011 shares at October 31, 2024, issued and outstanding 3 3 Additional paid-in-capital 5,501 5,450 Retained earnings 912 750 Accumulated other comprehensive loss (280 ) (305 ) Total stockholders' equity 6,136 5,898 Total liabilities and stockholders' equity $ 12,158 $ 11,846 The preliminary balance sheet is estimated based on our current information. Page 2 Expand AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Six Months Ended April 30, April 30, 2025 2024 Cash flows from operating activities: Net income $ 533 $ 656 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 145 125 Share-based compensation 70 75 Deferred taxes expense (benefit) (28 ) (7 ) Excess and obsolete inventory related charges 22 23 Net (gain) loss on equity securities 27 (4 ) Asset impairment charges 15 8 Other non-cash (income) expense, net 2 (4 ) Changes in assets and liabilities: Accounts receivable, net (27 ) 44 Inventory (41 ) 3 Accounts payable (27 ) 64 Employee compensation and benefits (25 ) (47 ) Other assets and liabilities (14 ) (118 ) Net cash provided by operating activities (a) 652 818 Cash flows from investing activities: Payments to acquire property, plant and equipment (211 ) (193 ) Payments to acquire equity securities — (3 ) Payments in exchange for convertible note (1 ) (8 ) Payments to acquire businesses and intangible assets, net of cash acquired 4 — Net cash used in investing activities (208 ) (204 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 31 43 Payment of taxes related to net share settlement of equity awards (24 ) (26 ) Payments for repurchase of common stock (255 ) (230 ) Payment of excise taxes related to repurchases of common stock (10 ) — Payments of dividends (141 ) (138 ) Proceeds from issuance of long-term debt 4 — Repayments of long-term debt (1 ) (180 ) Net proceeds from (repayment of) short-term debt 100 — Net cash used in financing activities (296 ) (531 ) Effect of exchange rate movements 9 (2 ) Net increase (decrease) in cash, cash equivalents and restricted cash 157 81 Cash, cash equivalents and restricted cash at beginning of period 1,332 1,593 Cash, cash equivalents and restricted cash at end of period $ 1,489 $ 1,674 Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet: Cash and cash equivalents $ 1,486 $ 1,671 Restricted cash, included in other assets 3 3 Total cash, cash equivalents and restricted cash $ 1,489 $ 1,674 (a) Cash payments included in operating activities: Income tax payments, net of refunds received $ 248 $ 224 Interest payments, net of capitalized interest $ 51 $ 40 The preliminary cash flow is estimated based on our current information. Page 3 Expand AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three Months Ended Six Months Ended April 30, April 30, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP net income $ 215 $ 0.75 $ 308 $ 1.05 $ 533 $ 1.86 $ 656 $ 2.23 Non-GAAP adjustments: Restructuring and other related costs 56 0.20 1 — 57 0.20 4 0.01 Asset impairments 15 0.05 — — 15 0.05 8 0.03 Intangible amortization 27 0.10 26 0.09 55 0.19 52 0.18 Transformational initiatives 24 0.08 1 — 30 0.10 4 0.01 Acquisition and integration costs 3 0.01 (1 ) — 12 0.04 1 — Net (gain) loss on equity securities 27 0.10 (1 ) — 27 0.10 (1 ) — Pension settlement loss — — — — 14 0.05 — — Other 9 0.03 7 0.02 15 0.05 1 — Adjustment for taxes (a) (3 ) (0.01 ) 15 0.06 (8 ) (0.02 ) 11 0.04 Non-GAAP net income $ 373 $ 1.31 $ 356 $ 1.22 $ 750 $ 2.62 $ 736 $ 2.50 (a) The adjustment for taxes excludes tax expense (benefits) that management believes are not directly related to on-going operations and which are either isolated, temporary or cannot be expected to occur again with any regularity or predictability such as the realized gain/loss due to sale of a business, windfall benefits on stock compensation, and the impact of R&D capitalization under section 174 of the Tax Cuts and Jobs Act of 2017. For the three months ended April 30, 2025, management used a non-GAAP effective tax rate of 11.50%. For the six months ended April 30, 2025, management used a non-GAAP effective tax rate of 12.00%. For the three months ended April 30, 2024, management used a non-GAAP effective tax rate of 12.46%. For the six months ended April 30, 2024, management used a non-GAAP effective tax rate of 13.00%. We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future. These supplemental measures exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs, net (gain) loss on equity securities and pension settlement loss. Restructuring and other related costs include incremental expenses incurred in the period associated with restructuring programs, usually aimed at changes in business and/or cost structure. Such costs may include one-time termination benefits including acceleration of stock-based compensation expense, facility-related costs and contract termination fees. Asset impairments include assets that have been written down to their fair value. Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers including costs to move manufacturing, site consolidations, legal entity and other business reorganizations, insourcing or outsourcing of activities. Such costs may include move and relocation costs, one-time termination benefits and other one-time reorganization costs. Included in this category are also expenses associated with the Ignite transformation and company programs to transform our product lifecycle management (PLM) system and human resources and financial systems. Acquisition and integration costs include all incremental expenses incurred to effect a business combination. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, the transfer of assets and intellectual property, information technology systems and infrastructure and other employee-related costs. Net (gain) loss on equity securities relates to the realized and unrealized mark-to-market adjustments for our marketable and non-marketable equity securities. Pension settlement loss resulted from the transfer of the Netherlands defined benefit plan to an unaffiliated insurance company. Other includes certain legal costs and settlements, consulting costs, special compliance costs, acceleration of stock-based compensation expense and other miscellaneous adjustments. Our management uses non-GAAP measures to evaluate the performance of our core businesses, to estimate future core performance and to compensate employees. Since management finds this measure to be useful, we believe that our investors benefit from seeing our results 'through the eyes' of management in addition to seeing our GAAP results. This information facilitates our management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Our management recognizes that items such as amortization of intangibles can have a material impact on our cash flows and/or our net income. Our GAAP financial statements including our statement of cash flows portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded items are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the GAAP income statement. The non-GAAP numbers focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies. The preliminary non-GAAP net income and diluted EPS reconciliation is estimated based on our current information. Page 4 Expand AGILENT TECHNOLOGIES, INC. SEGMENT INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Quarter-over-Quarter Life Sciences and Diagnostics Markets Segment Q2'25 Q2'24 Revenue $ 654 $ 604 Gross Margin, % 52.8 % 55.1 % Income from Operations $ 129 $ 115 Operating margin, % 19.7 % 19.0 % Agilent CrossLab Segment Q2'25 Q2'24 Revenue $ 713 $ 664 Gross Margin, % 55.5 % 56.6 % Income from Operations $ 231 $ 216 Operating margin, % 32.4 % 32.5 % Applied Markets Segment Q2'25 Q2'24 Revenue $ 301 $ 305 Gross Margin, % 53.5 % 54.2 % Income from Operations $ 59 $ 64 Operating margin, % 19.5 % 21.0 % Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives and acquisition and integration costs. Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies. The preliminary segment information is estimated based on our current information. Page 5 Expand AGILENT TECHNOLOGIES, INC. (In millions) (Unaudited) PRELIMINARY Year-over-Year GAAP GAAP Revenue by Segment Q2'25 Q2'24 Life Sciences and Diagnostics Markets Segment $ 654 $ 604 8% Agilent CrossLab Segment 713 664 7% Applied Markets Segment 301 305 (1%) Agilent $ 1,668 $ 1,573 6% Non-GAAP (excluding Acquisitions & Divestitures) Year-over-Year at Constant Currency (a) Life Sciences and Diagnostics Markets Segment $ 617 $ 604 2% 3% -1 ppt $ (7 ) Agilent CrossLab Segment 713 664 7% 9% -2 ppts (13 ) Applied Markets Segment 301 305 (1%) — -1 ppt (5 ) Agilent (Core) $ 1,631 $ 1,573 4% 5% -1 ppt $ (25 ) We compare the year-over-year change in revenue excluding the effect of recent acquisitions and divestitures and foreign currency rate fluctuations to assess the performance of our underlying business. (a) The constant currency year-over-year growth percentage is calculated by recalculating all periods in the comparison period at the foreign currency exchange rates used for accounting during the last month of the current quarter and then using those revised values to calculate the year-over-year percentage change. (b) The dollar impact from the current quarter currency impact is equal to the total year-over-year dollar change less the constant currency year-over-year change. The preliminary reconciliation of GAAP revenue adjusted for recent acquisitions and divestitures and impact of currency is estimated based on our current information. Page 6 Expand
Yahoo
6 days ago
- Business
- Yahoo
Agilent Reports Second-Quarter Fiscal Year 2025 Financial Results
Agilent delivers strong quarter, enabled by Ignite Transformation Highlights Revenue of $1.67 billion for the second quarter ended April 30, 2025, representing growth of 6.0% reported and up 5.3% on a core(1) basis compared with the second quarter of 2024. GAAP net income of $215 million; earnings per share (EPS) of $0.75, down 29% from the second quarter of 2024. Non-GAAP(2) net income of $373 million; EPS of $1.31, up 7% from the second quarter of 2024. Outlook for full 2025 fiscal year and Q3 Full-year revenue outlook is now in the range of $6.73 billion to $6.81 billion, representing a range of up 3.4% to 4.6% reported, while maintaining 2.5% to 3.5% core(1). Non-GAAP EPS(3) is expected in the range of $5.54 to $5.61. Q3 revenue outlook is expected to be in the range of $1.645 billion to $1.675 billion, an increase of 4.2% to 6.1% reported and up 1.7% to 3.6% core(1). Non-GAAP EPS(3) is expected in the range of $1.35 to $1.37 per share. SANTA CLARA, Calif., May 28, 2025--(BUSINESS WIRE)--Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.67 billion for the second quarter ended April 30, 2025, representing growth of 6.0% reported and up 5.3% core(1) compared with the second quarter of 2024. Second-quarter GAAP net income was $215 million, or $0.75 per share. This compares with $308 million, or $1.05 per share, in the second quarter of 2024. Non-GAAP(2) net income was $373 million, or $1.31 per share during the quarter, compared with $356 million or $1.22 per share during the year-ago quarter. "The Agilent team delivered strong second-quarter results in a highly dynamic market environment," said Agilent President and CEO Padraig McDonnell. "That is in large part due to our Ignite Transformation, which is driving our financial success as it's become our core enterprise delivery engine and operating model. Ignite represents a decisive shift to fuel accelerated profitable growth and operational excellence at Agilent." Financial Highlights In the first quarter of 2025, Agilent implemented certain changes to its segment reporting structure. Prior-period segment information has been recast to reflect these changes. These changes have no impact on Agilent's consolidated financial statements. Life Sciences and Diagnostics Markets Group The Life Sciences and Diagnostics Markets Group (LDG) reported second-quarter revenue of $654 million, an increase of 8% reported and 3% core(1) year-over-year. LDG's operating margin for the quarter was 19.7%. Agilent CrossLab Group The Agilent CrossLab Group (ACG) reported second-quarter revenue of $713 million, an increase of 7% reported and 9% core(1) year-over-year. ACG's operating margin for the quarter was 32.4%. Applied Markets Group The Applied Markets Group (AMG) reported second-quarter revenue of $301 million, a decrease of 1% reported and flat core(1) year-over-year. AMG's operating margin for the quarter was 19.5%. Full Year 2025 and Q3 Outlook Full-year revenue outlook is now in the range of $6.73 billion to $6.81 billion, representing growth of 3.4% to 4.6% reported, while maintaining growth of 2.5% to 3.5% core(1). Non-GAAP EPS(3) is expected in the range of $5.54 to $5.61 per share. The outlook for third-quarter revenue is expected to be in the range of $1.645 billion to $1.675 billion, representing growth of 4.2% to 6.1% reported and up 1.7% to 3.6% core(1). Non-GAAP EPS(3) is expected in the range of $1.35 to $1.37 per share. The outlook is based on forecasted currency exchange rates. Conference Call Agilent's management will present additional details regarding the company's second-quarter 2025 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the "Q2 2025 Agilent Technologies Inc. Earnings Conference Call" link on the Agilent Investor Relations website. The replay of the call will remain on the company site for 90 days. About Agilent Technologies Agilent Technologies Inc. (NYSE: A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent's full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.51 billion in fiscal year 2024 and employs approximately 18,000 people worldwide. Information about Agilent is available at To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook. Forward-Looking Statements This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent's growth prospects, business, financial results, revenue, non-GAAP earnings guidance for Q3 and fiscal year 2025, and the effects of its new organizational structure, operational transformation and market-focused strategy. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent's customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its operational transformation, market-focused strategy and cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the impact relating to or arising from changes to tariffs, import/export or trade policies; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended January 31, 2025. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement. (1) Core revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. Reconciliations between GAAP revenue and core revenue for Q2 fiscal year 2025 are set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core revenue growth rate as projected for Q3 fiscal year 2025 and full fiscal year 2025 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided for the projection. (2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of restructuring and other related costs, asset impairments, intangibles amortization, transformational initiatives, acquisition and integration costs and net (gain) loss on equity securities. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure. (3) Non-GAAP earnings per share as projected for Q3 fiscal year 2025 and full fiscal year 2025 exclude primarily the estimated impacts of non-cash intangibles amortization, transformational initiatives, and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $25 million per quarter. AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three Months Ended Six Months Ended April 30, April 30, 2025 2024 2025 2024 Net revenue $ 1,668 $ 1,573 $ 3,349 $ 3,231 Costs and expenses: Cost of products and services 802 717 1,584 1,467 Research and development 112 113 225 241 Selling, general and administrative 454 380 864 776 Total costs and expenses 1,368 1,210 2,673 2,484 Income from operations 300 363 676 747 Interest income 14 19 29 37 Interest expense (29 ) (20 ) (57 ) (42 ) Other income (expense), net (25 ) 12 (21 ) 35 Income before taxes 260 374 627 777 Provision for income taxes 45 66 94 121 Net income $ 215 $ 308 $ 533 $ 656 Net income per share: Basic $ 0.75 $ 1.05 $ 1.87 $ 2.24 Diluted $ 0.75 $ 1.05 $ 1.86 $ 2.23 Weighted average shares used in computing net income per share: Basic 285 293 285 293 Diluted 285 293 286 294 The preliminary income statement is estimated based on our current information. Page 1 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY April 30, October 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,486 $ 1,329 Accounts receivable, net 1,366 1,324 Inventory 991 972 Other current assets 365 334 Total current assets 4,208 3,959 Property, plant and equipment, net 1,912 1,778 Goodwill 4,474 4,477 Other intangible assets, net 495 547 Long-term investments 135 175 Other assets 934 910 Total assets $ 12,158 $ 11,846 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 517 $ 540 Employee compensation and benefits 347 368 Deferred revenue 628 544 Short-term debt 146 45 Other accrued liabilities 374 398 Total current liabilities 2,012 1,895 Long-term debt 3,349 3,345 Retirement and post-retirement benefits 126 130 Other long-term liabilities 535 578 Total liabilities 6,022 5,948 Total Equity: Stockholders' equity: Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding — — Common stock; $0.01 par value, 2,000,000,000 shares authorized; 283,936,028 shares at April 30, 2025 and 285,193,011 shares at October 31, 2024, issued and outstanding 3 3 Additional paid-in-capital 5,501 5,450 Retained earnings 912 750 Accumulated other comprehensive loss (280 ) (305 ) Total stockholders' equity 6,136 5,898 Total liabilities and stockholders' equity $ 12,158 $ 11,846 The preliminary balance sheet is estimated based on our current information. Page 2 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Six Months Ended April 30, April 30, 2025 2024 Cash flows from operating activities: Net income $ 533 $ 656 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 145 125 Share-based compensation 70 75 Deferred taxes expense (benefit) (28 ) (7 ) Excess and obsolete inventory related charges 22 23 Net (gain) loss on equity securities 27 (4 ) Asset impairment charges 15 8 Other non-cash (income) expense, net 2 (4 ) Changes in assets and liabilities: Accounts receivable, net (27 ) 44 Inventory (41 ) 3 Accounts payable (27 ) 64 Employee compensation and benefits (25 ) (47 ) Other assets and liabilities (14 ) (118 ) Net cash provided by operating activities (a) 652 818 Cash flows from investing activities: Payments to acquire property, plant and equipment (211 ) (193 ) Payments to acquire equity securities — (3 ) Payments in exchange for convertible note (1 ) (8 ) Payments to acquire businesses and intangible assets, net of cash acquired 4 — Net cash used in investing activities (208 ) (204 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 31 43 Payment of taxes related to net share settlement of equity awards (24 ) (26 ) Payments for repurchase of common stock (255 ) (230 ) Payment of excise taxes related to repurchases of common stock (10 ) — Payments of dividends (141 ) (138 ) Proceeds from issuance of long-term debt 4 — Repayments of long-term debt (1 ) (180 ) Net proceeds from (repayment of) short-term debt 100 — Net cash used in financing activities (296 ) (531 ) Effect of exchange rate movements 9 (2 ) Net increase (decrease) in cash, cash equivalents and restricted cash 157 81 Cash, cash equivalents and restricted cash at beginning of period 1,332 1,593 Cash, cash equivalents and restricted cash at end of period $ 1,489 $ 1,674 Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet: Cash and cash equivalents $ 1,486 $ 1,671 Restricted cash, included in other assets 3 3 Total cash, cash equivalents and restricted cash $ 1,489 $ 1,674 (a) Cash payments included in operating activities: Income tax payments, net of refunds received $ 248 $ 224 Interest payments, net of capitalized interest $ 51 $ 40 The preliminary cash flow is estimated based on our current information. Page 3 AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three Months Ended Six Months Ended April 30, April 30, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP net income $ 215 $ 0.75 $ 308 $ 1.05 $ 533 $ 1.86 $ 656 $ 2.23 Non-GAAP adjustments: Restructuring and other related costs 56 0.20 1 — 57 0.20 4 0.01 Asset impairments 15 0.05 — — 15 0.05 8 0.03 Intangible amortization 27 0.10 26 0.09 55 0.19 52 0.18 Transformational initiatives 24 0.08 1 — 30 0.10 4 0.01 Acquisition and integration costs 3 0.01 (1 ) — 12 0.04 1 — Net (gain) loss on equity securities 27 0.10 (1 ) — 27 0.10 (1 ) — Pension settlement loss — — — — 14 0.05 — — Other 9 0.03 7 0.02 15 0.05 1 — Adjustment for taxes (a) (3 ) (0.01 ) 15 0.06 (8 ) (0.02 ) 11 0.04 Non-GAAP net income $ 373 $ 1.31 $ 356 $ 1.22 $ 750 $ 2.62 $ 736 $ 2.50 (a) The adjustment for taxes excludes tax expense (benefits) that management believes are not directly related to on-going operations and which are either isolated, temporary or cannot be expected to occur again with any regularity or predictability such as the realized gain/loss due to sale of a business, windfall benefits on stock compensation, and the impact of R&D capitalization under section 174 of the Tax Cuts and Jobs Act of 2017. For the three months ended April 30, 2025, management used a non-GAAP effective tax rate of 11.50%. For the six months ended April 30, 2025, management used a non-GAAP effective tax rate of 12.00%. For the three months ended April 30, 2024, management used a non-GAAP effective tax rate of 12.46%. For the six months ended April 30, 2024, management used a non-GAAP effective tax rate of 13.00%. We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future. These supplemental measures exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs, net (gain) loss on equity securities and pension settlement loss. Restructuring and other related costs include incremental expenses incurred in the period associated with restructuring programs, usually aimed at changes in business and/or cost structure. Such costs may include one-time termination benefits including acceleration of stock-based compensation expense, facility-related costs and contract termination fees. Asset impairments include assets that have been written down to their fair value. Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers including costs to move manufacturing, site consolidations, legal entity and other business reorganizations, insourcing or outsourcing of activities. Such costs may include move and relocation costs, one-time termination benefits and other one-time reorganization costs. Included in this category are also expenses associated with the Ignite transformation and company programs to transform our product lifecycle management (PLM) system and human resources and financial systems. Acquisition and integration costs include all incremental expenses incurred to effect a business combination. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, the transfer of assets and intellectual property, information technology systems and infrastructure and other employee-related costs. Net (gain) loss on equity securities relates to the realized and unrealized mark-to-market adjustments for our marketable and non-marketable equity securities. Pension settlement loss resulted from the transfer of the Netherlands defined benefit plan to an unaffiliated insurance company. Other includes certain legal costs and settlements, consulting costs, special compliance costs, acceleration of stock-based compensation expense and other miscellaneous adjustments. Our management uses non-GAAP measures to evaluate the performance of our core businesses, to estimate future core performance and to compensate employees. Since management finds this measure to be useful, we believe that our investors benefit from seeing our results "through the eyes" of management in addition to seeing our GAAP results. This information facilitates our management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Our management recognizes that items such as amortization of intangibles can have a material impact on our cash flows and/or our net income. Our GAAP financial statements including our statement of cash flows portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded items are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the GAAP income statement. The non-GAAP numbers focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies. The preliminary non-GAAP net income and diluted EPS reconciliation is estimated based on our current information. Page 4 AGILENT TECHNOLOGIES, INC. SEGMENT INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Quarter-over-Quarter Life Sciences and Diagnostics Markets Segment Q2'25 Q2'24 Revenue $ 654 $ 604 Gross Margin, % 52.8 % 55.1 % Income from Operations $ 129 $ 115 Operating margin, % 19.7 % 19.0 % Agilent CrossLab Segment Q2'25 Q2'24 Revenue $ 713 $ 664 Gross Margin, % 55.5 % 56.6 % Income from Operations $ 231 $ 216 Operating margin, % 32.4 % 32.5 % Applied Markets Segment Q2'25 Q2'24 Revenue $ 301 $ 305 Gross Margin, % 53.5 % 54.2 % Income from Operations $ 59 $ 64 Operating margin, % 19.5 % 21.0 % Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives and acquisition and integration costs. Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies. The preliminary segment information is estimated based on our current information. Page 5 AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (In millions) (Unaudited) PRELIMINARY Year-over-Year GAAP GAAP Revenue by Segment Q2'25 Q2'24 Year-over-Year % Change Life Sciences and Diagnostics Markets Segment $ 654 $ 604 8% Agilent CrossLab Segment 713 664 7% Applied Markets Segment 301 305 (1%) Agilent $ 1,668 $ 1,573 6% Non-GAAP (excluding Acquisitions & Divestitures) Year-over-Year at Constant Currency (a) Non GAAP Revenue by Segment Q2'25 Q2'24 Year-over-Year % Change Year-over-Year % Change Percentage Point Impact from Currency Current Quarter Currency Impact (b) Life Sciences and Diagnostics Markets Segment $ 617 $ 604 2% 3% -1 ppt $ (7 ) Agilent CrossLab Segment 713 664 7% 9% -2 ppts (13 ) Applied Markets Segment 301 305 (1%) — -1 ppt (5 ) Agilent (Core) $ 1,631 $ 1,573 4% 5% -1 ppt $ (25 ) We compare the year-over-year change in revenue excluding the effect of recent acquisitions and divestitures and foreign currency rate fluctuations to assess the performance of our underlying business. (a) The constant currency year-over-year growth percentage is calculated by recalculating all periods in the comparison period at the foreign currency exchange rates used for accounting during the last month of the current quarter and then using those revised values to calculate the year-over-year percentage change. (b) The dollar impact from the current quarter currency impact is equal to the total year-over-year dollar change less the constant currency year-over-year change. The preliminary reconciliation of GAAP revenue adjusted for recent acquisitions and divestitures and impact of currency is estimated based on our current information. Page 6 View source version on Contacts Investor Contact: Parmeet Ahuja+1 408-345-8948parmeet_ahuja@ Media Contact: Andréa Topper+1
Yahoo
23-05-2025
- Business
- Yahoo
Mitchells & Butlers reports revenue of £1.45bn for HY2025
Managed restaurants and pubs operator Mitchells & Butlers, which operates establishments such as O'Neill's, Harvester and Toby Carvery, has reported half-year 2025 (the second half of the fiscal year, or HY2025) revenue of £1.45bn compared to £1.39bn in HY2024. During the 28 weeks ended 12 April 2025, operating profit stood at £181m against £164m in the same period of the previous year. It expects to see costs increase by £130m, attributing this to labour cost hikes and anticipated food price surges, particularly of meat. The company's current year cost forecast of a £100m increase remains steady, with the surge primarily attributed to rises in the National Living Wage and employer National Insurance contributions (NICs) that will affect the latter half of the year. In its half-year results, Mitchells & Butlers showcased a trading performance, with pre-tax profits climbing 24% to £134m for the 28 weeks ending 12 April 2025. Spring 2025 saw a 6% uplift in like-for-like sales, bolstered by Easter and Mother's Day, with drinks sales outperforming food sales, rising 5.1% compared to 3.6%. The company also reported an improved operating margin of 12.4%, up from 11.7%. Mitchells & Butlers CEO Phil Urban stated: 'The strength of our first half performance is driven by continued focus on maximising the guest appeal of our diverse portfolio of brands to drive sales, supported by efficiency initiatives delivered through our Ignite programme of work. We are delighted with the like-for-like sales performance, which continues to outperform against the market. 'As we enter the second half of the year, with increased employer National Insurance contributions, we remain focused on the effective delivery of our Ignite programme of initiatives and our capital investment programme, driving further cost efficiencies and increased sales.' "Mitchells & Butlers reports revenue of £1.45bn for HY2025" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
