Labcorp Q1 2025 Earnings Summary

Revenue and Earnings
- Revenue: $3.35 billion, up 5.3% from Q1 2024
- Organic revenue growth: 2.1%
- GAAP diluted EPS: $2.52 (down from $2.69)
- Adjusted EPS: $3.84 (up from $3.68)
- Operating income: $326 million (9.7% margin)
- Adjusted operating income: $469 million (14.0% margin)

Segment Performance
- Diagnostics Laboratories revenue: $2.63 billion (up 6%)
- Adjusted operating margin: 16.3% (down 60 basis points)
- Biopharma Laboratory Services revenue: $721 million (up 1.5%)
- Adjusted operating margin: 14.8% (up 80 basis points)

Cash Flow and Balance Sheet
- Operating cash flow: $18.5 million (versus $(29.8) million last year)
- Free cash flow: $(107.5) million (better than $(163.6) million last year)
- Cash and cash equivalents: $369 million
- Total debt: $5.57 billion

Capital Allocation
- Invested $210.5 million in acquisitions and partnerships
- Paid $61.6 million in dividends
- Announced quarterly dividend of $0.72 per share, payable June 11, 2025

Strategic Updates
- Completed or announced partnerships and acquisitions with Inspira Health, BioReference Health, and North Mississippi Health Services
- Launched new tests: Labcorp Plasma Complete for cancer, pTau-217/Beta Amyloid 42 Ratio test for Alzheimer’s, and expanded self-collection options
- Introduced eClaim Assist platform to improve billing efficiency

Updated 2025 Guidance
- Revenue growth: 6.7% to 8.0% (unchanged)
- Adjusted EPS: raised midpoint to $16.05 (range $15.70 to $16.40)
- Free cash flow: $1.10 billion to $1.25 billion (unchanged)

Labcorp Holdings Inc. (NYSE: LH) announced today that its Board of Directors has declared a cash dividend of $0.72 per share of common stock. The dividend will be payable on June 11, 2025, to stockholders of record as of the close of business on May 29, 2025.

Labcorp reported strong financial results for the fourth quarter and full year of 2024. In Q4, revenue increased to $3.33 billion from $3.03 billion, while full-year revenue reached $13.01 billion, up from $12.16 billion. Diluted EPS for Q4 was $1.70, a significant improvement from a loss of $(1.95) in the same quarter last year, and full-year EPS rose to $8.84 from $4.33. Adjusted EPS for Q4 was $3.45, up from $3.30, and free cash flow for Q4 was $665.1 million, compared to $412.4 million in the previous year.

In 2024, Labcorp completed 10 transactions and launched new innovative tests across various specialty areas, including oncology and neurology. For 2025, the company expects revenue to range from $13.88 billion to $14.05 billion, with adjusted EPS projected between $15.60 and $16.40. Labcorp also announced a quarterly dividend of $0.72 per share, to be paid in March 2025.