Thermo Fisher Scientific to Invest $2 Billion in U.S. Innovation and Manufacturing

Thermo Fisher Scientific announced a new $2 billion investment plan to expand U.S.-based innovation and manufacturing operations over the next four years. The initiative includes $1.5 billion in capital expenditures to enhance domestic manufacturing and $500 million in R&D focused on breakthrough innovations.

This move reflects the company’s confidence in the U.S. as a global leader in science and technology. Thermo Fisher currently operates 64 manufacturing sites in 37 U.S. states, producing instruments, diagnostics, life sciences tools, and offering pharmaceutical manufacturing services. The company has grown significantly since 2017, more than doubling revenue to $43 billion and increasing its U.S. workforce from 28,000 to over 50,000 employees.

CEO Marc N. Casper emphasized the company's role in enabling the development and production of life-saving therapies within the U.S., helping to secure the nation’s healthcare supply chain and stimulate economic growth.

Thermo Fisher Scientific Q1 2025 Earnings Summary

Financial highlights
- Revenue: $10.36 billion, slightly up from $10.34 billion in Q1 2024
- GAAP diluted EPS: $3.98, an increase of 15 percent year-over-year
- Adjusted EPS: $5.15, a 1 percent increase from Q1 2024
- Free cash flow: $373 million, down from $908 million in the prior-year quarter

Margins and operating performance
- GAAP operating margin: 16.6 percent, compared to 16.1 percent a year ago
- Adjusted operating margin: 21.9 percent, compared to 22.0 percent in Q1 2024
- GAAP operating income: $1.72 billion
- Adjusted operating income: $2.27 billion

Segment revenue (Q1 2025)
- Life sciences solutions: $2.34 billion
- Analytical instruments: $1.72 billion
- Specialty diagnostics: $1.15 billion
- Laboratory products and biopharma services: $5.64 billion

Strategic and operational developments
- New product launches included Vulcan automated lab for semiconductor analysis, Olink Reveal proteomics kits for inflammation research, and Cryofuge, BIOS, and LYNX centrifuges featuring energy-efficient refrigeration
- Strategic partnership with the Chan Zuckerberg Institute for biological imaging technology
- Launch of CorEvitas registries for systemic lupus erythematosus and adolescent alopecia areata

Acquisitions and capital deployment
- Agreement to acquire Solventum’s purification and filtration business for $4.1 billion
- Repurchased $2.0 billion of stock
- Increased quarterly dividend by 10 percent

Outlook
- Updated 2025 financial guidance to be provided during the April 23 earnings call

CEO commentary
Marc N. Casper emphasized strong operational execution in a challenging macroeconomic environment. He stated the company is well-positioned to continue helping customers succeed and create long-term value.

Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, announced that it will release its financial results for the first quarter 2025 before the market opens on Wednesday, April 23, 2025, and will hold a conference call on the same day at 8:30 a.m. ET.

Thermo Fisher Scientific has launched the Vulcan Automated Lab, an advanced solution aimed at transforming semiconductor analysis. This system integrates robotic handling with artificial intelligence-enhanced instruments to optimize transmission electron microscopy metrology workflows, enhancing efficiency, increasing semiconductor yield, and reducing operational costs.

As the semiconductor industry advances with miniaturization and increasing complexity, manufacturers require atomic-scale transmission electron microscopy metrology data to maintain efficiency and meet demand. The Vulcan Automated Lab addresses this challenge by automating materials handling and data connectivity, streamlining the metrology data collection process, and bridging the time-to-data gap that traditional methods face.

Thermo Fisher CEO Marc N. Casper emphasized the company’s commitment to supporting semiconductor manufacturers through electron microscopy innovation and artificial intelligence-driven analytical capabilities, enabling higher productivity in semiconductor fabrication facilities.

The Vulcan Automated Lab is now commercially available. More details can be found on Thermo Fisher's website.

Thermo Fisher price target lowered to $570 from $650 at Citi

Thermo Fisher Scientific announced an agreement to acquire Solventum Corporation’s purification and filtration business for approximately $4.1 billion in cash. The acquisition is expected to be completed by the end of 2025, subject to customary closing conditions and regulatory approvals.

The deal aligns with Thermo Fisher’s strategy to enhance its bioprocessing portfolio by integrating Solventum’s purification and filtration technologies. The company anticipates that the acquisition will strengthen its capabilities in supporting biologics production and improve its market position in the growing life sciences sector.

source: Thermo Fisher Scientific, February 25, 2025.

Thermo Fisher Scientific has announced an agreement to acquire Solventum’s Purification & Filtration business for approximately $4.1 billion in cash. This acquisition enhances Thermo Fisher’s bioproduction business by expanding its capabilities in bioprocessing, complementing its existing portfolio in cell culture media and single-use technologies.

Solventum’s Purification & Filtration business, which generated about $1 billion in revenue in 2024, specializes in purification and filtration technologies used in biologics production, medical technologies, and industrial applications. The business operates globally with approximately 2,500 employees.

Thermo Fisher’s chairman and CEO, Marc N. Casper, emphasized that this acquisition aligns with the company’s strategy of disciplined capital deployment and customer value creation. The transaction, expected to close by the end of 2025, is subject to regulatory approvals. Once completed, the business will be integrated into Thermo Fisher’s Life Sciences Solutions segment.

The acquisition is expected to drive mid- to high-single-digit organic growth and generate approximately $125 million in adjusted operating income from synergies by year five. Thermo Fisher anticipates an initial dilution of $0.06 to adjusted EPS in the first year but expects it to be accretive by $0.28 excluding financing costs.

source: Thermo Fisher Scientific, February 25, 2025.

Thermo Fisher Scientific announced the election of Karen S. Lynch to its board of directors, effective February 19, 2025, bringing the total number of board members to 12.

Ms. Lynch is a seasoned healthcare executive with over three decades of experience. She previously served as president and CEO of CVS Health, where she led over 300,000 employees and oversaw health care and pharmacy benefits for more than 120 million consumers. Prior to her leadership at CVS, she held executive positions at Aetna, Magellan Health Services, and Cigna. She began her career as a Certified Public Accountant at Ernst & Young and has served on the boards of CVS Health and U.S. Bancorp.

Marc N. Casper, chairman, president, and CEO of Thermo Fisher Scientific, expressed enthusiasm about her appointment, emphasizing the value of her expertise as the company continues to grow.

Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that its Board of Directors authorized a quarterly cash dividend of $0.43 per common share, payable on April 15, 2025, to shareholders of record as of March 14, 2025. This reflects an 10% increase over the previous dividend payment of $0.39.

Thermo Fisher Scientific reported its financial results for the fourth quarter and full year of 2024. Fourth-quarter revenue grew by 5% to $11.40 billion, while GAAP diluted earnings per share (EPS) increased by 14% to $4.78. Adjusted EPS for the quarter rose 8% to $6.10. Full-year revenue remained flat at $42.88 billion compared to the previous year. However, full-year GAAP diluted EPS rose by 7% to $16.53, and adjusted EPS increased by 1% to $21.86.

The company highlighted its strategic initiatives in 2024, including the launch of innovative products such as the Thermo Scientific Iliad Transmission Electron Microscope and the Thermo Scientific Stellar mass spectrometer. It also introduced Accelerator Drug Development, aimed at streamlining drug development. Thermo Fisher completed the acquisition of Olink and returned $4.6 billion to shareholders through stock buybacks and dividends.

GAAP operating income for the fourth quarter was $2.02 billion, with an operating margin of 17.7%. Adjusted operating income reached $2.72 billion, yielding a 23.9% adjusted operating margin. For the full year, GAAP operating income was $7.34 billion, while adjusted operating income was $9.71 billion. The adjusted operating margin for the year was 22.6%.

Despite flat overall revenue growth for the full year, the company maintained strong profitability and continued investing in growth initiatives. The company will provide its financial guidance for 2025 during its earnings call. Thermo Fisher remains committed to supporting scientific advancements and enhancing customer productivity through its extensive product portfolio and strategic partnerships.

Thermo Fisher Scientific Inc. (TMO) has demonstrated resilience amid recent market fluctuations. As of January 28, 2025, the stock is trading at $582.96, reflecting a slight decrease of 0.12% from the previous close. Notably, the stock has risen by approximately 3% since early November 2024 and nearly 11% in January 2025.

In its third-quarter report released in October 2024, Thermo Fisher raised the lower end of its annual profit forecast for the third time that year, now expecting earnings per share between $21.35 and $22.07. This adjustment is attributed to strong demand for the company's tools and services used in drug development. The company maintained its annual revenue forecast of $42.4 billion to $43.3 billion.

Thermo Fisher's diversified product range and minimal reliance on National Institutes of Health funding have helped mitigate potential risks associated with changes in the political landscape. Analysts project earnings growth of 5% in 2025, accelerating to 11% by 2026. At current levels, the stock trades at a reasonable multiple compared to rivals, with Wall Street remaining bullish on its prospects.

In January 2025, Thermo Fisher announced that its Olink® Reveal platform was selected for the world's largest human proteome study, underscoring the company's commitment to advancing scientific research. Overall, Thermo Fisher Scientific continues to exhibit strong financial performance and strategic initiatives, reinforcing its position as a leader in the life sciences industry.